What is Sino-foreign Co-operative Joint Ventures (CJV)?

A CJV is formed jointly by at least one Chinese investor and at least one foreign investor in accordance with Sino-foreign Cooperative Joint Venture Law and other regulations. Foreign companies, other economic organizations and individuals may act as foreign investors. Chinese companies, enterprises and other economic organizations may act as Chinese investors. The investors contribute capital or provide cooperation conditions to the CJV as set forth in the cooperative joint venture contract between the Chinese and foreign investors. Their respective rights and obligations are set forth in the cooperative joint venture contract. Unlike EJV, CJV investors share rights and take responsibilities according to their contract instead of the percentage of capital contribution. After all taxable loses are offset, foreign investors of CJV can collect their investment before Chinese investors.