国际技术转让与知识产权保护ChapterInternationalInvestmentNegotiationsPPT课件

精品课件 1 Chapter10 InternationalInvestmentNegotiations 精品课件 2 Introduction Thecreationofajointventureisprobablyamongthemostwidespreadandcomplexnegotiationsthatexistsnowadays andparadoxicallyoneoftheleaststudiedorunderstood Twocompanies oneforeignandonedomestic endeavortobuildacommonprojectthatintegratesmultipledimensions economicandhuman organizationalandcultural 精品课件 3 Thisdiversitymakesitatypicalformofjointventurenegotiation However thischaptermainlydealswiththefundamentalarticlesoftwotypesofjointventuresnegotiation thecontractualjointventurenegotiationandtheequityjointventurenegotiation Whenyouareclearaboutthecharacteristicsofthosetypesofinvestment thenyou llknowwhatyoushoulddointhenegotiation 精品课件 4 Inthischapter youwilllearn jointventures thecontractualjointventurenegotiation theequityjointventurenegotiation 精品课件 5 10 1Jointventures 10 1 1TypesofjointventuresJointventuresfirstappearedinChinain1979 onlysixinthewholecountry By1January1998 292345hadbeenofficiallyapproved JointventureactivityproducesonequarterofChina stotalimportsandexports Themainareasinwhichjointventureshavedevelopedarelightindustry electronics andtextiles 精品课件 6 TwotypesofjointventuresnowoperateintheChinesemarket thecontractualjointventure CJV thecontractualjointventureissometimesalsoreferredtoas cooperativejointventure and cooperativebusinessenterprises andtheequityjointventure EJV itisalsoreferredtoas jointventure 精品课件 7 Thecontractualjointventure CJV isalimitedliabilityentityorbusinesspartnershipinwhichboththeChineseandtheforeignpartiescontributecash buildings equipment materials industrialandintellectualpropertyrights landrights labor resourcesandservices Neitherpartyisforcedtoassignamonetaryvaluetoitsinvestmentcontribution andnomaximumorminimuminvestmentisrequired 精品课件 8 Thecontractualjointventureprovidesgreatflexibilityregardingstructureoftheassets organization andmanagement Itcanbequicklydevelopedandtheforeigninvestorcanrecovertheregisteredcapitalduringthelifeofthecontract Therights responsibilitiesandobligationsofeachsideareprescribedintheformofacontractsignedthroughdiscussionsandnegotiations 精品课件 9 Theothertypeofjointventure theequityjointventure EJV isalimitedliabilitycorporationjointlyfundedandoperatedbyeachparty Risks profits andassetsremaininguponexpirationoftheventurearesharedaccordingtothepercentageofequityheldbyeachparty Tostartanequityjointventure thepartiesmustfollowacomplicatedprocesstoobtainStatePlanningCommissionapprovalafterafeasibilitystudy 精品课件 10 ThenthepartiesnegotiatethecontractitselfandsubmittheagreementtotheMinistryofForeignEconomicRelationsandTradeforapproval Eachparty sinvestmentcontributioncantaketheformofcash buildings equipment materials orindustrialandintellectualpropertyrights aswellaslanduserights Laborisnotapermissiblecontribution 精品课件 11 Theforeignpartymustcontributeaminimum25 oftheequity Preferentialtaxtreatmentisgivenforsomeyearsafterthejointventurestartsmakingaprofit 精品课件 12 10 1 2Theprocedureofjointventurenegotiations Settingupajointventureisalongandcomplicatedprocessthatcanbedividedintofourstages preliminaryinvestigation prenegotiation negotiation andimplementation 精品课件 13 Thepreliminaryinvestigationcoverstheinitialapproachtothemarket Theaimsaretobecomemorefamiliarwithmarketcharacteristics toassessmarketpotential toselectanarea todevelopanetworkofcontactswithcompanies publicadministration andinfluentialpeople andthentofindapossiblepartner Thisexploratorystageismainlyaphaseforcollectinginformationbeforeacting 精品课件 14 Theprenegotiationphaseincludesmakingthefirstcontactswiththecompanythatcouldbeapartner