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China Insight - Corporate

New SAFE Regulation for Foreign Invested Holding Companies Making Reinvestment in China

01/06/2011

As every foreign invested enterprise in China, Chinese foreign invested holding companies (“HoldCos”) are allowed to use their legitimate income earned in China (including profits distributed by / received from its Chinese subsidiaries) to reinvest in China, i.e. to establish new companies in China or to increase the registered capital of their existing Chinese subsidiaries.

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Source
China Insight - Corporate
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Authors

Picture of Ulrike Glueck
Dr. Ulrike Glueck
Managing Partner
Shanghai