Land Use Rights as a Cooperation Condition:An Analysis

By Wantao Yang, Llinks Law Office, Shanghai

As most readers know, China has adopted a piecemeal approach in its commercial law reform agenda. It has designed many mechanisms to solve specific problems that foreign investors might face, and such an approach often offers flexibility and helps attract new investment. However, lacking a systematically designed investment structure, certain policies applicable to foreign-invested enterprises (FIEs) that were intended as preferential treatment may bring pitfalls to unwary investors. Land use right as a condition of a Sino-foreign cooperative business under the PRC Cooperative Joint Venture Law (中华人民共和国中外合作经营企业法)is a good example that warrants a closer examination.

Land Use Rights and CJVs