There are several areas where a Chinese partner is still required here. These industries are specially regulated, as they are in most countries. Energy, telecommunications, and other similar core industries are still challenging investments in any jurisdiction. Should one of these be on your horizon, please contact us directly so we can discuss a range of solutions to suit your needs.

Some of the general characteristics of a joint venture are as follows:

• a 50-year term, which may be extended
• profit and risk sharing proportionate to capital share
• limited access to domestic sales
• nonnegotiable share holdings
• regulated debt-equity ratios
• minimum 25 percent foreign capital contribution
• foreign exchange account balanced, including remittance of profits abroad
• investors restricted from withdrawing registered capital during the life of the contract; each party contributing cash, buildings, equipment, materials, intellectual property rights, and land use rights but not labor

Equity joint venture may only be terminated upon the agreement of the investors an approval of the original investment approval authority. From the viewpoint of the Chinese Government, equity joint ventures are the preferred form of investment.