Foreign Exchange Balance. The JVC shall establish foreign exchange and Renminbi bank accounts at banks to be chosen by the Board of Directors. The JVC shall, in accordance with the laws and requirements of PRC, apply for and maintain foreign exchange certificates. The JVC will obtain sufficient foreign exchange to meet its needs. All expenses incurred in currency conversion will be deemed as the JVC's operational expenses.
Foreign Exchange Balance. (a) The Company shall be responsible to maintain a balance in its foreign exchange receipts and expenditures through the sale of its products and services and through other methods permitted under the laws of China.
Foreign Exchange Balance. (a) In the event the Company borrows foreign currency from lenders not located in China, the Company shall, in accordance with applicable foreign exchange regulations of the People's Republic of China, open USD cash accounts at a bank approved by relevant authorities for the repayment of principal of and the payment of interest on foreign currency loans.
Foreign Exchange Balance. 17.3.1 The Joint Venture Company may export a portion of its output, and will at all times strive to maintain a balance of foreign exchange revenues and expenditures (including payment of dividends).
Foreign Exchange Balance. The Company shall be responsible to maintain a balance in its foreign exchange receipts and expenditures. The principal methods for balancing foreign exchange will be as follows:
Foreign Exchange Balance. Compliance has been made with all applicable laws and regulations with respect to the opening and operation of the foreign exchange accounts and foreign exchange activities of Shanghai Control Tech.
Foreign Exchange Balance. Another trade-related investment measure prohibited by the TRIMs Agreement is the restriction on foreign exchange access for import purchases. The foreign exchange regime is perhaps one of the reform areas where China has made most progress over the past decade. First, the official exchange rate was unified with the prevailing swap market rate in January 1994, and soon afterwards the inter-bank foreign exchange market was established. Second, the current account was made convertible in July 1996. Foreign companies in China are now allowed to convert the Chinese Renminbi into foreign currencies for current account transactions, such as importing materials, paying royalties and license fees and repatriating dividends. Furthermore, with current account convertibility, foreign firms do not need to balance their foreign exchange position as before. Third, at the beginning of December 1996, China formally accepted the terms and conditions specified under the IMF’s Article VIII Agreement so that the government can no longer impose trade restrictions for balance of payments reasons nor engage in a discriminatory currency arrangements or multiple currency practices without IMF approval. However, in China most joint venture contracts still require that FIEs balance their foreign exchange receipts and expenditures. Article 13 of the Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures provides that the failure of a party to fulfill the obligations prescribed by the contract is a basis for termination of the joint venture. Therefore, Article 13 can be considered as implicitly providing the legal basis for enforcing foreign exchange balance, even though this requirement is often ignored in practice.
