Equity Joint Venture

An equity joint-venture is an enterprise jointly setup by company,enterprise and other economic organizations or individual from a country or region outside of Chinese border with Chinese company,enterprise or other economic organizations on the principle of equality and mutual benefit and ratified by the Chinese government.It is a company of the status of a Chinese legal person with limited liabilities.The invested parties discuss the ratio of investment(foreign investment shall not be less than 25% of total investment),jointly manage the venture,share risks and benefits.The invested parties can invest with cash,or with buildings,workshops,machinery and equipment,or other materials,industrial property ritghts,know how to use sites,etc.as their share,and will share profit according to the ratio of investment.