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Laws and Regulations

It has been little more than three decades since China has opened its doors with enthusiasm to embrace foreign investment. In order to create a complementary investment environment and to encourage overseas companies to invest within the China borders, a new legal system has evolved in China. Institute clients who wish to navigate successfully through the legal requirements governing foreign investment in China will derive distinct advantage from the sophisticated, and practical use of the experience that China Trade Institute legal advisers enjoy.

The National People's Congress in 1979, issued The Law of the People's Republic of China on Chinese Foreign Equity Joint Ventures. This has served as a stepping stone for subsequent litigation to address the evolving foreign commercial investment scene. Since 1979, China has promulgated a complementary series of laws and statutes that deal with the establishment, operation, termination and liquidation of foreign investments. The primary laws involved include: The Law of the People's Republic of China on Chinese Foreign Equity Joint Ventures; the Law of the People's Republic of China on Chinese Foreign Contractual Joint Ventures, and the Law of the People's Republic of China, on Wholly Foreign-Owned Enterprises. China has issued detailed rules for the implementation of these three basic laws. As well, the People's Republic of China has developed special income taxation rules that deal with foreign investment and foreign enterprises. In addition, there are specific rules dealing with the merger and dissolution of foreign invested enterprises and relevant liquidation measures pertaining to foreign investment. Such legal and regulatory body of law operates to ensure the independent operation and rights of foreign funded enterprises and to protect the interests of both domestic and overseas investors.


The Institute also consults with respect to trade secret, patent and intellectual property rights to ensure that investors who participate in the China economy are sheltered by the full strength and protection of the Chinese law with respect to their intellectual property rights. Such laws and regulations include, among others, the Patent Law of the People's Republic of China; China Internet Domain Name Regulations; Trademark Law of the People's Republic of China and related regulations; and Copyright Law of the People's Republic of China.

For further information regarding specific statutes and regulations in China, please contact us.

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