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Investment Manners at Hangzhou Qianjiang Economy Development Zone                                             

                
  Chinese foreign joint venture, Chinese foreign cooperative venture and foreign-funded enterprise are the main manners that foreigners make investment in China and other investment manners include the establishment of a foreign-invested joint stock company, investing company, BOT, TOT and the transfer of enterprise ownership etc.

1. Chinese foreign joint venture
  A Chinese foreign joint venture refers to the enterprise that in accordance with the provisions of China’s laws, the Chinese joint venturer and foreign joint venturer make joint investment, have joint operation and share the profits, risks and loss proportionally within China.

2. Chinese foreign cooperative venture
  
It is the contractual enterprise that is established within China by a foreign enterprise, other economic organization or individual together with a Chinese enterprise or other economic organization. The cooperation conditions, distribution of profits, risks and loss undertaking, investment recovery, operation and management manners and the belonging of the left properties upon terminating the cooperation etc. for the cooperative parties are all stipulated in contracts.

3. Foreign-funded enterprise
  
It is the enterprise that is established by a foreign enterprise, other economic organization or individual within China with the total capital invested by the foreign investor, and is also called as an exclusively foreign-owned enterprise. All the profits acquired by the enterprise are owned by the foreign investor mentioned above.

4. Foreign-invested joint stock company
  
It is the business entity that all capital is composed by shares of equal value, the shareholders undertake their responsibility for the company according to their purchased shares, the company is responsible for the company liability with the total properties, of which the shares purchased and held by foreign shareholders cover over 25% of the company’s register capital. Such company may be established by promotion manner or stock floatation manner.

5. Investing company
  
An investing company is a limited liability company that is established by a foreign investor with exclusive capital or has joint venture with a Chinese investor within china for engaging in direct investment. The foreign investor who applies for establishing an investing company must have nice credibility, own quite powerful economic strength, have established a certain number of foreign-funded enterprises within China and the actual paid-in registered capital contribution has surpassed 30 million US dollar. An investing company that has been approved for establishment by the government of China is endowed with wider business scope than that of general foreign-funded enterprises so as to encourage transnational companies to carry out serial investment activities. At present, subject to the encouragement of the country, investing companies are permitted to make investment in the fields in terms of the industry, agriculture, infrastructures and energy etc. that are invested by foreigners.

6. BOT manner
  
BOT is short for BUILD-OPERATE-TRANSFER. BOT manner refers that the investor undertakes an established industry program or infrastructures program in the invested country and is responsible for the building, operation, maintenance and transfer of the said program. Within the fixed period the investor will operate the facilities and is allowed to withdraw the investment, operation, maintenance expenditures and other expenditures of the program within the said period and after the fulfilment of the set period transfer this program to the government of the program party.

7. TOT manner
  
TOT manner is short for TRANSFER─OPERATE─TRANSFER. TOT pattern refers that according to the arrangements set in contracts, the program unit namely the Chinese party transfers the facilities of the program that has been put into production and operation to a foreign merchant for operation. Relied on the cash flow in some years in the future of the program, the operator pays one-off to the Chinese party and meanwhile during the operation period, the operator will charge rational usage fee, service fee and other fees form the user. After the fulfilment of the operation period, the foreign merchant will transfer the facilities to the Chinese party.

8. Transfer of enterprise ownership
  
It refers to the conduct of legal compensated transfer or acquiring of the ownership of a state-owned enterprise. Any foreign legal person, natural person or other organizations may acquire a state-owned enterprise from a Chinese party in compliance with rules; meanwhile, the said enterprise shall become a foreign-funded enterprise and enjoy favourable policies set by the state.



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