Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures

中华人民共和国中外合资经营企业法

　　

         第一条　中华人民共和国为了扩大国际经济合作和技术交流，允许外国公司、企业和其它经济组织或个人（以下简称外国合营者），按照平等互利的原则，经中国政府批准，在中华人民共和国境内，同中国的公司、企业或其它经济组织（以下简称中国合营者）共同举办合营企业。

　　Article 1 With a view to expanding international economic cooperation and technological exchange, the People’s Republic of China permits foreign companies, enterprises, other economic organizations or individuals（hereinafter referred to as “foreign joint ventures”）to establish equity joint ventures together with Chinese companies, enterprises or other economic organizations（hereinafter referred to as “Chinese joint ventures”）within the territory of the People’s Republic of China, on the principle of equality and mutual benefit, and subject to approval by the Chinese Government.

　　第二条　中国政府依法保护外国合营者按照经中国政府批准的协议、合同、章程在合营企业的投资、应分得的利润和其它合法权益。

　　Article 2 The Chinese Government protects, according to the law, the investment of foreign joint ventures, the profits due them and their other lawful rights and interests in an equity joint venture, pursuant to the agreement, contract and articles of association approved by the Chinese Government.

　　合营企业的一切活动应遵守中华人民共和国法律、法规的规定。

　　In its activities, an equity joint venture shall comply with the provisions of the laws and regulations of the People’s Republic of China.

　　国家对合营企业不实行国有化和征收；在特殊情况下，根据社会公共利益的需要，对合营企业可以依照法律程序实行征收，并给予相应的补偿。

　　The State shall not nationalize or requisition any equity joint venture. Under special circumstances, when public interests require, equity joint ventures may be requisitioned by following legal procedures and appropriate compensation shall be made.

　　第三条 合营各方签订的合营协议、合同、章程，应报国家对外经济贸易主管部门（以下称审查批准机关）审查批准。审查批准机关应在三个月内决定批准或不批准。合营企业经批准后，向国家工商行政管理主管部门登记，领取营业执照，开始营业。

　　Article 3 The equity joint venture agreement, contract and articles of association signed by the parties to the venture shall be submitted to the State’s competent department in charge of foreign economic relations and trade（hereinafter referred to as the examination and approval authorities）for examination and approval. The examination and approval authorities shall decide to approve or disapprove the venture within three months. When approved, the equity joint venture shall register with the State’s competent department in charge of industry and commerce administration, acquire a business license and start operations.

　　第四条 合营企业的形式为有限责任公司。

　　Article 4 An equity joint venture shall take the form of a limited liability company.

　　在合营企业的注册资本中，外国合营者的投资比例一般不低于百分之二十五。

　　The proportion of the foreign joint venture’s investment in an equity joint venture shall be, in general, not less than 25 percent of its registered capital.

　　合营各方按注册资本比例分享利润和分担风险及亏损。

　　The parties to the venture shall share the profits, risks and losses in proportion to their contributions to the registered capital.

　　合营者的注册资本如果转让必须经合营各方同意。

　　If any to the joint ventures wishes to assign its registered capital, it must obtain the consent of the other parties to the venture.

　　第五条 合营企业各方可以现金、实物、工业产权等进行投资。

　　Article 5 The parties to an equity joint venture may make their investment in cash, in kind or in industrial property rights, etc.

　　外国合营者作为投资的技术和设备，必须确实是适合我国需要的先进技术和设备。如果有意以落后的技术和设备进行欺骗，造成损失的，应赔偿损失。

　　The technology and equipment contributed by a foreign joint venture as its investment must be really advanced technology and equipment that suit China’s needs. In case of losses caused by a foreign joint venture in its practicing deception through the intentional provision of outdated technology and equipment, it shall compensate for the losses.

　　中国合营者的投资可包括为合营企业经营期间提供的场地使用权。如果场地使用权未作为中国合营者投资的一部分，合营企业应向中国政府缴纳使用费。

　　A Chinese joint venture’s investment may include the right to the use of a site provided for the equity joint venture during the period of its operation. If the right to the use of the site is not taken as a party of the Chinese joint venture’s investment, the equity joint venture shall pay the Chinese Government for its use.

　　上述各项投资应在合营企业的合同和章程中加以规定，其价格（场地除外）由合营各方评议商定。

　　The above-mentioned investments shall be specified in the contract and articles of association of the equity joint venture, and their value（excluding that of the site）shall be assessed by all parties to the venture.

