Regulations of the People's Republic of China on the Implementation of the Law on Chinese-foreign Joint Ventures

chapter I general provisions article 1 these regulations are formulated in order to facilitate the smooth implementation of the law of the people's Republic of China on Chinese-foreign joint ventures (hereinafter referred to as the law on Chinese-foreign joint ventures). Article 2 A Chinese-foreign equity joint venture (hereinafter referred to as a joint venture) approved for establishment in China in accordance with the Law on Chinese-foreign Equity Joint Ventures is a legal person in China and is governed and protected by the laws of China. Article 3 A joint venture established within the territory of China shall be able to promote China's economic development and improve its scientific and technological level, and be conducive to socialist modernization. The main industries that are allowed to set up joint ventures are:

(1) energy development, building materials industry, chemical industry and metallurgical industry;

(2) machinery manufacturing industry, instrument industry and offshore oil exploitation equipment manufacturing industry;

(3) electronics industry, computer industry and communication equipment manufacturing industry;

(4) light industry, textile industry, food industry, medicine and medical equipment industry, and packaging industry;

(5) agriculture, animal husbandry and aquaculture;

(6) Tourism and service industries. Article 4 A joint venture applying for establishment shall pay attention to economic benefits and meet one or more of the following requirements:

(1) Adopting advanced technology and equipment and scientific management methods can increase product variety, improve product quality and output, and save energy and materials;

(2) it is conducive to the technological transformation of enterprises, and can achieve less investment, quick results and great benefits;

(3) it can expand product exports and increase foreign exchange income;

(4) being able to train technicians and management personnel. Article 5 An application for the establishment of a joint venture shall not be approved under any of the following circumstances:

(1) It is detrimental to China's sovereignty;

(2) Violating the laws of China;

(three) does not meet the requirements of China's national economic development;

(4) causing environmental pollution;

(5) The signed agreement, contract and articles of association are obviously unfair and damage the rights and interests of one party to the joint venture. Article 6 Unless otherwise stipulated, the competent government department of the China joint venturer is the competent department of the joint venture (hereinafter referred to as the competent department of the enterprise). If a joint venture has two or more China partners and belongs to different departments or regions, a competent department of the enterprise shall be determined through consultation between the relevant departments and regions.

the competent department of the enterprise is responsible for guiding, helping and supervising the joint venture. Article 7 A joint venture has the right to operate and manage independently within the scope stipulated by the laws and regulations of China and the joint venture agreement, contract and articles of association. All relevant departments should give support and help. Chapter II Establishment and Registration Article 8 The establishment of a joint venture in China must be examined and approved by the Ministry of Foreign Economic Relations and Trade of the People's Republic of China (hereinafter referred to as the Ministry of Foreign Economic Relations and Trade). After approval, the Ministry of Foreign Economic Relations and Trade will issue an approval certificate.

The Ministry of Foreign Economic Relations and Trade may entrust the relevant people's governments of provinces, autonomous regions and municipalities directly under the Central Government or the relevant ministries and bureaus of the State Council (hereinafter referred to as the trustee) for examination and approval if the following conditions are met:

(1) The total investment is within the amount specified by the State Council, and the sources of funds of the China joint venture have been confirmed;

(2) It does not require the state to allocate more raw materials and does not affect the national balance of fuel, power, transportation and foreign trade export quotas.

after the trustee approves the establishment of a joint venture, it shall report to the Ministry of Foreign Economic Relations and Trade for the record, and the Ministry of Foreign Economic Relations and Trade shall issue an approval certificate.

(The Ministry of Foreign Economic Relations and Trade and the entrusted institution are hereinafter collectively referred to as the examination and approval institutions. Article 9 The establishment of a joint venture shall be handled according to the following procedures:

(1) The China venturer shall submit the project proposal and preliminary feasibility study report for the establishment of a joint venture with a foreign venturer to the competent department of the enterprise. After the proposal and the preliminary feasibility study report are examined and approved by the competent department of the enterprise and submitted to the examination and approval authority for approval, the parties to the joint venture can carry out all the work centered on the feasibility study, and then negotiate and sign the joint venture agreement, contract and articles of association.

(2) To apply for the establishment of a joint venture, the China venturer shall be responsible for submitting the following official documents to the examination and approval authority:

(1) Application for the establishment of a joint venture;

(2) the feasibility study report prepared by each worker of the joint venture;

(3) Joint venture agreements, contracts and articles of association signed by authorized representatives of the parties to the joint venture;

(4) a list of candidates for the chairman, vice-chairman and directors of the joint venture appointed by the parties to the joint venture;

(5) opinions on the establishment of the joint venture signed by the competent department of the China joint venture and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government where the joint venture is located.

the above documents must be written in Chinese, and items (2), (3) and (4) can be written in a foreign language agreed by the parties to the joint venture at the same time. The documents written in the two documents are equally authentic. Article 1 The examination and approval authority shall decide whether to approve or not within three months from the date of receiving all the documents specified in Item (2) of Article 9 of these Regulations. If the examination and approval authority finds that the above-mentioned documents are inappropriate, it shall request to amend them within a time limit, otherwise it will not be approved. Article 11 The applicant shall, within one month after receiving the approval certificate, go through the registration formalities with the administration for industry and commerce of the province, autonomous region or municipality directly under the Central Government (hereinafter referred to as the registration authority) where the joint venture is located in accordance with the provisions of the Measures of the People's Republic of China on the Administration of Registration of Chinese-foreign Joint Ventures. The date of issuance of the business license of a joint venture is the date of establishment of the joint venture.