Enterprises with foreign capital
"Enterprises with foreign capital" refers to those enterprises established in China by foreign investors, exclusively with their own capital, in accordance with relevant Chinese laws. The term does not include branches set up in China by foreign enterprises and other foreign economic organizations. All the profits belong to foreign investors.

Foreign joint ventures
"Foreign joint ventures" refer to those enterprises that were established by foreign companies， enterprises， other economic organizations or individuals together with Chinese companies， enterprises or other economic organizations within the territory of the People's Republic of China， on the principle of equality and mutual benefit， An equity joint venture shall take the form of a limited liability company. The proportion of the foreign joint venturer's investment in an equity joint venture shall be， in general， not less than 25 percent of its registered capital. The parties to an equity joint venture may make their investment in cash， in kind or in industrial property rights， etc. The parties to the venture shall share the profits， risks and losses in proportion to their contributions to the registered capital.

Contractual joint venture
For a contractual joint venture , the Chinese and foreign parties shall prescribe in their contractual joint venture contract such matters as the investment or conditions for cooperation, the distribution of earnings or products, the sharing of risks and losses, the manners of operation and management and the ownership of the property at the time of the termination of the contractual joint venture. A contractual joint venture which meets the conditions for being considered a legal person under Chinese law, shall acquire the status of a Chinese legal person in accordance with law.

The state shall, according to law, protect the lawful rights and interests of the contractual joint ventures and of the Chinese and foreign parties. The investment or conditions for cooperation contributed by the Chinese and foreign parties may be provided in cash or in kind, or may include the right to the use of land, industrial property rights, non-patent technology or other property rights.