(Approved by the State Council on August 7, 1995. Promulgated by the Ministry of Foreign Trade and Economic Cooperation on, and effective from, September 4, 1995.)
Chapter 1. General Provisions
Article 1. These Detailed Implementing Rules are formulated in accordance with the Law of the People's Republic of China on Chinese-Foreign Cooperative Joint Ventures.
Article 2. The establishment of Chinese-foreign cooperative joint ventures ("cooperative joint ventures") in the People's Republic of China shall conform to the development policies and industrial policies of the state and comply with the regulations concerning the guidance of foreign investment.
Article 3. Cooperative joint ventures shall develop their business and engage in operation and management activities autonomously and according to law within the scope of the approved agreements and contracts for and articles of association of such cooperative joint ventures, and shall not be subject to interference by any organization or individual.
Article 4. Cooperative joint ventures shall include cooperative joint ventures that obtain the status of a Chinese legal person according to law and cooperative joint ventures without the status of a legal person.
Those cooperative joint ventures without the status of a legal person for which Chapter 9 hereof contains special provisions shall be subject to such provisions.
Article 5. The department in charge of a cooperative joint venture shall be the department in charge of the Chinese party to the cooperative joint venture. If a cooperative joint venture has two or more Chinese parties, the department in charge of the cooperative joint venture shall be determined by the examination and approval authority in conjunction with the relevant departments through consultations, unless laws and administrative regulations provide otherwise.
The department in charge of a cooperative joint venture shall coordinate and provide assistance with relevant matters of the cooperative joint venture according to law.
Chapter 2. Establishment of a Cooperative Joint Venture
Article 6. The establishment of a cooperative joint venture shall be examined and approved by the Ministry of Foreign Trade and Economic Cooperation or by departments and local People's Governments authorized by the State Council.
The establishment of a cooperative joint venture shall be examined and approved by a department or local People's Government authorized by the State Council:
1. if the total amount of investment does not exceed the investment limit specified by the State Council for examination and approval by a department or local People's Government authorized by the State Council;
2. if the funds are raised by the parties themselves and the state is not required to balance construction or production conditions;
3. if the export of products does not require export quotas or licenses from relevant competent state authorities or, although such quotas or licenses are required, consent has been obtained from the relevant competent state authorities prior to submission of the project proposal;
4. in other circumstances for which laws or administrative regulations provide for examination and approval by a department or local People's Government authorized by the State Council.
Article 7. To establish a cooperative joint venture, the Chinese party shall submit the following documents to the examination and approval authority:
1. a project proposal concerning the establishment of the cooperative joint venture, accompanied by documents containing the approval granted by the competent authorities upon examination;
2. a feasibility study jointly prepared by the parties, accompanied by documents containing the approval granted by the competent authorities upon examination;
3. the agreement and/or contract for and the articles of association of the cooperative joint venture signed by the joint venture parties¡¯ legal representatives or representatives authorized thereby;
4. the business license or proof of registration and a certificate of creditworthiness of each party, and valid credentials of each party's legal representative; if the foreign party is a natural person, valid documentary proof of his identity, education, work experience and creditworthiness shall be provided;
5. a list of the names of the persons to hold the positions of chairman of the board, vice chairman of the board and director of the cooperative joint venture, or the positions of head, deputy head and member of the joint management committee of the cooperative joint venture, as determined by the parties through consultations; and
6. such other documents as the examination and approval authority may require to be submitted.
All documents specified in the preceding paragraph, except the documents to be provided by the foreign party as specified in item (4), must be submitted in Chinese. The documents specified in items (2), (3) and (5) may additionally be submitted in a foreign language agreed upon by the parties.
The examination and approval authority shall decide whether or not to grant approval within 45 days of the date of receipt of all the prescribed documents. If the examination and approval authority considers that the documents submitted are incomplete or not in order, it shall have the right to require the parties to provide the missing documents or to correct the items that are not in order.
Article 8. Where the establishment of a cooperative joint venture was approved by the Ministry of Foreign Trade and Economic Cooperation or a department authorized by the State Council, the Ministry of Foreign Trade and Economic Cooperation shall issue the approval certificate.
Where the establishment of a cooperative joint venture was approved by a local People's Government authorized by the State Council, the relevant local People's Government shall issue the approval certificate and, within 30 days of the date of approval, submit the relevant approval document to the Ministry of Foreign Trade and Economic Cooperation for the record.
