China’s digital economy second largest in world

China’s digital economy reached 22.58 trillion yuan in 2016, ranking second globally and accounting for 30.3 percent of the national GDP, according to latest reports. The China Internet Development Report 2017 and World Internet Development Report 2017 were released during a press conference at the 4th World Internet Conference (WIC) on Dec 4. The reports were compiled by Chinese ministries, government departments, academic institutions, and research institutes. The two reports are meant to complement each other and cover a wide range of fields, including domestic and global information infrastructure, information technology, cybersecurity, digital economy, e-government, online media, and global cyberspace governance. As of June 2017, the number of Internet users around the world hit 3.89 billion, of which 751 million were in China—the most of any country worldwide. The development of the digital economy has become a common way for major countries and regions to reshape global competitiveness. At present, 22 percent of global GDP is closely related to the digital economy and China’s digital economy accounts for 30% of its GDP. In addition, the China Internet Development Report 2017 analyzes and evaluates the effectiveness of Internet development in all Chinese provinces, autonomous regions, and municipalities in terms of infrastructure construction, innovation capacity, digital economy development, Internet application, network security, and network management. Among them, the top 10 are Guangdong, Beijing, Zhejiang, Jiangsu, Shanghai, Fujian, Sichuan, Shandong, Tianjin, and Hubei.

Measures on the Registration of Adoption of Children by Foreigners in the People’s Republic of China

Article 1 These Measures are enacted in accordance with the Adoption Law of the People's Republic of China with a view to regularize the registration of foreign-related adoption.Article 2 Foreigners who attempt to adopt a child within the territory of the People's Republic of China (hereinafter referred to as foreigners attempting to adopt a child in China), shall be subject to a registration procedure according to these Measures.Where a couple, one of whom is a foreigner, attempting to adopt a child in China, shall also be subject to a registration procedure according to these Measures.Article 3 Foreigners attempting to adopt a child in China shall conform to relevant laws in relation to adoption both in China and in their home countries; problems arising from the disaccords between the laws of their home countries and those of the China shall be resolved through consultation by relevant departments of the governments of two countries.Article 4 Foreigners attempting to adopt a child in China shall deliver an adoption application, a report and a certificate concerning family situation to adoption organizations authorized by Chinese government (hereinafter referred to as Chinese adoption organizations) through governments of their home countries or adoption organizations authorized by governments of their home countries (hereinafter referred to as foreign adoption organizations).The adoption application, report and certificate concerning family situation mentioned in the preceding paragraph refer to following documents which shall be issued by competent agencies of the adopters’ home countries, authenticated by diplomatic departments of the adopters’ home countries or agencies authorized by such diplomatic departments, and authenticated by embassies or consulates of the People's Republic of China stationed in that country.(1) application for transnational adoption;(2) birth certificate;(3) certificate of marital status;(4) certificate of occupation, income and property;(5) certificate of health examination;(6) certificate certifying whether the adopter has ever been subjected to criminal punishment;(7) certificate certifying the approval of transnational adoption by competent agencies of the adopter’s home country;(8) report of family situation, including such contents as the adopter's status, eligibility and appropriateness of adoption, family background, medical history, motive for adoption and characteristics suited to child care.Foreigners who have lived in China working or studing for more than one year, attempting to adopt a child in China, shall submit the documents prescribed in the preceding paragraph except for the certificate of health examination, and shall also submit the certificates issued by the Chinese units to which they belong or relevent departments, which certify such matters as marital status, occupation, income or property condition and whether have ever been subjected to criminal punishment, as well as the certificate of health examination issued by medical units at or above county level.Article 5 Such certifying papers as the permanent resident booklet, the resident identification card of the person placing out a child for adoption (where a social welfare organization placing out a child for adoption, the identification card of the person in charge of such organization) and a resident certificate of the adoptee shall be submitted to a civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government by the person placing out the child, and the following certifying papers shall also be submitted according to respective situations:(1) Where the parents (including those who have divorced) intend to place out their child for adoption, a certificate on their incapability of upbringing owing to unusual difficulties and a written consent agreeing to place out the child for adoption shall be submitted; thereinto, where one of the parents intends to place out a child for adoption while the other spouse has died or has been missing, a certificate certifying that the other spouse has died or has been missing and a written paper declaring that the parents of the deceased or missing spouse have given up the priority in rearing the child shall also been submitted.