As the saying goes, you don't know until you see it, but you will be shocked when you see it...

When he learned from the members of the congregation that China had not even introduced a Company Law or a State-Owned Land Law, Carter was in a Spartan state. He felt that he had been talking for a long time and was talking about snakeskin.

..

Fortunately, this kind of thing is not a problem for the flexible Chinese people. There is no "Company Law", right? There is the "Sino-Foreign Joint Venture Management Law" passed in 1979; there is no "State-owned Land Law", so it is difficult to be a state-owned enterprise.

Land transfer, right? It's okay. According to the "Sino-Foreign Joint Venture Management Law", this is called site use right investment!

According to Article 5 of the Law: the Chinese joint venturer's investment may include the site use rights provided for the joint venture during its operation. If the site use rights are not included as part of the Chinese joint venturer's investment, the joint venture shall pay usage fees to the Chinese government.

Look, the land has become a venue! The problem was solved immediately, and the comrades of the Land Bureau also had smiles on their faces...

Article 5 can be followed closely by another sentence: The above-mentioned investments shall be stipulated in the contract and articles of association of the joint venture, and their prices (except for the site) shall be discussed and agreed upon by the parties to the joint venture.

As soon as these words came out, the face of the representative of the city hotel company suddenly lit up with surprise. What does this mean? It's the land... Oh no, the decision on the price of the venue is up to you!

Ever since, under the hint of the crazy eyes of the municipal hotel company representative, the smiles on the faces of the comrades in the Land Bureau disappeared instantly. This is a hot potato!

Regulations stipulate that the decision-making power of site value is not in the hands of foreign investors. This is true! But, the price you quoted has to be accepted by others?!

On the left, look at the supervisor-like leader sent by the municipal party committee; on the right, look at the hotel company representative who is winking crazily, signaling for him and others to increase the valuation of the site use rights...

The comrades of the Land Bureau who were in a dilemma bit the bullet and tried to say:

"Mr. Black... we have some questions about the valuation of the site use rights. We don't know what you base the valuation on the site use rights on? We think this price is unreasonable!"

"How is it unreasonable? I made an estimate based on the previously purchased shops and residential courtyards and their floor area."

The other party can see this provision, and Carter can naturally see it too. However, comparing the legal provisions on the valuation of site use rights, Carter is more worried about the second article of the law...

“The Chinese government protects in accordance with the law the profits and other legitimate rights and interests of foreign partners who invest in joint ventures in accordance with the agreements, contracts, and articles of association approved by the Chinese government. All activities of joint ventures shall comply with the laws and regulations of the People’s Republic of China.

.”

There is nothing wrong with the first half of Article 2. On the contrary, it is about protecting the legitimate income of foreign investors and improving the confidence of foreign investors. For Carter, this is good news.

On behalf of the Chinese government, it protected its legal income at the legislative level and made its investment more secure. But in the second half, the taste changed a bit:

"The state does not nationalize or expropriate joint ventures; under special circumstances and based on the needs of social and public interests, joint ventures may be expropriated in accordance with legal procedures and corresponding compensation be given."

Why should we specifically emphasize not to nationalize and expropriate joint ventures? Also, what is the need for social and public interests? What kind of legal procedures should be followed? What is corresponding compensation?!

To be honest, this passage made Carter feel a little creepy. The words "It's easy to make money, but hard to keep money" that Uncle Shazhu once said echoed in his ears, buzzing...

At this time, Carter was not in the mood to care about the pricing of the venue use rights. Even if it was a little overvalued, so what? As long as the assets were not misappropriated and the hotel company was given more shares, Carter was not mentally opposed to it. Just treat it as protection money.

Well, in the past, people always said that the biggest thing is...ahem...

Make money, don’t be shabby!

Every place has its own rules, and different places have different ways of playing! Carter understands this truth.

"That's wrong, Mr. Black! You have to know that we actually don't have commercial housing for sale now. Whether it's a residence or a shop you bought before, it actually belongs to the transfer of collective property rights according to regulations. For example, the three properties you bought

The courtyard is not owned by you personally, but it was transferred from the original residential area for employees of the state-owned No. 2333 Factory to your newly established foreign bank office according to the plan, and it belongs to the residential area for the employees of that office.

..."

"God's Coming"

"This is not a sale, it's just a plan adjustment!"

Good guy, there is still such an operation?!

Carter turned to look at Han Xue, and when he saw the latter nodded slightly, he was speechless.

"So, normally speaking, the current site use rights cannot be measured by market value in our country. Our Land Bureau evaluation should be based on its use value and future value! Refer to the proposed store provided by Secretary Han

Address directory, this is what our Land Bureau means..."

"Xuanwu Store, Chaoyang Store, Ping'anli Store, Chongwen Store, Dongzhimen Store, Gulou Street Store, etc. These stores are located in the core areas of our urban area with dense flow of people. It can be said that every inch of land is valuable, and even more

Not to mention the Nanchang Street store and Donghua store, which are close to the walls of the Forbidden City. For these stores, 20 yuan per square meter is obviously too low!"

"What do you mean?"

Carter, whose mind was not on the valuation of the site use rights at all, heard this and asked. Indeed, these lots are 20 per square meter...

Carter felt a little ashamed when he took it...

If these positions are placed in 30, no, 20 years later, they will all have a price but no market!

"Our opinion is that the site use rights of Xuanwu Store and other stores on the outer ring road of the urban area are priced at 40 yuan per square meter, and the space use rights of stores on the inner ring road such as Nanchang Street Store and Donghua Store are priced at 60 yuan per square meter.

Ping. I don’t know, Mr. Black, what do you think..."

"It's too high! It's too high! Even if you're bargaining, you won't be able to double it and roll it up!"

Seeing Carter shaking his head, everyone in the Land Bureau suddenly felt a thump in their hearts. The regulations are correct, but it is rare for a foreign businessman to come in. If they don't agree with the valuation, they will not do the business and leave, then their task of earning foreign exchange will be over.

It can’t be finished!

Just when everyone in the Land Bureau was feeling uneasy and looking at each other, wondering if they should lower the price, they heard Carter speak again:

"However, this price is actually secondary. I am concerned about this issue now. Can anyone explain to me the second article of the law, what is meant by 'under special circumstances, the state has the right to nationalize and expropriate joint ventures'"

.What kind of special situation is this? What is the procedure for expropriation and what are the corresponding compensation standards?"

"I understand that you are uneasy about carrying out market-oriented economic reforms for the first time, but this French sentence makes us foreign businessmen feel very unsure! Before talking about other matters, I hope to get a reasonable explanation for this one! And,

Our current verbal agreement needs to be written into the terms of the contract to bind both parties!"
Chapter completed!