uthorities may order it to suspendoperations or may revoke its business licence.Article 15Within the scope of the operations approved, enterprises with foreigncapital may purchase, either in China or from the world market, raw andsemi-processed materials, fuels and other materials they need. When thesematerials are available from both sources on similar terms, first priorityshould be given to purchases in China.Article 16Enterprises with foreign capital shall apply to insurance companies inChina for such kinds of insurance coverage as are needed.Article 17Enterprises with foreign capital shall pay taxes in accordance withrelevant state provisions for tax payment, and may enjoy preferentialtreatment for reduction of or exemption from taxes.An enterprise that reinvests its profits in China after paying the incometax, may, in accordance with relevant state provisions, apply for refundof a part of the income tax already paid on the reinvested amount.Article 18Enterprises with foreign capital shall handle their foreign exchangetransactions in accordance with the state provisions for foreign exchangecontrol. Enterprises with foreign capital shall open an account with theBank of China or with a bank designated by the state agency exercisingforeign exchange control. Enterprises with foreign capital shall manageto balance their own foreign exchange receipts and payments. If, with theapproval of the competent authorities, the enterprises market theirproducts in China and consequently experience an imbalance in foreignexchange, the said authorities shall help them correct the imbalance.Article 19The foreign investor may remit abroad profits that are lawfully earnedfrom an enterprise with foreign capital, as well as other lawful earningsand any funds remaining after the enterprise is liquidated.Wages, salaries and other legitimate income earned by foreign employees inan enterprise with foreign capital may be remitted abroad after thepayment of individual income tax in accordance with the law.
Article 20With respect to the period of operations of an enterprise with foreigncapital, the foreign investor shall report to and secure approval from theauthorities in charge of examination and approval. For an extension of theperiod of operations, an application shall be submitted to the saidauthorities 180 days before the expiration of the period. The authoritiesin charge of examination and approval shall, within 30 days from the datesuch application is received, decide whether or not to grant theextension.Article 21When terminating its operations, an enterprise with foreign capital shallpromptly issue a public notice and proceed with liquidation in accordancewith legal procedure. Pending the completion of liquidation, a foreigninvestor may not dispose of the assets of the enterprise except for thepurpose of liquidation.Article 22At the termination of operations, the enterprise with foreign capitalshall nullify its registration with the industry and commerceadministration authorities and hand in its business licence forcancellation.Article 23The department under the State Council which is in charge of foreigneconomic relations and trade shall, in accordance with this Law, formulaterules for its implementation, which shall go into effect after beingsubmitted to and approved by the State Council.Article 24This Law shall go into effect on the day of its promulgation.