BIOMASS HUB

The Global Legal Monitor reports that on December 2, 2009, the Administrative Measures for Foreign Enterprises and Individuals Establishing Partnership Enterprises in China was published, after having been issued by the State Council.  Effective from March 1, 2010, the Measures allow foreign investors to establish partnership enterprises in China.

The Law authorizes the State Council to formulate measures for the administration of partnership enterprises established within the territory of China by foreign enterprises or individuals (hereinafter “foreign-invested partnerships”)…According to the Legislative Affairs Office of the State Council, among other purposes, the Measures are designed to simplify the approval procedure for establishing foreign-invested partnerships and to build a friendly investment environment.  The Measures allow foreign companies and individuals to establish locally registered partnerships in China. Foreign companies and individuals may also establish a partnership with Chinese partners or join pre-existing Chinese partnerships.

The new law has important implications for international biomass enterprises seeking to expand into the lucrative Chinese market.  China’s biomass potential is significant, but largely underdeveloped.  By increasing access to foreign enterprises, the development would allow foreign companies to introduce more advanced processing and conversion technologies that could better utilize Chinese biomass resources.

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