Joint Venture (JV)

A Sino-foreign joint venture 

A Sino-foreign joint venture (hereinafter referred to as a joint venture) refers to an enterprise in which a Chinese venturer and a foreign venturer jointly invest and operate jointly in China, and share profits, risks and losses in proportion to the investment ratio in accordance with Chinese laws.

Joint ventures jointly organized by foreign companies, enterprises and other economic organizations or individuals and Chinese companies, enterprises or other economic organizations established in China in accordance with relevant Chinese laws, that is, investors of two or more different nationalities, in accordance with the "Company Law". It is a limited liability company that is jointly invested and established with the provisions of the "Regulations on the Administration of the Registration of Enterprise Legal Persons," and jointly operates, shares profits and losses, and assumes risks.

The method of joint venture can be a legal entity or an unincorporated organization formed to implement a certain project or jointly conduct a certain economic activity.

In Sino-foreign joint ventures, Chinese partners generally provide land (use rights), natural resources, labor or existing plants, equipment, and corresponding hydropower facilities, etc.; foreign cooperation provides capital, advanced equipment, technology, and materials.