Can a foreign investor unilaterally change or sell its equity share?
If the FIE is a Wholly Foreign Owned Enterprise (WFOE), the foreign investor does not need the consent of a Chinese partner but still needs the consent of the government authority which approved the establishment of the FIE. Such approval is not difficult to obtain for such changes as management reorganization but is very difficult if the objective is to reduce registered capital.
If the FIE is a Joint Venture (JV), any changes require the agreement of the Chinese partner as well as government approval. Documents reflecting the agreements, including amendments to the joint venture contract and articles of association, board resolutions, and new asset valuation reports, must be submitted to the original approval authority.