What does a joint venture mean?

A joint venture refers to an enterprise invested and established in the name of the state, enterprises and individuals as a legal person investor. Generally speaking, it refers to Sino-foreign joint ventures. A Sino-foreign joint venture refers to an enterprise invested by China investors and foreign investors, operated jointly by them, with negative profits and losses, and taking risks.

legal ground

Paragraph 2 of Article 2 of the Foreign Investment Law of People's Republic of China (PRC)

Foreign investment as mentioned in this Law refers to the investment activities directly or indirectly carried out by foreign natural persons, enterprises or other organizations (hereinafter referred to as foreign investors) in China, including the following situations:

(1) Foreign investors set up foreign-invested enterprises in China alone or jointly with other investors;

(two) foreign investors in China to obtain shares, equity, property shares or other similar rights and interests of enterprises;

(3) Foreign investors invest in new projects in China alone or jointly with other investors;

(4) Other investment methods stipulated by laws, administrative regulations or the State Council.