Setting Up Partnerships in China

On 25 November 2009, the State Council of the PRC promulgated the Measures on Administration of Establishment of Partnerships by Foreign Enterprises or Individuals in China ("Partnership Measures"), which became effective on 1 March 2010. A foreign-invested partnership ("FIP") as described in the Administration Measures refers to a partnership set up by at least two foreign enterprises or individuals, or one set up by foreign enterprises or individuals together with Chinese individuals, legal persons or other organisations. As explained by an official at the State Council's Office of Legislative Affairs, a foreign investor may also join an existing domestic partnership, which would then be con¬verted into an FIP.