What are the characteristics of foreign-funded enterprises?

Foreign enterprises, foreign economic organizations and foreign individuals invest in China to set up economic entities that can independently bear civil liabilities and have the qualifications of China enterprises as legal persons. This form is a foreign-invested enterprise. Enterprises with foreign investment can be divided into Chinese-foreign joint ventures, Chinese-foreign cooperative ventures, foreign-funded enterprises (also known as wholly foreign-owned enterprises), foreign-invested joint-stock companies and foreign-invested joint-stock companies according to the differences in investment methods, distribution methods, risk methods, investment recovery methods, debt methods and liquidation methods. Whether it is a Sino-foreign joint venture, a Sino-foreign cooperative enterprise or a foreign-funded enterprise, there is a common basic feature: they are all established in accordance with legal procedures in China; Its legal status is China enterprise legal person; They are all economic entities that can independently bear civil liability; There is foreign capital in venture capital. The main difference between Chinese-foreign joint ventures and Chinese-foreign cooperative ventures and foreign-funded enterprises lies in that foreign-funded enterprises are invested and operated by foreign enterprises, foreign economic organizations and foreign individuals themselves, making their own profits and taking their own risks; However, Chinese-foreign equity joint ventures and Chinese-foreign cooperative ventures are enterprises invested, managed, distributed and controlled by foreign enterprises, foreign economic organizations and foreign individuals with China enterprises and China economic organizations. Except for the similarities between Chinese-foreign joint ventures and Chinese-foreign cooperative ventures, the main difference between them is that Chinese-foreign joint ventures are equity-based Chinese-foreign joint ventures, while Chinese-foreign cooperative ventures are contractual Chinese-foreign joint ventures, and their investment methods, distribution methods, investment recovery methods, liquidation methods, cooperation methods and risk-taking methods are different. A Chinese-foreign joint venture refers to an enterprise in which both Chinese and foreign parties invest in the enterprise in the same currency, and calculate the investment, distribute profits, bear risks and carry out liquidation according to the investment proportion. During the term of the joint venture, a Chinese-foreign joint venture may not withdraw depreciation expenses to repay the principal and interest. Chinese and foreign parties to a Chinese-foreign contractual joint venture have invested in the enterprise, but they can provide cooperation conditions to each other at the fixed price of their respective investments, without calculating the investment proportion, not allocating according to the investment proportion, taking risks and carrying out liquidation. Distribution, responsibilities, risks and liquidation methods are all agreed by Chinese and foreign investors within the scope permitted by law.