1. The Parties recognize the importance of promoting cross-border investment flows as a means to achieve economic growth and development. Subject to their laws and regulations, the Parties shall cooperate to promote investment between China and Ecuador by, inter alia:
(a) identify investment opportunities;
(b) intensify investment promotion campaigns;
(c) share information on measures to promote investment abroad;
(d) exchange information on laws, regulations and investment policies;
(e) help investors understand the investment regulations and investment environment of both Parties;
(f) improving the environment with a view to increasing investment flows; and
(g) promote links between Chinese and Ecuadorian agencies with a view to promoting bilateral investment.
2. Recognizing that facilitating the "Go Global" efforts of Chinese enterprises is a key pillar of bilateral cooperation, the Parties will intensify their collaboration in this area. To this end, the Parties will endeavor to identify and share information on potential outbound investment sectors and activities and encourage such enterprises to invest in the other Party.
Article 9.2. Investment Facilitation
1. Subject to its laws and regulations, each Party shall facilitate the investments of the other Party by, inter alia:
(a) improve the transparency and efficiency of their domestic investment environment, with the objective of facilitating quality investment between the Parties.
(b) create the necessary environment for all forms of investment, including but not limited to the creation of favorable conditions for the transfer of money for any investment project;
(c) simplify procedures for investment applications and approvals;
(d) promoting the dissemination of investment information, including but not limited to rules, regulations, policies, other bilateral and multilateral trade agreements and investment procedures; and
(e) improving the one-stop investment window in the respective host parties to provide assistance and advisory services to the business sectors, including the facilitation of operating licenses and permits.
2. Subject to its domestic laws and regulations, the Party shall make available to investors of the other Party and their investments the measures prescribing the formalities for the establishment of an investment. The Party shall protect any confidential business information from any disclosure that might prejudice the competitive position of the investor or the investment. Nothing in this paragraph shall be construed to prevent a Party from obtaining or disclosing information relating to the equitable and good faith application of its domestic law.
3. The Parties shall facilitate compliance by investors and their investments with the standards required for environmental and social impact assessment and evaluation processes applicable to their proposed investments prior to their establishment, as required by the laws of the host Party for such investment.
Article 9.3. Environmental Measures
Recognizing the importance of promoting investment for green growth, the Parties shall refrain from relaxing environmental measures to encourage investment by investors of the other Party. To this end, cach Party shall not waive or otherwise derogate from environmental measures as an inducement for the establishment, acquisition or expansion of investment in its territory.
Article 9.4. Corporate Social Responsibility
1. The Parties reaffirm that investors and their investments shall comply with the host State's domestic laws and regulations on corporate social responsibility or responsible business conduct.
2. Each Party confirms the importance of internationally recognized standards, guidelines and principles of corporate social responsibility or responsible business conduct that have been promoted by that Party.
3. Each Party agrees to encourage investors and enterprises operating within its territory or subject to its jurisdiction to incorporate the standards, guidelines and principles provided for in paragraph 2 into their business practices and internal policies on a voluntary basis.
4. The Parties shall cooperate and facilitate joint initiatives, through the Commission provided for in Article 14.1 (Free Trade Commission), to promote corporate social responsibility or responsible business conduct.
Article 9.5. Non-Application of Dispute Settlement
No Party may have recourse to Chapter 13 (Dispute Settlement) for any matter arising out of or relating to this Chapter.
Chapter 10. E-Commerce
Article 10.1. Definitions
For the purposes of this Chapter:
digital certificates are electronic documents or files issued or otherwise linked to a Party, in an electronic communication or transaction, for the purpose of establishing the identity of the Party;
electronic authentication means the process or act of providing verification of authenticity and reliability to the parties involved in an electronic signature; to ensure the integrity and security of an electronic communication or transaction;
electronic signature means data in electronic form that is contained in, attached to, or logically associated with a data message and that can be used to identify the signatory in relation to the data message and to indicate the signatory's approval of the information contained in the data message;
data message means information generated, sent, received or stored by electronic, optical or similar means;
electronic version of a document means a document in an electronic format prescribed by a Party, including a document sent by facsimile;
trade administration documents means forms issued or controlled by a Party to be completed by or for an importer or exporter in connection with the importation or exportation of goods;
unsolicited commercial electronic message means an electronic message that is sent for commercial or marketing purposes to an electronic address, without the recipient's consent or despite the recipient's explicit refusal, through an Internet access service provider;
electronic transmission or electronically transmitted means a transmission made using any electromagnetic means, including photonic means, and
personal information means any information, including data, about an identified or identifiable natural person.
