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TABLE OF CONTENTS I. CATALOG OF ENCOURAGED FOREIGN INVESTMENT INDUSTRIES II. CATALOG OF RESTRICTED FOREIGN INVESTMENT INDUSTRIES III. CATALOG OF PROHIBITED FOREIGN INVESTMENT INDUSTRIES IV. ATTACHMENT OF THE CATEGORY OF INDUSTRIES FOR GUIDING FOREIGN INVESTMENT I. CATALOG OF ENCOURAGED FOREIGN INVESTMENT INDUSTRIES A. Agriculture, Forestry, Animal Husbandry and Fishery (1) Improvement of low-and medium-yielding fields (2) Non-pollution cultivation techniques of vegetables (including edible fungus, sweet watermelon), fruit and tea and serialized development and production of these products (3) Development and production of new varieties (excluding the genetically modified varieties) of fine quality, high-yielding crops such as sugar, fruit trees, vegetables, flowers and plants, forage grass and the related new techniques (4) Production of flowers and plants, construction and operation of nursery bases (5) Corp straw management and comprehensive utilization, development and production of organic fertilizer resources (6) Planting and cultivation of Chinese medicinal materials (limited to equity joint ventures and cooperative joint ventures) (7) Planting of forest trees (bamboos) and fostering of fine seed strains (8) Planting of natural rubber, sisal and coffee (9) Breeding of good strains of domestic animals, fowls and aquatic fingerlings (not including special, precious good strains of our country) (10) Breeding of famous, special and fine aquatic products and deep water net breeding (11) Construction and operation of environment protection projects such as tree and grass planting for prevention of hungriness and soil erosion, etc. B. Mining and Quarrying (*1) Exploration and exploitation of oil and natural gas with venture capital (*2) Exploitation of low permeability reservoirs (fields) of oil and gas (*3) Development and application of new technologies that increase the recovery ration of crude oil (*4) Development and application of new oil exploration and exploitation technologies such as geophysical exploration, drilling, well logging, and downhole operation, etc. (5) Exploration and mining of coal and associated resources (6) Exploration and exploitation of coal bed gas (7) Exploration and selection of low-grade and hard-to-select metal mines (limited to equity joint ventures and cooperative joint ventures, solely foreign-funded enterprises are allowed in the western regions) (8) Exploration, mining and selection of iron mines and manganese mines (9) Exploration and mining of copper, lead, and zinc mines (limited to equity joint ventures and cooperative joint ventures, solely foreign-funded enterprises are allowed in the western regions) (10) Exploration and mining of aluminum mines (limited to equity joint ventures and cooperative joint ventures, wholly foreign-owned enterprises are allowed in the western regions) (11) Exploitation and selection of chemical mines such as sulfur, phosphor and kalium, etc. C. Manufacturing (1) Food Processing 1. Storage and processing of food, vegetables, fruit, fowl and livestock products 2. Processing of aquatic products, cleaning and processing of seashell, development of seaweed functional food 3. Development and production of fruit and vegetable drink, protein drink, tea drink and coffee drink 4. Development and production of food for baby, food for the old, and functional food 5. Production of dairy products 6. Development and production of biological feed and protein feed (2) Processing of Tobacco 1. Processing of diacetate and tobacco tows 2. Production of tobacco sheet by the method of paper making (3) Textile Industry 1. Production of special textile for project use 2. Weaving, dyeing and post-processing of high-grade fabric surface material (4) Leather and Coat Products Manufacturing 1. New technical processing of blue wet hide of pig, cow and sheep 2. Post ornament and new technical processing of leather (5) Lumber Processing and Bamboo, Vine, Palm and Grass Products Manufacturing 1. Development and production of new technology and new products for the comprehensive utilization of "sub-quality, small and firewood" lumber and bamboo in the forest area (6) Paper Making and Paper Product Manufacturing 1. Construction and operation of forest-wood-pulp integration projects with an annual production capacity of over 300 thousand tons of chemical wood pulp, an annual production of over 100 thousand tons of chemical and mechanical wood pulp (CTMP¡¢BCTMP¡¢APMP) and related raw material forest base (limited to equity joint ventures and cooperative joint ventures) 2. Manufacture of high-grade paper and paper plate (news print paper excluded) (7) Petroleum Processing and Coking 1. Intensive processing of needle coke and coal tar 2. Production of hard coke and dry coke quenching 3. Production of pitch used on major roads (8) Chemical Raw Material and Chemical Products Manufacturing 1. Production of alkene by oil catalytic cracking technology 2. Mass production of ethane with an annual production capacity of over 600 thousand tons (the Chinese party shall hold a relatively dominant position) 3. Comprehensive utilization of ethene fallout C5-C9 products 4. Large scale production of corvic (ethene method) 5. Production of organochlorine serial products (high-residue organochlorine products excluded) 6. Comprehensive utilization of basic organic