영문목차
Preface=xv
1. General Information on China's Attracting Foreign Funds=1
1. When did China start utilizing foreign funds?=1
2. What is the relationship between the reforms and open policies and utilizing foreign investment in China?=1
3. What advantageous conditions have been offered for foreign investment since the reforms and open policies?=2
4. What is China's progress in attracting foreign investment?=3
5. What stages has China undergone in attracting foreign investment?=3
6. What are the characteristics of foreign investment in China?=7
7. What is the situation in regard to China's borrowing from foreign financing?=8
8. What countries provide government loans to China?=10
9. Which international financing organizations have made loans to China, and what is the situation like?=10
10. When did China start its international financing business, and what is its status?=11
11. What is the impact of foreign investment on China's economic development?=11
2. China's Investment Environment and Preferential Policies=17
12. What laws, decrees, regulations, and so forth has China adopted to attract foreign investment? What conventions and international treaties has China signed?=17
13. How did China implement the expansion of open regions to improve its investment environment?=18
14. What preferential taxation policies are applicable for investment in China's development zones?=19
15. What has China done to decentralize and otherwise simplify administrative approval procedures to attract foreign investment?=20
16. What additional measures has China taken in recent years to enlarge areas for foreign investment?=21
17. What new developments are there in the structure of foreign investment enterprises?=21
18. What is being done to encourage investment from Taiwan?=21
19. What is China doing to encourage investment from overseas Chinese and from Hong Kong and Macao?=22
20. Has the implementation of 1994 reform policies in taxation and exchange control had an impact on foreign investment?=23
21. What are China's preferential policies for attracting foreign investment?=25
22. What is China's investment environment like?=26
3. The Formation and Development of China's Opening=27
23. When did China start to open to the outside world?=27
24. What special policies did the State offer to Guangdong and Fujian, the first two provinces opened to the outside world?=27
25. When were the special economic zones established, and what policies were adopted?=28
26. When were the 14 coastal ports and industrial cities opened, and what policies were adopted?=29
27. When were the economic and technological development zones established, and what policies were adopted?=31
28. When were the open coastal economic zones established, and what policies were adopted?=33
29. When was the decision made to open Shanghai Pudong New Area, and what policies were adopted?=34
30. When were the new and high-tech industrial development zones established in China, and what policies were adopted?=38
31. When were bonded areas established in China, and what policies were adopted?=39
32. What are the state-approved tourism and vacation zones, and what are the policies?=40
33. How did China implement the opening of riverbank areas, coastal and border regions, and inland areas to the outside world?=42
4. Orientation of Foreign Investment in China=44
34. Why has China identified certain areas for foreign investment, and how is the investment guided?=44
35. In what areas does the Chinese Government encourage foreign investment?=44
36. In what areas does the Chinese Government restrict foreign investment?=45
37. In what areas does the Chinese Government prohibit foreign investment?=46
38. What are the areas allowed by the Chinese Government for foreign investment apart from those listed as encourage, restricted, and prohibited?=46
39. What areas has the Chinese Government newly opened for foreign investment in recent years, and what is the extent of openness?=46
40. What are China's regulations in attracting foreign investment by building-operate-transfer means?=47
41. What are the policy regulations for foreign investment in civil aviation?=47
42. What preferential measures has the Chinese Government devised for investment in areas listed as encouraged for foreign investment?=48
43. What restrictive measures has the Chinese Government devised for investment in areas listed as restricted for foreign investment?=49
5. Measures of the Chinese Government for Protecting the Legitimate Rights and Interests of Foreign Investors=51
44. How does China protect the legitimate rights and interests of foreign investors?=51
45. What is the definition of the "legitimate rights and interests" of foreign investors that the Chinese Government protects?=53
46. Will the Chinese Government take over foreign investors' properties?=53
47. What is meant by "reasonable compensation"?=54
48. How does the Chinese Government protect the patent rights obtained in China by a foreigner?=54
49. How does China respect the intellectual property rights of a foreign investor? What is the legal support? How does a Sino-foreign joint venture enterprise protect the technical confidentiality of an investor?=55
50. What international treaties has the Chinese Government signed in relation to the protection of royalties of technical patents and trademarks?=56
6. Business Structures in China for Foreign Investment=57
51. What business structures are used in China for foreign investment?=57
