International Investment Treaties
Agreement on the Promotion and Reciprocal Protection of Investments between Jordan and the People’s Republic of China
The agreement creates a legal framework to promote and protect reciprocal investments between Jordan and China, with broad definitions of covered assets and investors and core principles on treatment and protection. It also sets practical rules on transfers, expropriation, and dispute settlement, and includes a protocol addressing currency formalities and administrative review procedures applicable to China.
Updated: 15 December 2021
Prepared and reviewed by: Ashraf Al-Khawaja
Scope, Definitions and Covered Assets
The treaty defines key terms—such as “investment,” “investor,” “returns,” and “territory”—and lists a wide range of covered assets including movable and immovable property, company shares, financial claims, intellectual property rights and concessions. Practically, these definitions afford broad coverage for various project forms and rights, subject to the host State’s law and approvals, and stipulate that changes in the legal form or reinvestment do not affect an asset’s status as an investment provided prior approvals are respected.
Protection, Fair Treatment and Core Standards
The treaty guarantees full protection and security and fair and equitable treatment for covered investments, and requires both national treatment and most‑favoured‑nation treatment, while allowing investors to choose the more favourable of the two. Practically, these provisions prohibit discriminatory measures that would hinder development, management or disposal of investments, and clarify that certain customs, economic union or tax agreements may be treated as exceptions to the obligations.
Expropriation and Compensation
Expropriation is prohibited except for public purpose, on a non‑discriminatory basis, in accordance with domestic due process, and accompanied by compensation equal to the market value of the investment immediately prior to expropriation plus commercial interest until payment. Practically, the treaty secures investors’ right to prompt judicial or competent independent review in the host State; compensation must be freely transferable and paid without undue delay.
Transfers and Subrogation (Assignment of Claims)
The treaty guarantees investors the right to transfer investment capital and returns in a convertible currency without undue delay; “without delay” is interpreted as within two months from the transfer request. It also provides for subrogation—recognising the assignment of an investor’s claims to the home State or its agency if that party compensates the investor under a guarantee. Practically, the host State must facilitate transfers at the prevailing market exchange rate, subject to any restrictions arising from IMF obligations.
Dispute Settlement, Entry into Force, and Protocol Specifics for China
The treaty prescribes amicable settlement of investor–State disputes within six months, after which the investor may choose domestic courts of the host State or international arbitration (ICSID or an ad hoc UNCITRAL tribunal). State‑to‑State disputes are to be resolved diplomatically and, failing that, by arbitration with detailed appointment and cost‑allocation rules; awards are final and binding. The agreement enters into force upon diplomatic notification that internal requirements have been met, remains in force for ten years with tacit renewal, and contains a survival clause extending protection for ten years for investments made before termination. The signing protocol for China specifies that China’s currency‑exchange formalities apply but must not be used to evade obligations, and that exhaustion of specified local administrative review procedures may be required prior to international arbitration, with that review lasting no more than four months.
Legal notice
Notice: The foregoing is general educational information only. The original text is linked on the source page and should be consulted; applicable laws, amendments and dates must be verified, and you should seek advice from a licensed attorney before taking any action.
Sources and references
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