In such an enterprise, the proportion of the investment contributed by the foreign party shall in general not be less than 25% of the total. The partner could offer cash, or other kinds of things instead such as building, workshop, machinery, industrial property right, special technique, and field utilization right The profits and other legal interests that foreign investors have shared can be remit out or reinvest China. 2.2 Chinese-Foreign Contractual Joint Ventures Chinese-Foreign Contractual Joint Ventures are enterprises jointly established within Chinese territories by foreign companies, enterprises, other economic entities of individuals and Chinese companies, enterprises or other economic entities, according to their cooperative conditions. The both parties to a contractual joint venture should prescribe in the contract their respective conditions, lights, obligations, incomes distribution, responsibilities for risks and debts, the company management and negotiations on the property transaction at the expiration.
2.5 Foreign Invested Holding Company Foreign Invested Holding Companies are Chinese-Foreign Equity Joint Ventures or Wholly Foreign-Owned Enterprise within Chinese territory that deals with direct investment usually in the form of limited liability companies. Foreign investor, who applies to establish an Foreign Invested Holding Company must possess great assets and good reputation, establish a certain mount of companies within China, and own over $30 million of actual-paid part of registration principal. Upon the approval of the Chinese government, Foreign Invested Holding Company could enjoy a broader field of managing than other ordinary companies, in an attempt to encourage big overseas companies to carry out their series of investment plans.
At present foreign invested Holding Company can invest in the fields of industry, agriculture, infrastructure and energy that the county encourages and permits. 2.6Joint Exploitation Join Exploitation refers to Chinese company and foreign company sign venture contract to carry out a joint exploration on inland and offshore petroleum, and mineral resources. It is a widely used from of economic cooperation in the field of natural resources exploration throughout the world. The main features of the joint exploration are high risks, high input, and high return. Joint exploitation is usually carried out in three phases: exploration development and production.