Article 10.2. General Provisions
1. The Parties recognize the economic growth and opportunities offered by electronic commerce, as well as the importance of avoiding unnecessary obstacles to its use and development in accordance with this Agreement.
2. The purposes of this Chapter are to promote electronic commerce between the Parties and the wider use of electronic commerce worldwide.
3. Considering the potential of electronic commerce as a tool for social and economic development, the Parties recognize the importance of:
(a) the clarity, transparency and predictability of their national regulatory frameworks to facilitate, to the extent possible, the development of electronic commerce;
(b) encourage self-regulation in the private sector to promote confidence in electronic commerce, taking into account the interests of users, through initiatives such as sectoral guidelines, model contracts, codes of conduct and trust seals;
(c) interoperability, to facilitate electronic commerce; @ innovation and digitalization in e-commerce;
(d) ensure that international and national e-commerce policies take into account the interests of its stakeholders;
(e) facilitating access to electronic commerce for Small and Medium-Sized Enterprises (hereinafter referred to as "SMEs") (4) , and
(g) guarantee the security of e-commerce users, as well as their right to personal data protection.
4. The Parties shall, in principle, endeavor to ensure that bilateral trade in electronic commerce is no more restricted than comparable bilateral non-electronic trade.
Article 10.3. Transparency
1. Each Party shall as soon as practicable, or where that is not practicable, make publicly available, including on the Internet where practicable, all relevant measures of general application relating to or affecting the operation of this Chapter.
2. Each Party shall respond as soon as possible to a relevant request from the other Party for specific information on any of its measures of general application relating to or affecting the operation of this Chapter.
Article 10.4. National Framework for Electronic Transactions
1. Each Party shall maintain a legal framework governing electronic transactions consistent with the principles of the 1996 UNCITRAL Model Law on Electronic Commerce.
2. Each Party shall adopt or maintain measures regulating electronic transactions based on the following principles:
(a) A transaction, including a contract, shall not be denied legal effect, validity or enforceability solely because it takes the form of an electronic communication; and
(b) Parties should not arbitrarily discriminate between different forms of electronic transactions.
3. Nothing in paragraphs 1 and 2 prevents a Party from making exceptions in its domestic law to the general principles set forth in paragraphs 1 and 2.
4. Each Party shall endeavor to:
(a) minimize the regulatory burden on e-commerce; and
(b) ensure that regulatory frameworks support the development of e-commerce.
Article 10.5. Electronic Authentication and Electronic Signatures
1. No Party may adopt or maintain legislation for electronic signatures that denies the legal validity of a signature solely on the basis that the signature is in electronic form.
2. Each Party shall maintain national legislation for electronic signatures that allows:
(a) the parties to an electronic transaction mutually determine the appropriate method of electronic signature and authentication, unless there is a national or international legal requirement to the contrary; and
(b) that electronic authentication agencies have the opportunity to demonstrate to judicial or administrative authorities that their electronic authentication of electronic transactions complies with the legal requirements with respect to electronic authentication.
3. Each Party shall work towards mutual recognition of digital certificates and electronic signatures.
4. Each Party shall encourage the use of digital certificates in the business sector.
Article 10.6. Online Consumer Protection
1. Each Party shall adopt or maintain, to the extent possible and in the manner it considers appropriate, measures that provide protection to consumers using electronic commerce that are at least equivalent to measures that provide protection to consumers of other forms of commerce.
