Can the businesses of Overseas Chinese and foreign nationals be expropriated or acquired?
According to the “Guidelines Governing Investment by Returning Overseas Chinese” and Articles 13 and 14 of the “Guidelines Governing Investment by Foreign Nationals” A. In the event that the government expropriates or acquires an invested enterprise for national defense reasons, the investor thereof whose investment is less than 45% of the total capital amount of the invested enterprise shall be entitled to a reasonable compensation. B. In the event that the investor’s investment accounts for 45% or more of the total capital amount of the enterprise in which he invests, the invested enterprise shall not be subject to requisition or expropriation as long as the said capital contribution rate of the investor remains unchanged for a period of twenty years after the commencement of business of the invested enterprise.
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