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 on the Administration of Foreign Investment Companies by the On-line Foreign Investment Administration System

WaiJingMao ZiSanHanZi [1997] No.300

July 4, 1997

The commissions (departments, bureaus) of foreign trade and economic cooperation of Beijing, Shanghai, Jiangsu, Zhejiang, Guangzhou, Shenzhen, Shangdong, Hainan, Liaoning, Fujian, Henan, Guangdong:

In accordance with relevant regulations in the Interim Provisions on the Establishment of Foreign Investment Companies, all the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) approval documents require timely submission of the Annual Reports by the companies concerned. From now on, the On-line Foreign Investment Administration System comes into force replacing the requirement in MOFTEC approval documents for the Annual Reports to keep abreast with the performance of the approved foreign investment companies (and their parent companies) as well as their invested enterprises in China. Detailed provisions are hereby publicized as follows:

1.

All foreign investment companies approved by MOFTEC shall register themselves in the MOFTEC network and complete the input and transmission of the required information, which must be identical with the annual reports. See Annex for specific information required.

2.

All foreign investment companies and their invested enterprises in China (including projects in China invested by their parent companies), upon approval by MOFTEC and reception of Approval Certificate, shall timely input the required information as specified in the network system and transmit it to the website of the Department of Foreign Investment Administration of MOFTEC according to the requirements provided in the approval letter (including instructions on changes of the contracts and articles of association). Foreign investment companies shall input such information as their annual business and investment performance, year-end summary and China development strategy within 15 days after the last day of the fiscal year of the companies concerned in accordance with the requirements in the network system.

3.

Starting from June 15, 1997, foreign investment companies shall go through the network registration procedures in the Department of Foreign Investment Administration of MOFTEC and newly established foreign investment companies shall be accorded with the Approval Certificate after handling the registration procedures.

4.

The Department of Foreign Investment Administration of MOFTEC shall be accountable to the foreign investment companies for keeping the reported information of business secrets in nature confidential.

The On-line Foreign investment Administration System of the Department of Foreign Investment Administration of MOFTEC has been officially put into use and by now many companies have completed network registration and information input. Please notify all unregistered foreign investment companies within your province or municipality to transmit all necessary information to the Department in line with the requirements in the network system the net before July 30. In case the companies are not equipped with the hardware for direct network transmission, they can submit floppy disks to the Department of Foreign Investment Administration.

E-mail Address of Department of Foreign Investment Administration of MOFTEC: fiadept@ciet.cn.net

Correspondence Address: 2 Dongchangan Street, Beijing, China

Post code: 100731

Contact Person: Zhu bing Tel.: 65197360 Fax: 65197302