2. The Parties recognize the importance of adopting and maintaining transparent and effective consumer protection measures for electronic commerce, as well as other measures conducive to the development of consumer confidence.
3. Each Party shall adopt or maintain laws or regulations to provide protection to consumers using electronic commerce against fraudulent and deceptive practices that cause harm or potential harm to such consumers.
4. The Parties recognize the importance of cooperation between their respective competent authorities responsible for consumer protection in activities related to electronic commerce in order to improve consumer protection.
Article 10.7. Protection of Online Personal Information
1. Recognizing the importance of protecting personal information in electronic commerce, cach Party shall adopt or maintain domestic laws and other measures to ensure the protection of personal information of users of electronic commerce.
2. The Parties shall encourage legal entities to publish, including on the Internet, their policies and procedures related to the protection of personal information.
3. The Parties shall cooperate, to the extent possible, for the protection of personal information transferred from a Party.
Article 10.8. Paperless Trading
1. Each Party shall make every effort to accept electronic versions of the trade administration documents used by the other Party as the legal equivalent of paper documents, except when:
(a) there is a national or international legal requirement to the contrary; or
(b) doing so would reduce the efficiency of the trade administration process.
2. Each Party shall endeavor to work toward the development of a single window for government that incorporates relevant international standards for the conduct of trade administration, recognizing that each Party will have its own unique requirements and conditions.
Article 10.9. Unsolicited Commercial Electronic Messages
The Parties shall adopt or maintain measures to protect users from unsolicited commercial electronic messages.
1. Each Party shall adopt or maintain measures with respect to unsolicited commercial electronic communications that:
(a) require providers of unsolicited commercial electronic communications to offer recipients the possibility of preventing the continued receipt of such messages; or
(b) require the consent of the recipients, as applicable in accordance with the legal system of each Party, to receive electronic commercial communications.
2. Each Party shall endeavor to establish mechanisms against providers of unsolicited commercial electronic communications that have not complied with the measures adopted or maintained in accordance with paragraph 1.
3. The Parties shall endeavor to cooperate in appropriate cases of mutual interest related to the regulation of unsolicited commercial electronic messages.
Article 10.10. Network Equipment
1. Both Parties recognize the importance of network equipment and e-commerce related products in safeguarding the healthy development of e-commerce.
2. Both Parties should strive to create a beneficial environment for public telecommunications networks, service providers or value-added service providers to independently choose network equipment, products and technologies.
Article 10.11. Cooperation
1. The Parties shall encourage cooperation in research and training activities that enhance the development of electronic commerce, including through the exchange of best practices on the development of electronic commerce.
2. The Parties shall encourage cooperative activities to promote electronic commerce, including those that improve the effectiveness and efficiency of electronic commerce.
3. The cooperative activities referred to in paragraphs 1 and 2 may include, but are not limited to:
(a) sharing best practices on regulatory frameworks;
(b) share best practices on online consumer protection, including unsolicited commercial e-mails;
(c) working together to help small and medium-sized enterprises overcome barriers to the use of e-commerce; and
(e) other areas agreed between the Parties.
4. The Parties shall endeavor to undertake forms of cooperation that build upon and do not duplicate existing cooperative initiatives in international fora.
5. The Parties shall endeavor to provide technical assistance, share information and experiences on laws, regulations and programs in the field of electronic commerce, including those related to:
(a) protection of personal data, particularly for the purpose of strengthening international cooperation mechanisms in compliance with the personal data protection legislation of each Party, to natural persons engaged in electronic commerce, for the exercise of the rights and remedies for the protection of personal data provided for in the legislation of each Party;
(b) online consumer protection;
(c) security in electronic communications;
(d) electronic authentication; and
(e) digital government.
6. The Parties shall endeavor to share and disseminate market alerts to prevent fraudulent commercial practices to the detriment of the consumer, in accordance with each Party's legislation.
Article 10.12. Cybersecurity Cooperation
1. The Parties recognize the importance of:
(a) develop the capabilities of their national entities responsible for cybersecurity incident response; and
(b) use existing collaborative mechanisms to cooperate in the identification and mitigation of malicious intrusions or dissemination of malicious code affecting the Parties' electronic networks.
