Investment


Projects For Bidding


Joint Venture



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Directions and Key Areas for Foreign Investment


  1. Municipal works and energy infrastructure projects;
  2. Production of good quality farming and sideline products as well as deep processing of farming and sideline products greatly needed by the market;
  3. Some trades in the tertiary industry;
  4. High- and new-technology industries and projects that can meet the demand of both domestic and world markets;
  5. Industrial products consuming less energy, water, materials and producing less pollution, with high technology intensity and high added value;
  6. Projects introducing and applying advanced scientific technology to renovate traditional industry, upgrade the technical equipment and increase economic returns of large and medium-sized industrial enterprises;
  7. Projects that can meet the demand of world markets, upgrade the product grade, enlarge product export and increase foreign exchange income;
  8. Real estate projects in accordance with the general city planning of Beijing, the construction of urban infrastructure, the renovation of old and dangerous house and the moving of old urban enterprises.

Key Industries and Major Products Encouraging Foreign Investment

1)Urban Infrastructure	
	1 Construction and operation of local expressway
	2 Construction and operation of urban light rail transportation system
	3 Treatment of polluted water and rubbish
	4 Construction and operation of thermal power stations
2) Agriculture
	1. Production of good quality farming and sideline products
	2. Production of good quality dry and fresh fruits
	3. Deep processing of farming and sideline products
	4. Production of farming and sideline products for export
	5. Development of green and pollution-free foods
	6. Fresh keeping technology of vegetables, fruits, meats and flowers	
3) Industry
	1. Motor Vehicles
	Technology import and renovation of auto spare parts of factories designed by the State:
	Production of special casting for vehicles
	Production of auto electric products and other components
	Production of large automobile body mold and clamping apparatus

	2. Electronics
	New electronic components and electric-electronic components
	Photoelectric components, sensitive elements and sensors
	Micro-computers more 16-bits (not including 16-bit)
	Special purpose photoelectron materials and semiconductor materials
	New-type display components
	Computer applying system
	Special purpose electronic equipment and molding tools
	Software development
	
	3. Industry of electromechanical equipment
	High accuracy and efficiency digital control machine tools
	Power saving electromechanical products
	Laser instrument
	Industrial automatic instrument and control system
	Medical electronic instrument
	Engineering mechanics and hydroporessure
	Intellectualized analysis and electronic option instrument
	Printing machinery

	4. New-type building materials
	Engineering plastics
	New-type, energy-saving, and light basic building materials
	New-type potty and porcelain
	Cement additive
	High-grade construction mental parts and sanitary equipment
	Heat-resisting insulating materials (insulting level F or H) and insulating shaped parts

	5. Light Industry
	Design, processing and manufacture of non-mental product mold synthetic perfume and 
	simple-separated perfume
	Fast food and health-care food

	6. Textile
	High-grade chemical fiber material
	Oil agent for chemical fiber
	Special textile for industrial use

	7. Chemical Industry
	Fine chemical products
	Comprehensive utilization of waste gas, waste liquid and waste reside

	8. Medicine and medical apparatus and instrument industry
	New technology and new instrument that can improve the quality of traditional Chinese 
	medicine, better the packing of dosage products
	New-type medicine applying biological engineering technology
	Electronic endoscope
	Medical duct

4) The Tertiary Industry
	1. New type fast food and convenient catering trade
	2. Production of tourist commodities
	3. Construction of commercial facilities
	4. Development and construction of renovation areas of urban old houses
	5. Construction of the facilities in tourist spots
	6. Economic, scientific and technological information consultation
	7. Development of new and high technology and technological service

Forms of Investment

A Chinese-foreign joint venture

(hereinafter referred to as joint venture) is a shareholding, limited liability company jointly established by foreign companies, enterprises, other economic organizations or individuals and Chinese companies, enterprises or other economic organizations. The venture shall be jointly invested and managed, and the parties shall share its risks, profits and losses according to the proportion of their shares. Generally, the ratio of foreign investment to total registered capital shall not be less than 25%. The enterprise can enjoy the special treatment and related preferential policies for the Sino-foreign enterprises.

The interest distribution, risk holding, debt sharing and remained property distribution on the termination of the joint venture shall be strictly in accordance with the ratio of their shareholding of the contracted parties.

A Chinese-foreign co-operative venture

(hereinafter referred to as co-operative venture) is a contractual enterprise established in China by foreign enterprises, other economic organizations or individuals and Chinese enterprises or other economic organizations. The contract shall define clearly the co-operative conditions, share of profits, risks and losses, investment return, function and management style and the remained property distribution on the termination of the enterprise.

