Home | Hotels | Hotels Video | China Flights | China Train Tickets | Main cities | China map | Contact us | Reservation Status  

 China Law information


LAW OF THE PEOPLE'S REPUBLIC OF CHINA ON CHINESE-FOREIGN CON-TRACTUAL JOINT VENTURES

LAW OF THE PEOPLE'S REPUBLIC OF CHINA ON CHINESE-FOREIGN CON-TRACTUAL JOINT VENTURES 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 LAW OF THE PEOPLE'S REPUBLIC OF CHINA ON CHINESE-FOREIGN CON- TRACTUAL JOINT VENTURES (Adopted at the First Session of the Seventh National People's Congress and promulgated by Order No. 4 of the President of the People's Republic of China on April 13, 1988, and effective as of the date of promulgation) Article 1 This Law is formulated to expand economic cooperation and technological exchange with foreign countries and to promote the joint establishment, on the principle of equality and mutual benefit, by foreign enterprises and other economic organizations or individuals (hereinafter referred to as the foreign party) and Chinese enterprises or other economic organizations (hereinafter referred to as the Chinese party) of Chinese-foreign contractual joint ventures (hereinafter referred to as contractual joint ventures) within the territory of the People's Republic of China.

Article 2 In establishing a contractual joint venture, the Chinese and foreign parties shall, in accordance with the provisions of this Law, prescribe in their contractual joint venture contract such matters as the investment or conditions for cooperation, the distribution of earnings or products, the sharing of risks and losses, the manners of operation and management and the ownership of the property at the time of the termination of the contractual joint venture.

A contractual joint venture which meets the conditions for being considered a legal person under Chinese law, shall acquire the status of a Chinese legal person in accordance with law.

Article 3 The state shall, according to law, protect the lawful rights and interests of the contractual joint ventures and of the Chinese and foreign parties.

A contractual joint venture must abide by Chinese laws and regulations and must not injure the public interests of China.

The relevant state authorities shall exercise supervision over the contractual joint ventures according to law.

Article 4 The state shall encourage the establishment of productive contractual joint ventures that are export-oriented or technologically advanced.

Article 5 For the purpose of applying for the establishment of a contractual joint venture, such documents as the agreement, the contract and the articles of association signed by the Chinese and foreign parties shall be submitted for examination and approval to the department in charge of foreign economic relations and trade under the State Council or to the department or local government authorized by the State Council (hereinafter referred to as the examination and approval authority). The examination and approval authority shall, within 45 days of receiving the application, decide whether or not to grant approval.

Article 6 When the application for the establishment of a contractual joint venture is approved, the parties shall, within 30 days of receiving the certificate of approval, apply to the administrative authorities for industry and commerce for registration and obtain a business license. The date of issuance of the business license of a contractual joint venture shall be the date of its establishment.

A contractual joint venture shall, within 30 days of its establishment, carry out tax registration with the tax authorities.

Article 7 If the Chinese and foreign parties, during the period of operation of their contractual joint venture, agree through consultation to make major modifications to the contractual joint venture contract, they shall report to the examination and approval authority for approval, if the modifications include items involving statutory industry and commerce registration or tax registration, they shall register the modifications with the administrative authorities for industry and commerce and with the tax authorities.

Article 8 The investment or conditions for cooperation contributed by the Chinese and foreign parties may be provided in cash or in kind, or may include the right to the use of land, industrial property rights, non-patent technology or other property rights.

Article 9 The Chinese and foreign parties shall, in accordance with the provisions of the laws and regulations and the agreements in the contractual joint venture contract, duly fulfil their obligations of contributing full investment and providing the conditions for cooperation. In case of failure to do so within the prescribed time, the administrative authorities for industry and commerce shall set another time limit for the fulfillment of such obligations; if such obligations are still not fulfilled by the new time limit, the matter shall be handled by the examination and approval authority and the administrative authorities for industry and commerce according to relevant state provisions.

The investments or conditions for cooperation provided by the Chinese and foreign parties shall be verified by an accountant registered in China or the relevant authorities, who shall provide a certificate after verification.

Article 10 If a Chinese or foreign party wishes to make an assignment of all or part of its rights and obligations prescribed in the contractual joint venture contract, it must obtain the consent of the other party or parties and report to the examination and approval authority for approval.