2. The Parties shall endeavor to promote actions for the prevention of and protection against various types of cybersecurity incidents.
Article 10.13. Data Innovation
1. The Parties recognize that digitization and the use of data in the digital economy promote economic growth. To support the cross-border transfer of information by electronic means and promote data-driven innovation in the digital economy, the Parties further recognize the need to create an environment that enables and supports, and is conducive to, experimentation and innovation.
2. The Parties shall endeavor to support data innovation by:
(a) collaboration in data exchange projects, including projects involving researchers, academics and industry;
(b) cooperation in the development of policies and standards for data portability; and
(c) the exchange of research and industry practices related to data innovation.
Article 10.14. SMEs and Start-ups
1. The Parties recognize the fundamental role of SMEs and Start-ups in maintaining dynamism and improving competitiveness in the digital economy.
2. With a view to enhancing trade and investment opportunities for SMEs in the digital economy, the Parties shall strive to:
(a) exchange information and best practices to leverage digital tools and technology to enhance the capabilities and market reach of SMEs and Start-ups;
(b) encourage the participation of SMEs and Start-ups in online platforms and other mechanisms that can help SMEs and Start-ups link with potential international suppliers, buyers and other business partners; and
(c) foster close cooperation in digital areas that can help SMEs and start-ups adapt and thrive in the digital economy.
Article 10.15. Non-application of Dispute Settlement
No Party may have recourse to Chapter 13 (Dispute Settlement) of this Agreement for any matter arising under this Chapter.
Chapter 11. Competition
Article 11.1. Objectives
Each Party understands that the prohibition of anticompetitive business conduct, the enforcement of competition policies and cooperation on competition matters help to avoid undermining the benefits of trade and investment liberalization and to promote economic efficiency and consumer welfare.
Article 11.2. Competition Laws and Authorities
1. Each Party shall maintain or adopt competition laws (5) to promote and protect the competitive process in its market by prohibiting at least the anticompetitive business practices listed in Article 11.13 (Definitions).
2. Each Party shall maintain an authority or authorities responsible for the enforcement of its national competition laws.
3. Each Party shall also take appropriate measures, in accordance with the relevant laws of cach Party with respect to anti-competitive business practices, which shall avoid undermining the benefits of trade liberalization.
Article 11.3. Principles In the Application of the Law
1. Each Party shall be consistent with the principles of the rule of law, transparency, non-discrimination and procedural fairness in the application of competition law.
2. Each Party shall accord to persons of the other Party treatment no less favorable than to persons of the Party in like circumstances in the application of competition law.
3. Each Party shall ensure that before imposing a sanction or remedy against a person for an alleged violation of its national competition laws, such person shall be provided with a reasonable opportunity to present an opinion or evidence in his or her defense.
4. Each Party shall provide a person who is subject to the imposition of a sanction or remedy for violation of its national competition laws the opportunity to seck review of the sanction or remedy through administrative reconsideration and/or before an independent judicial authority of that Party in accordance with its law.
Article 11.4. Transparency
1. Each Party shall make public its competition laws, including procedural rules for investigation.
2. Each Party shall ensure that a final administrative decision finding a violation of its national competition laws is made in writing and sets forth the relevant findings of fact and the legal basis on which the decision is based.
3. Each Party shall make a final decision and any order implementing the decision publicly available in accordance with its domestic competition laws. Each Party shall ensure that the version of the decision or order that is made publicly available does not include confidential business information (6) protected from public disclosure by its national laws.
Article 11.5. Cooperation In Law Enforcement
1. The Parties recognize the importance of cooperation and coordination in the field of competition between their respective national competition authorities to promote the effective application of competition law in the free trade area. Accordingly, each Party shall cooperate through notification, consultations, exchange of information and technical cooperation.
2. The Parties agree to cooperate in a manner consistent with their respective laws and important interests and within reasonably available resources.