(2) Where a guardian intends to place out a child for adoption for the reason that the adoptee’s parents do not have full civil capacity, a certificate certifying that the adoptee's parents have no full civil capacity and may do serious harm to the adoptee, and a certificate certifying that the guardian owns the guardianship shall be submitted.(3) Where a guardian intends to place out a child for adoption for the reason that both of the adoptee’s parents had died, certificates certifying that the adoptee's parents have died and the guardian assumes the obligations of guardianship virtually, as well as a written consent on the placement for adoption from the person who has obligations to support the adoptee shall be submitted.(4) Where a social welfare organization intends to place a child for adoption, certificates on the abandonment and discovery of the abandoned infant or child as well as the process of searching for parents or other guardians of the infant or child shall be submitted; where the adoptee is an orphan, a certificate certifying the death or judicial declaration of death of the orphan's parents and a written consent from other persons having obligations to support the adoptee shall be submitted.Where a disabled child is placed out for adoption, a certificate of disability of the child issued by a medical institution at or above the county level shall also be submitted.Article 6 The civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government shall examine the credentials and certifying papers submitted by the person placing out a child for adoption, and issue public notice to look for parents for the abandoned infant or child whose parents cannot be ascertained or found; where the adoptee and the person placing out a child for adoption are believed to meet the requirements provided in the Adoption Law, a list of their names shall be notified to the chinese adoption organizations, and the following credentials and certifying papers shall be conveyed simultaneously:(1) Copies of the permanent residence booklet and the resident identification card of the person placing out a child for adoption (where a social welfare organization placing out a child for adoption, the copy of the identification card of the person in charge of the organization).(2) Copies of certificates certifying that the adoptee is an abandoned infant or orphan, and the resident certificate, the report of growth conditions, the certificate of health examinations as well as photos of the adoptee.The public notice issued by the civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government for looking for the parents of the abandoned infant or child shall be published in a local newspaper at the province level. Where no parents or other guardians acknowledge the abandoned infant or child within 60 days after the publication of the public notice, it shall be regarded as abandoned infant or child whose parents can not be acertainedren or found.　　Article 7 A suitable foreign adoptee, who is among the adoptees recommended by the civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government and meets the requirements provided in the Adoption Law, shall be selected by chinese adoption organizations after having examined the adoption application and relevant certificates submitted by a foreign adopter and by referring to the desire of the foreign adopter, and the information about the adoptee and the person placing out the child for adoption shall also be sent to the foreign adopter through foreign governments or foreign adoption organizations. Where the adoption is agreed to by the foreign adopter, a notice to come to China for adoption of the child shall be sent to him or her by chinese adoption organizations, and simultaneously, the relevant civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government shall be informed to send the person placing out the child for adoption a notice that a consent has already been given to the adoption of the adoptee.Article 8 Foreigners attempting to adopt a child in China shall come to China for undergoing registration procedures in person. Where a foreign couple adopt a child jointly, they shall both come to China for undergoing registration procedures. Where one of the spouses cannot come for some reasons, the other shall be entrusted in written form to undergo such procedures independently, and the letter of entrustment shall be notarized and authenticated by competent angencies of the country in which they reside.Article 9 Foreigners attempting to adopt a child in China shall enter into a written adoption agreement with the person placing out the child for adoption. The agreement shall be in three copies, one is kept by the adopter, one is kept by the person placing out the child for adoption, and the third one is kept by the adoption registration organ while undergoing adoption registration procedures.After the conclusion of the written agreement, the parties concerned shall both register the adoption with the civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government in which the adoptee's permanent registered residence lies.Article 10 When dealing with the registration for adoption, the parties concerned shall fill out a