Legal basis: Law of People's Republic of China (PRC) on Chinese-foreign Cooperative Enterprises.
Article 2 When establishing a contractual joint venture, the Chinese and foreign parties shall, in accordance with the provisions of this Law, stipulate in the contractual joint venture contract the conditions of investment or cooperation, the distribution of income or products, the sharing of risks and losses, the mode of operation and management, and the ownership of property when the contractual joint venture terminates.
If a contractual joint venture meets the requirements of China as a legal person, it shall obtain the qualification of China as a legal person according to law.
Article 3 The State protects the lawful rights and interests of contractual joint ventures and Chinese and foreign parties according to law.
A contractual joint venture must abide by the laws and regulations of China and shall not harm the social interests of China.
Relevant state organs shall supervise contractual joint ventures according to law.