What are the provisions of the foreign investment law applicable to business ventures in China?

The foreign investment law applicable to business ventures in China governs all investments made by foreign entities in China. It covers a broad range of topics including foreign participation in domestic enterprises, acquisition of equity or assets of domestic enterprises, joint ventures, foreign investment companies, and income from investments. The main provisions of the foreign investment law address the establishment of foreign-invested entities, foreign-invested corporations and foreign joint ventures. It further stipulates the amount of foreign capital permitted to be invested, the amount of profit that may be taken out of China, and governmental approval for foreign investments. The law also outlines certain restrictions on foreign investment such as limits on the type of foreign-invested entities that can be established, limits on the percentage of foreign capital that can be used to establish a foreign-invested entity, and special qualifications for foreign investors. Furthermore, foreign investments must meet certain criteria with regards to technology, employment, and environmental protection. Moreover, the foreign investment law outlines the roles and responsibilities of the state administration of industry and commerce with respect to foreign-invested entities. It also outlines the regulatory framework for foreign investments, including reviewing foreign investments, approving establishment of foreign-invested entities, and imposing penalties. Finally, the foreign investment law sets out the foreign exchange controls applicable to foreign-invested entities. It requires that all foreign investments be registered with the local foreign exchange authority and that a foreign investor must obtain prior approval of the local foreign exchange authority for certain activities.

What are the provisions of the foreign investment law applicable to business ventures in China?

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