52. What is the difference between indirect and direct investment, and what is the relationship between them?=58
53. What is a Sino-foreign equity joint venture, and what are its characteristics?=58
54. What is a Sino-foreign cooperative joint venture, and what are its characteristics?=59
55. How does a wholly foreign-owned enterprise operate in China?=60
56. What is Sino-foreign cooperative development?=60
57. How is compensatory trade conducted?=61
58. How is processing against supplied materials or assembly of supplied parts conducted?=62
59. Does China encourage international leasing in attracting foreign investment? What is the present situation, and what are the future prospects in this area?=62
60. How is investment in stocks or securities assessed? What are the prospects in this area?=64
61. Is BOT an encouraged method?=65
7. China's Channels for Attracting Foreign Investment, Public Notary, and Arbitration Organizations=67
62. What are China's channels for attracting foreign investment?=67
63. What public notary, appraisal, and arbitration organizations in China assess the validity of foreign investment?=71
64. What roles do China's legal and accounting organizations play in foreign investment?=71
65. Does the Chinese Government allow foreign attorneys, accountants, auditors, and others to participate in appraisal and auditing of foreign investment in China?=72
8. Preparations for the Application of Establishing an Enterprise With Foreign Investment=73
66. What needs to be done in preparation for the establishment of an enterprise with foreign investment?=73
67. How are projects selected?=73
68. How are partners identified?=74
69. How are negotiations done and a letter of intent signed for a project?=75
70. What does a project proposal contain?=76
71. How should a feasibility study report be compiled?=77
72. What are the basic requirements for drafting and signing a foreign investment project contract and articles of association?=78
73. What are the basic characteristics of a Sino-foreign joint venture contract and articles of association?=79
74. What are the basic requirements for the contents of a joint venture contract and articles of association?=79
75. What are the issues of importance to parties to a joint venture enterprise in drafting the contract, articles of association, and other related documents?=80
9. Application, Review and Approval, and Registration of an Enterprise With Foreign Investment=82
76. What is the procedure for establishing a Sino-foreign equity or joint venture (JV) enterprise?=82
77. What is the application procedure for approval of the establishment of a wholly foreign-owned enterprise?=84
78. What are the review and approval authorities for the establishment of an enterprise with foreign investment, and what are the regulations on their approval authorization?=84
79. What are the application procedures for the establishment of a foreign-invested enterprise involving products under import and export license control?=86
80. What are the documents to be submitted to review and approval authorities for application to establish a JV?=87
81. What should be included in the application for the establishment of a wholly foreign-owned enterprise?=88
82. What are the basic principles that review and approval authorities follow with regard to a contract and articles of association?=89
83. What are the main issues that review and approval authorities examine with regard to a contract and articles of association?=89
84. What does the review and approval authorities' approval letter on contracts and articles of association contain?=90
85. What are the registration formalities an enterprise with foreign investment should go through after approval is granted by the Chinese Government?=91
86. If there is a change in an enterprise with foreign investment in the course of implementing a contract (e.g., the address of the JV, thepartner(s), the total investment amount, business scope, formation of the Board of Directors, nomination of the Board Chairman or Vice Chairman), is there a need to go through an alteration procedure and, if so, with which government agency?=91
87. What is the application procedure if an enterprise with foreign investment needs additional investment?=92
88. Are branch organizations of an enterprise with foreign investment allowed to be established inside or outside China?=92
89. Can leased machines or equipment be used by a Sino-foreign JV enterprise or the Chinese or foreign investor(s) to this JV enterprise as part or whole of the registered capital of the joint venture?=93
10. The Organizational Structure and Management of an Enterprise With Foreign Investment=94
90. What are the stipulations in Chinese laws or regulations in relation to the management structure of an enterprise with foreign investment?=94
91. What is the procedure for setting up a JV management and organizational structure?=95
92. How is a Board of Directors established?=95
93. How is a JV's management structure set up?=96
94. Can a JV General Manager or Deputy General Manager be concurrently the General Manager or Deputy General Manager of another business organization?=96
95. Should a trade union be set up in an enterprise with foreign investment?=97
96. Can a grass-roots organization of Chinese political parties be established in an enterprise with foreign investment?=97
97. What are the regulations on labor and personnel management in an enterprise with foreign investment?=98