The major difference to a joint venture is that each party of a co-operative venture does not have to be in the form of equities or if the parties do convert their investment into equities, then the share of profits, risks and debts and the remained property distribution on the termination of the enterprise may be completely or partly not in accordance with the stock-holding ratio, and the form of investment return, management and administration can be different with a joint venture. A co-operative venture can enjoy more flexibility.

Wholly foreign-owned enterprises

Refer to enterprises in China established by foreign enterprises, economic organizations or individuals with funds entirely of their own. They are also called "enterprises exclusively run with foreign funds." All the profits made by a foreign enterprise go to the foreign investors.

Development of land

Refers to the tracts of land which can be developed comprehensively by investors, subject to their being granted the right to use the state-owned land, in the following aspects such as land levelling, construction of water supply & drainage system, electricity supply & heat supply, traffic ways, communications & public dispatch facilities, development of industrial land or land for other purposes, transfer of land use, construction of factory buildings for general purpose complete with all the necessary ground facilities including industrial production & everyday life service, transfer or leasing of these completed buildings, etc.

Compensation Trade:

In this form, foreign businessmen provide the equipment and technology, and are committed to buying back from the Chinese party a certain amount of products for export. The cost for equipment and technology may be paid back in instalment. If an agreement is reached between the Chinese and foreign parties, the cost for the imported equipment and technology may be paid back with products other than that turned out by the said equipment and technology.

Processing and Assembling on Order:

In this form, the foreign party shall provide technology, equipment, parts, raw and accessory materials, and buy back the products. The Chinese party shall receive conversion charges. The equipment supplied by the foreign party may be priced and paid back by the Chinese party with the income from conversion charges in instalment.

Leasing

Is a special way of raising funds to obtain right to the use of advanced foreign equipment. The rent is paid in accordance with stipulations in the leasing contract. After the leasing period expires the lessee may buy the equipment. The foreign party, or the lease holder, may also supply technical service, raw materials, fuel and spare parts.

Procedures for Establishing Enterprises with Foreign Investment in Beijing


1. Limits of Authority in Examination and Approval


Projects with foreign investment should be in line with China's industrial development policies and concrete requirements of 'industrial development of Beijing. Projects shall be submitted for examination and approval respectively to the competent department of the State, department of Beijing Municipality, government of district and counties of Beijing, Beijing Experimental Zone for the Development of New Technology Industries and Beijing Economic and Technological Development Zone according to the sum of total investment.

1.1. The project proposal and feasibility study report of Sino-foreign joint and cooperative ventures with an investment more than US$ 100 million should be examined and ratified by the State Planning Commission and be submitted by the State Planning Commission to the State Council for examination and approval. Contract and articles of association should be examined and approved by the Ministry of Foreign Trade and Economic Cooperation authorized by the State Council.

1.2. The project proposal and feasibility study report of joint and co-operative enterprises with an investment over US$30 million and less than US$100 million should be examined and ratified by Beijing Planing Commission and be submitted by the State Planning Commission to the State Council for examination and approval. Contract and articles of association should be examined and approved by the Ministry of Foreign Trade and Economic Cooperation.

1.3. The project proposal and feasibility study report of joint and cooperative ventures (excluding those projects restricted by the State) with an investment less than US$30 million (Inclusive), but over US$10 million for the first and second industries or over US$5 million for the tertiary industry, should be submitted to Beijing Planning Commission for examination and approval. The feasibility study report of a technical reformation venture in the industrial sector should be examined and approved by Beijing Economic Commission. The contract and articles of association should be examined and approved by Beijing Foreign Economic Relations and Trade Commission.

1.4. The project proposal, feasibility study report, contract and articles of association of non-restricted joint and cooperative ventures in the first and second industries with an investment less than US$ I 0 million should be submitted to the government of districts or counties and certain authorized bureaus or general corporations (group corporations) for examination and approval. For those new and high technology projects planning to establish in the Beijing Economic Development Zone or Beijing Experimental Zone for the Development of New Technology Industries with an investment under US$30 million should apply to the respective development zone administration and office.

1.5. The project proposal, feasibility study report, contract and articles of association of non-restricted joint and cooperative in the tertiary industry with an investment less than US$5 million should be submitted to the government of districts or counties and certain authorized bureaus or general corporations (group corporations) for examination and approval.


