I. The concept of total investment The total investment of a foreign-capital enterprise refers to the total amount of funds required for the establishment of a foreign-capital enterprise, that is, the sum of capital construction funds and production liquidity required according to its production scale. Total investment is a unique concept in the law of foreign-invested enterprises. In terms of composition, the total investment includes registered capital paid or subscribed by investors and loans from foreign-invested enterprises.

Second, determine the role of total investment.

1. Determine the registered capital of foreign-invested enterprises according to the total investment; 2. Determine the duty-free import quota of self-use equipment of foreign-invested enterprises according to the total investment; 3. Determine the amount of foreign exchange loans for foreign-invested enterprises according to the total investment; 4. Determine the division of examination and approval authority of foreign-invested enterprises according to the total investment.

Three. Provisions on Total Investment The registered capital of a foreign-capital enterprise shall be commensurate with its business scale, and the ratio of registered capital to total investment shall comply with the relevant provisions of China. The ratio of the registered capital of a Chinese-foreign joint venture to the total investment shall meet the following requirements: (1) If the total investment of a Chinese-foreign joint venture is less than US$ 3 million (including US$ 3 million), its registered capital shall account for at least seven tenths of the total investment; (2) If the total investment of a Chinese-foreign joint venture is more than US$ 3 million to US$10 million (including US$10 million), its registered capital shall account for at least half of the total investment, and if the total investment is less than US$ 4.2 million, its registered capital shall not be less than US$ 2 10 million; (3) If the total investment of a Chinese-foreign joint venture is above10 million to 30 million dollars (including 30 million dollars), its registered capital shall account for at least two fifths of the total investment, and if the total investment is below12.5 million dollars, its registered capital shall not be less than 5 million dollars; (4) The registered capital of a Sino-foreign joint venture with a total investment of more than 30 million US dollars accounts for at least one third of the total investment, and the registered capital of a Sino-foreign joint venture with a total investment of less than 36 million US dollars is not less than12 million US dollars.