PRC Sino-foreign Equity Joint Venture Law (2nd Revision)

Promulgated: March 15 2001
Effective: as of date of promulgation

Main contents: The Law has been amended as follows:

1. Paragraph Two of Article 2: The original version read "A joint venture shall observe the laws, decrees and relevant rules and regulations of the People's Republic of China in all its activities." The amended version now reads "A joint venture shall observe the laws and regulations of the People's Republic of China in all its activities."

2. Paragraph Four of Article 6: The original version read "Procedures concerning the employment and discharge of the workers and staff of a joint venture shall be stipulated in accordance with the law in the agreement or contract concluded between the parties to the venture." The amended version now reads "Procedures concerning the employment, discharge, remuneration, benefits, labour protection, labour insurance etc. of the workers and staff of a joint venture shall be stipulated according to law by conclusion of a contract."

3. A new article that reads: "Workers and staff of a joint venture may establish trade union organizations to conduct trade union activities and safeguard the lawful rights and interests of workers and staff."

"A joint venture shall provide its trade union with the necessary conditions for the union's activities", is added as Article 7.

4. Article 8 is now Article 9: The original version of Paragraph Four read "Any insurance policy taken out by a joint venture shall be taken out with a Chinese insurance company." The amended version now reads "Any insurance policy taken out by a joint venture shall be taken out with an insurance company inside China."