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Sept. 30 (NBD) -- The future of energy drink Red Bull in China is now at the center of attention. 

According to the National Enterprise Credit Information Publicity System, the operation term of Beijing-based Red Bull Vitamin Drink Co., Ltd. ("China Red Bull") expired Saturday. 

In response, China Red Bull said on the day via its official account on SINA Weibo that pursuant to the binding legal papers signed by the parties to the venture, the company has the exclusive right to manufacture and distribute the Red Bull drink for 50 years. 

The term of operation of 20 years registered at the local industry and commerce department was originally a special regulatory approval requirement for foreign-funded firms at the time, but this doesn't put an end to China Red Bull's operation right of the energy drink brand in China, the beverage company said in the statement. China Red Bull has submitted to relevant authorities an application to extend the term of business, it added. 

However, shortly after China Red Bull's announcement, Thailand-based T.C. Pharmaceutical Industries Co., Ltd., the creator and owner of the Red Bull brand, made a statement in the name of China Red Bull's two largest shareholders that hold 95 percent share of the joint venture, saying that no agreement has been reached concerning the extension, and they have decided to change a partner and adopt a new business model in China. 

Industry insiders revealed their new partner would be Guangzhou Yao Energy Drinks Co., Ltd. NBD tried to contact one of the shareholders for comments, but no response had been received as of press time. 

Zhu Danpeng, analyst of China's food and beverage industry, said that in accordance with the Company Law of China, China Red Bull's survival will be an issue if shareholders are not on the same page. 

Yang Rongkuan, a lawyer with the All China Lawyers Association, expressed similar views in the interview with NBD, on the grounds that the term of operation is subject to the registration information at the department in charge. 

The 50-year period claimed by China Red Bull is unsubstantiated, and the company's application is likely to fail, Yang added. By then, China Red Bull will have to liquidate, which means the corporate body registered at the industry and commerce department will be revoked.  

Email: lansuying@nbd.com.cn