Article 1. With a view to expanding economic cooperation and technical exchange with foreign countries and promoting the development of China’s Article 2. As mentioned in this Law, ” enterprises with foreign capital ” refers to those enterprises established in China by foreign investors, Article 3. Enterprises with foreign capital shall be established in such a manner as to help the development of China’s national economy; they Provisions shall be made by the State Council regarding the lines of business which the state forbids enterprises with foreign capital Article 4. The investments of a foreign investor in China, the profits it earns and its other lawful rights and interests are protected by Enterprises with foreign capital must abide by Chinese laws and regulations and must not engage in any activities detrimental to China’s Article 5. The state shall not nationalize or requisition any enterprise with foreign capital. Under special circumstances, when public interest Article 6. The application to establish an enterprise with foreign capital shall be submitted for examination and approval to the department Article 7. After an application for the establishment of an enterprise with foreign capital has been approved, the foreign investor shall, Article 8. An enterprise with foreign capital which meets the conditions for being considered a legal person under Chinese law shall acquire Article 9. An enterprise with foreign capital shall make investments in China within the period approved by the authorities in charge of examination The industry and commerce administration authorities shall inspect and supervise the investment situation of an enterprise with foreign Article 10. In the event of a separation, merger or other major change, an enterprise with foreign capital shall report to and seek approval Article 11. The production and operating plans of enterprises with foreign capital shall be reported to the competent authorities for the record. Enterprises with foreign capital shall conduct their operations and management in accordance with the approved articles of association, Article 12. When employing Chinese workers and staff, an enterprise with foreign capital shall conclude contracts with them according to law, Article 13. Workers and staff of enterprises with foreign capital may organize trade unions in accordance with the law, in order to conduct The enterprises shall provide the necessary conditions for the activities of the trade unions in their respective enterprises. Article 14. An enterprise with foreign capital must set up account books in China, conduct independent accounting, submit the fiscal reports If an enterprise with foreign capital refuses to maintain account books in China, the financial and tax authorities may impose a fine Article 15. Within the scope of the operations approved, enterprises with foreign capital may purchase, either in China or from the world market, Article 16. Enterprises with foreign capital shall apply to insurance companies in China for such kinds of insurance coverage as are needed. Article 17. Enterprises with foreign capital shall pay taxes in accordance with relevant state provisions for tax payment, and may enjoy preferential An enterprise that reinvests in China its profits after paying the income tax, may, in accordance with relevant state provisions, Article 18. Enterprises with foreign capital shall handle their foreign exchange transactions in accordance with the state provisions for foreign Enterprises with foreign capital shall open an account with the Bank of China or with a bank designated by the state agency exercising Enterprises with foreign capital shall manage to balance their own foreign exchange receipts and payments. If, with the approval Article 19. The foreign investor may remit abroad profits that are lawfully earned from an enterprise with foreign capital, as well as other Wages, salaries and other legitimate income earned by foreign employees in an enterprise with foreign capital may be remitted abroad Article 20. With respect to the period of operations of an enterprise with foreign capital, the foreign investor shall report to and secure Article 21. When terminating its operations, an enterprise with foreign capital shall promptly issue a public notice and proceed with liquidation Pending the completion of liquidation, a foreign investor may not dispose of the assets of the enterprise except for the purpose of Article 22. At the termination of operations, the enterprise with foreign capital shall nullify its registration with the industry and commerce Article 23. The department under the State Council which is in charge of foreign economic relations and trade shall, in accordance with this Article 24. This Law shall go into effect on the day of its promulgation.
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