The China Venture

characteristics in this regard can be summed up as the use of land with compensation and
within a limited period of time by foreign-invested enterprises and by signing a land use
contract, defining the rights and obligations of both the land user and the land owner.
In China, there are different ways for foreign-invested enterprises to obtain state-owned land
use rights. The following two ways are most practised:
Granting of State-Owned Land Use Rights
According to the Provisional Regulations on Granting and Transferring of Use Rights of
Urban State-Owned Land of the PRC, the state as the landowner, may, by means of public
bidding, auction, or agreement, extend land use rights for a certain number of years to FIE’s
(maximum 50 years).
FIE’s pay for it a lump-sum fee, sign a contract obtaining the land use rights with the state
land management department, go through registration formalities, and acquire a land use
certificate. Land use rights obtained in this way can be transferred, leased, or mortgaged.
Leasing Buildings and Sites
By this land use method, FIE's may lease buildings or sites directly from state-run enterprises,
urban collective -run enterprises, township enterprises, or other urban collective economic
organisations and pay them either annual or monthly rent as set out in the leasing contract
between them. 90
3.2.4.5 Intellectual Property
The Trademark Law is a modern piece of legislation (NPC,1983) drawn from extensive
research carried out by Chinese specialists who worked in foreign countries and as well with
the World Intellectual Property Organization of the United Nations. The Trademark Law led
to the following major developments:
• the emergence of the concept of exclusive rights in China
• the introduction of a voluntary registration system
• clear procedures for trademark application examination and registration
• the linking of trademark rights to quality control
90 Investement in China, Wang Yongjun, 1997, pp 147.
70