Legal basis: Law of People's Republic of China (PRC) on Foreign-funded Enterprises.
Article 4 The investment, profits and other lawful rights and interests of foreign investors in China shall be protected by the laws of China.
Foreign-funded enterprises must abide by the laws and regulations of China, and shall not harm the public interests of China.
Article 5 The State shall not nationalize or expropriate foreign-capital enterprises; Under special circumstances, according to the needs of social public interests, foreign-capital enterprises can be levied in accordance with legal procedures and given corresponding compensation.
Article 6 The application for establishing a foreign-capital enterprise shall be examined and approved by the foreign economic relations and trade department of the State Council or the department authorized by the State Council. The examination and approval authority shall decide whether to approve or not within 90 days from the date of receiving the application.