registration application in relation to an adoption of a child in China by a foreigner, submit the adoption agreement and provide relevant materials respectively.The adopter shall provide following materials:(1) the notice sent by chinese adoption organizations that they may come to China to adopt a child;(2) the adopter's identification certificates and photographs.The person placing out a child for adoption shall provide following materials:(1) the notice sent by civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government that a consent has already been given to the adoption of the adoptee;(2) the photographs, permanent residence booklet and resident identification card of the person placing out a child for adoption (where a social welfare organization placing out a child for adoption, the identification card of the person in charge of the organization).Article 11 After receiving the registration application in relation to an adoption of a child in China by a foreigner and relevant materials of the adopter, the adoptee and the person placing out the child for adoption, an examination shall be conducted within 7 days by the adoption registration organ. Where the requirements provided in Article 10 of these Measures are met, the adoption shall be registered, and an adoption registration certificate shall be issued. The adoptive relationship comes into existence as of the date of registration.The adoption registration organ shall inform chinese adoption organizations of the result of registration.Article 12 Where, after the adoption registration, a adoption notarization is demanded by both parties or one party involved in the adoptive relationship, the adoption shall be notarized by a notarial agency with the qualification of handling foreign-related notarization which lies in the locus where the adoption is registered.Article 13 Before the adoptee leaves China, the adopter shall, on the basis of the certificate of adoption registration, go through exit formalities for the adoptee with the public security organ in the locus where the adoption is registered.Article 14 Foreigners attempting to adopt a child in China shall pay for the registration to the registration organs. The standard of registration fee shall be implemented in accordance with relevant provisions provided by the State.Chinese adoption organizations are non-profit public welfare institutions that provide adoptive services to foreigners and may charge service fees.The standard of service fees shall be implemented in accordance with relevant provisions provided by the State.The State encourages foreign adopters and foreign adoption organizations to make donations to the social welfare organizations in China in order to bring up abandoned infants and children there. The social welfare organization receiving donations must use all the donations to improve nurturing conditions for abandoned infants and children and may not misuse the donations for other purposes, and shall inform the donors of the use of the donations. The social welfare institutions receiving donations shall also subject themselves to the supervision of relevant departments and make the use of the donations known to the public.Article 15 The activities of chinese adoption organizations shall be subject to the supervision of the Ministry of civil affairs of the State Council.Article 16 These Measures shall come into effect as of the date of promulgation. The Implementation Measures on the Adoption of Children by Foreigners in the People's Republic of China approved by the State Council on November 3, 1993 and promulgated by the Ministry of Justice and the Ministry of Civil Affairs on November 10, 1993, shall be repealed simultaneously.

The investment environment in Sichuan

The Planning scope of Tianfu New DistrictTianfu New District takes Chengdu Hi-tech Development Zone (the south section), Chengdu Economic and Technological Development Zone, Shuangliu Economic Development Zone, Pengshan Economic Development Zone, Renshou Economic Development Zone, and Longquan Lake, Sancha Lake and the Longquan Mountain (referred to as "two lakes, one mountain ") as its main body, mainly including the south section of Chengdu Hi-tech Zone, Longquanyi District, Shuangliu County, Xinjin County, Ziyang City of Jianyang City, Pengshan County and Renshou County of Meishan City and involving 3 cities, 7 counties (cities, districts), 37 towns and sub-districts. The total area of Tianfu New District is 1578 square kilometers, among which the acreage within Chengdu is 1293 square kilometers, accounting for 81% of the planning area of Tianfu New District.In the overall planning of the Tianfu New District, the urban construction land is about 650 square kilometers, including the existing stock and future increments and accounting for 40% of the total area. The remaining 60% will be all kinds of ecological land. In the urban construction land, industrial land and land for various types of production and life support facilities will be about half and half. The ecological planning of Tianfu New District highlights“the surrounding of mountains and streams, combined layout, the fusion of industries and city, the Trinity, the comprehensive arrangement of the urban and rural areas, ecological pastoral, intensive development, smart low-carbon”. In the planning, there is a complete set of green space system that can be referred to as "one district, two wedges and eight belts".The Space Layout of Tianfu New DistrictThe planning structure of Tianfu New District can be generalized by eight words ——one belt, two wings; one city, six areas.