chemical raw materials: the derivatives of benzene, methylbenzene, (para-, ortho-, or meta- ) dimethylbenzene 7. Production of supporting raw materials for synthesized materials (bisphenol-A, 4.4'diphenylmethane, diiso-cyan ester, and vulcabond toluene) 8. Synthetic fibre raw materials: precision terephthalic acid, acrylonitrile, hexyl-lactam, nylon 66 salt 9. Synthetic rubber: liquid butadiene styrene rubber, butyl rubber, ethyl rubber, butadiene rubber, polyurethane rubber, acrylic rubber, epichlorohydrin rubber 10. Production of engineering plastic and plastic alloy 11. Fine chemistry: new products and technology for catalytic agent, auxiliary, and pigment; processing technology for the commercialization of dye (pigment); electronics and high-tech chemicals for paper-making, food additives, feed additives, leather chemical products, oil-well auxiliaries, surface active agent, water treatment agent, adhesives, inorganic fiber, inorganic powder stuffing and equipment 12. Production of assistant, grease, and dye-stuff for textile and chemical fibre drawnwork 13. Production of depurant of automobile tail gas; catalytic agent and other assistant 14. Production of natural spices, synthetic spices and single ion spices 15. Production of high-performance dope 16. Production of chloridized titanium dioxide 17. Production of substitute for hydro-chloro-fluoro-carbons (HCFC) 18. Production of large chemical products using coal as raw material 19. Development and production of new technology and new products of forestry chemicals 20. Production of ionic membrane caustic soda 21. Production of biological fertilizers, high-density fertilizers (potash fertilizer, phosphate fertilizer) and compound fertilizers 22. Development and production of new varieties of effective low-poison, and low-residue agricultural chemicals and pesticides 23. Development and production of biological pesticides 24. Development and production of inorganic, organic and biological membranes for environment protection 25. Comprehensive utilization, treatment and disposal of exhaust gas, discharge liquid and waste slag (9) Medical and Pharmaceutical Products 1. Production of material medicals under patent or administrative protection of China and chemical material medicals that we need to import 2. Vitamins: production of niacin 3. Amino acid: production of serine, tryptophan, histidine, etc. 4. Analgesic-antipyretic that has to be produced through new technical equipment 5. Production of new type of anticarcinogen and cardio-vascular and cerebrovascular medicines 6. Production of new, effective and economical contraceptive medicines and devices 7. Production of new medicines which are produced by means of biological engineering technology 8. Production of gene engineering vaccine (AIDS vaccine, HBV vaccine and contraception vaccine) 9. Development and production of marine medicine 10. Production of diagnosis reagent for AIDS, and radio-immunity diseases 11. Medicines and pharmaceutics: new products and new forms of drugs produced by new technical means of slow release, control release, target preparation and those absorbed through skins 12. Development and application of new type adjuvant for medicine use 13. Processing and production of traditional Chinese medicine material, traditional Chinese medicine extractions, and traditional Chinese patent medicine (the preparing technique of traditional Chinese herb medicine in small pieces ready for decoction excluded) 14. Production of biomedical materials and products 15. Production of antibiotic material medicals used for animals (including antibiotic and chemical synthesis) 16. Development and production of new products or new forms of antibacterial, anthelmintic, insecticide, anti-coccidiosis medicines used for animals (10) Chemical Fibre 1. High-tech chemical fibre production of altered chemical fibre, aromatic synthetic fibre, polyurethane and carbon fibre, etc. 2. Production of environment-protection-oriented chemical fibre such as viscose poison-free fibre, etc. 3. Production of fibre and polyester which is not used as fibre with a daily production capacity of 400 tons and above (11) Plastic Products 1. Production of polyamide film 2. New technologies for the production of agricultural film, and development of new products (photolysis film, multi-functional film and raw materials) 3. Clearing up and reutilization of worn-out plastics (12) Nonmetallic Mineral Products 1. Production of fine - quality floating glass with a daily melting capacity of 500 tons and over (only in the mid - west region of this country) 2. Production of new type dry process cement of clinker with a daily output capacity of 4, 000 tons and above (only in the mid - west region of this country) 3. Production of glass fibre (through direct melting process) and glass fibre reinforced plastics with an annual capacity of 10, 000 tons and above 4. Production of high-class sanitation porcelain with an annual production of 500,000 pieces 5. Standard refinery of pottery materials and production of high-class decoration materials used for pottery 6. Production of high-class refractory materials used in furnaces for glass, ceramics and glass fibre 7. Production of non - organic, non - metal materials and products (artificial crystal, high-performance compound materials, special glass, special pottery, special seal material, special colloid material) 8. Production