Question：  We are a wholly owned Taiwanese leasing company. We got our business license in 2005 and our business scope is business leasing. Now we hope to engage in the car rental business. Can we do that? If not, what application procedure do I need to go through for dealing in the car rental business? 

Answer： Welcome to our website! According to relevant provisions of Measures on Administration of Foreign-Invested Leasing Business (Commerce Ministry Order No.5, of 2005), car belongs to property allowed to lease. Foreign-invested leasing companies that have obtained the Approval Certificate of Foreign-invested Enterprises can deal in car rental business.
 
 
Question：  Our company is going to apply for the import right of crude oil and finished oil. Do we need first to apply for wholesale right and retail right for domestic crude oil?

Answer： One of the conditions for applying for the import right of crude oil and finished oil is that the applicant should be an enterprise that deals in oil products. According to stipulations of Provisional Measures on the Administration of Import and Trading of Crude Oil, Finished Oil and Chemical Fertilizer by State-owned Enterprises (MOFTEC Order No.27 of 2002), the import of crude oil and finished oil is mainly handled by state-run companies, and for commodities that are in the category of state managed trading, the state allows non state-owned enterprises to import part of the quantity. For specific application procedure, please see Permitted Import Quantity, Allocation Basis and Application Procedure for Non State-Owned Enterprises’ Trading of Crude Oil 2007 (Commerce Ministry Bulletin No.78 of 2006) and Permitted Import Quantity, Allocation Basis and Application Procedure for Non State-Owned Enterprises’ Trading of Finished Oil 2007 (Commerce Ministry Bulletin No.81 of 2006).
 
 
Question：  Can Japanese-invested enterprises apply for qualification certificate for labor export (to Japan) in China (Xiamen)?

Answer： If the approved foreign-invested job agencies or Sino-foreign joint ventures of recruitment intermediary want to engage in talents export, in addition to submitting relevant materials according to Article 6 of Measures on Administration of Qualifications for Foreign Labor Services Cooperation (Commerce Ministry and the State Administration of Industry and Commerce Order No.3 of 2004), they should also submit copies of approval certificate and business license of foreign-invested enterprises. After this condition is fulfilled, foreign-invested enterprises in China can apply for qualifications to operate foreign labor services cooperation business.
 
 
 
Question：  A foreign company currently hopes to acquire all the shares of a domestic company, whose original business scope includes “investment in real estate”. Does the acquisition under the circumstance involve the approval of foreign invested investment company? Does the foreign company need to have the domestic company’s business scope changed before it acquires the latter?
 
Answer： For industries in which foreign companies are not allowed to invest that are listed in the Guiding Directory of Foreign Invested Industries, full ownership of the enterprise by foreign investors via acquisition is not allowed. This is explicitly stipulated in the Provisions on the Acquisition of Domestic Enterprises by Foreign Investors published in the No.10 Order of 2006 issued by six ministries including Commerce Ministry. For example, Article 4 of it stipulates that acquisition of domestic companies by foreign investors should comply with China’s laws, administrative regulations and rules, qualification requirement for foreign investors and policies regarding industry, land and environmental protection. Moreover, with regards to foreign investors’ investment in real estate, such as “real estate service based on fee collection or contract”, the commercial form is limited only to joint venture, which allows foreign investor to hold majority share. 
 
 
Question：  Our company wants to export titanium material. Which specifications of pure titanium material and titanium alloy in threads and rods need export license from the Ministry of Commerce? What are the relevant requirements? 
 
Answer： Our country controls the export of rare metal titanium by exercising export quota license management. For details please see 2007 Catalogue of Commodities under Export License Management, 2007 Catalogue of Commodities under Export License Management regarding Border Area Small Amount Trading (the Ministry of Commerce and the General Administration of Customs Bulletin No.100 of 2006).