Can venture capital be taken out of Chinese enterprises?
Yes, although with difficulty. Before the FIEVC regulations went into effect, taking invested capital and profits out of Chinese enterprises was possible only under the general laws governing FIEs which favored long-term investments. The FIEVC regulations contemplate earlier withdrawals, but the procedures are still unclear and require administrative approval from MOFTEC and MOST under SAIC regulations. Any actual bank transfers would then also require compliance with cumbersome procedures of the State Administration of Foreign Exchange (SAFE).
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