How can a foreign contractor acquire local design, engineering and construction enterprises?
The effect of such an acquisition would be to convert a domestic capital PRC enterprise into a foreign-invested enterprise such as an EJV, or lesser extent, “rubber stamped” by the CJV or WFOE (an “FIE”). if the target domestic enterprise is a State-owned enterprise or encompasses State-owned assets, the acquisition is subject to mandatory State-owned assets valuation (which will determine the minimum purchase price) and the transfer must comply with the relevant ratification and/or record filing procedures with the competent State Assets Supervision and Administration Commission or Ministry of Finance organ, as well as the new procedures for the listing of State-owned assets transactions on Property Rights Exchanges. Another important point to note is that as acquisition will have the effect of converting.the domestic enterprise into an FIE, , but as a foreign-invested construction or design/engineering under Decree No. 113 or Decree No. 114. Thus, in addition to complying with all th
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