(Promulgated by Ningbo Municipal Government on May 16th ,1994 Yong Zheng [1994]No.9 Document)

Article 1.These Provisions are formulated in accordance with the several Provisions of SAIC concerning the investment made by the various parties to Chinese - Foreign Equity Joint Venture, approved by the State Council, and other pertinent laws and regulations, meanwhile in terms of practical condition of this city, in order to protect the lawful rights and interests of investors to Enterprise with Foreign Investment and to promote sound development of Enterprise with Foreign Investment.

Article 2. Enterprise with Foreign Investment, mentioned in these Provisions, means Chinese - Foreign Equity Joint Ventures, Chinese - Foreign contractual Joint Ventures, Foreign-capital enterprises.

Article 3. In case that Enterprise with Foreign Investment is established within the district of Ningbo, the investors must comply with these Provisions.

Article 4.The total amount of investment made by Enterprise with Foreign Investment refers to the total sum of capital which required to establish a Enterprise with Foreign Investment, namely, the sum total of foundational construction capital (or fixed assets) and current funds required by the production and operation scale. 

Article 5. The registered capital of a Enterprise with Foreign Investment refers to the total sum of capital agreed to be contributed by all parties and registered by the Administrative Authorities for Industry and Commerce for establishment.
The registered capital of a Enterprise with Foreign Investment should be suit to its the production and operation scale. The proportion between registered capital and the total amount of investment should comply with the pertinent regulations.

Article 6.The investment contributed by investors to Enterprise with Foreign Investment (hereafter referred to as "investors") must be contributed in cash and owned by the investors themselves, or in form of physical goods, industrial property rights ,proprietary technology and so on, which owned by the investors themselves and have not been used to establish an security interests. 
In case where physical goods, industrial property rights and proprietary technology are used as investments at the evaluated price, the investors shall present valid documents to demonstrate their proprietary and their right of disposal.

Article 7.If such physical goods as machinery equipment, are used by foreign investors as investment at the evaluated price, the examination and appraisal should be made by Ningbo Import-Export Commodity Inspection And Bureau, and the certification of price appraisal should be issued thereafter.

Article 8 . No investor to Enterprise with Foreign Investment may use loans, rented equipment or other assets that have obtained in the name of the Enterprise with Foreign Investment or assets of persons other than the investors as its own investment contribution to Enterprise with Foreign Investment; nor may it use assets or right and interests of the Enterprise with Foreign Investment, or assets or right and interests of the other parties to Enterprise with Foreign Investment as warranty for its investment contribution to Enterprise with Foreign Investment.     

Article 9. The investors shall set the time limit of investment in Application And Registration Form Of Enterprise With Foreign Investment, contract and regulations. The investors should pay up their respective investment contributions to Enterprise with Foreign Investment on schedule.

Article 10. If the contract and regulations stipulates that investment contributions shall be paid up in one lump, the investors shall make the full payment of their respective investment contributions within 6 months from the date the business license is signed and issued.
If the contract and regulations stipulates that investment shall be paid by installments, the first installment paid by the investors shall not be less than 15% of the total amount of their respective investment contributions and be paid with 3 months as the date the business license is signed and issued.

Article 11. After the investors have paid the first installment, the remaining installment ,if registered capital is less than $500,000 (including $500,000) should be paid up within 6months ; if the registered capital is more than $500,000 but less than $2,000,000 (including $2,000,000) should be paid up within 1 year ; if the registered capital is more than $2,000,000 but less than $10,000,000 (including $10,000,000)should be paid up within 2 years ; if the registered capital is more than $10,000,000 should be paid up within 3 years.
If one or two especially big Enterprise with Foreign Investment can not be performed in accordance with the said Provisions, they shall be approved by the original examining and approving authorities, in conjunction with the Administrative Department for Industry and Commerce.

Article 12.In the event that the Enterprise with Foreign Investment demands to defer investment for due reason, the director board of the Enterprise with Foreign Investment should pass a resolution and raise application, and such application should be approved by the original examining and approving authorities, in conjunction with the Administrative Department for Industry and Commerce. 

Article 13. After paying every installment, Enterprise with Foreign Investment shall appoint an accountant registered in China to check and examine the accounts, and the report of assessment issued thereafter shall be submitted to the Administrative Department for Industry and Commerce as well as the original examining and approving authorities.
Failure to pass the examination of the accounts, or the examination in unconformity with the relevant State regulations, the Enterprise with Foreign Investment shall not be considered to invest.

Article 14.In the event that the investors, within the time limit prescribed in Article 10, fail to make the full payment without good cause, the Enterprise with Foreign Investment shall be considered to be dissolved of its own accord, and the approval certificate for the Enterprise with Foreign Investment shall automatically cease to be effective. Enterprise with Foreign Investment shall go through the procedures for cancellation of registration with the Administrative Department for Industry and Commerce, and submit its business license for cancellation. If the Enterprise with Foreign Investment fails to go through the procedures for cancellation of registration and submit its business license for cancellation, the Administrative Department for Industry and Commerce shall revoke its business license and make announcement to the public.

Article 15.The remaining installment, after the first installment, should be paid up by Enterprise with Foreign Investment as scheduled. Without good causes Chinese - Foreign Equity Joint Venture, Chinese - Foreign contractual Joint Venture delaying for 3 months , and Foreign-capital enterprises delaying for 1 month , fail to pay investment or fail to full investment，the Administrative Department for Industry and Commerce shall notify the investors of request of payment of investment within 1 month.
If the investors still fail to pay up the investment within the time limit stipulated in the said notice, the original examining and approving authorities has the right to revoke the approval certificate for the said enterprise, and demand it to settle claims and debts within time limit.
The said enterprise shall go through the procedures for cancellation of registration with the Administrative Department for Industry and Commerce, and submit its business license for cancellation. If the Enterprise with Foreign Investment fails to go through the procedures and submit its business license for cancellation, the Administrative Departments For Industry And Commerce have mandatory right to revoke its business license and announce this to the public.

Article 16.The Enterprise with Foreign Investment failing to pay up investment on schedule should be limit to various license by the respective authorities concerned, not be granted with the registration on enlarging the management scope or establish new branches by the Administrative Department For Industry And Commerce, not be given preferential duties like tax reduction or tax free on its import equipment and appliance by the Customs Office, not obtain loan from banks, not be allowed the distribution of profit by fiscal authority, and not be allowed to participate in foreign exchange adjustment by foreign control department and pertinent banks pointed.

Article 17.Establishment of a Enterprise with Foreign Investment by the companies in Ningbo, the enterprises and other economic organizations or individuals from Hong Kong, Macao and Taiwan, and Chinese citizens living abroad shall be handled with reference to these provisions.

Article 18. The right to interpret these provisions resides with Ningbo Administrative Department For Industry And Commerce.

Article 19.These provisions shall go into effect on the date of promulgation.