Non-restricted Sino-Foreign Joint and Cooperative Projects in the Tertiary Industry:

1) Food and drink-industry (restaurants, fastfood service, food delivery service and bars);
2) Consultation and information service (excluding domestic advertisement);
3) Small-sized service industry (beauty parlors, cleaning service, moving service, housework service);
4) Small size tourist recreation facilities (billiards, bowling, swimming pool, gymnasium and small size tourist spots);
5) Construction of small-sized commercial facilities.

1.6. For non-restricted foreign ventures in the primary and secondary industries to be set up in the districts or counties with an investment of no more than US$3 million (inclusive), they should have their articles of association examined and approved by the government of the concerned district or county. For new and high technology foreign ventures to be set up in Beijing Economic and Technological Development Zone or Beijing Experimental Zone for the Development of New Technology Industries with an investment no more than US$5 million (inclusive), they should submit their articles of association respectively to the development zone administration or experimental zone office for examination and approval. The non-mentioned foreign ventures should go to Beijing Foreign Economy and Trade Commission for examination and approval, or apply to the Ministry of Foreign Trade and Economic Cooperation after being approved by the Commission (over US$30 million).


2. Procedures for Establishment

Partners and Co-operators

There are various channels for investors to seek co-operation and partnership. They can contact extensively with the relevant professional department of the municipal, district and county government, with enterprises, higher learning institutions, research institutions and consultation service organizations which introduce foreign investors.

Signing Letter of Intent

The proposed Chinese and foreign parties should sign a Letter of Intent or Letter of Agreement after preliminary talks.

Examination and Approval of Project Proposal

The Chinese party of the proposed co-operation should compile and submit project proposal to the government department in charge for examination and approval, according to the Letter of Intent signed by both Chinese and foreign parties. The Chinese investor should submit the following documents:

1) application for examination and approval of project proposal to be delivered by the competent department of the Chinese party
2) letter of Intent signed by all the cooperative parties
3) project proposal on proposed investment
4) opinions of competent department on the trade classification of product arrangement (if necessary)
5) duplicate of business licence issued by governmental department in charge by the country (or region) where each party is located
6) bank reference of foreign investors


Application for Registration of the Enterprise Name

After approval of project proposal and before the signing of contract and articles of association, the enterprise with foreign investment should apply to Beijing Administration for Industry and Commerce or entrusted administration for industry and commerce in the level of district or county for registration of the enterprise name.

The following documents are to be delivered (each in duplicate):

1) foreign enterprise name registration form (each in duplicate): can be obtained from the administration for industry and commerce after approval of project proposal
2) project proposal and approval document
3) legal business licence presented by the competent governmental department of the investor's country (or region)

Examination and Approval of Feasibility Study Report

The Chinese and foreign investors should jointly prepare the feasibility study report and submit it to competent governmental department for examination and approval.

Each party should submit the following documents:

1) application for examination and approval of feasibility study report to be submitted by the competent department of the Chinese party
2) project proposal and approval document
3) feasibility study report
4) certificate of legal representatives of each party
5) balance sheet and sheet of profit and loss of each party
6) investigation and prediction on domestic and international market demand
7) opinions of the planning department on the choice of site, conditions and programme of plan and design
8) opinions of the relevant professional department on environmental protection, fire protection, labor security and sanitary facilities
9) preliminary examination or evaluation report on the project by relevant department in charge

Examination and Approval of Contract and Articles of Association

The contract and articles of association of Sino-foreign joint and cooperative ventures should be examined and approved by economic relation and trade departments at each level. Both parties should submit the following documents to apply for examination and approval:

1) project proposal and approval document
2) feasibility study report and approval document
3) contract and articles of association signed by both parties
4) duplicate of business licence or registration issued by competent governmental department of each investor's country (or region)
5) bank reference of foreign investors
6) name list of board of directors and documents on the appointment of board members by each party
7) name registration

Obtaining Approval Certificate for Enterprises

After the approval of contract and articles of association, application procedures shall be handled for approval certificate to establish enterprises with foreign investment. While applying, the following documents should be submitted:
l) filling "Application Form for enterprises with Foreign Investment"
2) business licence, registration certificate and bank reference of the foreign party
3) business licence of the Chinese party
4) project proposal and approval document
5) feasibility study report and approval document
6) contract, articles of association (including foreign language version), its attachments and approval document
7) name list of board of directors, chairman, composition of the board and document of appointment
8) name registration
9) rent agreement or certificate of house property

Statistics Registration

After obtaining an approval certificate and before registration with administration for industry and commerce, enterprises with foreign investment should go through registration procedures with statisticdepartment:

