In order to expand economic cooperation and technical exchanges
with foreign countries and promote the development of China's
national economy, China permits foreign enterprises, other economic
organizations and individuals (hereinafter referred as foreign
investors) to establish foreign capital enterprises in the
territory of the People's Republic of China and protects the lawful
rights and interests of foreign capital enterprises.
Please read the full text of the Law of the People's Republic of
China on Foreign-Capital Enterprises (http://www.china.org.cn/english/business/219563.htm)
to get more details.