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1、Law of the Peoples Republic of China on Chinese-Foreign Contractual Joint Ventures(Adopted at the First Session of the Seventh National Peoples Congress on April 13, 1988,amended according to the Decision on Revision of the Law of the Peoples Republic of China on Chinese-Foreign Contractual Joint Ve
2、ntures adopted at the 18th Meeting of the Standing Committee of the Ninth National Peoples Congress on October 31, 2000)Article 1 This Law is formulated to expand economic cooperation and technological exchange with foreign countries and to promote the joint establishment, on the principles of equal
3、ity 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 (hereinaf
4、ter referred to as contractual joint ventures ) within the territory of the Peoples 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 suc
5、h 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,
6、 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 f
7、oreign parties.A contractual joint venture shall abide by Chinese laws and regulations and may not injure the public interests of China.The relevant State authority shall exercise supervision over the contractual joint ventures according to law.Article 4 The State shall encourage the establishment o
8、f 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 par
9、ties 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 examinati
10、on and approval authority shall, within 45 days from the date 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 from the date of receiving the certif
11、icate of approval, apply to the administrative department for industry and commerce for registration in order to obtain a business license. The date of issue of the business license of contractual joint venture shall be the date of its establishment.A contractual joint venture shall, within 30 days
12、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 repo
13、rt 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 department for industry and commerce and with the tax authorities.Ar
14、ticle 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 sh
15、all, in accordance with the provisions of the laws and regulations and the agreements in the contractual joint venture contract, duly fulfill their obligations of contributing full investment and providing the conditions for cooperation. In case of failure to do so within the prescribed time, the ad
16、ministrative department 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 department for industry and commerce according to relevant State regulations.The investments or conditions for cooperation provided by the Chinese and foreign parties
