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Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures
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Adopted at the First Session of the Seventh National People's Congress on April 13, 1988, amended according to the Decision on Revision of the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures adopted at the 18th Meeting of the Standing Committee of the Ninth National People's Congress on October 31, 2000

Article 1  This Law is formulated to expand economic cooperation and technological exchange with foreign countries and to promote the joint establishment, on the principles of equality and mutual benefit, by foreign enterprises and other economic organizations or individuals (hereinafter referred to as the foreign party) and Chinese enterprises or other economic organizations (hereinafter referred to as the Chinese party) of Chinese-Foreign Contractual Joint Ventures ( hereinafter referred to as contractual joint ventures ) within the territory of the People's Republic of China.

Article 2  In establishing a contractual joint venture, the Chinese and foreign parties shall, in accordance with the provisions of this Law, prescribe in their contractual joint venture contract such matters as the investment or conditions for cooperation, the distribution of earnings or products, the sharing of risks and losses, the manners of operation and management and the ownership of the property at the time of the termination of the contractual joint venture. A contractual joint venture which meets the conditions for being considered a legal person under Chinese law shall acquire the status of a Chinese legal person in accordance with law...

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