Letter Of Joint Venture And Joint Venture

Mr.: Thank you for your letter of November 2nd, the copy of the law of the People's Republic of China on Sino foreign joint venture has also been received.

After careful reading of the legal texts, we have a further understanding of how to establish a joint venture in China, but we do not think it is clear enough.

The fourth paragraph of the law stipulates that in the registered capital of a joint venture, the share of the foreign investment shall not be less than 25%. However, there is no provision for the upper limit of the foreign party's share in the registered capital of the joint venture.

We have told you in the past that we intend to invest 50% in each side. I wonder if this plan is feasible.

We will take part of the investment in part of cash and part of machinery and equipment. The share of investment will be 50% of the capital of the proposed joint venture.

As for the cash portion, the exchange rate will be converted in US dollars on the day of the effective date of the contract.

We are closely related to the machine manufacturers here, so we can provide the most advanced machinery and equipment needed in the production of enterprises.

Of course, these machines and equipment will be evaluated jointly by both parties.

At the same time, we would like to know what form you will take to invest.

After receiving your reply, we will further study this matter, or suggest sending representatives to visit for negotiation on that day.

Such problems can be solved quickly.

I am looking forward to it.

Your loyal friend