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Legal Guarantees
2004-10-27

The regional government gives foreign-invested projects priority in planning, project approval, provision of capital, construction start-up, establishment of the business itself and registration.

The regional government protects the legitimate rights of foreign businessmen according to law. Foreign businesspeople with an interest in a wholly foreign-owned enterprise or a joint venture may empower friends or relatives in China to act as their agent regarding that interest provided that they have legally valid power of attorney; likewise, they may transfer possession or distribute in succession said interest. When a foreign businessperson decides to cede his interest to the Chinese Government for compensation or when the State proceeding from public interest requires the appropriation of that interest, such actions will be taken through legal procedures and appropriate compensation given. In disagreements arising during the performance of a contract or other contract-related disputes involving a foreign businessperson, the concerned parties should make their best efforts to seek a negotiated settlement. If any of the concerned parties refuse the negotiated settlement or if a settlement can not be reached, the foreign businessperson may petition the Trade Arbitration Committee of the Tibet Autonomous Region for arbitration. With the consent of all parties to the contract, application may be made to national or provincial-level arbitration organizations in China or to international arbitration organizations.

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