中國 外國人投資企業 經營管理制度

Abstract

An FIE refers to enterprises established under PRC iaw using foreign investment, which constitutes an important form of utilizing international private direct investment. PRC law fails to expressly define the concept of FIE. The terms FIE is loosely referred to in Chinese laws and regulation. Sino-foreign equity joint ventures(EJV), Sino-foreign co-operative joint venture(CJV) and wholly foreign owned enterprises(WFOE) are the three forms of foreign investment when China begin to implement the policy of opening the door and reform. The criteria for the classification of the above three categories of FIEs are not consistent. A WFOE differs from other types of FIEs in the source of investment. All the investors of a WFOE are foreign enterprises, other economic organization and individuals. The investors of the other two types of FIEs include at least one Chinese investor and one foreign investor. A CJV differs from an EJV in that certain rights and obligations of investors of an EJV may be set forth in the cooperative joint venture contract upon agreement among the investors rather than solely based on the capital contribution ratio. Those negotiable rights and obligations include the distribution of profits and products, sharing of risks and losses, operation and management methods, and the disposal of assets upon termination of the cooperative joint venture contract. In the case of an EJV, the above matters must be handied in accordance with the capital contribution ratio of the investors. Under Chinese law, the business scope of an enterprise is strictly regulated. The business scope is an important method of administration and guidance of enterprises by the government. Each enterprise should have clear business scope. Each enterprise should engage in business activiyies within its business scope.