Sichuan Provincial Regulations on the Protection of Rights and Interests of Enterprises and Non-Enterprise Entities Rela

Article 1 These Regulations are formulated in accordance with the provisions of the Law of the People’s Republic of China on the Protection of the Rights and Interests of Returned Overseas Chinese and the Family Members of Overseas Chinese and relevant laws and rules, in light of the specific conditions of Sichuan Province, and with a view to encouraging returned overseas Chinese and the family members of overseas Chinese to set up enterprises and non-enterprise entities and protecting their lawful rights and interests.Article 2 Enterprises and non-enterprise entities related with returned overseas Chinese and the family members of overseas Chinese in these Regulations refer to economic entities in the form of wholly-owned enterprise, joint-venture or joint operation, and non-enterprise entities on their own earnings and expenditures, set up by returned overseas Chinese and the family members of overseas Chinese using foreign fund or private fund. Such enterprises and non-enterprise entities shall meet one of the following conditions:a) foreign fund accounting for over 20% (20% included) of the registered capital of the enterprises or establishments;b) private fund accounting for over 50% (50% included) of the registered capital of the enterprises or establishments; orc) the number of returned overseas Chinese and the family members of overseas Chinese in the enterprises or establishments accounting for over 20% (20% included) of the total number of people engaged in the enterprises or establishments.Article 3 Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall be confirmed by the offices of overseas Chinese affairs of people’s governments above county level.Article 4 Enterprises and non-enterprise entities applying to be confirmed as set up by returned overseas Chinese and the family members of overseas Chinese shall submit the following documents and certifications to the confirming agencies:a) letter of application for confirming enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese;b) investors and employees’ Certificates of Overseas Chinese and Hong Kong and Macau Compatriots and their Family Members;c) copy of the business license or approval letter of the enterprises and non-enterprise entities involved; andd) capital verification documents.The confirming agencies shall make decisions of confirmation or denial within 15 days from the day of reception of the above documents and certifications. Confirmation certificates shall be issued to the enterprises and non-enterprise entities that are confirmed to be the ones set up by returned overseas Chinese and the family members of overseas Chinese. Written reply shall be given to the enterprises and non-enterprise entities that are denied to be the ones set up by returned overseas Chinese and the family members of overseas Chinese.Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall submit the Confirmation Certificate to the original issuing agencies for examination on a regular basis. The issuing agencies shall rescind the Certificates of those enterprises and non-enterprise entities that fail to meet the conditions for being enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese. The issuing agencies shall disqualify those enterprises and non-enterprise entities that fail to submit the Certificate for examination. The issuing agencies shall notify relevant departments of such rescissions of the Certificate or disqualification.Article 5 People’s governments at various levels shall support and give physical or moral awards to returned overseas Chinese and the family members of overseas Chinese who Ping in foreign fund to set up public welfare establishments in Sichuan Province in accordance with relevant provisions. Their lawful rights and interests shall be protected by law.Article 6 Upon the approval by competent departments of construction administration of cities, municipalities and autonomous prefectures, urban construction support fee may be reduced for the land for production and office of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese. Upon approval by the land administrations and taxation administrations above county level, land use tax and site use fee may be reduced or exempted for those enterprises and non-enterprise entities which are confirmed by relevant competent departments as export-oriented or technically-advanced, by reference to relevant provisions in the Regulations of Sichuan Province on Encouraging Foreign Investment.Article 7 Upon verification and approval by local taxation administrations above county level, local income tax may be reduced or exempted for enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese, by reference to relevant provisions for foreign-invested enterprises. Specific implementation measures are to be formulated by local taxation administrations of Sichuan Province.Article 8 Donations for public welfare or relief made by enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese equivalent to 3% of the annual taxable income shall be deducted when calculating income tax.Article 9 Materials for science and education purpose and for the disabled contributed by relatives and friends outside China of returned overseas Chinese and the family members of overseas Chinese shall enjoy preferential treatment of duty reduction or exemption in accordance with relevant provisions of the State. Nobody may change the use of the contributed materials without authorization, or damage the marks for contributed materials on purpose, or seize the contributed property.Article 10 Nationalization or expropriation does not apply to enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese. In the case of special circumstances, if social and public interest necessitates expropriation of such enterprises and non-enterprise entities, the expropriation shall be approved by the people’ government of Sichuan Province, and corresponding compensation shall be made to such enterprises and non-enterprise entities for the expropriated property upon evaluation by appraisal agencies.Article 11 In the case that national construction necessitates the removal of the production and business sites and buildings with property ownership of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese, the removing unit shall acquire removal permits issued by competent departments of removal administration above county level, and sign agreements of compensation and resettlement with, make corresponding compensation and arrange resettlement to the enterprises and non-enterprise