PRC Sino-foreign Equity Joint Venture Law (2nd Revision)
中华人民共和国中外合资经营企业法（修正)
March 31, 2001 | BY
clpstaff &clp articles &Promulgated: March 15 2001Effective: as of date of promulgationMain contents: The Law has been amended as follows:1. Paragraph Two of Article 2: The original…
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."
5. Paragraph One of the original Article 9 that read: "The production and business plans of a joint venture shall be filed with the departments in charge for the record and shall be implemented through business contracts", is deleted.
6. Article 9 is now Article 10 and Paragraph Two of Article 9 becomes Paragraph One of Article 10. The original version read:"Purchases of required raw materials, fuel, parts, etc., by a joint venture shall be made first in China. Such purchases may also be made directly on the world market by the joint venture with its own foreign exchange funds." The amended version reads "An equity joint venture may, in accordance with principles of fairness and reasonableness, purchase such materials as raw materials, fuel, etc. required within its approved business scope on the domestic or international market."
7. Article 14 is now Article 15 and a new paragraph that reads: "If the parties to the equity joint venture have not made an arbitration clause in their contract or have not subsequently reached an arbitration agreement in writing, they may institute law suits in a people's court", is added as Paragraph Two.
8. The following sentence is deleted from Article 15: "The National People's Congress shall have the power to amend this Law."
clp reference:2310/01.03.15promulgated:2001-03-15effective:2001-03-15This premium content is reserved for
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