CIRCULAR OF THE STATE COUNCIL CONCERNING THE AUTHORIZATION OF THEPEOPLE'S GOVERNMENTS OF THE PROVINCES, AUTONOMOUS REGIONS, MUNICIPALITIESDIRECTLY UNDER THE CENTRAL GOVERNMENT, SPECIAL ECONOMIC ZONES, ANDMUNICIPALITIES SEPARATELY
CIRCULAR OF THE STATE COUNCIL CONCERNING THE AUTHORIZATION OF THEPEOPLE'S GOVERNMENTS OF THE PROVINCES, AUTONOMOUS REGIONS, MUNICIPALITIESDIRECTLY UNDER THE CENTRAL GOVERNMENT, SPECIAL ECONOMIC ZONES, ANDMUNICIPALITIES SEPARATELY
LISTED ON THE STATE PLAN TO EXAMINE AND APPROVEAPPLICATIONS
Important Notice:
This English document is coming from "LAWS AND REGULATIONS OF THE
PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7)
which is compiled by the Brueau of Legislative Affairs of the State
Council of the People's Republic of China, and is published by the China
Legal System Publishing House.
In case of discrepancy, the original version in Chinese shall prevail.
Whole Document
CIRCULAR OF THE STATE COUNCIL CONCERNING THE AUTHORIZATION OF THE
PEOPLE'S GOVERNMENTS OF THE PROVINCES, AUTONOMOUS REGIONS, MUNICIPALITIES
DIRECTLY UNDER THE CENTRAL GOVERNMENT, SPECIAL ECONOMIC ZONES, AND
MUNICIPALITIES SEPARATELY LISTED ON THE STATE PLAN TO EXAMINE AND APPROVE
APPLICATIONS FOR THE ESTABLISHMENT OF ENTERPRISES WITH FOREIGN CAPITAL
(June 9, 1988)
In accordance with the provisions of Article 6 of The Law of the People's
Republic of China on Foreign-Capital Enterprises, the State Council hereby
decides to authorize the people's governments of the provinces, autonomous
regions, municipalities directly under the Central Government, special
economic zones, and municipalities separately listed on the State plan to
examine and approve, in accordance with the following provisions,
applications for the establishment of enterprises with foreign capital.
1. With respect to enterprises to be established with foreign capital,
whose investment volume is below the norm prescribed by the State Council,
and which do not require comprehensive balance to be carried out by the
State concerning construction conditions and production/operation
conditions, the application for the establishment of the aforesaid
enterprises shall be examined and approved by the people's governments of
the provinces, autonomous regions, municipalities directly under the
Central Government, the special economic zones, or municipalities
separately listed on the State plan, and approval certificates shall be
issued to the aforesaid enterprises. However, if the products for domestic
sales, manufactured by the enterprises with foreign capital to be
established, belong in the categories of products the import of which is
restricted by the State, or if their products for export sales belong in
the categories of products for which export licences shall be issued by
the Ministry of Foreign Economic Relations and Trade or by the office of
its accredited representative, or in the categories of products subject to
quota control by the State; or lines of business and projects in which the
utilization of foreign capital is restricted by the State, the local
authorities should obtain the consent of the Ministry of Foreign Economic
Relations and Trade or the competent authorities concerned before they
approve the application.
2. With respect to enterprises to be established with foreign capital,
whose investment volume is above the norm prescribed by the State Council,
or whose investment volume is below the norm but their construction and
production/operation conditions require comprehensive balance to be
carried out by the State, the people's governments of the provinces,
autonomous regions, municipalities directly under the Central Government,
special economic zones, or municipalities separately listed on the State
plan shall comment on the applications before they forward the same to the
Ministry of Foreign Economic Relations and Trade for examination and
approval and for the issuance of approval certificates.
3. With respect to the enterprises with foreign capital to be established
which have been approved in accordance with the provisions of Article 1 of
this Circular, the examining and approving department shall, within thirty
days as of the date of approval, submit the applications for the
establishment of the said enterprises, together with the feasibility study
reports, the articles of association and the approval documents issued by
the examining and approving departments to the Ministry of Foreign
Economic Relations and Trade for the record. In the event that the
Ministry of Foreign Economic Relations and Trade, after receiving the said
documents submitted for the record, discovers that the enterprises whose
establishment has already been approved is not in conformity with the
provisions of Article 1 of this Circular, the Ministry of Foreign Economic
Relations and Trade shall exercise its veto power. However, the local
authorities concerned should be notified of this veto within thirty days,
beyond which the said veto shall be invalidated.
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