LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON FOREIGN-CAPITAL ENTERPRISES
Article 1 With a view to expanding economic cooperation and technical exchange with foreign countries and promoting the development of China’s national economy, the People’s Republic of China permits foreign enterprises, other foreign economic organizations and individuals (hereinafter collectively referred to as "foreign investors") to set up enterprises with foreign capital in China and protects the lawful rights and interests of such enterprises.
Article 2 As mentioned in this Law, "enterprises with foreign capital" refers to those enterprises established in China by foreign investors, exclusively with their own capital, in accordance with relevant Chinese laws. The term does not include branches set up in China by foreign enterprises and other foreign economic organizations.
Article 3 Enterprises with foreign capital shall be established in such a manner as to help the development of China’s national economy; they shall use advanced technology and equipment or market all or most of their products outside China.
Provisions shall be made by the State Council regarding the lines of business which the state forbids enterprises with foreign capital to engage in or on which it places certain restrictions.