Legal analysis: Since the acquisition of domestic enterprises by foreign-funded companies in China first involves the issue of foreign investment access, they should be subject to the following laws, regulations or rules: "On Strengthening the Regulation of Foreign Investment Enterprises" by the Ministry of Foreign Trade and Economic Cooperation and other four departments Notice on Issues Related to Approval, Registration, Foreign Exchange and Tax Administration"

(1) Industry restrictions. Foreign investors must strictly abide by the "Guiding Foreign Investment The provisions of laws and regulations such as the "Interim Provisions on the Direction of Foreign Investment" and the "Catalog for the Guidance of Foreign Investment Industries" shall not lead to foreign investors taking a dominant position in industries that do not allow wholly foreign-owned, controlled or dominant industries.

Legal basis: "Notice on Strengthening the Approval, Registration, Foreign Exchange and Tax Administration of Foreign-Invested Enterprises" Article 3 For foreign-invested enterprises with a capital contribution ratio of less than 25% by foreign investors, in addition to legal and administrative Unless otherwise provided by laws and regulations, imported equipment and items for self-use under the total investment do not enjoy tax exemptions and exemptions, and other taxes do not enjoy the treatment of foreign-invested enterprises. Foreign-invested joint-stock companies that already enjoy the treatment of foreign-invested enterprises can still enjoy the treatment of foreign-invested enterprises in accordance with relevant regulations after increasing their capital and shares or transferring equity to foreign investors.