Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) on Issues Concerning Technology Introduction of Enterprises with Foreign Investment

WaiJingMaoZiFa [1999] No.573

September 28, 1999

MOFTEC has consulted with the State Administration of Foreign Exchange (SAFE) on issues concerning the foreign exchange purchase and payment of enterprises with foreign investment for technology introduction. Today SAFE promulgated the Circular for Simplifying Procedures of Foreign Exchange Sale and Payment of Enterprises with Foreign Investment for Technology Introduction. To render coordination in this regard, related issues are hereby notified as follows:

1.

Competent local foreign trade and economic authorities should fully comply with the provisions in the state laws and regulations governing foreign capital attraction and the Circular for Simplifying Procedures of Foreign Exchange Sale and Payment of Enterprises with Foreign Investment for Technology Introduction of the State Administration of Foreign Exchange and carefully conduct examination and approval of technology introduction contracts of enterprises with foreign investment.

2.

When newly approved enterprises with foreign investment are formulating their joint operation contracts and statutes, if the attachments of the joint operation contracts include those of technology introduction, it should be clearly stated in the approval document that the approved joint operation contract includes an attachment of technology introduction contract (the name of the technology introduction contract should be clearly stated).

3.

Technology introduction contracts that have been approved as the attachments of the joint operation contracts of enterprises with foreign investment should be confirmed by the foreign capital administration department of former examination and approval authorities with a confirmation letter, in which the name of the technology introduction contract should be clearly stated.

4.

All competent foreign trade and economic authorities should strengthen their examination of the authenticity of technology introduction contracts. Foreign investors contributing capital in the form of technology do not fall in the range of confirmation.

It is hereby notified.