Cooperative joint ventures the establishment of which has been approved shall apply for registration to and obtain a business license from the administration for industry and commerce according to law.
Article 9. Applications for approval to establish a cooperative joint venture shall not be approved:
1. if the sovereignty of the state or the public interest would be harmed;
2. if national security would be jeopardized;
3. if pollution damage would be caused to the environment; or
4. in other circumstances where laws, administrative regulations or the state's industrial policy would be violated.
Article 10. For the purposes of these Detailed Implementing Rules, the term "cooperative joint venture agreement" shall mean a written document created after the parties have reached a consensus on the principles for and main issues concerning the establishment of a cooperative joint venture.
For the purposes of these Detailed Implementing Rules, the term "cooperative joint venture contract" shall mean a written document created after the parties have reached a consensus on their rights and obligations inter se for the purpose of establishing a cooperative joint venture.
For the purposes of these Detailed Implementing Rules, the term "articles of association of a cooperative joint venture" shall mean a written document providing for the organizational principles, operation and management methods, etc. of a cooperative joint venture that is formulated in accordance with the provisions of the cooperative joint venture contract and unanimously agreed to by each party.
In the case of discrepancy between the contents of the cooperative joint venture agreement or the articles of association of a cooperative joint venture and the contents of the cooperative joint venture contract, the cooperative joint venture contract shall prevail.
The parties shall not be required to conclude a cooperative joint venture agreement.
Article 11. The agreement and/or contract for and the articles of association of a cooperative joint venture shall become effective on the date of issuance of the approval certificate by the examination and approval authority. Major amendments to the agreement or contract for or the articles of association of a cooperative joint venture that are made during the term of cooperation shall be subject to approval by the examination and approval authority.
Article 12. A cooperative joint venture contract shall specify the following particulars:
1. the name, place of registration and domicile of each joint venture party and the name, position and nationality of the legal representative of each joint venture party (or, if the foreign joint venture party is a natural person, the name, nationality and domicile of the foreign joint venture party);
2. the name, domicile and scope of business of the cooperative joint venture;
3. the total amount of investment and the registered capital of the cooperative joint venture and the method by and time limit in which each joint venture party should make its investment or provide its cooperation conditions;
4. assignment of the investment made or cooperation conditions provided by each joint venture party;
5. the distribution of gains or products and the sharing of risks or losses between the joint venture parties;
6. the formation of the board of directors or joint management committee of the cooperative joint venture, the distribution of seats on the board of directors or joint management committee, and the duties and methods for appointment and dismissal of the general manager and other senior management personnel;
7. the main production equipment and production technology to be adopted, and the sources thereof;
8. arrangements for the sale of products in and outside the People's Republic of China;
9. arrangements for the receipt and expenditure of foreign exchange by the cooperative joint venture;
10. the term, dissolution and liquidation of the cooperative joint venture;
11. other obligations of the joint venture parties and liability for breach of contract;
12. the principles for the handling of financial, accounting and auditing matters;
13. the handling of disputes between the joint venture parties; and
14. the procedure for amendment of the cooperative joint venture contract.
Article 13. The articles of association of a cooperative joint venture shall specify the following particulars:
1. the name and domicile of the cooperative joint venture;
2. the scope of business and term of the cooperative joint venture;
3. the name, place of registration and domicile of each joint venture party and the name, position and nationality of the legal representative of each joint venture party (or, if the foreign joint venture party is a natural person, the name, nationality and domicile of the foreign joint venture party);
4. the total amount of investment and the registered capital of the cooperative joint venture and the method of and time limit for making investment or providing cooperation conditions by each joint venture party;
5. the distribution of gains or products and the sharing of risks or losses between the joint venture parties;
6. the formation, powers, functions and rules of conducting business of the board of directors or joint management committee of the cooperative joint venture, the terms of office of members of the board of directors or joint management committee, and the duties of the chairman and vice chairman of the board or the head and deputy head of the joint management committee;
7. the establishment, powers, functions and working procedures of the operation and management organization, and the duties and methods for appointment and dismissal of the general manager and other senior management personnel;
8. provisions concerning labor management issues such as the employment, training, labor contracts, wages, social insurance, welfare benefits, occupational safety and hygiene, etc. of staff and workers;
9. the financial, accounting and auditing systems of the cooperative joint venture;
10. methods for the dissolution and liquidation of the cooperative joint venture; and
11. the procedure for amendment of the articles of association of the cooperative joint venture.
