As the biggest market in the world, China has always being the key country for foreign investment. Its abundant human resources and the continually improving investment policy ensure it the first choice for foreign investing. If you have found out the big potential power in China market, you must know the investment environment and style. There are four common investment types for foreign investme
As the biggest market in the world, China has always being the key country for foreign investment. Its abundant human resources and the continually improving investment policy ensure it the first choice for foreign investing. If you have found out the big potential power in China market, you must know the investment environment and style. There are four common investment types for foreign investment.
Enterprises with Three Kinds of Capital
The Enterprises with Three Kinds of Capital refer to Chinese-foreign Joint Venture, Enterprise Jointly Managed by China and Foreign Countries and Wholly Foreign-owned Enterprise, all of these are the fundamental modes for foreign direct investment in China. The Chinese-foreign Joint Venture is also called Equity Joint Venture. The Enterprise Jointly Managed by China and Foreign Countries is also the contractual co-operative venture, which is coordinated by foreign enterprises, other economic organizations or individuals, along with the Chinese enterprises or the related economic organizations, it is a contractual co-operative venture held in China. The Wholly Foreign-owned Enterprise is also called Overseas-funded Enterprise; it’s such a company which is held by foreign enterprises in China and completely invested by foreign investors.
Chinese-foreign Cooperative Development
Chinese-foreign cooperative development means that the foreign companies cooperate with Chinese Companies to explore and develop oil resources, according to the Regulations of the People's Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises or Regulations of the People's Republic of China on the Exploitation of land petroleum resources in Cooperation with Foreign Enterprises.
International Lease and Compensation Trade Project
The type also involves some small types, including international lease, compensation trade and parts processing.
Right of Patent Project
This project includes BOT and TOT patterns. BOT is shorted from BUILD-OPERATE-TRANSFER, which means “Build-Operate-Transfer”. Typical BOT is the franchise rights awarded by the government, the government sign the contract with the Project Corporation of private sector (refers to foreign investment in China), it is the infrastructure construction financed and built by Project Corporation. TOT is the short for TRANSFER-OPERATE-TRANSFER, which means “Transfer-Operate-Transfer”.