Provisions of the new company law on foreign investment: According to the relevant provisions of China's current company law, companies can invest in other enterprises. However, if a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors, shareholders' meeting or shareholders' meeting in accordance with the articles of association.
Legal objectivity:
Company Law of the People's Republic of China
Article 15
Companies can invest in other enterprises;
However, unless otherwise provided by law, investors shall not be jointly and severally liable for the debts of the invested enterprises.
Company Law of the People's Republic of China
Article 16
Where a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors or the shareholders' meeting in accordance with the articles of association;
Where the articles of association stipulate limits on the total amount of investment or guarantee and the amount of individual investment or guarantee, it shall not exceed the prescribed limits.
Where a company provides a guarantee for the company's shareholders or actual controllers, it must be resolved by the shareholders' meeting or the shareholders' meeting.
Shareholders specified in the preceding paragraph or shareholders controlled by actual controllers specified in the preceding paragraph shall not participate in voting on matters specified in the preceding paragraph. The voting shall be passed by more than half of the voting rights held by other shareholders present at the meeting.