Basic Facts about Shenzhen
Located in the coast of south Sea along Guangdong Province,Shenzhen covers an area of 2,020 square kilometres and owns the population of 4.05 million people. The climate here belongs to sub-tropical maritime,with the average temperature 22. Shenzhen, under the guidelines of Mr. Deng Xiaoping, became the first Special Economic Zone in China. After 20 years development, Shenzhen has established itself as one of main economic centers in China and has laid the foundation to support a new phase of further growth. The scenery attractions are characteristic of locali-zation, nature and culture.

As an important foreign trade and international exchange port in China, Shenzhen made the brilliant achievements in the urban construction and boasts the city with a fine environment for both investment and tourism. Shenzhen has been elected as "Gardens city of State" and "the model city in environment protection". In Nov 2000, it was elected as "International Garden City" in Washington, the capital of the US. Shenzhen Special Economical Zone was establ-ished in 1979. With its rapidly development in economics, the tourism industry of Shenzhen has become bloomed. Especially in the period of eighth and ninth five-year plan and during the creation activity of best tourism city, Shenzh-en's tourism has been stepping on the road of systemization and standardization. The stage of tourism of Shenzhe-n is coming up higher and higher. And the environment of tourism industry has become consummated. In former d-ays, the tourism in Shenzhen, a small border town, she, Shenzhen special Economic Zone is a magic land. For the time being, there gave built more than 50 scenery attractions with different styles, 139 star-ranked hotels,46 travel a-gencies, and 1,000 large commercial retail networks. When you walk around this garden city, you will find her so m-uch impressive for her modern styles, appeal and panorama of views.

Forms of Investment

Sino-foreign Joint Venture Enterprises
Sino-foreign joint venture is also called a stock-style jointly-managed enterprise. It is an enterprise jointly invested and managed by foreign companies, enterprises and other businesses or individuals together with Chinese companies, enterprises or other businesses on China's territory. The special character of such enterprises is that the two sides make joint investment and practice joint management while they will together run the risk, and be responsible for the profits and losses in accordance with the proportion of the investment they make. Each side of the joint management can make its investment with currency or with buildings , machines, site usage right, industrial property right or exclusively-possessed technologies, whose values will be calculated. The proportion of foreign investment should not be lower than 25 per cent. The organizing form of a Sino-foreign joint venture is a limited-liability company with board of directors as its organ of supreme power.

Sino-foreign Co-operative Enterprises
Sino-foreign co-operatively managed enterprise is also called a contract-style jointly managed enterprise. It is an enterprise jointly invested or run according to co-operative contracts by foreign companies, enterprises and other businesses or individuals together with Chinese companies, enterprises or other businesses on the Chinese territory. The investment made by the Chinese and the foreign sides is generally not divided into investment proportions and profits are not distributed according to their investment proportions, either. The jointly signed contracts clearly stipulate the rights and commitments of both sides including investment or co-operative conditions, profits or distribution of products, responsibilities for risks or losses, the style of management and the ownership of properties when the contracts expire. Generally speaking, in a Sino-foreign co-operatively managed enterprise, foreign co-operators provide all or most of the capital while the Chinese side provides land, workshops, useful equipment and facilities and sometimes a certain amount of capital. If the contracts by the Chinese and foreign partners stipulate that all the assets and properties of the enterprise will belong to the Chinese side when the contracts expire, the foreign side can retrieve its investment during their co-operation.

Wholly Foreign Owned Enterprises
A foreign enterprise is an enterprise with sole foreign capital. It is an enterprise established within the boundaries of China and in which all the capital is invested by foreign investors, who might be foreign companies, enterprises and other businesses or individuals.

Representative Office
A Chinese representative office (RO) is an office of the foreign enterprise established in China for liaison with Chinese businesses and customers on behalf of its parent company. A RO is not considered to be a separate legal entity. It must be emphasized that a representative office may not carry out direct revenue earning business activities. For example, it cannot enter into purchase/sales contracts and cannot receive payment for services, issue invoices. However, a RO can open bank accounts and employ staff to maintain liaison with customers and suppliers. Its headquarters can also enter into contracts with its supplier/customers in China in its own name, but not in the name of its RO. Therefore, before a foreign investor establishes its presence in China using wholly foreign owned enterprise (WFOE) such as equity joint venture, cooperative joint venture or a wholly foreign- owned enterprise, it could first set up a representative office to test the Chinese market.