An equity joint venture is an enterprise jointly set up by a company, enterprise and other economic or individual from a country or region outside China with a Chinese company, enterprise or other economic organization on the principle of equality and mutual benefit and ratified by the Chinese Government. It is a company with liabilities with legal status in China . The ratio of investment from overseas shall not be less than 25% of the total registered capital. The parties to the joint venture shall share the benefits, risks and losses according to the ratio of Investment. Investment can be in the form of cash, in kind or industrial property rights etc.