Railway Transport Service Invites Foreign InvestmentThe Ministry of Foreign Trade and Economic Co-operation and the Ministry of Railways recently jointly published the No.4 order of the year 2000, permitting foreign investors to establish joint railway freight transportation companies, joint ventures and cooperative ventures, in China.According to related regulations, foreign investors who apply for setting up Sino-foreign cooperative railway freight transportation companies shall have over ten years of related experiences, great financing strength and excellent business achievements. The main Chinese investors shall be the railway transportation enterprises with over 10 years of related experiences. Within the time limit set by the Chinese government, the proportion of investment made by the Chinese party shall not be lower than 51 percent. It is also stipulated in relevant policies that the registered capital of the Sino-foreign cooperative railway transportation companies shall not be less than US$25 million each. The period of operation agreed by the two sides in the contract, generally speaking, shall not be longer than 20 years. By PD Online staff member Du Minghua |
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