State Council, Amending the «PRC, Wholly Foreign-owned Enterprise Law Implementing Rules» Decision

Promulgated: April 12 2001
Effective: as of date of promulgation

Main contents: The revised Law has the following amendments:
1. Article 3 is amended as follows: "The establishment of wholly foreign-owned enterprises must be beneficial to the development of China's national economy, and yield notable economic benefits. The State encourages wholly foreign-owned enterprises to use advanced technology and equipment, develop new products, upgrade and replace existing products, save energy and raw materials, and the State also encourages the establishment of wholly foreign-owned enterprises that export products."

2. Article 4 and Article 5 are consolidated and read as follows: "Industries in which the establishment of wholly foreign-owned enterprises is prohibited or restricted shall be handled in accordance with the provisions of the State for directing foreign investment and the Foreign Investment Industrial Guidance Catalogue."

3. The words "the ratio of sales of products on the domestic and foreign markets" are deleted from Article 10.