Chapter 3. Investments and Cooperation Conditions
Article 14. A cooperative joint venture that obtains the status of a Chinese legal person according to law shall be a limited liability company. The parties shall be liable to the cooperative joint venture to the extent of their respective investments made or cooperation conditions provided, unless the cooperative joint venture contract provides otherwise.
A cooperative joint venture shall be liable for its debts with all of its assets.
Article 15. The term "total amount of investment of a cooperative joint venture" shall mean the total amount of funds that needs to be injected according to the scale of production and business provided for in the contract for and articles of association of the cooperative joint venture.
Article 16. The term "registered capital of a cooperative joint venture" shall mean the sum of the capital contributions subscribed by each party for the purpose of establishment of the cooperative joint venture as registered with the authority for the administration of industry and commerce. The registered capital shall be denominated in Renminbi or in a freely convertible foreign currency agreed upon by the parties.
The registered capital of a cooperative joint venture may not be reduced during the term of cooperation. However, if such reduction is truly necessary as a result of changes in the total amount of investment and the scale of production and business, approval must be obtained from the examination and approval authority.
Chapter 4. Investments and Cooperation Conditions
Article 17. The parties shall invest in or provide cooperation conditions to the cooperative joint venture in accordance with relevant laws and administrative regulations and the cooperative joint venture contract.
Article 18. The investments made in or cooperation conditions provided to the cooperative joint venture by the parties may be in currency, and may also be in kind or in the form of property rights such as industrial property, proprietary technology, land use rights, etc.
If the investment made or cooperation conditions provided by the Chinese party are state-owned assets, asset appraisal shall be carried out in accordance with relevant laws and administrative regulations.
The foreign party's investment in a cooperative joint venture that has obtained the status of a Chinese legal person according to law shall generally not be less than 25 percent of the registered capital of the cooperative joint venture. Specific requirements for the investments made or cooperation conditions provided to a cooperative joint venture without the status of a legal person by the parties thereto shall be prescribed by the Ministry of Foreign Trade and Economic Cooperation.
Article 19. The parties shall use their self-owned property or property rights as investments or cooperation conditions. Such investments or cooperation conditions may not be encumbered by mortgage or other forms of security.
Article 20. The time limit for the making of investments or provision of cooperation conditions to a cooperative joint venture shall be stipulated by the parties in the cooperative joint venture contract on the basis of the production and operation requirements of the cooperative joint venture and in accordance with relevant laws and administrative regulations.
If the parties fail to pay up their investments or to provide their cooperation conditions in accordance with the cooperative joint venture contract, the authority for the administration of industry and commerce shall set a time limit for performance of such obligation. If the parties fail to perform such obligation within such time limit, the examination and approval authority shall revoke the approval certificate of the cooperative joint venture and the authority for the administration of industry and commerce shall revoke its business license and make a public announcement.
Article 21. A party that fails to pay up its investment or to provide its cooperation conditions in accordance with the cooperative joint venture contract shall be liable for breach of contract towards the party (parties) that has (have) paid up his (their) investment(s) or provided his (their) cooperation conditions in accordance with the cooperative joint venture contract.
Article 22. After the parties have paid up their investments or provided their cooperation conditions, an accountant registered in China shall verify the same and issue a contribution verification report, whereupon the cooperative joint venture shall issue an investment certificate to each party. An investment certificate shall specify the following particulars:
1. the name of the cooperative joint venture;
2. the date of establishment of the cooperative joint venture;
3. the names of the parties;
4. the contents of the investments made or cooperation conditions provided by the parties;
5. the date on which each party made its investment or provided its cooperation conditions; and
6. the number and date of issuance of the investment certificate.
Copies of the investment certificates shall be sent to the examination and approval authority and the authority for the administration of industry and commerce.
Article 23. Assignment by one joint venture party to another joint venture party or to a third party of all or part of its rights under the cooperative joint venture contract shall be subject to the written consent of the other joint venture party (parties) and the approval of the examination and approval authority.
The examination and approval authority shall decide whether or not to grant approval within 30 days of the date of receipt of the documents concerning the assignment.
Chapter 5. Organization Structure
Article 24. A cooperative joint venture shall have a board of directors or a joint management committee. The board of directors or joint management committee shall be the authority of the cooperative joint venture, and shall decide upon the important issues of the cooperative joint venture in accordance with the provisions of the articles of association of the cooperative joint venture.