Article 11 A contractual joint venture shall conduct its operational and managerial activities in accordance with the approved contract and articles of association for the contractual joint venture. The right of a contractual joint venture to make its own operational and managerial decisions shall not be interfered with.

Article 12 A contractual joint venture shall establish a board of directors or a joint managerial institution which shall, according to the contract or the articles of association for the contractual joint venture, decide on the major issues concerning the venture. If the Chinese or foreign party assumes the chairmanship of the board of directors or the directorship of the joint managerial institution, the other party shall assume the vice- chairmanship of the board or the deputy directorship of the joint managerial institution. The board of directors or the joint managerial institution may decide on the appointment or employment of a general manager, who shall take charge of the daily operation and management of the contractual joint venture. The general manager shall be accountable to the board of directors or the joint managerial institution. If a contractual joint venture, after its establishment, chooses to entrust a third party with its operation and management, it must obtain the unanimous consent of the board of directors or the joint managerial institution, report to the examination and approval authority for approval, and register the change with the administrative authorities for industry and commerce.

Article 13 The employment, dismissal, remuneration, welfare, labour protection and labour insurance, etc. of the staff members and workers of a contractual joint venture shall be specified in contracts concluded in accordance with law.

Article 14 The staff and workers of a contractual joint venture shall, in accordance with law, establish their trade union organization to carry out trade union activities and protect their lawful rights and interests.

A contractual joint venture shall provide the necessary conditions for the venture's trade union to carry out its activities.

Article 15 A contractual joint venture must establish its account books within the territory of China, file its accounting statements according to relevant provisions and accept supervision by the financial and tax authorities.

If a contractual joint venture, in violation of the provisions prescribed in the preceding paragraph, does not establish its account books within the territory of China, the financial and tax authorities may impose a fine on it, and the administrative authorities for industry and commerce may order it to suspend its business operations or may revoke its business license.

Article 16 A contractual joint venture shall, by presenting its business license, open a foreign exchange account with a bank or any other financial institution which is permitted by the exchange control authorities of the state to conduct transactions in foreign exchange. A contractual joint venture shall handle its foreign exchange transactions in accordance with the provisions of the state on foreign exchange control.

Article 17 A contractual joint venture may obtain loans from financial institutions within the territory of China and may also obtain loans outside the territory of China. Loans to be used by the Chinese and foreign parties as investment or conditions for cooperation, and their guarantees, shall be provided by each party on its own.

Article 18 The various kinds of insurance coverage of a contractual joint venture shall be furnished by insurance institutions within the territory of China.

Article 19 A contractual joint venture may, within its approved scope of operation, import materials it needs and export products it produces. A contractual joint venture may purchase, on both the domestic market and the world market, the raw and processed materials, fuels, etc. within its approved scope of operation.

Article 20 A contractual joint venture shall achieve on its own the balance of its foreign exchange receipts and expenditures. If a contractual joint venture is unable to achieve the balance of its foreign exchange receipts and expenditures on its own, it may, in accordance with state provisions, apply to the relevant authorities for assistance.

Article 21 A contractual joint venture shall, in accordance with state provisions on tax, pay taxes and may enjoy the preferential treatment of tax reduction or exemption.

Article 22 The Chinese and foreign parties shall share earnings or products, undertake risks and losses in accordance with the agreements prescribed in the contractual joint venture contract.

If, upon the expiration of the period of a venture's operation, all the fixed assets of the contractual joint venture, as agreed upon by the Chinese and foreign parties in the contractual joint venture contract, are to belong to the Chinese party, the Chinese and foreign parties may prescribe in the contractual joint venture contract the ways for the foreign party to recover its investment ahead of time during the period of the venture's operation. If the foreign party, as agreed upon in the contractual joint venture contract, is to recover its investment prior to the payment of income tax, it must apply to the financial and tax authorities, which shall examine and approve the application in accordance with state provisions concerning taxes.

If, according to the provisions of the preceding paragraph, the foreign party is to recover its investment ahead of time during the period of the venture's operation, the Chinese and foreign parties shall, as stipulated by the relevant laws and agreed in the contractual joint venture contract, be liable for the debts of the venture.

