New Changes to Sino-Foreign Cooperation Regulations

China has set "curbing the power of bureaucrats, reining in government spending" as one of its key goals, and this phrase is used in a number of regulations and measures. State Council Order 676 is a recent example of this effort. In item 13, Article 44 of the Implementation Measures of the Sino-Foreign Cooperation Business has been changed and article 45 has been deleted all together.
Previously the law stated that the only way for foreign JV partners to recover their income was by applying to the government following certain guidelines. Now the law only requires that investment recovery is stipulated in the terms of contract with the JV partner and that the government will not intervene or oversee this process. Investment recovery is strictly based on the agreement reached between the two parties.