The main forms of the province's foreign funds utilization are as follows:

I. Indirect Foreign Investment Utilization (Foreign Loans)
1). Foreign government loans and loans from international financial organizations.
2). Foreign export credits and commercial loans.
3). Bonds issues in foreign countries.

2. Direct Foreign Investment Utilization
Foreign businessmen may take investment in Liaoning by way of joint venture, cooperative enterprise, solely foreign owned enterprise and share-holding JVs; also including processing with supplied materials, assembling with supplied parts, compensation trade, international leasing and BOT as well.

1). Sino Foreign Joint Venture (JV for short)
JV are limited liability companies established jointly by foreign companies, enterprises, other economic entities or individuals, according to Chinese law and within China's territory, and Chinese companies, enterprises or other economic entities in the form of joint investment.
Both parties make investment, run business and take risks, share profits and losses. According to the law of the People's Republic of China on Joint Ventures Using Chinese And Foreign Investment, JV established within China's territory are granted with legal person status and are subject to the jurisdiction and protection of Chinese law.
Foreign investment in a JV shall cover at least 25 percent of its registered capital. Each participant to a joint venture may contribute cash, or provide buildings, premises, equipment or other materials, industrial property right, know-how, site use right as investment by ascertaining its value.
Both parties are not allowed to draw back or reduce its investment during the term of the joint venture. In a joint venture, the general manager carries out various resolutions and leads the daily operational and managerial work under the leadership of the board of directors.
The board of directors is the highest organ of authority of a joint venture, which determines all the major problems concerning the joint venture.

2). Sino--Foreign Co-operative Enterprise:
Foreign enterprises, other economic entities or individuals and Chinese enterprises or other economic entities, according to the law of the People's Republic of China on Chinese--Foreign Contractual Joint Ventures, Upon the approval by the Chinese government, establish cooperative enterprises within China's territory in accordance with the signed co-operative contracts.
In a co-operative enterprise, each party's rights &interests, obligations, investment, cooperation conditions, distributions of products and profits shares of risks and losses, ways of management and operation, the ownership of property at its termination, shall all be stipulated by the co-operative contracts.
As to forms of organization, it may either be a co-operative enterprise with independent Chinese legal person status, or just a cooperative project bound by contract signed by each party.
Those meeting the requirements of a legal person status, shall acquire Chinese legal person status according to law. Enterprise or project approved to operation subject to the protection of the Chinese law.
The Chinese participant to a co-operative enterprise may provide land, natural resources, labor forces, labor services, or buildings, equipment and facilities available; and the foreign party may contribute capital, technology, main equipment and materials. It differs the equity JV mainly in that it may not calculate shares by currency, and may not share profits by proportion of stocks too, rather according to agreed forms of investment and proportion of distribution.

3). Foreign Enterprises
Foreign enterprises are enterprises, according to the Foreign Enterprise Law of the People's Republic of China, established within China's territory upon the approval by the Chinese government, with its entire investment by foreign companies, enterprises, other economic entities or individuals.
Representative offices by foreign enterprises and other economic organizations are not included. The establishment of foreign enterprises must be in favor of the development of China's national economy, adopt advanced technology and equipment, or most of its products are for export.
Foreign enterprises, so long as it satisfies the essential requirements, shall obtain its legal person status according to law. Chinese laws protect foreign investor's profits from its investment in China and other legitimate rights and interests. Its business operational activities within the scope of the approved articles of association shall not be interfered.

4). Sino--Foreign Share -- Holding Limited Company
(Share--holding JV for short) Shareholding JV is a legal person established in accordance with relevant Chinese Law, with its total capital being made of equal shares.
Shareholders share their responsibility to the company according to shares they hold, and the company bears responsibility to its debts with all its assets. Company's stocks are share held by Chinese and foreign holders, foreign shareholders may purchase shares in free convertible currencies.
In a share holding JV, the foreign shares shall account for 25% or above of the registered capital.

The main differences between a share holding company and a joint venture:
(a) Forms of investment: investors in a joint venture usually use cash or premises, equipment and industrial property right as investment, in case of large amount, installment payment is allowed; shareholders in a share holding company generally use cash to buy shares, amount as you like, one time pay all.

(b) Main body of investments: investors of a joint venture mainly include companies, enterprises and other economic entities home and abroad, foreign individuals are also allowed; in a share holding company, besides all the above mentioned bodies, other fund organizations, scientific research institute, social organizations and individual, are all allowed to hold shares.

(c) Capital flow: investors in a joint venture may transfer its shares through approval, but are not allowed to draw back its registered capital during its term of operation; while shareholders in a share holding company are free to transfer their shares from the very beginning the company issued its stocks.

(d) Duration: a joint venture may not, but usually does have a fixed duration; but a share holding company generally doesn't have one.

(e) Organization: a joint venture is set up with its board of directors and an operation and management body, the former decides all major issues concerning the joint venture and the latter is responsible for its operating activities; while in a share holding company, shareholders' conference or their representatives' conference is the highest power authority. Under it there are a board of directors and a board of supervisors of the same power level. The former is the standing executive body of the shareholders' conference, below with operation and management departments; and the latter is the company's permanent supervising organ, which bears the responsibility of exercising supervision to the former.

(f) Business scope: joint venture is only allowed to produce and sell specified products permitted, and its registered capital cannot be used as investment elsewhere; while a share holding company possesses the functions of an "umbrella" company, it can invest other enterprises with whole or part of its registered capital.

5). Processing with Supplied Materials
Foreign partner provides raw materials, together with some supplementary and packaging materials, while the Chinese side undertakes the processing according to the requirements of the foreign partner. The foreign partner is responsible for the reselling of the processed products and pays the processing fee to the Chinese side. In case foreign partner provides some equipment, it can be offset from the processing fee.

6). Assembling with Supplied Parts
The foreign firms provide parts and components, some with related technology and testing measure, to their Chinese partner for assembling. The foreign firms are responsible for the reselling of the finished products and pay the assembling fee to their Chinese partner.

7). Compensation Trade
Compensation trade is a trade form practiced to make use of foreign machinery; equipment and products produced by the supplied equipment and technologies or by other commodities repay production technology etc under credit basis, the loan. By means of payment it can be divided into direct compensation trade and indirect compensation trade. By the former we mean that the payment is made by interrelated products manufactured with the imported equipment and technology; by the latter, the payment is made by unrelated products.

8). International Leasing:
International leasing is a trade form to raise overseas funds and acquire fixed assets using right. Basic features are: the lessor, while remaining unchanged the property ownership, gives up its using right and provides the lessee with the convenience of credits through leasing equipment and tools; the lessee, by way of regular rent payment, acquire the using right of equipment and tools not belonging to them and capital credits which equals the purchasing cost of the leased equipment.

9). BOT
BOT is a form of foreign funds utilization recently emerged, which has attracted lots of attention and been often adopted by the international society. That is, in a state large industrial technology introduction project or infrastructure construction project, The government, as the project side, and the foreign project company, as the construction side, sign a contract, the construction side undertakes the construction of the project, and is allowed to manage and operate the facilities within certain periods of time to return its investment to the project and obtain reasonable profits. After expiration of the stipulated operation period, the construction side shall transfer freely the project to the government where the project is located.
This form is called Build -- Operate--Transfer, BOT for short, which is suitable to big projects in the state's public facilities and industrial technology, such as the construction of power station, expressway, railway, bridge, harbor, airport, reservoir, dam, and industrial park etc.