98. What are the regulations on financial management in an enterprise with foreign investment?=98
99. According to regulations, what currency should be used as the accounting unit in an enterprise with foreign investment?=99
100. What fiscal year system should be applied in an enterprise with foreign investment, and what are the requirements for submitting accounting statements?=100
101. How are the three funds in a JV -the reserve, development, and staff incentive and welfare fund-to be drawn and used?=100
102. How are JV profits to be distributed?=101
103. Is there sufficient autonomy in an enterprise with foreign investment for its manufacturing and other activities?=101
104. Should the production and operating plan of an enterprise with foreign investment dovetail with the State's planning?=102
105. What are the State regulations regarding the procurement and sales activities of an enterprise with foreign investment?=102
106. Is an enterprise with foreign investment subject to quota or license control in its import and export business?=103
11. Resolving Disputes in the Course of a JV's Business Operations=104
107. What are the ways of resolving disputes?=104
108. How is consultation done?=104
109. How is conciliation done?=105
110. How is arbitration done?=105
111. How is a lawsuit applied?=108
12. Terminating an Enterprise With Foreign Investment=109
112. Under what circumstances can an enterprise with foreign investment be terminated?=109
113. Under what conditions can an enterprise with foreign investment be terminated?=110
114. How are termination and liquidation of an enterprise with foreign investment conducted?=110
115. How is the aftermath taken care of?=111
13. Administration of Foreign Investment by the Chinese Government=112
116. What are the basic principles of the administration of foreign investment?=112
117. What administrative system does the State take in the administration of foreign investment?=112
118. What are the major State bodies responsible for administering foreign investment?=113
119. What are the main parts of the government's administration of foreign investment?=114
14. Taxation=115
120. How is foreign tax revenue collected by the State tax authorities involving foreign-invested enterprises administered?=115
121. What taxes does the Chinese government collect from foreign-invested enterprises?=116
122. What are the income tax rates for foreign-invested enterprises? How are they computed?=116
123. What are the regulations concerning the reduction of or exemption from income tax?=116
124. Under what conditions is the value-added tax levied? What are the tax rates? How is the tax amount computed?=119
125. Under what conditions is a business tax levied? What is the tax rate? How is the tax amount payable computed?=120
126. On what consumer goods is a consumption tax levied? What are the tax rates? How is the tax amount payable computed?=122
127. Under what conditions is the resource tax levied? What is the tax rate?=123
128. Under what conditions is the increment tax on land value levied? What is the tax rate?=124
129. Under what conditions is the individual income tax levied? What are the tax rates?=124
15. Foreign Exchange=126
130. What control of foreign exchange does China's Administration of Foreign Exchange Control exercise on foreign-invested enterprises?=126
131. What is the content of the reform of the foreign exchange control system effected by the Chinese government in 1994? What special provisions are directed toward foreign-invested enterprises?=127
132. Can foreign investors with investment in China freely remit abroad the profits, the capital sum removed on the expiration of investment, service receipts, and revenue from technology transfer?=128
133. What is the current situation concerning foreign exchange revenue and expenditure of foreign-invested enterprises?=128
134. What will happen if a foreign-invested enterprise incurs a deficit, with its foreign exchange expenditure being larger than revenue? Can it convert the RMB it receives into foreign exchange?=129
135. In which Chinese cities have foreign exchange swap markets been set up? How does a foreign-invested enterprise enter such markets?=129
16. Customs=130
136. How does Customs administer foreign-invested enterprises?=130
137. What stipulations does Customs have concerning foreign-invested enterprises?=131
138. What are the State's stipulations for administering imports and exports by foreign-invested enterprises?=132
139. What stipulations has China worked out concerning bonded areas?=132
140. How does Customs exercise supervision over bonded warehouses?=133
17. Financial Accounting=135
141. What does financial and accounting management do regarding foreign-invested enterprises?=135
142. What are the requirements of the financial and tax bodies for the establishment of the financial and accounting systems of foreign-invested enterprises and supervision of their finances?=135
143. What does the capital fund system do?=136
144. How are circulating assets administered?=137
145. How are fixed assets to be depreciated?=138
146. How are intangible assets to be valued and amortized?=138
147. How is cost computed?=138
148. How is operating revenue computed, and how are profits distributed?=139
149. How is the accounting of foreign currency operation computed?=139
150. What are the requirements for liquidating a foreign-invested enterprise?=140
