Laws of the People's Republic of China

AMENDMENT TO ARTICLE 100 OF THE "REGULATIONS
FOR IMPLEMENTATION OF THE LAW OF THE PEOPLE'S
REPUBLIC OF CHINA ON JOINT VENTURES USING
CHINESE AND FOREIGN INVESTMENT" 

(Amended by the State Council on January 15, 1986)

 

SUBJECT: EQUITY JOINT VENTURES

ISSUING-DEPT: STATE COUNCIL OF CHINA

ISSUE-DATE: 01/15/1986

IMPLEMENT-DATE: 01/15/1986

LENGTH: 230 words

TEXT:

Article 100 of the "Regulations for Implementation of the Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment" promulgated by the State Council on September 20, 1983 stipulates: "The duration of a joint venture shall be decided upon through consultation of all parties to the joint venture according to actual conditions of the particular lines of business and projects.  The duration of a joint venture engaged in an ordinary project requiring large amount of investment, long construction periods and low interest rate on funds can be extended to more than 30 years."

The above mentioned Article is now amended as follows: "The duration of a joint venture shall be decided upon through consultation of all parties to the joint venture according to actual conditions of the particular lines and projects.  The duration of a joint venture engaged in ordinary projects is ten to thirty years while the duration of a joint venture engaged in projects requiring large amount of investment, long construction periods and low interest rates on funds, producing highly sophisticated products with advanced or key technology supplied by foreign partner, or producing competitory products on world market, can be extended to 50 years.  The said duration can be extended to more than 50 years with the special approval by the State Council."