China Law Library

Commercial Enterprise

A commercial enterprise in Chinese law is as any individual or entity formed to engage in economic activity.  All commercial enterprises, whether domestic or foreign owned and regardless of size, are entitled to equal rights and market access conditions.  

Suspending Commercial Enterprise Operations  

Commercial enterprises facing difficulties maintaining routine operations due to matters out of their control, such as natural disasters, accidents, and public health events, may opt to suspend their business activities for up to 3 years.  

Prior to such suspension, commercial enterprises are required to file with their local registering office, which will then update and disclose details such as the period of suspension and the organization’s addresses for service of legal documents via the National Business Entity Credit Lookup System 

Furthermore, commercial enterprises found to have conducted businesses during their suspension period will be deemed as having resumed regular operations.  

Comparative Law  

The United States also uses the concept of a commercial enterprise in the international trade context, which is a catch-all concept intended to include all economic activity, it is used in the EB-5 foreign investment immigration program and in parallel to Chinese law, includes individuals and entities engaged in economic activity. 

Further Reading

See our comprehensive resources on China’s Foreign Investment Law. and an overview of FDI regulation in our Foreign Investment Law FAQ.

Translation Guide 

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