assessingthecompatibilityofthetwoparties objectives ascertainingiftheyhavecommonviewsonmarketstrategy conductingthefeasibilitystudy andsigningaletterofintent 精品课件 15 Suchadocumentisnotlegallybinding butinsteadaimsatshowingthecommitmentofeachpartytocarryonwiththeprocessasfaraspossible Asaconsequence thepartiesnormallystopanyparallelnegotiationwithotherpotentialpartners 精品课件 16 Whenthefeasibilitystudyhasbeenapprovedbytheappropriateauthorities thefullnegotiationcantakeplace Atthisstagethepartiesdiscusseverythingnecessarytosetupandoperatethefuturejointventure suchastherightsandobligationsofeachparty aswellastherespectivecontributionofcapital technology expertise andotherresources 精品课件 17 Thenegotiationalsoaddressesissuesconcerningthemanagementofthejointventure itsdecision makingstructure itspolicyforpersonnelmanagement andtheconditionsforitstermination Atthisstagethepartiesalsoexploresuchissuesasdomesticandexportpricingofthefutureproductsforsale 精品课件 18 Thisphaseisrathercomplex becauseitmaydealwithmorethan50issues involvealargenumberofnegotiators lastforalongtimeandbesubjecttomultipleunexpectedevents 精品课件 19 Thelaststageofthewholeprocessconcernstheimplementationoftheagreement Itwouldbelogicaltothinkthatnegotiationsarenowover butthisisusuallynotthecase Atthisstage surprisescropuponadailybasisbecause forinstance theworkingconditionsorsuppliesofrawmaterialsmayundergodramatic unforeseenexternalchanges 精品课件 20 Itisanillusiontobelievethatonecansimplyrelyonthewrittencontract andnumerousrenegotiationsmaytakeplace 精品课件 21 10 2Thecontractualjointventurenegotiation Usuallythefollowingarticleswillbecoveredwhennegotiatingthecontractofcontractualjointventures 10 2 1Formsofcontractualjointventures 精品课件 22 Contractualjointventuresmaytakeoneoftwodifferentforms Inthe true orpureform nocompanyorotherlegalentitythatisseparateanddistinctfromthecontractingpartiesisestablished Intheabsenceofaseparatecorporatebody eachpartyisresponsibleformakingitsowncontributionstotheventure payingitsowntaxesonprofitsdistributedtoitandbearingitsownliabilityforrisksandlosses 精品课件 23 Intruecontractualjointventuresofthistype thereexistsaclearseparationoftheliabilities rights andobligationsoftheparties allofwhichmustbespecifiedinthecontract 精品课件 24 Thesecondtypeofcontractualjointventureisactuallyahybridformofinvestmentvehicle whichtakesonsomeofthecharacteristicsofbothtruecooperativejointventuresandpureequityjointventures Inthisformat a businessentity whichhasthestatusoflegalpersonisestablished 精品课件 25 10 2 2Capitalcontributionsandprofitdistributions CapitalcontributionsbythepartiesinbothtypesofcontractualjointventuremaytakeanyoftheformsspecifiedintheJointVentureLaw Theseincludeindustrialpropertyrightsandknow how buildings plantandequipment landuserights trademarks andcash 精品课件 26 Inaddition thepartiestoacontractualjointventuremayalsocontributenaturalresourcerights labor andutilities noneofwhichispermittedundertheequityjointventureformat 精品课件 27 ToestablishaSino foreignoperatedenterprises usuallytheChinesepartnerprovidesland factorybuildingsincludingequipmentandfacilitieswhichmaybeused labor righttodevelopresources andasmallamountofcapital whiletheforeignpartnerprovidesfunds technologyandequipment 精品课件 28 Themaindifferencebetweenequityjointventuresandcontractualjointventures co operativeventures liesintheirdifferentprofitdistributionsystems Investorsinequityjointventuressharetheirprofitsaccordingtotheirinvestmentratio Partnersincontractualjointventuressharetheirprofitsaccordingtothetermsoftheiragreement whichmaynotbethesameasthatbasedoninvestmentratio 精品课件 29 Consequently