Invest in China
For China鈥檚 Guidance in Foreign Direct Investment, please visit http://www.fdi.gov.cn/pub/FDI_EN/default.htm or http://www.btii.net/policyguide.htm
For China Economic Zones, please visit http://www.chinatradeworld.com/en/invest_en.html
For FDI Projects, please visit http://www.ccpitinvest.org/invest/fronten/index.jsp
Brief
China started encouraging foreigners to invest in China in 1979. The first Sino-foreign joint venture enterprise was set up in 1980. Since then, following the gradual improvement of China鈥檚 investment environment, foreign investment in China has been increased remarkably. Beginning from 1993, China has for seven consecutive years become the world鈥檚 second biggest country in foreign direct investment attraction, second only to the USA.
In 2002, FDI in China increased by a large margin and the actual utilized foreign capital in China ranked the first in the world. In the same year, 34,171 fresh foreign-invested enterprises were set up, with a contractual foreign investment of US$82.768 Billion and an actual utilized foreign investment of US$52.743 Billion, an increase of 30.72% and 12.51% over 2001 respectively.
Establishment of Representative Offices in China
For foreign enterprises requiring for establishing permanent representative offices in China, they need to apply with competent authorities for approval and registration. Without prior approval and registration, no foreign enterprises are allowed to establish any permanent representative offices in China.
I. Applications of foreign enterprises for the establishment of representative offices in China shall be filed with the following competent authorities in accordance with the corresponding trades:
1. For enterprises of trade, commerce, manufacturing and cargo transportation agency, applications shall be filed with the Ministry of commerce of the People's Republic of China for approval;
2. For enterprises of banking, securities and insurance, applications shall be filed with the People's Bank of China, the China Securities Regulatory Commission and China Insurance Regulatory Commission for approval respectively;
3. For enterprises of maritime transportation and maritime transportation agency, applications shall be filed with the Ministry of Communications of the People's Republic of China for approval;
4. For enterprises of air transportation, applications shall be filed with the Civil Aviation Administration of China for approval;
5. And, for enterprises of other trades, applications shall be filed with competent commissions, ministries and administrations of the Government of the People's Republic of China for approval, in accordance with the nature of their business.
II. In applying for the establishment of a representative office in China, the foreign enterprise concerned shall submit the following certificates and other materials:
1. An application with the signature of the President or Managing Director of the enterprise, which shall include the name of the representative office to be established, information on its top leaders, its scope of business, the duration of stay, its detailed address, etc;
2. An official business license issued by competent authorities of the country or region where the enterprise is based;
3. Certificates of the rating of credibility of the enterprise issued by financial institutions that have regular business relations with the enterprise;
4. And, letters of authorization for the personnel with the representative office appointed by the enterprise and the resume of the personnel.
For bank and insurance enterprises applying for establishment of representative offices in China, they shall also submit the annual statement of assets and liabilities, the annual statement of losses and gains, the charter of incorporation and the list of the members of the board of directors in addition to the certificates and other materials required by preceding Items 1, 2, 3 and 4.
III. After the approval of the application for the establishment of a representative office in China, the foreign enterprise shall, with the certificate of approval, contact the State Administration for Industry and Commerce of the People's Republic of China to go through the formalities for registration within 30 days after the date of approval. In going through the formalities for registration, a registration form needs to be filled out and a registration fee be paid before obtaining a registration certificate. In case failed to go through the formalities for registration by the deadline, the foreign enterprise shall have to return the certificate of approval for revocation.
