The Fourth Session of the Ninth National People's Congress passed the decision on revising the Law on Chinese-Foreign Equity Joint Ventures (CFEJV) at its closing ceremony on March 15. The decision was published along with the No.48 Presidential Order signed by President Jiang Zemin. A comparison of the articles of the Law before and after its revision is given as follows:
I. Before it was revised, Clause 2 of Article 2 reads: All activities of the joint venture shall be carried out in accordance with the stipulations of the laws, decrees and relevant regulations of the People's Republic of China;
The revised version of the same clause reads: All activities of the joint venture shall be carried out in accordance with the stipulations of the laws and regulations of the People's Republic of China.
II. Before it was revised, Clause 4 of Article 6 reads: The employment and dismissal of workers and staff members of a joint venture shall be stipulated in the agreement or contract between various parties to the joint venture according to law;
The revised version reads: The employment, dismissal, remuneration, welfare, labor protection, labor insurance and other matters relating to workers and staff members of a joint venture shall be stipulated through concluding contract according to law.
III. An added article taken as Article 7 reads: Workers and staff members of a joint venture establish a trade union organization according to law, and carry out trade union activities to safeguard their lawful rights and interests.
The joint venture shall provide necessary conditions for the activities of its trade union.
IV. In the revised law, the original Article 8 is changed into Article 9. Before it was revised, Clause 4 reads: Various items of insurance of a joint venture shall be covered in the People's Insurance Company of China;
The revised version reads: The various items of insurance of a joint venture shall be covered in any insurance companies within Chinese territory.
V. After Law is revised, Clause 1 of the original Article 9 is deleted, which reads: The production and operation plan of a joint venture shall be reported to the competent department for the record and be executed in the form of an economic contract.
VI. In the revised Law, the original Article 9 is changed into Article 10, Clause 2 of the original Article 9 is altered into Clause 1 of Article 10, the original Clause reads: The raw and semi-finished materials, fuels, parts and auxiliary equipment needed by the joint venture shall be first bought in China as far as possible, they can also be bought directly in the international market with foreign exchange raised by the joint venture itself.
The revised version reads: The raw and semi-finished materials, fuels and other materials needed by the joint venture within its approved scope of business shall either be bought in the domestic market or in the international market in accordance with the principle of fairness and reasonableness.
VII. In the revised Law, the original Article 14 is changed into Article 15, the added clause is taken as Clause 2, which reads: The various parties to a joint venture, which do not include arbitration clauses in their contract, or which fail to reach a written arbitration agreement, may sue to the people's court.
IIIV. In the revised Law, the stipulation "The power of amendment to this Law is vested with the National People's Congress" is deleted from the original Article 15.
(People's Daily 03/22/2001)
