Mechanism for Settlement of Investment Disputes

Mechanism for Settlement of Investment Disputes

Dispute Settlement between a Hong Kong Investor and the Mainland

According to Article 19 of the Investment Agreement, a dispute arising from a claim by a Hong Kong investor that it or its covered investment has suffered losses or damages resulting from a breach by the Mainland authorities or institutions of the obligations provided in the Investment Agreement¹ in relation to the Hong Kong investors or their covered investments (hereinafter referred to as "investment disputes") may be settled by the following means:

1. resolution through amicable consultation between the disputing parties;
2. resolution through the complaint handling organisations for foreign investors in the Mainland in accordance with the relevant requirements of the Mainland. For details, please refer to "Measures on the Handling of Complaints by Foreign-invested Enterprises" (in Chinese only);
3. resolution through the function of notification and coordination of investment disputes under Article 17 (Committee on Investment) of the Investment Agreement;
4. resolution through administrative review in accordance with the laws of the Mainland. For details, please refer to "Law on Administrative Review" (in Chinese only);
5. resolution through mediation whereby a Hong Kong investor may submit an investment dispute arising from the Investment Agreement between that investor and the Mainland to a mediation institution of the Mainland side;
6. recourse to the judicial proceedings under the laws of the Mainland.

Dispute Settlement between a Mainland Investor and Hong Kong

According to Article 20 of the Investment Agreement, a dispute arising from a claim by a Mainland investor that it or its covered investment has suffered losses or damages resulting from a breach by the Hong Kong authorities or institutions of the obligations provided in the Investment Agreement¹ in relation to the Mainland investors or their covered investment, may be settled by the following means:

1. resolution through amicable consultation between the disputing parties;
2. resolution through the complaint handling mechanism established by the relevant Hong Kong authorities or institutions in accordance with the relevant requirements of Hong Kong;
3. resolution through the function of notification and coordination of investment disputes established under Article 17 (Committee on Investment) of the Investment Agreement;
4. resolution through mediation whereby a Mainland investor may submit an investment dispute arising from the Investment Agreement¹ between that investor and Hong Kong to a mediation institution of Hong Kong;
5. recourse to the judicial proceedings under the laws of Hong Kong.