entities involved in accordance with relevant laws and rules and adhering to the principle of ensuring the sustained operation of such enterprises and non-enterprise entities.In the case of production suspension caused by the removal, the removing unit shall make compensation for the economic losses of the enterprises and non-enterprise entities to be removed and grant removal fees.Article 12 The invested or acquired property, or the profit from investment or other lawful rights and interests of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall be protected by State laws. No organization or person may seize or jeopardize such property, profit or rights and interests, or interfere with the freedom of operation and management of such enterprises and non-enterprise entities. No organization or person may impose any unreasonable fees or fines on or force donation by such enterprises and non-enterprise entities, save from the items of fees and standards of fines provided by laws, rules and Sichuan Provincial Government.Article 13 Private-owned enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese, or the shares of enterprises and non-enterprise entities owned by returned overseas Chinese and the family members of overseas Chinese may be inherited or transferred in accordance with law. The transferee may undergo confirmation procedures upon transfer, provided that the provisions of Article 2 and Article 22 of these Regulations are complied.Article 14 The names of enterprises and non-enterprise entities that are not classified as enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese may not be headed with the words “Overseas Chinese”. If the heading “Overseas Chinese” of such enterprises has been registered with administrations of industry and commerce, the heading shall be altered, and such non-enterprise entities shall be sorted out by competent authorities and the names of such non-enterprise entities shall be altered, except as otherwise provided by the State .Article 15 The lawful rights and interests of industrial or regional associations formed by enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese in accordance with relevant provisions in the Regulations on Registration and Administration of Social Organizations shall be protected by law, provided that their activities are organized in accordance with laws, rules and their Articles of Association.Article 16 Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall protect the lawful rights and interests of the employees, establish trade unions in accordance with the Law of Trade Unions of the People’s Republic of China and the Implementation Measures of Sichuan Province on the Law of Trade Unions of the People’s Republic of China, and produce necessary conditions for the operation of the trade unions.Article 17 Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall carry out legal production and operation and may not jeopardize national interests and other social interests.Article 18 In the case of infringements on the lawful rights and interests of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese or civil disputes involving such enterprises and non-enterprise entities, such enterprises and non-enterprise entities may institute complaints to relevant authorities in light of different circumstances and in accordance with the General Principles of the Civil Law of the People’s Republic of China, the Administrative Procedure Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protection of the Rights and Interests of Returned Overseas Chinese and the Family Members of Overseas Chinese and other laws and rules. Upon reception of such complaints, the competent authorities shall deal with the complaints by the procedures and within the time limits provided by laws and rules.Article 19 Upon verification, the issuing agencies shall confiscate the certificates of enterprises or organizations that counterfeited or acquired by fraud Confirmation Certificates for enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese and have enjoyed preferential treatments, and relevant authorities shall expropriate the illegal proceeds of such enterprises or organizations. In the event that the operators commit the unfair competition acts listed by these Regulations, illegal proceeds can hardly be identified resulting from the operators’ failure to provide relevant materials truthfully, and no rectifications are made after instructions, the supervision and inspection agencies may impose a fine of more than 1,000 RMB and less than 200,000 RMB in light of the circumstances. If crimes are constituted, judicial agencies shall investigate into the criminal responsibility of the responsible persons in accordance with law.The certificate-issuing officials liable for negligence of duty or dereliction of duty shall be given administrative penalties. In the event that significant economic losses are caused and crimes are constituted, judicial agencies shall investigate into the criminal responsibility of the responsible persons in accordance with law.Article 20 Competent authorities shall give criticisms and instructions to organizations or directly-responsible persons in violation of these Regulations, order the cease of infringements or give administrative penalties in light of the circumstances and in accordance with relevant laws and rules. Compensation shall be made for economic losses caused. If crimes are constituted, judicial agencies shall investigate into the criminal responsibility of the responsible persons in accordance with law.Article 21 People’s governments at various levels and their functional departments shall make efforts with the administration of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese and offer related service to such enterprises and non-enterprise entities.Article 22 These Regulations apply to enterprises and non-enterprise entities set up by Hong Kong and Macau compatriots and their family members or federations of returned overseas Chinese at various levels in Sichuan Province that meet the conditions in Article 2 of these Regulations.Enterprises and non-enterprise entities invested and set up in Sichuan Province by returned overseas Chinese and the family members of overseas Chinese of other provinces, autonomous regions and municipalities that meet the conditions in Article 2 of these Regulations shall enjoy the treatments provided in these Regulations.Article 23 Specific issues in the implementation of these Regulations are to be interpreted by the office of overseas Chinese affairs of the Sichuan Provincial Government.Article 24 These Regulations shall take effect as of August 1, 1996.