Article 23 After the foreign party has fulfilled its obligations under the law and the contractual joint venture contract, the profits it receives as its share, its other legitimate income and the funds it receives as its share upon the termination of the venture, may be remitted abroad according to law.

The wages, salaries or other legitimate income earned by the foreign staff and workers of contractual joint ventures, after the payment of the individual income tax according to law, may be remitted abroad.

Article 24 Upon the expiration or termination in advance of the term of a contractual joint venture, its assets, claims and debts shall be liquidated according to legal procedures. The Chinese and foreign parties shall, in accordance with the agreement specified in the contractual joint venture contract, determine the ownership of the venture's property. A contractual joint venture shall, upon the expiration or termination in advance of its term, cancel its registration with the administrative authorities for industry and commerce and the tax authorities.

Article 25 The period of operation of a contractual joint venture shall be determined through consultation by the Chinese and foreign parties and shall be clearly specified in the contractual joint venture contract. If the Chinese and foreign parties agree to extend the period of operation, they shall apply to the examination and approval authority 180 days prior to the expiration of the venture's term. The examination and approval authority shall decide whether or not to grant approval within 30 days of receiving the application.

Article 26 Any dispute between the Chinese and foreign parties arising from the execution of the contract or the articles of association for a contractual joint venture shall be settled through consultation or mediation. In case of a dispute which the Chinese or the foreign party is unwilling to settle through consultation or mediation, or of a dispute which they have failed to settle through consultation or mediation, the Chinese and foreign parties may submit it to a Chinese arbitration agency or any other arbitration agency for arbitration in accordance with the arbitration clause in the contractual joint venture contract or a written agreement on arbitration concluded afterwards. The Chinese or foreign party may bring a suit in a Chinese court, if no arbitration clause is provided in the contractual joint venture contract and if no written agreement is concluded afterwards.

Article 27 The detailed rules for the implementation of this Law shall be formulated by the department in charge of foreign economic relations and trade under the State Council and reported to the State Council for approval before implementation.

Article 28 This Law shall come into force as of the date of its promulgation.


Search China Hotels China Hotels:
Please Select a City:
Find Your Hotel With China Map
Check-in:
Show Calendar
Check-out:
Show Calendar
Currency Adults Child

Search China Flight Ticket China Flight:
One Way Round-Trip
Departure city:
Destination:
Departure date:
Return date:



China Cities:
China Introduction
Beijing Travel Info
Changchun Travel Info
Changsha Travel Info
Chengde Travel Info
Chengdu Travel Info
Chongqing Travel Info
Dali Travel Info
Dunhuang Travel Info
Guilin Travel Info
Haikou Travel Info
Hangzhou Travel Info
Harbin Travel Info
Nanning Travel Info
Ningbo Travel Info
Qingdao Travel Info
Shanghai Travel Info
Shenyang Travel Info
Shenzhen Travel Info
Suzhou Travel Info
Taian Travel Info
Tianjin Travel Info
Weihai Travel Info
Wuyishan Travel Info
Xiamen Travel Info
Xian Travel Info
Yangzhou Travel Info
Zhuhai Travel Info

