In order to expand economic cooperation and technical exchanges with foreign countries and promote the development of China's national economy, China permits foreign enterprises, other economic organizations and individuals (hereinafter referred as foreign investors) to establish foreign capital enterprises in the territory of the People's Republic of China and protects the lawful rights and interests of foreign capital enterprises.

Please read the full text of the Law of the People's Republic of China on Foreign-Capital Enterprises (http://www.china.org.cn/english/business/219563.htm) to get more details.