The Ministry of Foreign Trade and Economic Cooperation (MOFTEC) has issued regulations governing overseas printing companies in China.
Under the new rules, which are effective from the end of January, overseas enterprises, including those from Hong Kong, Taiwan and Macau, can only set up wholly-owned businesses for packaging materials printing.
Other activities, such as printing publications, must be done through joint ventures with local partners, where the mainland side holds a majority stake and appoints the chairman of the board.
Joint ventures will be allowed to have a lifespan of up to 30 years.
Overseas companies wanting to set up operations to print publications or packaging materials must invest at least 10 million yuan (US$1.2 million) for the venture's registered capital.
But the total combined investment by overseas enterprises in any province, autonomous region or municipality must not exceed US$30 million.
Companies must obtain approval from local authorities, the State Press and Publishing Bureau and MOFTEC.
(eastday.com February 22, 2002)
