Laws of the People's Republic of China

Ministry of Commerce

The Official Reply of the Ministry of Commerce on Relevant Issues concerning the Overseas (Country/Region) Enterprise's Entrusted Operation and Management of the Domestic-funded Enterprise

Shang Zi Han [2004] No.19

Beijing Municipal Bureau of Commerce:

We have acknowledged the receipt of your letter Asking for Instruction on the Issues concerning the Examination and Approval of the Overseas (Country/Region) Enterprise's Entrusted Operation and Management of the Domestic-funded Enterprise, a document of your Bureau coded Jing Shang Zi Zi [2003] No.184. After study with the State Administration for Industry and Commerce, we hereby give an official reply as follows:

In principle, the provincial commerce authorities in charge are allowed to handle the examination and approval of the overseas (country/region) enterprise's entrusted operation and management of the domestic-funded enterprise. Your Bureau is required to handle the examination and approval of the overseas (country/region) enterprise's entrusted operation and management of the domestic-funded enterprise in accordance with the Provisions on Guiding Foreign Investment Direction and with reference to Circular of the State Administration for Industry and Commerce and the Ministry of Foreign Trade and Economic Cooperation on the Issues concerning the Examination and Approval and Registration of the Entrusted Overseas (Country/Region) Enterprise for Operation and Management in the Joint Venture (Gong Shang Qi Zi [1988] No.98). Wherein, the overseas (country/region) enterprise shall not be entrusted for the operation and management of the domestic-funded enterprise whose engaged industry is subject to the banned category in the Catalogue for the Guidance of Foreign Investment Industries; where the engaged industry of the domestic-funded enterprise is subject to the permitted category in the Catalogue for the Guidance of Foreign Investment Industries, and the establishment of the foreign-funded enterprise, in accordance with the relevant provisions, is subject to the examination and approval of the Ministry of Commerce, the entrustment of the overseas (country/region) enterprise for the operation and management of the domestic-funded enterprise shall be subject to the examination and approval of the Ministry of Commerce after the examination of the first instance conducted by the provincial commerce authorities in charge.

This Official Reply is hereby given.

Ministry of Commerce of the People's Republic of China

March 22, 2004