Article 25. A board of directors or joint management committee shall have not less than three members. The distribution of seats on the board of directors or joint management committee shall be determined by the Chinese and foreign parties following consultations, making reference to their investments made or cooperation conditions provided.
Article 26. The members of the board of directors or joint management committee shall be appointed or replaced by the parties themselves. Measures for the determination of the persons to serve as chairman and vice chairman of the board or head and deputy head of the joint management committee shall be provided for in the articles of association of the cooperative joint venture. If the position of chairman of the board of directors or head of the joint management committee is assumed by a person from the (a) Chinese party or the (a) foreign party, the position of vice chairman or deputy head shall be assumed by a person from the (an) other party.
Article 27. The term of office of directors or committee members shall be provided for in the articles of association of the cooperative joint venture; however, each term may not exceed three years. Upon the expiration of their terms, directors or committee members may serve consecutive terms if reappointed by the party that originally appointed them.
Article 28. Meetings of the board of directors or joint management committee shall be held at least once a year, and shall be convened and presided over by the chairman of the board or the head of the committee. If the chairman of the board or the head of the committee is unable to perform his duties due to special reasons, he shall designate the vice chairman of the board or the deputy head of the committee or another director or committee member to convene and preside over the meeting. The convention of a meeting of the board of directors or the joint management committee may be proposed by one-third or more of the directors or committee members.
A meeting of the board of directors or the joint management committee may be held only if two-thirds or more of the directors or committee members are present. A director or committee member who is unable to attend a meeting of the board of directors or the joint management committee shall appoint another person in writing to attend and vote at the meeting as his proxy. Resolutions of a meeting of the board of directors or the joint management committee must be adopted by more than half of all the directors or committee members. If a director or committee member fails both to attend a meeting of the board of directors or the joint management committee without legitimate reason and to appoint another person to attend the meeting as his proxy, he shall be deemed to have attended such meeting and to have abstained from voting.
All directors or committee members shall be notified 10 days prior to the date on which a meeting of the board of directors or the joint management committee is to be held. Meetings of the board of directors or the joint management committee may also adopt resolutions by means of teleconferencing.
Article 29. Resolutions involving any of the following issues may be adopted only with the unanimous affirmative vote of the directors or committee members attending the meeting of the board of directors or the joint management committee:
1. amendment of the articles of association of the cooperative joint venture;
2. increase or reduction of the registered capital of the cooperative joint venture;
3. dissolution of the cooperative joint venture;
4. mortgage of assets of the cooperative joint venture;
5. merger, division or change in the form of organization of the cooperative joint venture;
6. other issues in respect of which resolutions may only be adopted unanimously at a meeting of the board of directors or the joint management committee, as agreed upon by the parties.
Article 30. The methods of conducting business and voting procedures of the board of directors or joint management committee, except for those provided for in these Detailed Implementing Rules, shall be provided for in the articles of association of the cooperative joint venture.
Article 31. The chairman of the board or head of the committee shall be the legal representative of the cooperative joint venture. If the chairman of the board or the head of the committee is unable to perform his duties due to special reasons, he shall authorize the vice chairman of the board or the deputy head of the committee or another director or committee member to represent the cooperative joint venture vis-¨¤-vis third parties.
Article 32. A cooperative joint venture shall have one general manager, who shall be responsible for the day-to-day operation and management of the cooperative joint venture and report to the board of directors or the joint management committee.
The general manager of a cooperative joint venture shall be appointed and dismissed by the board of directors or the joint management committee.
Article 33. The positions of general manager and other senior management personnel may be held by Chinese citizens, and may also be held by foreign citizens.
Upon appointment by the board of directors or the joint management committee, a director or committee member may concurrently hold the position of general manager or another senior management position in the cooperative joint venture.
Article 34. If the general manager or other senior management personnel is incompetent, practices graft or commits serious dereliction of duty, he may be dismissed upon the adoption of a pertinent resolution by the board of directors or the joint management committee. If such incompetence, graft or dereliction of duty causes the cooperative joint venture to suffer loss, he shall be liable according to law.
Article 35. If, following its establishment, a cooperative joint venture wishes to entrust a third party with operation and management, such entrustment shall be subject to the unanimous consent of the board of directors or the joint management committee and require the entry into a contract for entrustment of operation and management with the entrusted party.
