Problems relating to Trade and Investment on China
8. Investment recipient organization |
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Issue |
Issue details |
Requests |
Reference |
| (1) Unjustified Control and Meddling over China-Foreign JVC Acquisition of Business License | - In the process of acquiring Certificate of Approval (COA) for establishment of Chinese-Foreign Contractual Joint Ventures (CFCJV), subsequent to the scrutiny of the submitted documents, including articles of association, etc. by Municipal Bureau of Commerce (MBC), and after the applicant's (member firm) formal acquisition of certificate of approval, state administration of industry and commerce required the applicant to amend the articles of association of CFCJV as a condition for issuing COA that required the applicant's renewed negotiation with MBC. | - It is requested that GOC refrains from interfering with the contents of the agreement between the parties, without showing express legislative provisions. This is tantamount to abuse of power, and should be prohibited. - It is requested that GOC unifies the window for issuing business licence, either Ministry of Commerce or Administration for Industry and Commerce. |
- Chinese-Foreign Equity Joint Ventures Law |
| (2) Exorbitant Delays in Licences and Approvals on Investment Issues | - A Member Firm, having made capital contribution in a Joint Venture Chinese Enterprise, desiring to expand its business scope by entering into a new business, is faced with difficulties to obtain licenses and approvals. Already, several years have lapsed. | - It is requested that GOC: -- cuts down in volume administrative licences and approvals -- streamlines and expedites the process. While recognizing the importance of the process for licences and approvals, as it stands, it is excessively complex, and time consuming. Improvement is mandatory. |
- Interim Measures for Examining and Approving Enterprises' Investment Projects |
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