Form of Establishment

• Construction and related engineering services suppliers may establish joint ventures, with foreign majority ownership permitted. By December 11, 2004, wholly foreign-owned enterprises will be permitted

• The registered capital requirements for joint venture construction enterprises are slightly different than those for domestic enterprises. Joint venture construction enterprises are also  obligated to undertake foreign-invested construction projects. These restrictions will be eliminated by December 11, 2004.

• Wholly foreign-owned enterprises may undertake only four types of construction projects:

 
• those projects wholly financed by foreign investment/grants;

• those projects financed by loans of international financial institutions and awarded through international tendering according to the loan’s terms; 

• Chinese-foreign construction projects with foreign investment of at least 50 percent and such projects of less than 50 percent but which are difficult to be implemented by Chinese enterprises alone; 

• Chinese projects difficult for Chinese construction enterprises to implement alone, which can be jointly undertaken by Chinese and foreign enterprises with the approval of the provincial government.  

• Managers, executives, and specialists of a representative office, branch, or subsidiary in China, temporarily moving as intra-corporate transferees, will be permitted an initial stay of three years.

• Managers, executives, and specialists of foreign-invested enterprises in China will be granted a long-term stay permit as stipulated in the terms of contracts concerned or an initial stay of three years, whichever is shorter.

• Service salespersons who are not based in China, and who meet certain other conditions set out in China’s services schedule, are limited to a 90-day stay.

• The conditions of ownership, operation, and scope of activities for an existing foreign service supplier, as set out in the supplier’s contract or shareholders’ agreement or in a  license establishing or authorizing the supplier’s operation or supply of services, will not be made more restrictive than they were on December 11, 2001.