Can Sino-foreign joint ventures be engaged in the production and sales of military products?
 
Answer： According to the “Interim Regulations on Quality Supervision and Management of Military Products” (Order of the Commission in Charge of Science, Technology and Industry for National Defence, No.1539, 2004), the Commission in Charge of Science, Technology and Industry for National Defence is responsible for qualifying manufacturers of military products. For specific questions please consult local administration in charge of science, technology and industry for national defence.
 
 
Question：  Should both the foreign and Chinese partners be legal entities when forming a Sino-foreign joint venture? Can one of them or both of them be natural persons?
 
Answer： According to the provision of Article 18 of the Constitution of the People’s Republic of China, the People’s Republic of China allows foreign enterprises and other economic organizations or persons to invest in China according to the laws of the People’s Republic of China, and have economic cooperation in various forms with the Chinese enterprises or other economic organizations. According to this stipulation, foreign businessmen can invest in China to establish joint ventures as natural persons. However, the Chinese partner can not invest in the joint venture as a natural person. For specific details please consult the approving units of the local bureau of commerce or foreign relations & trade commission. Their reply should be deemed as final. 
 
 
Question：  Article 18 of the Constitution and Article 1 of “Joint Venture Laws” prescribe that the Chinese partners should be Chinese companies, enterprises or other business organizations. Can government functional organs be the Chinese partners?
 
Answer： “Joint Venture Laws of the People’s Republic of China” (2001 Revision) stipulates that foreign companies, enterprises or other economic organizations or persons (hereinafter referred to as “foreign partners”), can form joint ventures with China’s companies, enterprises or other economic organizations (hereinafter referred to as “Chinese partners) in the People’s Republic of China after approval by the Chinese government and based on the principle of equality and mutual benefit.

The section on foreign investment forms prescribes that Sino-foreign joint venture, Sino-foreign cooperative venture and foreign invested enterprise and the major forms of foreign investment in China. Other investment forms include foreign invested share holdings company limited, investment company, Sino-foreign cooperative research and development company and BOT. Please refer to the “Laws” for details.
 
 
Question：  I want to register an international forwarding company of 2 million yuan. Can I make partial capital injections?
 
Answer： According to “Regulations on the Management of International Cargo Forwarding Agencies of the People’s Republic of China” (Order No. 5 of Ministry of Foreign Trade and Economic Cooperation), international forwarding enterprise can only be registered when the registered capital reaches the stipulated amount in the time of application. For specific questions please consult local foreign economic relations and trade commission (department) or bureau of commerce. 

Question：  What kind of formalities need to be completed when opening a large super market of about 20,000 square meters in Shanghai? Is a license necessary?
 
Answer： Welcome! Is the enterprise you want to set up of domestic investment or foreign investment? If it is domestic investment, you can go directly to the local industrial and commercial bureau for registration. If it is foreign investment, application and approval process must be completed according to “Regulations on Foreign Investment in Commercial Areas” (Order of Ministry of Commerce, No. 8 of 2004). For details please log on to the website of Shanghai Foreign Economic Relations & Trade Commission www.smert.gov.cn, click on “foreign capital import”, then click on “establishment of foreign invested commercial retail/wholesale enterprise” in the “guidelines” on the left, you can find all the materials you need to submit for the approval. For further specific details please consult the Projects Approval Department of Shanghai Foreign Economic Relations & Trade Commission. Tel: 021-62752200 ext.838.