Rules and provisions

Introduction

In recent years, the amount of foreign investors in China is more than past, in some areas, they have become a quite large group. The foreign investors mainly refer to the foreign businesspeople that invest in China directly and set up companies. The main kind of investment includes the sole foreign-funded enterprises, Sino-foreign joint-venture business, Sino-foreign co-operative enterprises with local companies or other economic organizations, and set up company limited, etc., cooperative to explore natural resources, and so on.

The Chinese law has a comprehensive regulation on foreign investment. The 18th article of the Chinese Constitution writes: "the People's Republic of China allowed foreign enterprises and other economic organizations or individuals to invest in China in accordance with law of People's Republic of China, and cooperated with Chinese enterprises or other economic organizations in various forms. Foreign enterprises and other economic organizations, and Sino-foreign joint venture enterprise in China, must abide by the law of People's Republic of China. Their lawful rights and interests are protected by the law of People's Republic of China. "special laws on adjusting the special legal regime of foreign direct investment include: Law of People's Republic of China on foreign-funded enterprises and its implementing rules, the People's Republic of China venture and its implementing regulations, the People's Republic of China Chinese-foreign cooperative ventures and its implementing rules, the State Council regulations on guiding foreign investment orientation and related departmental rules. In addition, the People's Republic of China company law, the People's Republic of China partnership and the People's Republic of China contract Act are also widely applied for foreign direct investment.

Foreigners have many options to invest and to do business in China, no matter what form it choose, the legitimate rights and interests are protected by Chinese law. Meanwhile, foreigners that do business in China must abide by normative documents requirements such as Chinese laws, regulations, rules and related policies. The following part will briefly introduce common legal knowledge that foreigners who do business in China need to understand.