JV Allowed With A Chinese Natural Person

JV Allowed With A Chinese Natural Person

Shanghai, Jiangsu, Zhejiang and Anhui provinces are to allow the formation of Sino-foreign joint ventures with a Chinese citizen.

The details were released on December 25th jointly by the State Administration for Market Regulation in these areas in notice No. 9 on “Allowing Chinese natural persons to set up foreigner-funded enterprises with foreign investors in Shanghai, Jiangsu, Zhejiang and Anhui ”

Previously Chinese natural persons were not permitted to enter directly into Sino-foreign joint ventures with foreign investors but instead needed to set up an entity to use as an investment vehicle. The new regulation allows a Chinese natural person to be a shareholder of a Sino-foreign JV with the approval of the authority.

The new law came into effect on 1 January 2020 and is valid until 31 December 2021.


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