Foreign investors
BIZCHINA / Company laws
Interim Provisions on Mergers and Acquisitions of Domestic Enterprises
by Foreign investors
Updated: 2006-04-17 10:20
(The Interim Provisions on Mergers and Acquisitions of Domestic
Enterprises by Foreign Investors (hereinafter referred to as the
"Provisions"), reviewed and adopted at the First Ministry Meeting of the
Ministry of Foreign Trade and Economic Cooperation of the People's
Republic of China on January 2, 2003, is hereby published and will come
into force on April 12, 2003.)
Chapter I General Provisions
Article 1 The Provisions are formulated in accordance with the laws and
administrative regulations governing foreign investment enterprises and
other relevant laws and administrative regulations to promote and
regulate foreign investors' investment in China introduce advanced
technologies and management experience from abroad, improve the
utilization of foreign investment, rationalize the allocation of
resources, ensure employment and safeguard fair competition and national
economic security.
Article 2 For the purpose of the Provisions, mergers and acquisitions of
a domestic enterprise by foreign investors shall mean that foreign
investors, by agreement, purchase equity interest from shareholders of
domestic enterprise with no foreign investment (hereinafter referred to
as the "Domestic Company") or subscribe to the increase in the registered
capital of the Domestic Company with the result that such Domestic
Company changes into a foreign investment enterprise (hereinafter
referred to as "Equity Merger and Acquisition"); or the foreign investors
establish a foreign investment enterprise and then, through such
enterprise, purchase the assets of a domestic enterprise by agreement and
operate such assets, or the foreign investors purchase the assets of a
domestic enterprise by agreement and use such assets as investment to
establish a foreign investment enterprise to operate such assets
(hereinafter referred to as "Asset Merger and Acquisition").
Article 3 In mergers and acquisitions of domestic enterprises, foreign
investors shall comply with the laws, administrative regulations and
departmental rules and adhere to the principles of fairness,
reasonableness, compensation for equal value, and honesty and good faith,
and shall not create excessive concentration, eliminate or hinder
competition, disturb the social economic order or harm the societal
public interests.
Page: 1 2 3 4 5 6 7 8 9
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Luxury cars are big boys' toys
� Full speed ahead for Shanghai express
� Godfather of information industry
� Individual gold transactions in China brisk
� China closes over 2,600 enterprises
Today's Top News
� 'SCO not an eastern version of NATO'
� 9.5 million sit college exam this year
� Tianjin gets the nod for new-area plan
� Malformed baby has third arm removed
� Doctors remove third arm from boy
Top Biz News
� Three Gorges Dam takes the strain
� China speeds up credit rating of foreign trade companies
� Scientists to help achieve goal of innovation nation
� Nuke fusion reactor gives a headstart
� China, Arab nations sign action plan
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Chinese language