contractualjointventuresareconsiderablymoreflexiblethanequityjointventures permittingvariousschemeswherebytheprofitshareowingtothepartiesisnottiedtothevalueoftheircontributionsbutmayincreaseordecreaseoverthelifeofthecontract 精品课件 30 Foreignpartnersandforeignemployeesinthecontractualjointventurescanremittheirprofits wagesandsalariesandotherlegalincomeabroadaftertheyfulfilltheirlegalobligationsandpayindividualincometax 精品课件 31 10 2 3Registration Uponapprovalbytherelevantforeigninvestmentauthorities contractualjointventuresarerequiredtoregisterwiththelocalbureauoftheStateAdministrationforIndustryandCommerce SAIC beforecommencingbusinessoperations 精品课件 32 Inthecaseofhybridventures itisthebusinessentityitselfthatisregisteredandissuedwithabusinesslicense Bycontrast truecontractualjointventuresregisterasa project inthenamesofbothparties 精品课件 33 Theregistrationregulation whichwasformulatedtogovernequityjointventuresbutwhichisappliedbyanalogytocontractualjointventures providesforthepaymentoffeesuponregistrationinaccordancewiththeamountofregisteredcapitalofthejointventure 精品课件 34 Asnotallcontractualjointventureshaveanequitycapital theregistrationauthoritiesgenerallylooktotheamountoftotalinvestmentintheprojectasthebasisforthecomputationoffees 精品课件 35 10 2 4Managementandoperation Inequityjointventures theforeignpartyisgenerallyabletoexerciseacertaindegreeofcontroloverthemanagementandoperationsoftheventure TheBoardofDirectorsisthe highestorganofauthority oftheventureandseatsontheboardareallocatedtothepartiesonthebasisoftheirrespectiveequityholdings 精品课件 36 AlthoughbylawthechairmanoftheboardofanequityjointventuremustbeappointedbytheChineseside inpracticethegeneralmanagerisusuallyappointedbytheforeignparty afactwhichgenerallyensuresthattheforeigninvestorhasavoiceintheday to dayoperationofthejointventure 精品课件 37 Hybridcooperativejointventurestypicallyadoptamanagementsystemthatcloselyresemblesthatofequityjointventures Inthecaseoftruecontractualjointventures however themanagementstructureismoreflexible Mostventuresofthistypearegovernedbyajointmanagementcommitteeorsimilarorganizationconsistingofrepresentativesofeachoftheparties 精品课件 38 Becausenoindependentcorporateentityexists thereisnoexecutiveofficerassuch althougha legalrepresentative oftheventureisusuallyappointed 精品课件 39 Inmostofitsday to dayoperations acontractualjointventureissubjecttothesametypesofregulationsandrestrictionsregardinginsurance thepurchaseofrawmaterials marketing andlabormanagementasareapplicabletoequityjointventures 精品课件 40 Theventurecan inapprovedbusinessfields buynecessaryrawmaterialsandenergysuppliesonbothdomesticandinternationalmarkets butotherthingsbeingequal itshouldfirstconsiderbuyingthemonthedomesticmarket 精品课件 41 10 2 5Taxes Eachpartytothecontractualjointventureisrequiredtopayitsowntaxesonprofitsearnedfromthedistributionsofthejointventure FortheforeignpartythismeansthatnetincomeistaxedundertheJointVentureTaxLawofthePeople sRepublicofChinaatprogressiverates includingalocalsurtax 精品课件 42 Asamatterofpractice however somehybridtypecooperativejointventureshaveappliedforandreceivedtaxtreatmentundertheprovisionsoftheJointVentureIncomeTaxLawandtheDetailedRules Inadditiontotheenterpriseincometax contractualjointventuresarealsosubjecttoChina sothertaxlaws 精品课件 43 Finally underregulationsinforceinChina sSpecialEconomicZones SEZS andinthefourteenopencoastalcities theincomeofcontractualjointventuresmayincertaincircumstancesbetaxedatapreferentialrate Besides anumberofexemptionsfromtaxesandcustomdutiesandothertaxincentivesareavailabletocontractualjointventures 精品课件 44 10 3Theequityjointventurenegotiation