In order to create favorable investment environment and to encourage overseas firms to invest in China, since the year of 1979 the Chinese government has gradually set up a relatively complete legal system, and constituted a foreign investment policy system, which mainly includes industrial policies, regional policies, regional policies, tax policies and financial polices. 1.Legal Frameworks The main laws and regulations for foreign investments in China include:

1.1Major foreign investment laws and regulations
The law of P.R.C on Chinese-Foreign Equity Joint Ventures and its implementation regulations;
b)The law of P.R.C on Chinese-Foreign Contractual Joint Ventures and its implementation regulations;
c)The law of P.R.C on Wholly Foreign-Owned Enterprise and its implementation regulations;
d)The law of P.R.C on Foreign-invested enterprises, the income tax and its implementation regulations;
e)Provisions on Guiding Foreign Investment Direction; Industrial Catalogue Foreign Investment; Catalogue of Advantageous Sectors for Foreign Investment in Central and Western Regions;
f)The law of P.R.C on the Protection Taiwan Compatriots Investment. (Notes: the related laws and regulations also apply to the investments from Hong Kong, Macao and Taiwan in China mainland.)
1.2General Laws and Regulations
The Company Law of the P.R.C;
b)The Contract of the P.R.C;
c)The Insurance Law of the P.R.C;
d)The Arbitration Law of the P.R.C;
e)The Labor Law of the P.R.C;
f)Provisional Regulations of the P.R.C on Value-Added Tax;
g)Provisional Regulations of the P.R.C on Consumption Tax;
h)Provisional Regulations of the P.R.C on Business Tax;
1.3International Treaties
Bilateral Investment Treaties
(2) Bilateral Agreement on the Avoidance of Double Taxation