Common use of HORIZONTAL COMMITMENTS Clause in Contracts

HORIZONTAL COMMITMENTS. ALL SECTORS INCLUDED IN THIS SCHEDULE (3) In China, foreign invested enterprises include foreign capital enterprises 9also referred to as wholly foreign- owned enterprises) and joint venture enterprises and there are two types of joint venture enterprises: equity joint venture and contractual joint ventures.1 The proportion of foreign investment in an equity joint venture shall be no less than 25 per cent of the registered capital of the joint venture. The establishment of branches by foreign enterprises is unbound, unless otherwise indicated in specific sub-sectors, as the laws and regulations on branches of foreign enterprises are under formulation. Representative offices of foreign enterprises are permitted to be (3) Unbound for all the existing subsidies to domestic services suppliers in the sectors of audio- visual, aviation and medical services. Unbound for all the subsidies to domestic services suppliers in any new sector and sub-sector scheduled after China’s Accession to the WTO. 1 The terms of the contract, concluded in accordance with China's laws, regulations and other measures, establishing a "contractual joint venture" govern matters such as the manner of operation and management of the joint venture as well as the investment or other contributions of the joint venture parties. Equity participation by all parties to the contractual joint venture is not required, but is determined pursuant to the joint venture contract. “Foreign invested enterprise” in this schedule means a foreign invested enterprise duly constituted or otherwise organized under “Law on Chinese-Foreign Equity Joint Ventures”, “Law on Chinese-Foreign Contractual Joint Ventures” and “Law on Foreign-Capital Enterprises” .