verning foreign investment and these Regulations.

Article 1

For the purpose of these Regulations, the  term  "Investment  Company "means a company that is engaged in direct investment  and  established  by foreign investors in China in the form of either a  wholly  foreign  owned enterprise  or  an  equity  joint  venture  with  Chinese  investors.  The investment company shall take the form of  a  limited  liability  company.

Article 2

To  apply  for  approval  to  establish  an  investment  company,  the following conditions shall be fulfilled:

(1)

(a) the foreign  investor  having  a  good  credit  and  the  economic strength necessary for the establishment of  an  investment  company;  the total amount of the  investor's  assets  during  the  year  preceding  the application being no be less than US  $  400  million,  and  the  investor having already established  foreign-invested  enterprise  (s)  within  the territory of China; and the amount  of  the  investor's  actually  paid-in

capital contribution to the registered capital thereof exceeding US  $  10 million. Furthermore,  more than three project proposals of the investor's intended investment projects have been approved; or

(b) the foreign  investor  having  a  good  credit  and  the  economic strength necessary for the establishment of  an  investment  company;  the investor  have  already  established   more   than   10   foreign-invested enterprises in the  people's  Republic&

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