Circular of the Ministry of Commerce on Delegation of the Authority to Examine and Approve the Establishment of Investment Companies by Foreign Investors

Competent commercial departments of provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities, Harbin, Changchun, Shenyang, Jinan, Nanjing, Hangzhou, Guangzhou, Wuhan, Chengdu, Xi'an and Xinjiang Construction Corp.,For the purpose of fully carrying out the outlook on scientific development and the spirits of the 2 nd Plenary Session of the 17 th CPC Central Committee, further deepening the reform of administrative system and changing the functions of governments to improve works on examination and approval of foreign investment and promote investment facilities, the adjustment to the power to examine and approve the establishment of investment enterprises by foreign investors is herein notified as follows:Article 1 Items concerning the establishment and alteration of an investment company with registered capital of or less than USD100mn by foreign investors (exclusive of those with one-time increase of capital over USD100mn) shall be subject to the examination and approval of the competent commercial department of provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities, Xinjiang Production & Construction Corp and sub-provincial cities (including Harbin, Changchun, Shenyang, Jinan, Nanjing, Hangzhou, Guangzhou, Wuhan, Chengdu and Xi'an) at the place where the investment company makes registration and no competent commercial department at provincial level may delegate the authority of examination and approval or entrust other departments.Article 2 Items concerning subsequent alteration of an investment company established upon approval of the MOFCOM (exclusive of those with one-time increase of capital over USD100mn or changes of investors) shall be subject to the examination and approval of the competent commercial department at provincial level.Article 3 When examining and approving any application of foreign investors, the competent commercial department at provincial level shall strictly comply with relevant provisions of the Provisions on Establishment of an Investment Company by Foreign Investors (Decree of the MOFCOM [2004] No.22) and the Supplementary Provisions on Establishment of an Investment Company by Foreign Investors (Decree of the MOFCOM [2006] No.3) on conditions for the qualifications of foreign investors, registered capital, capital contribution form, businesses and requirements on application documents, and take counsel with the tax bureaus, administrations for industry and commerce and administrations for foreign exchange at provincial level at the place where the company is located whether there is any practice of violation of provisions by the foreign investors and their investment companies in China. Those in violation of applicable provisions shall not be approved to establish an investment company.Article 4 A foreign investor (legal representative) shall issue a written commitment (format of which is attached below) that its/his application submitted complies with the requirements of relevant laws and regulations and relevant materials and the signature of the legal representative or his attorney are true, accurate, complete and valid.Article 5 The investment scope of any investment company is not allowed to involve any industry under restriction and prohibition of foreign investment or macro-regulation. If the investment scope involves any industry under the category where foreign investment is allowed by special provisions, the competent commercial department at provincial level shall obtain the consent of national competent department of the industry according to relevant procedures.Article 6 The investment projects of an investment company shall conform to relevant laws, regulations and industrial policies and specific investment projects shall be separately applied for approval according to relevant procedures of the state. The enterprise invested by an investment company or jointly invested with other investors, for example, an enterprise with the percentage of foreign exchange investment by the foreign party (an investment company and other overseas investors) no less than 25% of the registered capital of the enterprise, may enjoy the treatment for foreign investment enterprises.Article 7 Upon approving the application of foreign investors, the competent commercial department at provincial level shall fill the filing form of investment company information (including three forms for newly-established enterprise, alteration and enterprise invested with format attached below respectively) through the “Administration System for Examination and Approval of Foreign-Invested Enterprises” in a timely manner, and submit the printed filing form (with official stamp of local commercial department), approval documents (with format attached below) and approval certificates (copy) to the MOFCOM (Foreign Investment Department) in written form for filing.Article 8 Upon approval of the competent commercial department at provincial level, an investment company shall report the situations of its operation and invested enterprise through the “Network for Administration of Foreign-Invested Enterprise” ( http://fic.wzs.mofcom.gov.cn/ ) in a timely manner at the meantime and go through network access procedures when receiving the approval certificate. It is encouraged to join the Executive Committee of Foreign Investment Companies of China Association of Enterprises with Foreign Investment.

