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BBCC Consulting LTD | Partnership and mixed-capital companies in China
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Partnership and mixed-capital companies in China

Partnership and mixed-capital companies in China.

The treatment of foreign investment in China is determined by the activity or sector to which it is addressed. There are several sectors that are totally restricted to foreign investment or to which the foreign investor can only access through a mixed capital company.

Foreign investment restriction in:

● Development of technologies related to stem cell research and genetic treatment.
● Technical services and geological exploration services.
● Production and distribution in the audiovisual sector.
● Ownership of golf courses (management is allowed).
● Content services for new websites and audio and video programming for the Internet.

Sectors that require a majority stake in the capital of a local partner’s company:

● Telecommunications.
● Wholesale of certain products (fertilizers, automobiles and vegetable oils).
● Financial sector.
● Real estate promotion.

Investment in infrastructure.

In the field of infrastructures, China lacks a law that regulates investment models by concession. However, some provinces do have some published guidelines. In general, access to the activity of design and construction of transport infrastructures in China is hampered by barriers of access and notable local competition. This activity is, for the moment, accessible to foreigners essentially when local companies can not do so or when it comes to preliminary design.