China Hotels
Aksu
Alxa
Anqing
Anshan
Anshun
Anyang
Baishan
Baoding
Baoji
Baotou
Bazhong
Beidaihe
Beihai
Beijing
Bengbu
Binzhou
Bozhou
Cangzhou
ChangChun
Changde
Changsha
Changshu
Changzhi
Changzhou
Chaohu
Chaoyang
Chaozhou
Chengde
Chengdu
Chenzhou
Chifeng
Chongqing
Chuxiong
Chuzhou
Cixi
Dali
Dalian
Dandong
Daqing
Datong
Daxinanling
Daye
Dehong
Dengfeng
Deyang
Dezhou
Dongguan
Dongxing
Dongying
Dujiangyan
Dunhuang
Emeishan
Enshi
FangChengGang
Fenghua
Fenghuang
Foshan
Fuding
Fushun
Fuyang
Fuzhou
Ganzhou
Guang'an
Guangyuan
GuangZhou
Guilin
Guiyang
Haikou
Haining
Handan
Hangzhou
Harbin
Hefei
Hegang
Heihe
Hengshui
Hengyang
Hetian
Heyuan
Heze
Hohhot
HongKong
Huaian
Huaibei
Huaihua
Huainan
Huangshan
Huangshi
Huizhou
Hulunbeier
Huzhou
Ji'an
Jiamusi
Jiangmen
Jiangyin
Jiaozuo
Jiaxing
Jiayuguan
Jieyang
Jilin
Jinan
Jincheng
Jingdezhen
Jinggangshan
Jingmen
Jingzhou
Jinhua
Jining
Jinzhong
Jiuhuashan
Jiujiang
Jiuquan
Jiuzhaigou
Jixi
Jiyuan
Kaifeng
Kaiping
Karamay
Kashen
Korla
Kunming
Kunshan
Langfang
Lanzhou
Leshan
Lhasa
Lianyungang
Liaocheng
Liaoyang
Lijiang
Linfen
Linyi
Lishui
Liuzhou
Longyan
Loudi
Luoyang
Lushan
Maanshan
Macau
Maoming
Meishan
Meizhou
Mianyang
Mudanjiang
Nanchang
Nanchong
Nanjing
Nanning
Nanping
Nantong
Nanyang
Ningbo
Ningde
Ordos
Panjin
Panzhihua
Penglai
Pingxiang
Pingyao
Putian
Putuoshan
Qian'nan
Qiandaohu
Qiandongnan
Qidong
Qingdao
Qingyuan
Qinhuangdao
Qionghai
Qiqihaer
Qitaihe
Quanzhou
Qufu
Qujing
Quzhou
Rizhao
Ruian
Sanmenxia
Sanming
Sanya
Shanghai
Shangrao
Shangri-la
Shantou
Shanwei
Shaoguan
Shaoshan
Shaoxing
Shenyang
Shenzhen
Shijiazhuang
Shishi
Shiyan
Shouguang
Suining
Suizhou
Suqian
Suzhou(Jiangsu)
Taian
Taicang
Taiyuan
Taizhou(Jiangsu)
Taizhou(Zhejiang)
Tangshan
Tengchong
Tianjin
Tianshui
Tieling
Tonghua
Tongliao
Tongling
Tongren
Turpan
Urumqi
Wanning
Weifang
Weihai
Weinan
Wenshan
Wenzhou
Wuhai
Wuhan
Wuhu
Wuwei
Wuxi
Wuyishan
Wuzhishan
Wuzhou
Xiamen
Xian
Xian'ning
Xiangfan
Xiangtan
Xianyang
Xiaogan
Xichang
Xilinhot
Xingyi
Xining
Xinxiang
Xinyu
Xinzhou
Xishuangbanna
Xitang
Xuchang
Xuzhou
Ya'an
Yancheng
Yandangshan
Yangjiang
Yangquan
Yangshuo
Yangzhou
Yanji
Yantai
Yibin
Yichang
Yichun
Yichun(Jiangxi)
Yinchuan
Yingkou
Yining
Yiwu
Yixing
Yiyang
Yongzhou
Yueqing
Yueyang
Yulin(Guangxi)
Yulin(Shaanxi)
Yuncheng
Yunfu
Zaozhuang
Zhangjiagang
Zhangjiajie
Zhangjiakou
Zhangzhou
Zhanjiang
Zhaoqing
Zhengzhou
Zhenjiang
Zhongshan
Zhongwei
Zhoukou
Zhoushan
Zhouzhuang
Zhuhai
Zhuji
Zhuzhou
Zibo
Zigong
Zunyi
| Home | Hotels | Hotels Video | China Flights | Flights Schedule | Pickup Service | Travel Packages | Affiliate | Add your hotels | Interprete Italiano-Cinese | Contact | Site Map | Link | FAQ | About Us
Copyright © 2001-2024 China Hotels Reservation - All Rights Reserved
Europe Office: ChinaHotelsReservation- Via Gerolamo Forni 64 - 20161 Milano - Fax 0291390522
China Office: China Travel(Hualv) Business co.,Ltd. - Tel 0086-577-88555070 Fax 0086-577-88522570
Xishan Donglu Xicen Gongyu 7 Zhuang 802 - 325005 Wenzhou China