1) original copy of approval certificate of the enterprise
2) filling Statistics Registration Form for Enterprises (each in duplicate)

Registration with Administration for Industry and Commerce

Enterprises witli foreign investment approved by the commissions of foreign economic relations and trade of municipality, district and county shall, within 30 days from the date of approval, apply to Beijing Administration for Industry and Commerce or its entrusted district and county administration for industry and commerce for registration ol'the enterprise. While applying, the following documents should be submitted:

  1. application form for registration of enterprises with foreign investment issued by chairperson and vice-chairperson of the enterprise (each in triplicate)
  2. contract, articles of association (Chinese and foreign language versions, including attachments) and approval document and certificate (duplicate) issued by examination and approval organs
  3. project proposal, feasibility study report and approval document
  4. business licence of the foreign investors issued by the competent governmental department of the investor's country (or region)
  5. bank reference of the investors
  6. name list of board of directors, the appointment document for each member of the board, chairperson and vice-chairperson, and the identification papers of the above mentioned persons
  7. registration form for the legal representatives of the enterprises with foreign investment
  8. dwelling place certificate of the enterprise; if rented, rent agreement (lease term more than 1 year) and the leasor's certificate of house property
  9. if involved with urban construction (includin.. land use, water supply, power supply, gas supply. communications and etc.) and environmental protection, the approval document issued by the relevant department in charge should be submitted
  10. if involved in special project that the state has special regulations for it, the approval document issued by the relevant department in charge should be submitted.

Procedures for Right to Land Use

Enterprises with foreign investment should go through the procedures in the land administrative department to obtain right to land use.

Registration with Administration of Foreign Exchange Control

Within 60 days after getting the business licence, the enterprises with foreign investment should register with the Administration of Foreign Exchange Control of the located area, and get "Foreign Exchange Registration Form for Enterprises with Foreign Investment", and present the following documents:

1. contract, articles of association or relevant agreement of the enterprise
2. approval certificate issued by the examination and approval organ
3. business licence issued by the Administration for Industry and Commerce

Administration of Foreign Exchange Control will fill and issue "Foreign Exchange Registration Form for Enterprises with Foreign Investment" after the examination and approval of the above-mentioned documents.

With "Foreign Exchange Registration Form for Enterprises with Foreign Investment", the enterprise can open foreign currency accounts with the appointed bank of its located area. With approval of the Administration of Foreign Exchange Control, the enterprise can also open foreign currency accounts in other places in China and with foreign financial institutions abroad.


Open Account with Bank in China

1) open a foreign currency account

Enterprises with foreign investment may choose any bank with right to foreign currency operations to open foreign currency account. In applying, the following documents are to be delivered:
a. business licence ratified and issued by the Administration for Industry and Commerce
b. approval certificate for establishment of the enterprise

2) open a RMB account

Enterprises with foreign investment may choose any of the banks with the right to RMB operations to open a RMB account. In applying, the following documents should be submitted: a. business licence ratified and issued by the Administration for Industry and Commerce b. approval certificate for establishment of the enterprise

Registration for Taxation

The enterprise with foreign investment should, within 30 days after getting the business licence, register with competent taxation organs. In applying, the following documents should be submitted:

1) duplicate of business licence ratified and issued by the Administration for Industry and Commerce
2) contract, articles of association and approval document
3) approval certificate for establishment of the enterprise
4) feasibility study report and approval document
5) name list of board of directors of the enterprise



Registration for Customs

Enterprises with foreign investment should go through registration procedures for customs in the following sequence:

1) The following documents should be submitted for customs registration:
a. approval certificate for establishment of the enterprise
b. business licence of the enterprise
c. contract and articles of association
d. inventory of approved import equipment
f. approval from the commission of foreign economic relations and trade

2) The following documents should be submitted to exempt customs duties on import and export goods:
a. application form for tax exemption for import and export goods
b. invoices
c. copy of the import and export licence

3) The following documents should be submitted for declaration and taking delivery of the goods:
a. customs declaration form for the import or export goods
b. invoices
c. packing list
d. certificate of exemption from taxes for import or export goods
e. bill of lading
f. import or export licence

Registration with Finance Administration

The following documents should be submitted by the enterprises with foreign investment for registration with finance administration:

1. commerce
2. approval certificate of the establishment of enterprise
3. feasibility study report and approval document
4. contract duplicate of business licence ratified and issued by the Administration for Industry and and articles of association