Currently, the PRC Partnership Law allows domestic enterprises and Chinese individuals to set up general and limited partnerships through registrations with the State Administration for Industry and Commerce or its local branches. Now, through new legislation, foreign enterprises and foreign individuals will be allowed to set up Chinese partnerships and participate in existing partnerships in China on and after March 1, 2010.
Although the actual implementation of this new rule still needs additional clarification, the measures provide a new structure for foreign companies to invest and operate in China that may potentially provide more flexibility than do current investment structures.
More, much more, on this development in Mondaq where it comes to the conclusion that these new measures provide multinational companies with a new legal form of foreign investment in China, which may allow foreign companies to set up China businesses in a more flexible and efficient structure.