New Guidance on Domestic Investment by Foreign Investment Enterprise

January 31, 2001 | BY

clpstaff

On July 25 2000, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the State Administration of Industry and Commerce (SAIC) issued Investment…

On July 25 2000, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the State Administration of Industry and Commerce (SAIC) issued Investment Within China by Foreign Investment Enterprises Tentative Provisions (the Regulations). The Regulations clarify the nature, the conditions and the relevant approval procedures of domestic investment by Foreign Investment Enterprises (FIEs) in an effort to further standardize domestic investment activities of FIEs.

Application

FIEs that take the form of limited liability companies or stock limited companies shall comply with the Regulations in their incorporation or acquisition of equities in other enterprises on the mainland.

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