of new type building material (light, strong, and multi-function materials for wall, high-class and environment protecting decorating and finishing materials, high-quality water-proof materials, and effective thermal insulation materials) 9. Intensive processing of non-metal (super-fine grinding, high purifying, high refining and modifying) (13) Smelting and Pressing of Ferrous Metals 1. Production of wide and thick plate 2. Production of galvanized and corrosion proof aluminum-zinc alloy board and varnished board 3. Production of direct reduced iron and melted iron 4. Processing of steel scrap (14) Smelting and Pressing of Nonferrous Metals 1. Production of alumina with an annual production of 300,000 tons and above 2. Smelting of low-grade and hard-to-select metal mines (limited to equity joint ventures and cooperative joint ventures, solely foreign-funded enterprises are allowed in the western regions) 3. Production of hard alloy, tin compound, and antimony compound 4. Production of nonferrous composite materials, new type alloy materials 5. Rare-earth application (15) Metal Products 1. Design and manufacturing of molds for nonmetal products 2. Manufacturing of car and motorcycle molds (including strike moulds, plastics filling moulds, mould-pressing moulds, etc.) and clippers (welding clipper, testing clippers, etc.) 3. Development and production of high-class building auxiliary hardware parts, plumbing equipments and auxiliary hardware parts. (16) Ordinary Machinery 1. Manufacture of digital-controlled machine tool with interlock of more than 3 axes, digital-controlled system and servo setting 2. Manufacture of high-performance welding robot and effective welding and assembling production equipment 3. High temperature resistant insulation material (with F, H insulation class) and mould casted insulation products 4. Development of proportional, servo-hydraulic technology and production of low-power pneumatic control valve and stuffing static seal 5. Production of precision trimming dies, precision cavity modes and matrix standard components 6. Manufacturing of precision bearings and various kinds of special bearings for principal machines 7. Production of casted and forged semifinished products for cars and motorcycles (17) Equipment for Special Purpose 1. Development and manufacture of new technology and new equipment for the storage, preservation, classification, packaging, drying, transport and processing of food, cotton, oil plants, vegetables, fruits, flowers, forage grass, meat products and aquatic products 2. Manufacture of facility agriculture equipment 3. Manufacture of new technical agricultural and forestry machinery 4. Design and manufacture of agriculture engines such as tractors and combine harvesters 5. Manufacture of equipment for crop straw returning and comprehensive utilization 6. Manufacture of equipment for comprehensive utilization of agricultures waste and waste of scale livestock raising 7. Manufacture of new type water-saving irrigation technical equipment 8. Manufacture of earth-movers for wet land and desilting machines 9. Environment protection technology and equipment manufacture for aquatic ecological system 10. Manufacture of equipment for scheduling system of long-distance water transfer projects 11. Manufacture of special machines and equipment for flood prevention and emergency rescue 12. Manufacture of key equipment such as high-speed and asepsis packing equipment and labeling machine 13. Production technology and manufacture of key equipment for amino acid, enzymic preparations and food addictives, etc. 14. Manufacture of integrated equipment with a feed processing capacity of 10 tons or more an hour, and the production of spare parts 15. Manufacture of multi-color offset press for web and folio or paper of larger size 16. Manufacture of new-tech equipment for post ornament of leather 17. Manufacture of high-tech involved special industrial sewing machines 18. Manufacture of complete set of equipment of new type of knitting machine, new type of paper (including pulp) making machines 19. Design and manufacture of new-type mechanical equipment for highway and port 20. Manufacture of equipment for maintenance of highways and bridges and automatic testing 21. Manufacture of equipment for monitoring, aeration, disaster-prevention and rescuing system of highway tunnels 22. Design and manufacture of equipment for large railway construction and maintenance 23. Manufacture of new technical equipment of garden machinery and apparatus 24. Manufacture of special equipment for urban environmental sanitation 25. Manufacture of machines for road planing and repairing 26. Manufacture of tunneling machine, equipment for covered digging of city metro 27. Manufacture of 80, 000 tons/day city sewage - disposal equipment, industrial sewage film treatment equipment, up-flow anaerobic fluidized bed equipment, and other biological sewage disposal equipment, recycling equipment for waste plastics, equipment for desulphuration and denitration equipment of industrial boiler, large high-temperature resistant, acid resistant bag dust remover 28. Manufacture of turbine compressor and combined powder machine for the complete set of equipment for an annual production of 300,000 tons or over of synthetic ammonia, 480,000 tons or over of urea and 450,000 tons or over of ethene 29. Desulphurizing technology and equipment