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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city
MY COLOUR

Commercial Information Circulars

24-hour hotline : 23 922 922

Ref : EIC 631/2/5

24 August 2001

Dear Sirs,

Commercial Information Circular No. 131/01

The Mainland of China : Revision of Detailed Rules on Implementing
the Joint Ventures Law (Rules)

 

The State Council issued State Council Decree No. 311 on 22 July 2001, announcing the Decision of the State Council on the Revision of Detailed Rules on Implementing the "Law of the People's Republic of China on Joint Ventures with Chinese and Foreign Investment" (JV Law). This Decision has revised totally 45 provisions. The revision aims to accord the Rules with the revision of the JV Law made on 15 March 2001, and also the rules of World Trade Organization, exiting law and administrative rules, and the new reform and development situation in the Mainland.

  1. Below are the main revisions on the Rules :

  1. Remove the provisions regarding export performance requirement on the Sino-foreign joint ventures, limitation of sale distribution, and foreign capital arrangement.

  2. Remove the provisions concerning the ways to search business partners, requirements on the production and operation plans and the filing of the plans to relevant authorities.

  3. Remove the provision that requires the joint ventures to maintain a balance account of foreign capital.

  4. Remove the provision that requires the joint ventures to procure materials (i.e. machines, equipment, raw materials, fuel etc) from within China whenever possible.

  5. Revise the provisions concerning business registration, acquisition or transferal of the land-use rights, reduction or remittance of tariff and tax, and also labor management, time limit for joint-venture and account clearance of the joint ventures.

The revision also removed certain provisions in order to simplify the procedures to set up the Sino-foreign joint ventures and to enable the ventures to enjoy more autonomy in running the business.

  1. The said Decision has been effective since 22 July 2001.

ENQUIRIES

  1. If you have any questions on the content of this circular, please contact the undersigned at 2398 5680.

 

Yours faithfully,

 

(Miss Tiffany S M MAK)

for Director-General of Trade and Industry



Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.