With the approval of the Chinese Government, the foreign investment companies established in Liaoning Province, if they accord with the conditions for legal persons, can obtain the legal personality according to the law. The Chinese law protects all the legal rights of the foreign investment companies, including the foreign investors' property ownership, distribution rights and the disposal rights of the proper income.

¢ñ.The government protects the autonomous power in management of the foreign investment companies according to the law, and supports the foreign investment companies to manage the business according to the international practice. The foreign investment companies have the right to design their own production and management plans, raise and utilize funds, purchase materials and sale products, within the range of the contracts approved.

¢ò.According to the demand of production and management, foreign investment companies can decide the organizational structure and personnel body, employ and dismiss different levels of management, add or dismiss employees, etc., by themselves. The employees from the original company of the Chinese partner, according to the contract, have the priority to be employed in vacant positions. Besides them, the employees should generally be employed from the local area of the company. The engineers and managers can be employed from other parts of China or abroad.

¢ó.After executing the obligations termed by the law, the agreement and the contract, and after paying the income tax according to the regulation, the net profit, the net capital obtained after the period of management is over or the company is discontinued, and other proper income of the foreign investors may be transferred abroad.

¢ô.The foreign investment companies can take out various types of insurance policies from the local insurance companies or other insurance companies with approval.

¢õ.The patent technology provided by the foreign investor and approved in China and China's Patent Law and Trade Mark Law protect the registered trademark. When infringement occurs, the injured party may appeal to the patent administration or the industrial and commercial administration for a solution, or it could bring the case to court.

¢ö.For Sino-foreign joint ventures and cooperative management companies, when executing the contract (agreement), if dispute occurs, and cannot be solved with negotiation or conciliation, according to the written agreement of the arbitration concerned, any disputing party can bring the case to the local China People's Court.

¢÷.ChinaThe nation will not nationalize or expropriate foreign investment companies. Under special circumstances, according to the need of social profit, the nation may expropriate certain foreign investment companies following lawful procedures, and will give foreign investors compensation accordingly.

¢ø.The government especially encourages foreign investment in export product manufacturing or advanced technology companies, and will give preferential policies in taxation, etc., to such companies.

¢ù.The rights of foreign investors in China areis also protected by the bilateral investment insurance agreement or protection agreement and the agreement to prevent the double taxation between the Chinese Government and the government of the foreign investor's country.

¢ú.We encourage the investment from overseas Chinese and the compatriots from Hong Kong, Macao and Taiwan. The foreign investment by overseas Chinese and the compatriots from Hong Kong, Macao and Taiwan may enjoy preferential treatment accordingly. Besides, the nation has also drawnew up and issued The State Council's Regulations for Encouraging the Investment by Taiwan Compatriots, The State Council's Regulations for Encouraging the Investment by Overseas Chinese and Hong Kong and Macao Compatriots, and The Taiwan Compatriots' Investment Protection Act of People's Republic of China, and Liaoning Province has specially issued Lliaoning Province's Implementation Method for Encouraging Investment by Taiwan Compatriots. The purpose of implementation of these laws and regulations is to guarantee the legal rights of investors and the safety of their investment.