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Under an equity joint venture, Chinese and foreign investors operate the venture and share the risks, profits, and losses jointly. All parties involved agree on the equity share of each party. Profits are distributed to the parties in proportion to their equity share. In a cooperative joint venture, the Chinese partner provides land, natural resources, labor, and equipment/facilities, while the foreign partner provides capital/technology, key equipment, and materials. Both parties decide on the proportions in which products, revenue, and profits are distributed. A wholly foreign-owned venture is wholly owned by foreign investors.
It is difficult to measure the indirect employment effects of FDI; these include the employment indirectly generated as a result of spending by FFEs, or as a result of linkages of FFEs with domestic enterprises, either as competitors or as suppliers and customers.