Circular of the Ministry of Commerce on Further Improving Examination and Approval of Foreign Investment

Competent commercial authorities of provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities, Harbin, Changchun, Shenyang, Jinan, Nanjing, Hangzhou, Guangzhou, Wuhan, Chengdu, Xi'an and Xinjiang Production and Construction Corps, national economic and technological development zones, and national border economic cooperation zones,For the purpose of carrying out the scientific outlook on development, and according to the requirements of the important spirits of the Second Plenary Session of the 17 th Central Committee of the Communist Party of China and the State Council on promoting the reform of the administrative system of examination and approval and constructing service-oriented government, the Ministry of Commerce will, based on expanding domestic demand and maintaining the stable and rapid growth of Chinese economy, determine to continuously deepen the reform of the administrative system of examination and approval of foreign investment and further expand the administrative authority for examination and approval of foreign investment of local competent commercial authorities and national economic and technological development zones. The relevant issues are hereby notified as follows:Article 1 The examination and approval permission for elimination of supervision and control in advance for equipment imported by foreign-invested enterprises is cancelled and the establishment of a domestic branch by a foreign-invested enterprise is subject to filing administration, for which the enterprise shall directly go through the formalities for filing at the competent commercial authority where the enterprise is registered.Article 2 When the foreign-invested enterprise in the encouragement category within the authority of the Ministry of Commerce for examination and approval that does not need the state comprehensive balance (including joint stock companies) handle such issues as establishment, increase of capital, contracts/articles of association and the alteration thereof, examination and approval shall be handled by the competent commercial authorities (hereinafter referred to as the competent commercial authorities at the provincial level) of provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities, Xinjiang Production and Construction Corps, and sub-provincial cities (including Harbin, Changchun, Shenyang, Jinan, Nanjing, Hangzhou, Guangzhou, Wuhan, Chengdu and Xi'an) as well as national economic and technological development zones. Where a foreign-invested enterprise sets up an overseas establishment, it shall go through examination and approval by the competent commercial authority at the provincial level or the competent commercial authority at the prefecture level authorized by the Provincial People's Government where the enterprise is registered, and obtain the written consent from the economic and commercial sections or offices of Chinese consulates or embassies.Article 3 By reference to the relevant provisions in the Policies for the Development of the Automotive Industry, where an existing foreign-invested enterprise with investment in the production enterprises of automobiles, agriculture use trucks and vehicle engines increases investment for expansion of the production capacity of similar products and increase of varieties (including newly-established non-corporate production units of similar products in other places), an existing foreign-invested enterprise with investment in the motorcycle production enterprises increases investment for expansion of production capacity of motors and engines, an existing foreign-invested enterprise with investment in the production enterprises of automobiles, agriculture use trucks and parts and components of motors increases investment for expansion of production capacity, or a foreign-invested enterprise invests in the newly-established motorcycle production enterprise or production enterprises of parts and components of automobiles, agriculture use trucks and motorcycles, it shall go through examination and approval at the local competent commercial authority. The corresponding departments of the local people's government should complete the formalities of examining and approving projects and filing before approval by the local competent commercial authority.Article 4 For the foreign-invested enterprises that are approved and established by the Ministry of Commerce, other alteration items shall be examined and approved by the local competent commercial authority except for increase of capital above the quota verified by the State Development and Reform Commission and transfer of control from the Chinese party to the foreign party.Article 5 Where foreign investors and foreign-invested enterprises merger and acquire domestic enterprises, the local competent commercial authority and related departments including industry and commerce, taxation and foreign exchange shall, according to the provisions of the relevant laws and regulations as well as the Regulations on Merger with and Acquisition of Domestic Enterprises by Foreign Investors , examine and approve the merger and acquisition transactions under the encouragement and permission categories with the turnover of or below USD 100m as well as those under the restriction category with the turnover of or below USD 50m . Where the domestic enterprises are listed companies, they shall obtain consent from China Securities Regulatory Commission; where the domestic enterprises are state-owned ones or involved in state-owned assets, they shall handle the formalities in accordance with the relevant provisions and obtain