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Contractual Or Cooperative Joint Venture
It is a joint-venture
based on contracts.The liabilities,rights and obligations of
the cooperating parties are sipulated by agreement or contract
agreed upon by the parties.Such contracts need to be ratified
by the Chinese government and are protected and under the jurisdiction
of Chinese law.The general way of managing contractual joint-venture
is that the Chinese party provides land use right,labor force
and labor services or readily accessible spaces,equipment and
materials.Exercising the principle of equality and mutual benefit,the
parties reach agreements on the relevant form of management
and the form and proportion of profit-sharing.The major difference
between an equity joint-venture and a contractual joint-venture
lies in that the shares may not necessarily be counted in monetary
terms,also not necessarily share profit according to proportion
of investment,but be shared according to the forms of investment
and ratio of profit sharing the parties agreed upon.
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