Under the law of the People’s Republic of China (“PRC law”), joint venture companies can legally be structured either as an Equity Joint Venture ("EJV") or as a Contractual (or Cooperative) Joint Venture ("CJV").
The legal basis for the establishment of an EJV are both the PRC Law on Sino-foreign Joint Equity Enterprises (last revised on 15 March 2001) and the Regulations for the Implementation of the PRC Law on Sino-foreign Joint Equity Enterprises as amended on 22 July 2001.
CJVs are subject to the PRC Law on Sino-foreign Cooperative Enterprises updated on 31 October 2000 as well as the Detailed Rules for the Implementation of the PRC Law on Sino-foreign Cooperative Enterprises of 4 September, 1995.
The establishment as well as the Joint Venture Contract and the Articles of Association of joint ventures are mandatorily subject to PRC law.
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