(Adopted at the 18th Meeting of the Standing¹ Committee of the Ninth National People's Congress on October 31,2000)
颁布日期：20001031 　实施日期：20001031 　颁布单位：全国人大常委会

　　Order of the President of the People's Republic of China No. 41

　　The Decision of the Standing Committee of the National People's Congress on Revision of the Law of the People's Republic of China on Foreign-Capital Enterprises, adopted at the 18th Meeting of the Standing Committee of the Ninth National People's Congress of the People's Republic of China on October 31,2000, is hereby promulgated² and shall go into effect as of the date of its promulgation³.

　　Jiang Zemin

　　President of the People's Republic of China

　　October 31, 2000

　　At its 18th Meeting the Standing Committee of the National People's Congress decided⁴ to make the following revisions of the People's Republic of China on Foreign-Capital Enterprises:

　　1. The first paragraph of Article 3 is revised as follows: "Enterprise with foreign capital shall be established in such a manner as to help the development of China's national economy. The State encourages the establishment of foreign-capital enterprises which export their products or use advanced technology."

　　2. The first paragraph of Article 11 is deleted.

　　3. Article 15 is revised a s follows: "A foreign-capital enterprise may, in adherence⁵ to the principles of fairness and rationality, purchase on both the Chinese and the world market the raw and semi-processed materials, fuels and other materials it needs within the approved scope of operation."

　　4. The third paragraph of Article 18 is deleted.

　　In addition, the order of part of the articles of this Law shall be rearranged correspondingly according to this Decision.

　　This Decision shall go into effect as of the date of its promulgation.

　　The Law of the People's Republic of China on Foreign-Capital Enterprises shall be revised according to this Decision and promulgated anew.

　　Appendix:

　　Law of the People's Republic of China on Foreign-Capital Enterprises

　　(Adopted at the Fourth Session of the Sixth National People's Congress on April 12, 1986 and amended⁶ according to the Decision on Revision of the Law of the People's Republic of China on Foreign-Capital Enterprises adopted at the 18th Meeting of the Standing Committee of the Ninth National People's Congress on October 31, 2000)

　　Article 1 With a view to expanding economic cooperation and technological⁷ exchange with foreign countries and promoting the development of China's national economy, the People's Republic of China permits foreign enterprises, other foreign economic organizations and individuals (hereinafter collectively referred to as "foreign investors⁹") to set up enterprises with foreign capital in China and protects the lawful¹⁰ rights and interests of such enterprises.

　　Article 2 As mentioned in this Law, "enterprise with foreign capital" refers to those enterprises established in China by foreign investors, exclusively with their own capital, in accordance with relevant Chinese laws. The term does not include branches set up in China by foreign enterprises and other foreign economic organizations.

　　Article 3 Enterprises with foreign capital shall be established in such a manner as to help the development of China's national economy. The State may encourage the establishment of foreign-capital enterprises that are export-oriented or technologically¹¹ advanced.

　　Regulations shall be formulated¹³ by the State Council regarding the lines of business which the State forbids enterprises with foreign capital to engage in or on which it places certain restrictions¹⁴.

　　Article 4 The investments of a foreign investor⁸ in China, the profits it earns and its other lawful rights and interests are protected by Chinese law.

　　Enterprise with foreign capital shall abide¹⁵ by Chinese laws and regulations and may not engage in any activities detrimental¹⁶ to China's public interests.

　　Article 5 The State does not nationalize or requisition any enterprise with foreign capital. However, under special circumstances when public interests require. Enterprises with foreign capital may be requisitioned through legal procedures and appropriate compensation shall be made.

　　Article 6 The application to establish an enterprise with foreign capital shall be submitted for examination and approval to the department under the State Council which is in charge of foreign economic relations and trade, or to an institution authorized¹⁷ by the State Council. The authorities in charge of examination an approval shall, within 90 days from the date they receives such application, decide whether or not to grant approval.

　　Article 7 When the application for the establishment of an enterprise with foreign capital is approved, the foreign investor shall, within 30 days from the date of receiving the certificate of approval, apply to the administrative¹⁸ department for industry and commerce for registration¹⁹ in order to obtain a business licence. The date of issue of the business licence of foreign-capital enterprise shall be the date of its establishment.

