In compliance with relevant State laws and regulations, following are the major forms of foreign investment:
Sino-Foreign Equity Joint Venture
An enterprise formed within China jointly by a foreign firm or others economic entity or individual and a Chinese company or economic entity. It is a limited liability company that enjoys the status of a legal person and is protected by Chinese laws. Each party shares risks of profit and loss according to the size of investment contribution. Of the registered capital of such a joint venture, contribution from the foreign partner should not in general be below 25% and no allowance is made for either party to withdraw the invested amount the tenure of operation.
Sino-Foreign Contractual Joint Venture
An economic entity set up within China jointly invested and run by a foreign firm or other economic body or individual and its both parties. It is a depart in compliance with the home legalist status as well as a kind of contractual cooperative venture subject to the signed contract which clearly specifies the rights and obligations, proportion of profit sharing, shouldering of risks and liabilities, the adoption of management from and means of settlement.
Wholly Foreign-Owned Enterprise
An enterprise established in China with exclusive capital investment by a foreign firm, economic entity or individual in accordance with Chinese laws. It is a limited liability company that had the status of a legal person and takes profits and risks all on its own.
The Other Major Investment Forms
Foreign-funded holdings company; Foreign-funded financial institution; Cooperative development; Money deposit in Chinese banks; Compensation trade; Processing and assembling with materials and parts from foreign supplies; International leasing; Technology Transfer; Loan; Purchase of bonds and stocks;