The cooperative joint venture shall submit documents such as the resolution of the board of directors or the joint management committee, the executed contract for entrustment of operation and management and proof of the creditworthiness of the entrusted party to the examination and approval authority for approval. All such documents shall be submitted together. The examination and approval authority shall decide whether or not to grant approval within 30 days of the date of receipt of the relevant documents.
Chapter 6. Purchase of Supplies and Sale of Products
Article 36. A cooperative joint venture shall formulate its own production and business plan in accordance with the approved scope of business and scale of production and business.
Governmental authorities may not arbitrarily order cooperative joint ventures to implement production and business plans determined by governmental authorities.
Article 37. A cooperative joint venture may decide on its own whether to purchase in or outside the People's Republic of China the machinery, equipment, raw materials, fuel, parts, components, accessories, elements, means of transportation, office articles, etc. for its own use ("supplies").
Article 38. The state encourages cooperative joint ventures to sell their products on the international market. Cooperative joint ventures may sell their products on the international market by themselves, and may also entrust sales organizations abroad or Chinese foreign trade companies with selling their products as agents or distributors.
The prices of products sold by cooperative joint ventures shall be determined according to law by the cooperative joint ventures themselves.
Article 39. Machinery, equipment, parts, components and other materials that are imported by the foreign party as investment, and machinery, equipment, parts, components and other materials required for production and operation that are imported by the cooperative joint venture with funds within its total amount of investment, shall be exempt from import duty and turnover taxes at the import stage. If, upon approval, above-mentioned supplies imported duty- and tax-free are re-sold in the People's Republic of China or used for the purpose of domestic sale, duty and tax shall be paid or made up according to law.
Article 40. Cooperative joint ventures may not export products at prices obviously lower than reasonable prices for similar products on the international market, and may not import supplies at prices higher than prices for similar products on the international market.
Article 41. Cooperative joint ventures shall sell their products in accordance with the approved cooperative joint venture contracts.
Article 42. Cooperative joint ventures shall, in accordance with relevant state regulations, carry out procedures for application for and obtaining of licenses or quotas for those of their imports or exports that are merchandise subject to import or export licensing or to quotas.
Chapter 7. Distribution of Gains and Recovery of Investment
Article 43. The Chinese and foreign parties may distribute gains by means of distribution of profits, distribution of products or such other means as they may agree upon.
If the method of product distribution or another method is used for distribution of gains, the amount of tax payable shall be calculated in accordance with the relevant provisions of the tax laws.
Article 44. If the Chinese and foreign parties stipulate in the cooperative joint venture contract that the Chinese Party shall take title to all fixed assets of the cooperative joint venture upon expiration of the term of cooperation without compensation, the foreign party may apply for approval to first recover its investment during the term of cooperation by the following methods:
1. provision in the cooperative joint venture contract for an increase in the proportion of the gains to be distributed to the foreign party on the basis of distribution according to the investment made or cooperation conditions provided;
2. recovery by the foreign party of its investment prior to the payment of income tax by the cooperative joint venture, after examination and approval by the financial and tax authorities in accordance with relevant tax regulations of the state;
3. another method of recovery of investment approved by the financial and tax authorities and the examination and approval authority.
If the foreign party first recovers its investment during the joint venture term pursuant to the preceding paragraph, the Chinese and foreign parties shall be liable for the debts of the cooperative joint venture in accordance with the relevant laws and the cooperative joint venture contract.
Article 45. If the foreign party applies for approval to first recover its investment pursuant to item (2) or (3) of Article 44 hereof, it shall specifically describe the total amount, term and method of the early recovery of investment and, following examination and approval by the financial and tax authorities, submit the application to the examination and approval authority for approval.
The foreign party may not first recover its investment before the losses of the cooperative joint venture have been made up.
Article 46. A cooperative joint venture shall, in accordance with the relevant regulations of the state, engage an accountant registered in China to audit and verify the accounts. The parties may jointly or individually engage an accountant registered in China to audit the accounts; the expenses necessary for such audit shall be borne by the engaging parties or party.
Chapter 8. Terms and Dissolution
Article 47. The term of a cooperative joint venture shall be determined through consultations between the Chinese and foreign parties and be specified in the cooperative joint venture contract.
