ABSTRACT
The Chinese government has been introducing an extensive framework of foreign investment laws and regulations in order to encourage foreign investments into China. In the late 1980s, China implemented several regulations and policies for Sino-foreign joint ventures. China also established special economic zones (SEZs) and special industrial zones with good infrastructure to promote foreign investments in different regions of China. Equity Joint Ventures or EJVs are also known as 'Share Company with Foreign Investment'. Contractual Joint Venture or CJVs are Sino-foreign enterprises that are jointly established according to their cooperative conditions. Wholly Owned Foreign Enterprises or WOFEs are permitted legal entities in China that would be wholly owned by one or more foreign investors. China has also allowed multinational companies to establish foreign-invested holding companies in China. Joint venture business negotiation experiences in China show that a good arbitration clause should be included in the joint venture contract.