151. How are financial statements and financial evaluation carried out?=140
152. What are the requirements for accounting calculation?=140
18. Labor Management=141
153. What stipulations does the Chinese government have concerning labor management in foreign-invested enterprises?=141
154. Do foreign-invested enterprises have the right to recruit and dismiss staff and workers? What stipulations does the Chinese government have in this connection?=144
155. What is the wage level of staff and workers of foreign-invested enterprises in China? Does the Chinese government set the ceiling and bottom limits for the wages?=145
19. Bank Loans and Guarantees=146
156. What Chinese banks are qualified to provide loans to foreign-invested enterprises?=146
157. What forms of loans will the Bank of China grant to foreign-invested enterprises?=146
158. What are the requirements for the loans that the Bank of China grants to foreign-invested enterprises?=147
159. How is the interest on loans granted by the Bank of China to be set?=147
160. What stipulations has the Bank of China laid down on loan terms?=147
161. What financial institutions are eligible to provide a banker's guarantee to foreign-invested enterprises for a foreign loan from abroad?=148
162. What are the Bank of China's requirements to provide a banker's guarantee to foreign-invested enterprises for a foreign currency loan from abroad?=148
20. Land Use=149
163. What are the legal provisions concerning land use by foreign-invested enterprises?=149
164. How does a foreign-invested enterprise obtain land use rights in China?=149
165. What are China's regulations on leasing tracts of land to foreign investors for development and management?=151
166. What regulations has China laid down on the authorization of approval of land use by foreign-invested enterprises?=152
21. Environmental Protection=153
167. What regulations has the Chinese Government adopted to strengthen the protection of China's environment?=153
168. How has the administration of the examination and approval of construction projects on environmental protection been strengthened?=154
169. What are the requirements for administration of environmental protection after enterprises with foreign investment have gone into the production stage?=155
22. Administration for Industry and Commerce=157
170. What are the legal regulations on the supervision and administration functions of registration bodies?=157
171. How does a registration body conduct an annual examination on enterprises with foreign investment?=158
172. How do registration bodies enforce penalties for violations?=158
173. What are the regulations on disciplining local registration bodies that engage in illegal activities?=159
23. China Association of Enterprises with Foreign Investment=161
174. What is the China Association of Enterprises with Foreign Investment? What functions does it have in the government's administration of enterprises with foreign investment?=161
175. What are the purposes and main tasks of the China Association of Enterprises with Foreign Investment?=162
176. How many departments are there under the Association?=163
24. China's Development Strategies Regarding Foreign Capital=164
177. What are the major international opportunities that China faces?=164
178. What are the major challenges that China faces?=165
179. What are China's guiding principles in utilizing foreign capital?=166
180. What are the trends in China's opening and utilization of foreign capital?=167
181. What are China's strategic objectives in utilization of foreign capital?=168
182. What are China's specific strategic measures in foreign capital utilization?=169
183. What is China's industrial orientation for utilizing foreign capital?=170
184. What are the principles that China follows in improving its investment environment?=172
Appendix One: Foreign Investment Laws and Regulations=174
1. The Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures=174
2. Implementing Regulations of the Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment=178
3. Law of the People's Republic of China on Chinese-Foreign Cooperative Joint Ventures=208
4. Law of the People's Republic of China on Enterprises Operated Exclusively With Foreign Capital=214
5. Detailed Rules for the Implementation of the Law of the People's Republic of China on Wholly Foreign-Owned Enterprises=218
6. Provisions of the State Council of the People's Republic of China for the Encouragement of Foreign Investment=237
7. Regulations of the State Council on Encouraging Investment by Taiwanese Compatriot=242
8. Provisions of the State Council Concerning the Encouragement of Investments by Overseas Chinese and Compatriots From Hong Kong and Macao=247
9. Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises=252
10. Detailed Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises With Foreign Investment and Foreign Enterprises=260
11. Provisional Regulations Governing Development and Operation of Tracts of Land With Foreign Investment=290
12. The Notice of the State Council on Relevant Issues Concerning the Provisional Regulations on Value-Added Tax, Excise Tax, Business Tax, and Other Taxes Applicable to Foreign-Invested Enterprises and Foreign Enterprises=295
13. Regulations Governing Financial Institutions With Foreign Capital in the People's Republic of China=297
14. Arbitration Law of the People's Republic of China=307
Appendix Two: China's Foreign Investment Laws and Regulations=322
Index=327