OfthevariousformsofinvestmentinChina equityjointventureshaveattractedthemostattentionfrombothforeigninvestorsandtheChineseauthorities TheestablishmentofsuchenterprisesinChinaisoneofthewaysthatChinesecompaniescouldabsorbadvancedtechnologyandwesternmanagerialskills 精品课件 45 Whennegotiatingthecontractofequityjointventures thetwopartieswillmainlycoverthefollowingarticles 精品课件 46 10 3 1Establishmentoftheequityjointventure TheImplementingActoftheJointVentureLawcontainsspecificrulesregardingthedocumentationthatmustbeproducedbythepartiesduringdifferentstagesofthenegotiationfortheestablishmentofajointventure 精品课件 47 TheActprovidesthatduringtheinitialstagetheChinesepartymustsubmittoitssuperiorunita projectproposal anda preliminaryfeasibilitystudyreport relatedtotheproject Oncethesedocumentshavebeenagreedtoandapprovedbytherelevantapprovalauthority theChinesepartymaythencommenceworkwithitsforeigncounterpartonthepreparationofaformalfeasibilitystudy 精品课件 48 Uponcompletionofthestudy thepartiesaredirectedtonegotiateandexecuteajointventureagreement thejointventurecontract andthecorporatecharterorarticlesofassociation 精品课件 49 Themostimportantdocumentsthatareinconnectionwiththenegotiationandestablishmentofanequityjointventureare 1 TheletterofintentTheletterofintentisusuallythefirstdocumentsignedbythepartiestoaproposedjointventure 精品课件 50 Inmostcasesthisdocument alsosometimescalleda memorandumofagreement containslittlemorethanabriefsummaryoftheparties negotiationstodate astatementoftheirintentiontopursuetheestablishmentofajointventure andalistingofthemainitemsofagreement suchaslocation purpose investment registeredcapital saleschannels andotheritems 精品课件 51 Butsomelettersofintentmaybeconsiderablymoredetailedandmaythemselvesbeshort formcontracts Inanycase suchdocumentsaregenerallyviewedasbeingnotlegallybinding 精品课件 52 Nevertheless itisadvisableforthedocumenttocontainlanguagetotheeffectthattheletterreflectsonlythepreliminaryviewsofthepartiesandthatthefinalagreementofthepartiesissubjecttothecompletionofthefeasibilitystudyandtheexecutionofabindingjointventurecontract 精品课件 53 2 ThejointventureagreementThejointventureagreementisquitedistinctfromthejointventurecontractaccordingtotheChineselaws asonlythelatterrepresentsthefinalagreementoftheparties Therefore theagreementisoftenthoughtofasakindofintermediarystepbetweentheletterofintentandthecontract 精品课件 54 Manyagreementstaketheformofadraftcontractorasummaryofthecontract UndertheImplementingAct thepartiesmaydispensewiththesigningofajointventureagreementiftheychoose 精品课件 55 3 ThefeasibilitystudyThefeasibilitystudyisanextremelyimportantdocument especiallyfromtheChineseperspective FortheChinesejointventurepartner thestudyisa justification fortheproject Withoutanacceptablefeasibilitystudy thenegotiationandcompletionofajointventuremaynotproceed 精品课件 56 Asaresultoftheimportanceofthefeasibilitystudy itisadvisableforpotentialjointventurepartiestospendconsiderableeffortstoproduceanaccurateandmeaningfulstudy 精品课件 57 4 ThejointventurecontractandarticlesofassociationIngeneral Chineselawsviewthecontractasthefundamentaldocumentwhichprovidesfortheestablishmentoftheventurebythepartiesandthearticlesofassociationor charter asthecompany scodeofgovernance 精品课件 58 10 3 2Capitalization 1 RegisteredcapitalandtotalinvestmentThecentralconceptemployedbyChineselawsindiscussingthecapitalizationofequityjointventuresis registeredcapital AccordingtotheImplementingAct registeredcapitalreferstothetotalamountofthecapitalcontributionsubscribedbythepartiestothejointventurewhichisregisteredwiththeChineseregistrationauthoritiesatthetimetheventureisformallyestablished 