Based on the "Regulations for the Implementation of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures", each joint venturer may invest in cash or may contribute buildings, factory premises, equipment or other materials, industrial property, proprietary technology, or right to the use of a site, appraised at appropriate prices, as investment. If the investment is in the form of buildings, premises, equipment or other materials, industrial property or proprietary technology, the prices shall be determined through consultation by the parties to the joint venture on the basis of fairness and reasonableness, or they shall be evaluated by a third party accepted and invited by the parties to the joint venture.

The industrial property or proprietary technology contributed by the foreign joint venture(r) as investment shall meet one of the following conditions:

(1) capable of markedly improving the performance, quality of existing products and raising productivity;

(2) capable of notably saving raw materials, fuel or power.

Foreign joint venturers who contribute industrial property or proprietary technology as investment shall present relevant documentation on the industrial property or proprietary technology including photocopies of the patent certificates or trademark registration certificates, statements of validity, their technical characteristics, practical value, the basis for calculating the price and the price agreement signed with the Chinese joint ventures. All these shall serve as an annex to the contract. The machinery, equipment or other materials, industrial property or proprietary technology contributed by the foreign joint venturer as investment shall be examined and approved by the department in charge of the Chinese joint venture and then submitted to the examining and approving authorities for further approval.