Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures (Amended in 2017)
Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures (Amended in 2017)
Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures (Amended in 2017)
Order of the President of the People's Republic of China No. 81
November 4, 2017
(Adopted at the first Session of the Standing Committee of the 7th National People's Congress on April 13, 1988; amended for the first time according to the Decision on Revising the Sino-Foreign Cooperative Joint Venture Law made at the 18th Session of the Standing Committee of the 9th National People's Congress on October 31, 2000; amended for the second time according to the Decision of the Standing Committee of the National People's Congress on Revising Four Laws including the Law of the People's Republic of China on Wholly Foreign-owned Enterprises made at the 22nd Session of the Standing Committee of the 12th National People's Congress on September 3, 2016; amended for the third time according to the Decision on Revising Twelve Laws including the Foreign Trade Law of the People's Republic of China made at the 24th Session of the Standing Committee of the 12th National People's Congress on November 7, 2016; and amended for the fourth time according to the Decision of the Standing Committee of the National People's Congress on Amending Eleven Laws Including the Accounting Law of the People's Republic of China at the 30th Session of the Standing Committee of the 12th National People's Congress on November 4, 2017)
Article 1 This Law is enacted for the purposes of increasing economic cooperation and technological exchange with foreign countries and encouraging foreign enterprises, other economic organizations, or individuals (the "foreign party") to jointly establish Sino-foreign cooperative joint ventures (the "cooperative enterprises") within the territory of the People's Republic of China with Chinese enterprises or other economic organizations (the "Chinese party") in accordance with the principles of equality and mutual benefit.
Article 2 When establishing a cooperative enterprise, both Chinese and foreign parties shall, in accordance with the provisions of this Law, stipulate in their cooperative enterprise contract such items as the investment or pre-requisites for cooperation, the distribution of earnings or products, the sharing of risk and loss, the mode of operation and management, and the ownership of property upon termination of the cooperative enterprise.
A cooperative enterprise which meets the conditions for being considered a legal person as specified in relevant Chinese law is to lawfully acquire said status of a Chinese legal person.
Article 3 The State shall protect the lawful rights and interests of the cooperative enterprise and of both Chinese and foreign parties according to law.
A cooperative enterprise must abide by Chinese laws and regulations, and shall not damage the public interest of China.
The relevant State organs shall supervise cooperative enterprises according to law.
Article 4 The State encourages the establishment of cooperative production enterprises that export products or have advanced technology.
Article 5 When applying to establish a cooperative enterprise, such documents as the agreement, the contract, and the company charter, each signed by both Chinese and foreign parties, shall be submitted to the department under the State Council in charge of foreign economic trade or to a department authorized by the State Council and a relevant local government (the "examination and approval authority") for examination and approval.
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Order of the President of the People's Republic of China No. 81
November 4, 2017
(Adopted at the first Session of the Standing Committee of the 7th National People's Congress on April 13, 1988; amended for the first time according to the Decision on Revising the Sino-Foreign Cooperative Joint Venture Law made at the 18th Session of the Standing Committee of the 9th National People's Congress on October 31, 2000; amended for the second time according to the Decision of the Standing Committee of the National People's Congress on Revising Four Laws including the Law of the People's Republic of China on Wholly Foreign-owned Enterprises made at the 22nd Session of the Standing Committee of the 12th National People's Congress on September 3, 2016; amended for the third time according to the Decision on Revising Twelve Laws including the Foreign Trade Law of the People's Republic of China made at the 24th Session of the Standing Committee of the 12th National People's Congress on November 7, 2016; and amended for the fourth time according to the Decision of the Standing Committee of the National People's Congress on Amending Eleven Laws Including the Accounting Law of the People's Republic of China at the 30th Session of the Standing Committee of the 12th National People's Congress on November 4, 2017)
Article 1 This Law is enacted for the purposes of increasing economic cooperation and technological exchange with foreign countries and encouraging foreign enterprises, other economic organizations, or individuals (the "foreign party") to jointly establish Sino-foreign cooperative joint ventures (the "cooperative enterprises") within the territory of the People's Republic of China with Chinese enterprises or other economic organizations (the "Chinese party") in accordance with the principles of equality and mutual benefit.
Article 2 When establishing a cooperative enterprise, both Chinese and foreign parties shall, in accordance with the provisions of this Law, stipulate in their cooperative enterprise contract such items as the investment or pre-requisites for cooperation, the distribution of earnings or products, the sharing of risk and loss, the mode of operation and management, and the ownership of property upon termination of the cooperative enterprise.
A cooperative enterprise which meets the conditions for being considered a legal person as specified in relevant Chinese law is to lawfully acquire said status of a Chinese legal person.
Article 3 The State shall protect the lawful rights and interests of the cooperative enterprise and of both Chinese and foreign parties according to law.
A cooperative enterprise must abide by Chinese laws and regulations, and shall not damage the public interest of China.
The relevant State organs shall supervise cooperative enterprises according to law.
Article 4 The State encourages the establishment of cooperative production enterprises that export products or have advanced technology.
Article 5 When applying to establish a cooperative enterprise, such documents as the agreement, the contract, and the company charter, each signed by both Chinese and foreign parties, shall be submitted to the department under the State Council in charge of foreign economic trade or to a department authorized by the State Council and a relevant local government (the "examination and approval authority") for examination and approval.
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