CHINA / Invest in Jiangsu

Guarantee of Investment in Jiangsu
(jschina.com)
Updated: 2006-05-25 11:16

The foreign - invested enterprise which is approved by the Chinese Government to set up in Jinagsu and meets the requirments for being a legal person, after registration has according to law the status of a legal person.

The legitimate rights and benefits of foreign - invested enterprises, including property ownership right and disposal right of foreign investors and their right to dispose of their legitimate income shall be protected by the Chinese laws.

1.The government guarantees according to law the autonomy of enterprises in management and supports them to manage their enterprises according to the international practice. The foreign-invested enterprises, by themselves, have the right to determine, within the scope of their approved contracts, on their production and business plans, and to raise and use the funds, to purchase the materials and sell their products.

2.The foreign - invested enterprise, based on their production and operation requirement, can on their own determine the structure and size of their staff, employ or dismiss administrative personnel at all levels.

3.The net profits distributed to the foreign investors in the foreign-invested enterprises after having fulfilled their obligations stipulated in the law, and the contract, the share of capital or other funds upon the termination or expiry of the joint venture, the after-tax salaries and other legitimate earnings of the foreign personnel in the enterprises can all be remitted abroad.

4.The foreign - invested enterprise can insure with Jiangsu branch of the People's Insurance Company of China or other approved organizations.

5.The Proprietary technology approved in China and provided for the foreign-invested enterprise in Jiangsu by the foreign investors and registered trademark are both protected by China Patent Law and Trade-mark Law. When the right is being infringed, the injured party can ask the patent authority or the Administration Bureau for Industry and Commerce to handle the case, or bring the suit directly to the court.

6.The disputes, raised between the parties in joint venture or cooperative venture during the implementation of the contract(agreement), and can not be settled through consultation of negotiation, may be settled through arbitration according to the relevant written arbitration agreement. If there is no written arbitration agreement between two parties, either party can sue at people's court for settlement.

7.The state will not nationalize or expropriate the foreign-invested enterprises. Under extraordinary circumstances, when it is deemed necessary in public interests, the requisition would be carried out through legal procedures and reasonable compensation will be given accordingly.

8.The government especially encourage foreign investors to set up export-oriented or technologically advanced enterprises and will give them, then , the preferential treatment with respect to taxation, credit, supply of water, electricity and gas, and telecommunication and transportation facilities.

9.The foreign-invested enterprises may appeal to relevant government departments to solve their difficulties in the process of their investment, construction, production, management of liquidation.

10.The rights and interests of foreign investors in China are also protected by bilateral agreement of the investor's country, such as agreement on investment insurance of investment protection, and agreement on avoiding double taxation.