Three types of foreign investment

Foreign direct investment mainly in three forms
â… .Sino foreign joint ventures.The main form of foreign funded enterprises.

1. Concept: Foreign Company, enterprises and other economic organizations or individuals and China Company or other economic organizations, according to Chinese law, a limited liability company in the form of a joint venture approved by the Chinese government to set up in the territory of China.
2.Features:Joint equity joint venture. Share investment, management, risks and responsibility for profits or losses.

â…¡.Sino foreign cooperative enterprises

1.Concept: Sino foreign cooperation both sides, signed the cooperation contract with the legal person status of each country, in accordance with the conditions stipulated in the contract, the parties of investment income, risk responsibility and mode of operation to carry out contractual Economic Cooperation Organization Management.
2.Features: contract type. General foreign investment equipment, technology, capital, China to provide land site labor. Investment does not make equity, contractual requirements for investment, profit distribution according to the contract. Great flexibility, it can set up a legal personality of the cooperative enterprises, also a contract project, income distribution also showed greater flexibility.
3.Three types: Cooperative development (Development of resources, capital and cost of foreign burden, such as the commercial value of re signed a contract, if no commercial value, we are not responsible for compensation); Joint production (Manufacturing industry, the provisions of the contents of the two sides, rights and obligations, product sales); Cooperative management (Service industry).

â…¢.Individual foreign enterprises

1.A state of a company alone in foreign investment to set up businesses, enterprises belong to the state of the company alone all, independent management, self financing. Since reform and opening up, China has actively absorbed foreign enterprises into the special economic zones and open coastal cities to host - owned enterprises and made great achievement.
2.Features:Clear the scope of investment, strict requirements for investment direction, under the protection and restriction of Chinese law, it enjoys a more full autonomy, not to implement nationalization and expropriation.

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