精品课件 59 Therefore registeredcapitalisessentiallytheparties equityintheventureandistobedistinguishedfromtheconceptof totalinvestment whichincludesexternalborrowingsoftheventureitself Inthecontract theclausegoverningtheregisteredcapitalandtotalinvestmentofthejointventuremaybewrittenlikethis 精品课件 60 investmentcontributedbythepartiesisRMB whichwillbetheregisteredcapitalofthejointventure ThetotalamountofinvestmentofthejointventureisRMB oraforeigncurrencyagreeduponbybothparties 精品课件 61 2 RatioofcapitaldistributionTheJointVentureLawrequiresthattheforeignpartyholdnotlessthan25 oftheregisteredcapitalofthejointventure Nomaximumisspecified leavingopenatleastthepossibilitythattheforeignpartymayholdupto99 精品课件 62 Inpractice however thedistributionofregisteredcapitalinmostjointventuresestablishedtodatehasbeeneither50 50or49 51 themajoritypositioninthelattercaseusuallybeingheldbytheChineseside Ingeneral registeredcapitalistobeexpressedinRMB althoughforeigncurrencymaybeusedifbothpartiesagree 精品课件 63 Evidenceofeachparty sownershipofitsshareofthecompany sregisteredcapitalisprovidedbytheissueof CertificatesofCapitalContribution 精品课件 64 3 MeansofcapitalcontributionThecapitalcontributionsofthepartiesthatmakeuptheregisteredcapitalofthejointventuremaytakeavarietyofforms Partnersmaymaketheirinvestmentwithmoney buildings factoryworkshops machinesandotherequipment materials industrialproperty patenttechnologyandtherighttousetheconstructionsite 精品课件 65 10 3 3Externalfinancing ChineselawspermitjointventurestoborrowfundsfromeithertheBankofChinaorforeignbankstosatisfythefinancingrequirementsoftheventure BorrowingsbyjointventuresfromtheBankofChinaaregovernedbyaspecificsetofrules Thoserulesspecifyanumberofrequirementsthatmustbefulfilledbyaprospectiveborrowerbeforeitsloanapplicationcanbeapproved 精品课件 66 Forinstance thejointventuremustbeapprovedandregistered itmustabidebyChineselaws itmusthaveopenedabankaccountwiththeBankofChina anditmusthavegoodcreditandmanagement ThemostimportantrequirementisthatthejointventuremustprovidewhetherapledgeofcollateralassecurityfortheloanoraguaranteeacceptabletotheBankofChina 精品课件 67 10 3 4Managementdepartments TheJointVentureLawandtheImplementingActprovideatwotieredsystemofmanagementforjointventures Thefirstlevelistheboardofdirectors whichconstitutesthehighestorganofauthorityofajointventureanddecidesallmajorquestions 精品课件 68 Thesecondlevelconsistsofthejointventure smanagerialstaff whoareresponsiblefordailyoperationalandmanagerialwork Membersoftheboardofdirectorsareappointedbythepartiestothejointventureandholdofficeforatermoffouryears 精品课件 69 Thecompositionoftheboardofdirectorsistobedeterminedbydiscussionbetweentheparties Theboardmustcontainatleastthreemembers butnomaximumisspecifiedbythelaw Thedistributionofseatsistobefixedbyreferencetotheratioofcapitalcontribution ChairmanisappointedbytheChinesepartnerandvice chairman bytheforeignpartner 精品课件 70 Presidentandvice presidentsareinvitedbytheboardofdirectorsandtheymaybeeitherChineseorforeigners 精品课件 71 10 3 5Labormanagement Jointventuresthemselvesmayrecruitemployeesthroughexaminationsandtheirwagesmaybe20 to50 higherthanthoseoftheemployeesofthestateownedenterprisesofthesametradeinthesameregion 精品课件 72 Thelaborcontractisrequiredtocontainprovisionsregardingemploymentterms dismissalandresignation wages workinghours laborinsurance disciplineandothermatters andmustbeapprovedbythelabormanagementdepartmentofthelocalpeople sgovernmentwherethejointventureisestablished JointventureemployeeshavetherighttoestablishlaborunionsandtodeveloplaborunionactivitiesinaccordancewithChineselaborlaws 精品课件 73 10