Forms of Investment

---Running joint venture, co-operative or partnership enterprises;

---Processing on supplied materials, assembling on supplied materials, assembling on supplied parts and conducting compensation trade;

---Transferring advanced and practical technology;

---Providing medium to long-term credits of low interest;

---Running wholly owned enterprises;

---Equipment leasing;

---Obtaining land-use right and using it for business development;

---Other forms of co-operation.

Authority in Examination and Approval

The People's Government of Shaoxing has the authority to examine and approve;

Foreign investment projects encouraged and permitted by the central government with a total investment of no more than US30 million;

Contracts for processing on supplied materials or assembling on supplied parts with a total value of no more than US10 million;

Compensation trade contracts with a total value of no more than US300,000.

Shaoxing shall submit projects and contracts exceeding these ceilings to relevant provincial authorities for approval.

Handling Procedures

Application procedures for establishing joint venture, co-operative and wholly foreign-owned enterprises (See appendix graphic) & documents required for applying for establishing joint venture and co-operative enterprises
a. Letter of internet for establishing the partnership enterprise;
b. Legal person certification or ID of every partner as well as credit certification;
c. Approved project proposal and feasibility study report (including relevant clauses concerning
project construction and operation conditions);
d. Contract and articles of association of the partnership enterprise;
e. Name list of board of directors of the partnership enterprise and their authorization letters;
f. Opinion signed by administrative organ where the enterprise is affiliated and the local
people's govemment.
Application documents for establishing wholly- owned enterprises
a. Application for establishing the enterprise;
b. The feasibility study report (including clauses that defines the enterprise's administrative organ, project construction and operation conditions) ;
c. Opinions signed by local people's govemment;
d. Articles of association of the enterprise;
e. Legal person certification or ID of the investor and credit certification.
Handling compensation trade
a. Soliciting Chinese partner;
b. The project proposal worked out by the Chinese partner, and the project feasibility study
report worked out by both partners that should be submitted to planning authorities for approval to according to their power limit in the approval;
c. Upon the securing of approval of the feasibility study report, both sides sign the contract that should be submitted to foreign trade and economic co-operation departments for approval.
Operation is allowed only after a certification for record is issued.
Handling processing on imported materials and assembling on supplied parts
a. Soliciting Chinese enterprise for processing and assembling before signing the contract
between the two sides;
b. The Chinese partner applying to local foreign trade and economic co-operation department
for the approval of the contract . Operation is allowed only after a certification for record is issued