China’s State Council Permits the Formation of Foreign Invested Limited Liability Partnerships

December 13, 2009
China’s State Council recently issued the Measures for the Administration of the Establishment of Partnership Enterprises by Foreign Enterprises or Individuals in the PRC (the “FIPE Measures”), which will allow foreign enterprises and individuals to set up foreign-invested partnership enterprises (“FIPE”) in China, including such partnerships with a combination of foreign and domestic limited and general partners. Partnerships are popular structures internationally for investment funds. This update examines the FIPE structure, which is expected to allow a new and attractive form of investment vehicle in China.