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ART1-6Law of the China on Sino-foreign Equity Joint Ventures


Chapter I General Principles

Article 1 These Regulations are formulated in order to facilitate the implementation of the Law of the People's Republic of China on Sino-foreign Equity Joint Ventures (hereinafter referred to as the Law on Sino-foreign Joint Ventures)

Article 2 Sino-foreign equity joint ventures (hereinafter referred to as joint ventures) established within China's territory in accordance with the Law on Sino-foreign Joint Ventures are Chinese legal persons and are subject to the jurisdiction and protection of the Chinese law.(中国法律知识网|www.law-info.cn)

Article 3 Joint ventures established within China's territory must be able to promote the development of China's economy and the improvement of the science and technology for the benefit of socialist modernization.(中国法律知识网|www.law-info.cn)

Businesses and industries in which the establishment of joint ventures is encouraged, prohibited or restricted by the State shall be decided in accordance with provisions of the State in the Regulations on Foreign Investment Guidelines and the Guideline Catalogue of Foreign Investment Industries.(中国法律知识网|www.law-info.cn)

Article 4 Applications to establish joint ventures shall not be granted approval if the project involves any of the following conditions:

(1) detriment to China's sovereignty

(2) violation of the Chinese law

(3) nonconformity with the requirements of the development of China's national economy

(4) environmental pollution

(5) obvious inequity in the agreements, contracts and articles of association signed impairing the rights and interests of one party

Article 5 A joint venture has the right to do business independently within the scope of the provisions of Chinese laws, administrative regulations, and the agreement, contract and articles of association of the joint venture. The relevant departments and authorities concerned shall provide support and assistance.(中国法律知识网|www.law-info.cn)

Chapter II Establishment & Registration

Article 6 The establishment of a joint venture in China shall be subject to examination and approval by the Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China (hereinafter referred to as MOFTEC)。 After approval, a certificate of approval shall be issued by MOFTEC.(中国法律知识网|www.law-info.cn)

The State Council shall delegate to the people's governments in provinces, autonomous regions and centrally administered municipalities and relevant departments under the State Council the power to examine and approve the establishment of joint ventures that meet the following conditions:

(1) the total amount of investment is within the limit of the investment examination and approval power as stipulated by the State Council, and the source of capital of the Chinese parties has been ascertained

(2) no additional allocations of raw materials by the State are required and the national balance of fuel, power, transportation and foreign trade export quotas, etc. is not affected.(中国法律知识网|www.law-info.cn)

Joint ventures established in accordance with provisions of the proceeding paragraph shall be reported to MOFTEC for the record.(中国法律知识网|www.law-info.cn)

MOFTEC and the State Council authorized people's governments in provinces, autonomous regions and centrally administered municipalities and relevant departments under the State Council shall hereinafter be referred to as the examination and approval authority.(中国法律知识网|www.law-info.cn)


Source: www.law-info.cn
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