consent from state assets management departments; and where anti-monopoly review is involved, the formalities shall be handled in accordance with the provisions of the relevant laws and regulations.Article 6 The foreign-invested enterprise that invests in the industries subject to special provisions, particular industrial policies or marco-adjustment and control shall keep handling the formalities according to the existing regulations (exclusive of the examinations and approvals by the competent commercial authority at the provincial level as authorized or entrusted by the Ministry of Commerce through special documents). Foreign investors that make strategic investments in listed companies shall still report for examination and approval by the Ministry of Commerce according to the relevant provisions.Article 7 With respect to the above-mentioned foreign investment items adjusted by the Ministry of Commerce to the local competent commercial authorities for examination and approval, the local competent commercial authorities shall conduct examination and approval in strict accordance with the requirements of state laws and regulations, simultaneously fill in the Filing Form of Examination and Approval of Foreign-invested Enterprises and the Filing Form of Examination and Approval of Foreign-invested Enterprises under the Encouragement Category above the Quota (see the annexes) in the "the management system of examination and approval of foreign-invested enterprises", and report them together with the approval documents and certificates (photocopies) to the Department of Foreign Investment Administration of Ministry of Commerce for filing.Article 8 With respect to the items subject to examination and approval administration previously delegated by the Ministry of Commerce to the competent commercial authority at the provincial level, as of the day of the distribution of this Circular, the competent commercial authorities of sub-provincial cities and national economic and technological development zones shall also enjoy the equivalent authority for examination and approval administration.Article 9 National border economic cooperation zones shall, in accordance with the relevant requirements of the former Measures for Administration on Issuing Certificates of Approval to Foreign-Invested Enterprises and Enterprises with Investment from Taiwan, Hong Kong and Macao promulgated by the Ministry of Foreign Trade and Economic Cooperation, establish and perfect the "management system of examination and approval of foreign-invested enterprises" and the "system of the national online united annual examination for foreign-invested enterprises" as soon as possible, and report the same to the Department of Foreign Investment Administration of the Ministry of Commerce for filing to create conditions for delegation of the examination and approval authority to national border economic cooperation zones after the business guidance, training and acceptance of the competent commercial authorities at the provincial level.Article 10 Work Requirements1. Organization and planning shall be done well to uplift the quality of utilization of foreign investment. The local commercial departments shall pay high attention to the important significance of the adjustment of the administrative authority for examination and approval of foreign investment, command the overall situation of utilization of foreign investment and administrative work of examination and approval of foreign investment in their own administrative regions with the scientific outlook on development, do well in the medium-to-long-range development program of utilization of foreign investment and spare no efforts to uplift the quality of utilization of foreign investment.2. Administration of examination and approval shall be made according to law for improving the level of foreign investment administration. The local commercial authorities shall intensify the strength in business training of management personnel, perfect the process of examination and approval, regulate the acts of examination and approval, and practically perform the administrative functions of examination and approval of foreign investment. In the administration of examination and approval of foreign investment, they shall deeply carry out and implement the scientific outlook on development, strictly implement state laws and regulations, industrial policies and policies on access of foreign investment, and incorporate autonomous innovation, energy conservation and environmental protection, comprehensive and intensive utilization of resources and guarantee and promotion of employment into key categories in the administration of examination and approval of foreign investment, the related requirements of which shall be presented in the approval documents, hence improving the efficiency and administrative level of examination and approval of foreign investment.3. Supervision on filing shall be strengthened and service content shall be enriched. The local commercial authorities shall regularly report the approved material foreign-invested projects in their own administrative regions to the Department of Foreign Investment Administration of the Ministry of Commerce for filing through the information filing forms of "the management system of examination and approval of foreign-invested enterprises", make every effort to innovate the way to serve foreign-invested enterprises, enrich the content of services and improve the efficiency of services, and make timely feedbacks to the Department of Foreign Investment Administration of the Ministry of Commerce when meeting on various problems encountered in the process of implementation thereof.