　　第六条 合营企业设董事会，其人数组成由合营各方协商，在合同、章程中确定，并由合营各方委派和撤换。董事长和副董事长由合营各方协商确定或由董事会选举产生。中外合营者的一方担任董事长的，由他方担任副董事长。董事会根据平等互利的原则，决定合营企业的重大问题。

　　Article 6 An equity joint venture shall have a board of directors; the number of the directors thereof from each party and the composition of the board shall be stipulated in the contract and articles of association after consultation among the parties to the venture; such directors shall be appointed and replaced by the relevant parties. The chairman and the vice-chairman（vice-chairmen）shall be determined through consultation by the parties to the venture or elected by the board of directors. If the Chinese side or the foreign side assumes the office of the chairman, the other side shall assume the office（s）of the vice-chairman（vice-chairmen）。 The board of directors shall decide on important issues concerning the joint venture on the principle of equality and mutual benefit.

　　董事会的职权是按合营企业章程规定，讨论决定合营企业的一切重大问题：企业发展规划、生产经营活动方案、收支预算、利润分配、劳动工资计划、停业，以及总经理、副总经理、总工程师、总会计师、审计师的任命或聘请及其职权和待遇等。

　　The functions and powers of the board of directors are, as stipulated in the articles of association of the equity joint venture, to discuss and decide all major issues concerning the venture, namely, the venture’s development plans, proposals for production and business operations, the budget for revenues and expenditures, the distribution of profits, the plans concerning manpower and wages, the termination of business, and the appointment or employment of the general manager, the vice-general manager（s）， the chief engineer, the treasurer and the auditors, as well as the determination of their functions, powers and terms of employment, etc.

　　正副总经理（或正副厂长）由合营各方分别担任。

　　The offices of general manager and vice-general manager（s）（or factory manager and deputy manager（s））shall be assumed by the respective parties to the venture.

　　合营企业职工的录用、辞退、报酬、福利、劳动保护、劳动保险等事项，应当依法通过订立合同加以规定。

　　The employment, discharge, remuneration, welfare benefits, occupational protection, labor insurance and other matters of the workers and staff members of an equity joint venture shall be stipulated in accordance with law in the contract concluded by the parties.

　　第七条 合营企业的职工依法建立工会组织，开展工会活动，维护职工的合法权益。

　　Article 7 The workers and staff members of an equity joint venture shall, in accordance with law, establish a trade union to carry out trade union activities and safeguard their lawful rights and interests.

　　合营企业应当为本企业工会提供必要的活动条件。

　　The equity joint venture shall provide the necessary conditions for trade union there to conduct activities.

　　第八条 合营企业获得的毛利润，按中华人民共和国税法规定缴纳合营企业所得税后，扣除合营企业章程规定的储备基金、职工奖励及福利基金、企业发展基金，净利润根据合营各方注册资本的比例进行分配。

　　Article 8 The net profit of an equity joint venture shall be distributed among the parties to the venture in proportion to their respective contributions to the registered capital, after payment out of its gross profit of the equity joint venture income tax, pursuant to the provisions of the tax laws of the People’s Republic of China, and after deductions from the gross profit of a reserve fund, a bonus and welfare fund for workers and staff members and a venture fund, as stipulated in the venture’s articles of association.

　　合营企业依照国家有关税收的法律和行政法规的规定，可以享受减税、免税的优惠待遇。

　　An equity joint venture may, in accordance with provisions of the relevant laws and administrative rules and regulations of the State on taxation, enjoy preferential treatment of tax reductions or exemptions.

　　外国合营者将分得的净利润用于在中国境内再投资时，可申请退还已缴纳的部分所得税。

　　A foreign joint venture that reinvests its share of the net profit within Chinese territory may apply for a partial refund of the income tax already paid.

　　第九条 合营企业应凭营业执照在国家外汇管理机关允许经营外汇业务的银行或其它金融机构开立外汇帐户。

　　Article 9 An equity joint venture shall, on the strength of its business license, open a foreign exchange account with a bank or any other financial institution which is permitted by the State agency for foreign exchange control to handle foreign exchange transactions.

　　合营企业的有关外汇事宜，应遵照中华人民共和国外汇管理条例办理。

　　An equity joint venture shall handle its foreign exchange transactions in accordance with the regulations on foreign exchange control of the People’s Republic of China.

　　合营企业在其经营活动中，可直接向外国银行筹措资金。

　　An equity joint venture may, in its business operations, directly raise funds from foreign banks.

　　合营企业的各项保险应向中国境内的保险公司投保。

　　The various kinds of insurance coverage of an equity joint venture shall be furnished by insurance companies established within the territory of China.

