Article 11 Foreign enterprises may carry out their business management activities in accordance with the approved articles of association without any interference.
Article 12 When employing Chinese workers and staff, foreign capital enterprises shall sign contracts with them and specify the conditions of employment, dismissal, remuneration, welfare, labor protection, labor insurance and other issues in accordance with law.
Article 13 Employees of foreign capital enterprises may set up trade union organizations, carry out union activities and protect their lawful rights and interests in accordance with law.
The foreign capital enterprises shall provide necessary conditions for the activities of trade unions in the enterprises.
Article 14 Foreign capital enterprises must set up account books in China, conduct independent accounting, submit financial reports and statements in accordance with regulations and accept the supervision of financial and taxation authorities.
If a foreign capital enterprise fails to set up an account book in China, financial and taxation authorities have the right to impose a fine, and the industrial and commercial administrative organs may order it to cease operation or even revoke its business license.
Article 15 A foreign capital enterprise may purchase the necessary raw materials, fuels and other materials within the approved business range in the domestic or international markets, in accordance with the principles of being fair and reasonable.
Article 16 The various kinds of insurance coverage of foreign capital enterprises shall be furnished by insurance organs in China.
Article 17 Foreign capital enterprises must pay taxes and enjoy preferential treatment such as tax reduction or exemption in accordance with relevant regulations.
If a foreign capital enterprise invests its after-tax profits in China, it may apply, according to state regulations, for an income tax refund of a part of the income tax already paid on the reinvestment amount.
Article 18 Foreign exchange transactions of foreign capital enterprises shall be governed by state regulations on foreign exchange control.
Foreign capital enterprises shall open accounts with the Bank of China or other banks designated by the State Administration of Foreign Exchange.
Article 19 The foreign investor may remit abroad profits that are lawfully earned and other lawful earnings and any fund remaining after the enterprise is liquidated.
The salary and other lawful income of foreign employees of foreign capital enterprises may be remitted abroad after income tax is paid, according to law.
Article 20 The business operation time limit of a foreign capital enterprise shall be applied by the foreign investor and approved by the examination and approval organ. If an extension is needed when the time limit expires, the investor may apply to the examination and approval organs for the extension 180 days before the expiration of the time limit. The examination and approval organs shall make a decision to approve or reject the application within 30 days after receiving it.
Article 21 When terminating its operation, a foreign capital enterprise shall promptly issue a public notice and proceed with liquidation, in accordance with relevant legal procedures.
Before the liquidation is finished, foreign investor may not dispose of the enterprise's assets, except for the purpose of carrying out the liquidation.
Article 22 When a foreign capital enterprise is to be terminated, the enterprise shall nullify its registration with the relevant industrial and commercial administrative organ and surrender the business license.
Article 23 The department of economic relations and trade of the State Council shall draw up the rules for the implementation of this Law, which shall come into effect after being approved by the State Council.
Article 24 This Law shall go into effect on the day it is promulgated.
(Legislative Affairs Commission of the Standing Committee of the National People's Congress)
