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| FORMS OF INVESTMENT |
Chinese-foreign equity joint venture (hereinafter referred to as the equity joint venture)
An equity joint venture is an incorporated company of limited liabilities which, after being approved by the Chinese Government according to the Chinese laws, is established in China by a foreign corporation, enterprise and other economic entities on the basis of equity and mutual benefit. Both parties shall make investment in the enterprise according to the proportion mutually agreed upon and shall jointly manage the enterprise, bear risks, share profits or losses.
Sino-foreign contractual cooperative enterprise (hereinafter referred to as CCE)
A CCE refers to an economic organization which, upon approval by the Chinese government, is established by a foreign enterprise, economic entity or individual and a Chinese enterprise or other economic entities in China, according to the Law of the People's Republic of China on Sino-Foreign Contractual Cooperative Enterprise and based on a contract which stipulates the right and obligations of each party.
Enterprise operated exclusively with foreign capital
(hereinafter referred to as the wholly foreign-owned enterprise)
A wholly foreign-owned enterprise is an enterprise established exclusively by a foreign corporation, enterprise, other economic entity or individual in China according to the Law of the People's Republic of China on Enterprise Operated Exclusively with Foreign Capital and approved by the Chinese Government. It does not include branches set up in China by a foreign corporation, enterprise or other economic entity.
Mergers and acquisitions of domestic enterprises by foreign investors
Mergers and acquisitions of a domestic enterprise by foreign investors mean that foreign investors, by agreement, purchase equity from shareholders of domestic enterprise with no foreign investment or subscribe to the increase in the registered capital of the domestic company with the result that such domestic company changes into a foreign investment enterprise; or the foreign investors establish a foreign investment enterprise and then, through such enterprise, purchase the assets of a domestic enterprise by agreement or the foreign investors purchase the assets of a domestic enterprise by agreement and use such assets as investment to establish a foreign investment enterprise to operate such assets.
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| Approval Authority Limit of Minhang District |
People's Government of Minhang District, entrusted by Shanghai Foreign Investment Commission, is responsible for the examination and approval of an encouraged or permitted project with its total investment under USD 30 million, which is to be located in Minhang District.
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| Approval Procedures of Enterprises with Foreign Investment |
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