　　Article 8 An enterprise with foreign capital which meets the condition for being considered a legal person under Chinese law shall acquire the status of a Chinese legal person in accordance with law.

　　Article 9 An enterprise with foreign capital shall make investments in China within the period approved by the authorities in charge of examination and approval. If it fails to do so, the administrative departments for industry and commerce shall have the power to cancel its business licence.

　　The administrative department for industry and commerce shall inspect and supervise the investment situation of an enterprise with foreign capital.

　　Article 10 In the event of separation, merger²⁰ or other major change, an enterprise with foreign capital shall report the matter to and seek approval from the authorities in charge of examination and approval, and register the change with the administrative department for industry and commerce.

　　Article 11 Enterprises with foreign capital shall conduct their operation and management in accordance with the approved articles of association and shall be free from any interference.

　　Article 12 When employing Chinese workers and staff, an enterprise with foreign capital shall conclude contracts with them according to law, in which matters concerning employment, dismissal, remuneration, welfare benefits, occupational protection and labour insurance shall be clearly prescribed.

　　Article 13 Workers and staff of enterprises with foreign capital may organize trade unions in accordance with law, in order to conduct trade union activities and protect their lawful rights and interests.

　　The said enterprises shall provide the necessary conditions for the activities of the trade unions in their respective enterprises.

　　Article 14 An enterprise with foreign capital shall set up account books in China, conduct independent accounting²¹, submit the fiscal²² reports and statements as required and accept supervision²³ by the financial and tax authorities.

　　If an enterprise with foreign capital refuses to maintain account books in China, the financial and tax authorities may impose a fine on it, and the administrative department for industry and commerce may order it to suspend operation or may revoke²⁴ its business licence.

　　Article 15 A foreign-capital enterprise may, in adherence to the principles of fairness and rationality, purchase on both the Chinese and the world market the raw and semi-processed materials, fuels and other materials it needs within the approved scope of operation.

　　Article 16 Enterprises with foreign capital shall apply to insurance companies in China for such kinds of insurance coverage²⁵ as are needed.

　　Article 17 Enterprises with foreign capital shall pay taxes in accordance with relevant State regulations for tax payment, and may enjoy preferential treatment for reduction of or exemption²⁶ from taxes.

　　An enterprise with foreign capital that reinvests its profits in China after paying the income tax may, in accordance with relevant State regulations, apply for refund²⁷ of a part of the income tax already paid on the reinvested amount.

　　Article 18 An enterprise with foreign capital shall handle its foreign exchange transactions in accordance with the State regulations on foreign exchange control.

　　Article 19 The foreign investor may remit²⁸ abroad the profits that are lawfully²⁹ earned from an enterprise with its investment, as well as other lawful earnings³⁰ and any funds remaining after the enterprise is liquidated³¹.

　　Wages, salaries and other legitimate³² income earned by foreign employees in an enterprise with foreign capital may be remitted³³ abroad after the payment of individual income tax in accordance with law.

　　Article 20 With respect to the period of operation of an enterprise with foreign capital, the foreign investor shall report to and secure approval form the authorities in charge of examination and approval. For an extension of the period of operation, an application shall be submitted to the said authorities 180 days before the expiration³⁴ of the period. The authorities in charge of examination and approval shall, within 30 days from the date of receiving such application, decide whether or not to grant the extension.

　　Article 21 When terminating its operation, an enterprise with foreign capital shall promptly³⁵ issue a public notice and proceed with liquidation³⁶ in accordance with legal procedure.

　　Pending³⁷ the completion of liquidation, a foreign investor may not dispose of the assets of the enterprise except for the purpose of liquidation.

　　Article 22 At the termination of operation, the enterprise with foreign capital shall cancel its registration with the administrative department for industry and commerce and hand in its business licence for cancellation³⁸.

　　Article 23 The department under the State Council which is in charge of foreign economic relations and trade shall, in accordance with this Law, formulate¹² rules for its implementation³⁹, which shall go into effect after being submitted to and approved by the State Council.

　　Article 24 This Law shall go into effect as of the date of its promulgation.

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