What is Sino-foreign Equity Joint Ventures (EJV)?

An EJV is formed jointly by at least one Chinese investor and at least one foreign investor in accordance with the Sino-foreign Equity Joint Venture Law and other relevant laws and regulations. Foreign companies, enterprises, other economic organizations and individuals may act as foreign investors. Chinese companies, enterprises and other economic organizations may act as Chinese investors. The Chinese investors and the foreign investors should enter into a Joint Venture Contract and contribute capital subscribed by them as set forth in the Joint Venture Contract. The investors share profits and losses pursuant to the ratio of capital subscribed by them. The capital subscribed by the foreign investors should not be less than 25% of the registered capital.