What Is a Foreign Investment Property?

Foreign direct investment is the act of foreign enterprises and economic organizations or individuals (including overseas Chinese, compatriots from Hong Kong, Macao and Taiwan, and Chinese enterprises registered overseas) to make direct investment in China using foreign exchange, in kind, and technology. Including: the establishment of wholly foreign-owned enterprises in China, joint investment with Chinese enterprises or economic organizations in joint ventures, joint ventures or cooperative development of resources (including reinvestment of foreign investment income), and approval by relevant government departments Within the total investment of the project, the enterprise borrowed funds from abroad. ^[1]

Foreign direct investment

Foreign direct investment refers to foreign enterprises and economic organizations or individuals (including overseas Chinese, Hong Kong, Macao and Taiwan compatriots and Chinese enterprises registered overseas) in accordance with China's relevant policies and regulations, using foreign exchange, in kind, technology, etc. to establish wholly foreign-owned enterprises in China, and Enterprises or economic organizations in China co-sponsor Chinese-foreign joint ventures, cooperative ventures, or cooperative development of resources for investment (including reinvestment of foreign investment income), and funds borrowed from overseas by the total investment of projects approved by relevant government departments .

It is generally believed that exports are

China's absorption of foreign investment is generally divided into

While continuously expanding the investment field and further opening up the domestic market, we are also actively exploring and expanding new ways of utilizing foreign capital.

1. BOT: BOT projects in the infrastructure field have begun to be tried. For example, the BOT project of Guangxi Laibin Power Plant has been approved.

2. Investment companies: In April 1995, the Ministry of Foreign Trade and Economic Cooperation issued the "Interim Provisions on the Establishment of Investment Companies by Foreign Investment" to encourage large overseas companies to launch their series of investment plans. More than 160 investment companies have been established and their investment activities are expanding.

3. Foreign-invested joint-stock companies: Joint-stock companies can be established by initiation or fund-raising. Existing foreign-invested limited liability companies can also apply for restructuring into joint-stock companies.

4. Mergers and acquisitions: Cross-border mergers and acquisitions have become one of the main methods of international direct investment. The acquisition of a domestic enterprise by a foreign investor means that the foreign investor agrees to purchase the equity of a shareholder of a domestic non-foreign-invested enterprise or subscribes for a domestic company to increase its capital so that the domestic company is changed to a foreign-invested enterprise; And purchase domestic enterprise assets through the enterprise agreement and operate the assets; or, foreign investors agree to purchase domestic enterprise assets, and invest in the assets to establish a foreign-invested enterprise to operate the assets.

The biggest difficulty of direct investment projects is the lack of funds. Making full use of foreign capital can not only learn advanced foreign technologies and management methods, but also be an effective way to solve financial difficulties. China's use of foreign capital is divided into two forms, namely: absorbing foreign direct investment and borrowing foreign loans.

(1) Foreign direct investment is mainly divided into Sino-foreign joint ventures, Sino-foreign cooperative enterprises, wholly foreign-owned enterprises and cooperative development. And including compensation trade, processing of supplied materials, processing and assembly.

1. Sino-foreign joint ventures Sino-foreign joint ventures are also called equity joint ventures.

It is the Chinese and foreign parties that jointly invest, operate together, share risks, and share profits and losses according to their respective capital contributions. The proportion of foreign investors' investment shall generally not be less than 25%.

2. Sino-foreign cooperative enterprises Sino-foreign cooperative enterprises are also called contractual joint ventures.

The difference from a Sino-foreign joint venture is that the rights and obligations of the Chinese and foreign parties are not clearly specified, and everything is determined in the contract signed by the two parties.

3. Wholly foreign-owned enterprise refers to a foreign company, enterprise, other economic organization, or individual, in which all the capital established in China in accordance with Chinese law is invested by a foreign investor.

4. Other investment methods mainly include compensation trade, processing and assembly materials, sample processing and assembly, international leasing,

(Approved by the State Council on June 7, 1995, issued by the State Planning Commission, the State Economic and Trade Commission, and the Ministry of Foreign Trade and Economic Cooperation on June 20, 1995)

Article 1 In order to guide the direction of foreign investment, adapt the direction of foreign investment to China's national economic and social development plan, and help protect the legitimate rights and interests of investors, according to national laws and regulations on foreign investment and industrial policy requirements, formulate This provision.

Article 2. These regulations apply to projects in China that invest in and hold Sino-foreign joint ventures, Sino-foreign cooperative ventures, and foreign-funded enterprises, as well as other forms of foreign investment projects (hereinafter referred to as foreign investment projects).

Article 3 The State Planning Commission, in conjunction with the relevant departments of the State Council, shall prepare and revise the "Regulations" on a regular basis in accordance with these regulations and the state of economic and technological development.

(1) Standards of international organizations and institutions

International loans, international securities investment, international subsidiaries