Sino-foreign Equity Joint Venture Law amended 1

China

Decision of the National People’s Congress Concerning Amendment of the “Law of the People’s Republic of China on Equity Joint Ventures

” was adopted by the National People’s Congress on March 15, 2001.

Major amendments referred to in the Decision include the removal of certain requirements, including the requirement that equity joint ventures (EJVs) submit production and operation plans to departments-in-charge, and the requirement that EJVs give priority to the Chinese market when purchasing supplies.

These changes were made as part of China's efforts to comply with the WTO rules, and reflect the fact that China is moving away from the planned economy.

Similar changes were made to the law governing contractual joint ventures and wholly foreign-owned enterprises in October of last year (2000).

For further information please contact Luke Filei on [email protected] or +86 10 6590 0389 in Beijing or +86 21 6289 6363 in Shanghai.