What laws apply to foreign investments in China?

When investing in China, it is important to understand the laws governing such investments. Generally, foreign investment in China is governed by the Law on Sino-foreign Equity Joint Ventures, the Law on Sino-foreign Contracts Joint Ventures, and the Foreign-invested Enterprise Law. The Law on Sino-foreign Equity Joint Ventures applies to investments between a Chinese entity and a foreign investor(s). This law sets out various procedures and regulations related to the establishment of the joint venture, including aspects such as business scope, shareholding structure, and management. The Law on Sino-foreign Contracts Joint Ventures sets out the terms and conditions related to the contractual relationship between Chinese and foreign parties. This law sets out the duties, rights, and obligations of the joint venture partners as well as the joint venture itself. Lastly, the Foreign-invested Enterprise Law sets out the legal framework for foreign-invested enterprises (FIEs) in China. This law outlines the approved forms of FIEs, such as joint ventures, wholly foreign-owned enterprises, and foreign-invested holding companies. It also sets out the procedures for the establishment and management of FIEs. Overall, foreign investments in China are governed by the laws mentioned above. As such, it is important for foreign investors to understand and comply with these laws in order to ensure a successful investment in the country.

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What laws apply to foreign investments in China?

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