Adopted at the First Session of the Seventh National People's
Congress on April 13, 1988, amended according to the Decision on
Revision of the Law of the People's Republic of China on
Chinese-Foreign Contractual Joint Ventures adopted at the 18th
Meeting of the Standing Committee of the Ninth National People's
Congress on October 31, 2000
Article 1 This Law is formulated to expand economic
cooperation and technological exchange with foreign countries and
to promote the joint establishment, on the principles of equality
and mutual benefit, by foreign enterprises and other economic
organizations or individuals (hereinafter referred to as the
foreign party) and Chinese enterprises or other economic
organizations (hereinafter referred to as the Chinese party) of
Chinese-Foreign Contractual Joint Ventures ( hereinafter referred
to as contractual joint ventures ) within the territory of the
People's Republic of China.
Article 2 In establishing a contractual joint venture, the
Chinese and foreign parties shall, in accordance with the
provisions of this Law, prescribe in their contractual joint
venture contract such matters as the investment or conditions for
cooperation, the distribution of earnings or products, the sharing
of risks and losses, the manners of operation and management and
the ownership of the property at the time of the termination of the
contractual joint venture. A contractual joint venture which meets
the conditions for being considered a legal person under Chinese
law shall acquire the status of a Chinese legal person in
accordance with law...
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