If, following consultations, the parties agree to request an extension of the term of cooperation upon expiration thereof, an application shall be submitted to the examination and approval authority 180 days prior to expiration of the term. Such application shall describe the implementation of the original cooperative joint venture contract and the reason for extension of the term of cooperation, and shall be accompanied by the agreement reached between the parties with respect to issues such as each party's rights and obligations etc. during the extension. The examination and approval authority shall decide whether or not to grant approval within 30 days of the date of receipt of the application.
If an extension of the term of cooperation is approved, the cooperative joint venture shall carry out the procedures for change of registration with the authority for the administration of industry and commerce on the strength of the approval document. The extension of the term shall be counted from the first day after the expiration of the term.
If the cooperative joint venture contract provides that the foreign party shall recover its investment first, and such recovery of investment has been completed, then the term of the cooperative joint venture shall no longer be extended upon expiration thereof. However, if the foreign party increases its investment and all parties reach an agreement following consultations, an application may be submitted to the examination and approval authority for an extension of the term of cooperation in accordance with the second paragraph hereof.
Article 48. A cooperative joint venture shall be dissolved:
1. upon expiration of the term of cooperation;
2. If it incurs serious deficits, or suffers serious loss as a result of force majeure, making it impossible to continue to operate;
3. if one, several or all of the Chinese and foreign parties fail to perform their obligations under the contract for and articles of association of the cooperative joint venture, making it impossible for the cooperative joint venture to continue to operate;
4. if another cause for dissolution as provided for in the contract for and articles of association of the cooperative joint venture has arisen; or
5. if the cooperative joint venture violates a law or administrative regulation and is ordered closed according to law.
If circumstances as mentioned in item (2) or (4) of the preceding paragraph arise, the board of directors or joint management committee shall make a decision and submit the same to the examination and approval authority for approval. If circumstances as mentioned in item (3) of the preceding paragraph arise, the Chinese and/or foreign party or parties that fail to perform their obligations under the contract for and articles of association of the cooperative joint venture shall be liable to compensate for the losses suffered as a result thereof by the party or parties that have been performing the contract, and the party or parties that have been performing the contract shall have the right to apply to the examination and approval authority for dissolution of the cooperative joint venture.
Article 49. Matters concerning the liquidation of cooperative joint ventures shall be handled in accordance with the relevant laws and administrative regulations of the state and the contracts for and articles of association of the cooperative joint ventures.
Chapter 9. Special Provisions for Cooperative Joint Ventures without the Status of a Legal Person
Article 50. Cooperative joint ventures without the status of a legal person and the parties thereto shall bear civil liability in accordance with the relevant provisions of China's civil law.
Article 51. Cooperative joint ventures without the status of a legal person shall register the investments made or cooperation conditions provided by the parties with the authority for the administration of industry and commerce.
Article 52. The investments made or cooperation conditions provided by the parties to a cooperative joint venture without the status of a legal person shall be owned by the parties individually. The same may also be owned in common, or partly owned individually and partly owned in common, if the parties so agree. Property accumulated by the cooperative joint venture in the course of business shall be owned in common by the parties.
The investments made or cooperation conditions provided by the parties to a cooperative joint venture without the status of a legal person shall be administered and used by the cooperative joint venture in a unified manner and may not be disposed by any party without the consent of the other party or parties.
Article 53. Cooperative joint ventures without the status of a legal person shall establish joint management committees. A joint management committee shall be formed by the representatives delegated by the parties and shall jointly manage the cooperative joint venture on behalf of the parties.
The joint management committee shall decide upon all important issues of the cooperative joint venture.
Article 54. Cooperative joint ventures without the status of a legal person shall keep unified account books at the places where they are located. The parties to such cooperative joint ventures shall additionally keep their own account books.
Chapter 10. Supplementary Provisions
Article 55. The conclusion, validity, interpretation and performance of, and the settlement of disputes in connection with, cooperative joint venture contracts shall be governed by the laws of China.
Article 56. Matters not covered herein, including the administration of financial, accounting, auditing, foreign exchange, taxation, labor affairs and the labor unions of cooperative joint ventures, etc. shall be governed by relevant laws and administrative regulations.
Article 57. Cooperative joint ventures established by companies, enterprises and other economic organizations or individuals from Hong Kong, Macao and Taiwan and by Chinese citizens residing abroad shall be handled by reference to these Detailed Implementing Rules.
Article 58. These Detailed Implementing Rules shall be implemented from the date of promulgation.
This translation, together with any explanatory material, is provided courtesy of Lehman Tax & Accounting.
