Sino-foreign joint venture

land use right as contribution in kind in incorporating Chinese companies


Land use right in China is regarded as a form of real estate. In practice, land use right can be used as contribution in kind in capitalizing a company in China. China Company Law says in its Article 27 that upon incorporating a company, an investor can use cash, intellectual property, land use right etc. that can be valuated and transferred as contribution in capitalizing…

How to protect foreign investors in Sino-foreign equity joint ventures?


Over time, foreign investors have come more and more inclined to “go alone”, i.e. setting up a WOFE (wholly foreign owned enterprise), when making green field investment in China. The reason behind is that Chinese partners may proved to be unreliable and may and can mess up things altogether. Look at the battle between Wahaha and Donone. Wherever it is possible…

You may now set up a joint venture entity with a PRC citizen in Pudong, Shanghai


For many years, when a foreign natural person or entity wants to set up a joint venture in China, he can only find a Chinese entity as partner instead of a Chinese natural person. It is not clear why China has maintained this rule for so many years while in practice there are easy ways of circumventing this restriction.

However, with the adoption of PRC Foreign Invested…