China Sino-Foreign Joint Venture Agreement

Set up a joint venture in China with this Sino-Foreign Joint Venture Agreement, in accordance with the Management of Foreign Joint Venture Enterprise Law of the PRC.

This joint venture can be between individuals or corporate bodies, with at least one party being resident in China.
Any party that fails to pay in its investment by the due date is required to pay a penalty calculated as a percentage of its total investment amount.
If one of the venturers wishes to sell all or part of its interest in the joint venture, the other party has a first right of refusal to acquire the interest.
The board of directors appointed by the venturers will make all significant decisions for the joint venture. The chairman of the board will be the joint venture's legal representative.
The board will appoint a general manager to be responsible for the joint venture's operations. The general manager, in turn, will appoint administrative management heads to run the day-to-day business.
Supplies, equipment, commodities and materials will be purchased in China if all terms are equal. Any items purchased overseas must be based on the best price ⁄ performance mix.
All financial audits must be done by an accountant registered and allowed to practice in China.

This Sino-Foreign Joint Venture Agreement template is provided in MS Word format. It is governed by the laws of the People's Republic of China. This is an English-language form. A Chinese language version of the document may be required.