【正文】 5 The industrial property or proprietary technology contributed by the foreign party to a joint venture shall meet one of the following conditions:1. capable of markedly improving the performance, quality of existing products and raising productivity。8. dissolution and liquidation。 total amount of capital contribution, registered capital of the joint venture, the amount and proportion of capital contribution of each party to the joint venture, the form of contribution, the contribution payment period, stipulations concerning equity transfer, the proportions of profit distribution and losses to be borne by parties to the joint venture。12. the ways and procedures for settling disputes between the parties to the joint venture。8. the principles governing the handling of finance, accounting and auditing。4. the proportion of profit to be distributed and losses to be borne by each party。4. lists of candidates for chairperson, vice chairperson and directors nominated by the parties to the joint venture。 2. Where there is no need for the State to allocate additional raw materials, and the national balance of fuel, power, transportation and foreign trade export quota, etc. is not affected.Joint ventures established upon approval as prescribed in the preceding paragraph shall be filed with MOFTEC for the record.MOFTEC and the State Council authorized people39。4. causes environmental pollution。s sovereignty。s Republic of China on SinoForeign Equity Joint Ventures on December 21, 1987, and further amended in accordance with the Decision of the State Council on the Revision of the Implementing Regulations of the Law of the People39。Effective date20140301Effective regionNATIONAL s Republic of China on SinoForeign Equity Joint Ventures (Revised in 2014) (Edited by )Promulgation date02192014EffectivenessEffectives Republic of China on SinoForeign Equity Joint Ventures on January 15, 1986, and secondly amended according to the Revision of Paragraph 3, Article 80 of the Implementing Regulations of the Law of the People39。s Republic of China on SinoForeign Equity Joint Ventures (hereinafter referred to as the Law on SinoForeign Equity Joint Ventures).Article 2 Sinoforeign equity joint ventures (hereinafter referred to as joint ventures) established within the territory of China in accordance with the Law on Sinoforeign Equity Joint Ventures are legal persons in China and are governed and protected by Chinese laws.Article 3 Joint ventures established within the territory of China shall be able to promote the economic development of China and the enhancement of science and technology, and facilitate the socialist modernization and construction.Industries in which the establishment of joint ventures is encouraged, permitted, restricted or prohibited by the State shall be determined in accordance with the provisions of the State in the Regulations on Foreign Investment Guidelines and the Guidance Catalogue of Foreign Investment Industries.Article 4 An application for establishing a joint venture shall not be approved under any of the following circumstances:1. damages China39。s national economy。s government in provinces, autonomous regions and municipalities directly under the Central Government and the relevant departments under the State Council the power to examine and approve the establishment of joint ventures which satisfy the following conditions:1. Where the total amount of capital contribution is within the examination and approval authority as prescribed by the State Council and the source of capital of the Chinese party to the joint venture has been ascertained。 3. joint venture agreements, contracts and Articles of association executed by the representatives authorized by the parties to the joint venture。3. the total amount of capital contribution and registered capital of the joint venture, the amount, proportion and forms of capital contribution of each party to the joint venture, the time limit for making capital contribution, stipulations concerning contribution in default and equity transfer。7. the ways and means of purchasing raw materials and selling finished products。11. the liabilities for breach of contract。3. the names, countries of registration and legal addresses of parties to the joint venture, and the names, positions and nationalities of the legal representatives thereof。7. the principles governing financial, accounting and auditing systems。s Bank of China on the day the payment is made. If there is a need for cash contribution in Renminbi made by the Chinese party to be converted into a foreign currency, it shall be converted at the standard exchange rate published by the People39。2. suspension or dissolution of the joint venture。s governments of the province, autonomous region or municipality directly under the Central Government where the site is located in the light of the purpose of site use, geographical and environmental conditions, expenses for land requisition, demolition of the houses on the site and relocation of the residents, and the joint venture39。s government.Article 48 The rates of site use fees shall not be subject to adjustment in the first 5 years from the day the land is used. After that, the interval in between the necessary adjustments to be made according to the development of the economy, changes in supply and demand, and changes in geographic and environmental conditions shall not be less than three years. Site use fee as part of the capital contribution made by the Chinese party to the joint venture shall not be subject to adjustment during the contract period.Article 49 The fee for the right to the use of a site obtained by a joint venture according to Article 44 of these Regulations shall be paid annually from the day to use the land stipulated in the contract. For the first calendar year, the venture will pay a halfyear fee if it has used the land for over 6 mont