(Passed on 12 April 1986 by the 4st Session of the 6th NPC, revised in the Amendment to the Decision on 31 October 2000 by the Standing Committee of the 18th Session of the 9th NPC)

　　Article 1: In order to expand foreign economic co-operation and technological exchange and to promote the development of the Chinese national economy, the People's Republic of China shall permit foreign enterprises and other economic organizations or individuals (hereafter "foreign investors") to establish wholly foreign-owned enterprises within Chinese territory, and shall protect the lawful rights and interests of such enterprises.

　　Article 2: The term "wholly foreign-owned enterprises" as used in this Law shall refer to those enterprises established within Chinese territory, in accordance with the relevant Chinese laws, with capital provided solely by the foreign investor. It does not include branches established in China by foreign enterprises or other economic organizations.

　　Article 3: Wholly foreign-owned enterprises must benefit the development of the China's national economy. The State shall encourage the establishment of wholly foreign-owned enterprises that export commodities or that are technologically advanced.

　　The State Council shall stipulate industries in which the establishment of wholly foreign-owned enterprises is prohibited or restricted.

　　Article 4: The investments, profits and other legitimate rights and interests of foreign investors in China shall be protected by Chinese law.

　　Foreign investors must obey Chinese laws and regulations, and shall not harm the social public interest of China.

　　Article 5: The State shall not nationalize or expropriate wholly foreign-owned enterprises. In special circumstances, where necessary for the public interest, a wholly foreign-owned enterprise may be expropriated in accordance with legal procedures, and appropriate compensation paid.