　　第十条 合营企业在批准的经营范围内所需的原材料、燃料等物资，按照公平、合理的原则，可以在国内市场或者在国际市场购买。

　　Article 10 An equity joint venture may, in adherence to the principles of fairness and rationality, purchase on both the Chinese and the world market the raw and semi-processed materials, fuels and other materials it needs within the approved scope of operation.

　　鼓励合营企业向中国境外销售产品。出口产品可由合营企业直接或与其有关的委托机构向国外市场出售，也可通过中国的外贸机构出售。合营企业产品也可在中国市场销售。

　　An equity joint venture shall be encouraged to market its products outside China. It may sell its export products on foreign markets directly or through associated agencies or China’s foreign trade agencies. Its products may also be sold on the Chinese market.

　　合营企业需要时可在中国境外设立分支机构。

　　When necessary, an equity joint venture may set up branches and subbranches outside China.

　　第十一条 外国合营者在履行法律和协议、合同规定的义务后分得的净利润，在合营企业期满或者中止时所分得的资金以及其它资金，可按合营企业合同规定的货币，按外汇管理条例汇往国外。

　　Article 11 The net profit which a foreign joint venture receives as its share after performing its obligations under the laws, and the agreements or the contract, the funds it receives upon the expiration of the venture’s term of operation or the suspension thereof, and its other funds may be remitted abroad in accordance with foreign exchange control regulations and in the currency or currencies specified in the contract concerning the equity joint venture.

　　鼓励外国合营者将可汇出的外汇存入中国银行。

　　A foreign joint venture shall be encouraged to deposit in the Bank of China the foreignexchange which it is entitled to remit abroad.

　　第十二条 合营企业的外籍职工的工资收入和其它正当收入，按中华人民共和国税法缴纳个人所得税后，可按外汇管理条例汇往国外。

　　Article 12 The wages, salaries or other legitimate income earned by a foreign worker or staff member of an equity joint venture, after payment of the individual income tax under the tax laws of the a People’s Republic of China, may be remitted abroad in accordance with foreign exchange control regulations.

　　第十三条 合营企业的合营期限，按不同行业、不同情况，作不同的约定。有的行业的合营企业，应当约定合营期限；有的行业的合营企业，可以约定合营期限，也可以不约定合营期限。约定合营期限的合营企业，合营各方同意延长合营期限的，应在距合营期满六个月前向审查批准机关提出申请。审查批准机关应自接到申请之日起一个月内决定批准或不批准。

　　Article 13 Based on different lines of trade and different circumstances arrangements for the duration of equity joint ventures may be made differently through agreement by the parties to the venture. Equity joint ventures engaged in certain lines of trade shall specify their duration in the contracts, while equity joint ventures engaged in certain other lines of trade may choose to or not to specify their duration in the contracts. Where an equity joint venture has had its duration specified and the parties to the venture agree to extend the duration, the venture shall file an application for the purpose with the examination and approval authorities six months before its expiration. The examination and approval authorities shall, within one month after receipt of the application, decide on its approval or disapproval.

　　第十四条 合营企业如发生严重亏损、一方不履行合同和章程规定的义务、不可抗力等，经合营各方协商同意，报请审查批准机关批准，并向国家工商行政管理主管部门登记，可终止合同。如果因违反合同而造成损失的，应由违反合同的一方承担经济责任。

　　Article 14 In case of heavy losses, or failure of a party to perform its obligations under the contract and the articles of association, or force major, etc., the parties to the joint venture may, subject to their agreement through consultation, approval of their report by the examination and approval authorities and registration with the State’s competent department in charge of industry and commerce administration, terminate the contract. In cases of losses caused by a breach of contract, the party that has breached the contract shall bear the economic responsibilities.

　　第十五条 合营各方发生纠纷，董事会不能协商解决时，由中国仲裁机构进行调解或仲裁，也可由合营各方协议在其它仲裁机构仲裁。

　　Article 15 Disputes arising between the parties to an equity joint venture which the board of directors has failed to settle through consultation may be settled through conciliation or arbitration by an arbitration agency of China or through arbitration by another arbitration agency agreed upon by the parties.

　　合营各方没有在合同中订有仲裁条款的或者事后没有达成书面仲裁协议的，可以向人民法院起诉。

　　Where the parties to an equity joint venture fail to stipulate an arbitration clause in the contract or does not reach a written arbitration agreement afterwards, they may bring a lawsuit to the People’s Court.

　　第十六条 本法自公布之日起生效。

　　Article 16 This Law shall go into effect as of the date of promulgation.

　　2001年3月15日March 15,2001

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