Provisions of the State Council on Encouraging Investment in and the Development of the Hainan Island

Provisions of the State Council on Encouraging Investment in and the Development of the Hainan Island


Provisions of the State Council on Encouraging Investment in and the Development of the Hainan Island

Guo Fa [1998] No. 26

May 4, 1988

Article 1 These Provisions have been formulated with a view to absorbing investment from home and abroad so as to accelerate the development of and construction on Hainan Island.

Article 2 The state shall implement more flexible and open economic policies for the Hainan Special Economic Zone and endow the People's Government of Hainan Province with greater decision-making powers.

Article 3 The state encourages enterprises, other economic organizations and individuals both at home and abroad (hereinafter referred to as investors) to invest in the development of Hainan Island and establish various economic and social undertakings.

Article 4 The state shall protect investors' legitimate rights and interests in accordance with the law, and shall not nationalize or requisition investors'assets. Under special circumstances, where the public interest so requires, the state may resort to requisitioning investorsassets in accordance with legal procedures, and due compensation shall be paid.
Investors shall abide by China's laws and regulations.

Article 5 Investors may make investments and conduct business on Hainan Island as follows:
1. by investing to establish equity joint ventures, Chinese-foreign contractual joint ventures, foreign-funded enterprises (hereinafter referred to as foreign investment enterprises) as well as other kinds of enterprises permitted by law. The operating period for any kind of enterprise shall be specified by all investors in the contract or approved by the relevant competent authorities;
2. by purchasing shares, bonds and other negotiable securities;
3.
  ......
Please consent to the LexisNexis Terms and Conditions and Privacy Policy.