Partnerships allow a new form of foreign investment in China

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Partnerships allow a new form of foreign investment in China 合伙企业:外商在中国投资的新模式
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On 25 November 2009, the State Council announced the Establishment of Partnership Enterprises in China by Foreign Enterprises and Individuals. The Measures will take effect from 1 March 2010.

Sino-foreign joint venture enterprises, Sino-foreign cooperative enterprises and wholly foreign-owned enterprises are the three forms of investment permitted under China’s current foreign investment legislation. Foreign-invested partnerships constitute a new form of foreign investment distinct from these forms.

The Measures were enacted as a set of administrative rules pursuant to the PRC Partnership Law of 2006 for the purpose of “permitting foreign companies or individuals to invest in China by way of partnership” (Article 1). Therefore, foreign-invested partnerships are to be a form of foreign investment governed by the PRC Partnership Law as well as other relevant laws, administrative regulations and rules, and must conform to relevant foreign investment industrial policies (Article 3 of the Measures).

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