manufacture for heat power station 30. Manufacture of sheet continuous caster 31. Deep processing technique and equipment of plate glass 32. Manufacture of trackless equipment for mining, loading and transporting in the well, 100 tons or over of mechanical power-driven dump trucks for mining, mobile crushers, double input and output coal grinder, 3, 000 m3/h or over bucket excavator, 5 m3 or larger mining loader, full-face tunnelling machines 33. Design and manufacture of new instruments and equipment for petroleum exploration and development 34. Manufacture of cleaning equipment for electro - mechanical wells and production of medicines 35. Manufacture of electronic endoscope 36. Medical X - ray machine set with high - frequency technique, direct digital imagery processing technique, little radiation and a power of 80 kw and above 37. Manufacture of high-field-strength superconducting magnetic resonance imaging equipment (MRI) 38. Manufacture of blood collection machine 39. Manufacture of equipment for automatic enzyme immunoassay system (including some functions such as standard adding, enzyme marking, plate washing, incubating and post process of data, etc.) 40. New technology and manufacture of medicinal product quality 41. New analytical and extraction technology and equipment of the effective part of traditional Chinese medicine 42. Wrapping materials and containers for new medicines and other advanced pharmaceutical equipment (18) Transportation Equipment *1. Manufacture of complete automobiles and motorcycles 2. Manufacture of engines of automobiles and motorcycles 3. Manufacture of key spare parts for cars: complete brakes, complete driving rods, gearbox, fuel pump of diesel engine, turbo booster of diesel engine, overboard valve control equipment of diesel engine, filter (3 filtering), even speed cardan joint, chock absorber, compound meter, car fastener 4. Production of electron-controlled fuel-oil ejecting systems, electronic controlled brake and locking-prevention systems, safety aerocysts and other electronic equipment 5. Production of key spare parts for motorcycles: carburetors, magnetors, starting motors, disc brakes 6. Cars for special purposes such as desert cars for petroleum industry 7. Technical equipment for railway transportation: the design and manufacture of locomotives and the main parts, the design and manufacture of line and bridge facility and equipment, related technology and equipment manufacture for rapid transit railway, manufacture of equipment for communication signals and transportation safety monitoring, manufacture of electric railway equipment and instruments 8. Urban high-speed track transportation equipment: Design and manufacture of vehicles for subway and city light rail and the main parts 9. Design and manufacture of civil planes (the Chinese party shall be the holding party) 10. Manufacture of spare parts for civil planes 11. Design and manufacture of civil helicopters (the Chinese party shall be the holding party) 12. Design and manufacture of aeroplane engines (the Chinese party will be the holding party) 13. Design and manufacture of air - borne equipment for civil aeroplanes (the Chinese party shall be the holding party) 14. Manufacture of light gas turbine engine 15. Design and manufacture of crankshafts of low-speed ship diesel engines 16. Repairing, design and manufacture of special ships, high performance ships (the Chinese party shall hold a relatively dominant position) 17. Design and manufacture of medium and high-speed diesel engines for ships, auxiliary machines, wireless communication, navigation equipment and parts (the Chinese party shall hold a relatively dominant position) 18. Manufacture of glass-fibre reinforced plastics fishing boats and yachts (19) Electric Equipment and Machinery 1. Fire power equipment: manufacture of super-critical units of over 600,000 kw, large gas turbines, gas-steam combined cycle power equipments of over 100,000 kw, coal gasification combined cycle technique and equipment (IGCC), pressure boost fluidized bed (PFBC), large scale air cooling generating units of over 600,000 kw (limited to equity joint ventures and cooperative joint ventures) 2. Hydroelectric equipment: large scale pump storage groups of over 150,000 kw, large scale tubular turbine units of 150,000 kw or over (limited to equity joint ventures and cooperative joint ventures) 3. Nuclear power group: manufacture of nuclear power groups of 600,000 kw or over (limited to equity joint ventures and cooperative joint ventures) 4. Manufacture of power transmitting and transforming equipment: super-high-pressure direct current power transmitting and transforming equipment of 500 kilovolts and above (limited to equity joint ventures and cooperative joint ventures) (20) Electronic and Telecommunication Equipment 1. Manufacture of digital TV, digital video camera, digital video recorder and digital audio playing equipment 2. Manufacture of new type plate displays, color kinescope and glass shielding of medium and high resolution 3. Manufacture of digital coding and decoding equipment for audio and video frequency, digital equipment for broadcast and television studio, digital equipment for cable TV system and digital transmission equipment for audio broadcasting 4. Integrated circuit design and large scale production of integrated circuit with a line width of 0.35 micron or a smaller line width 5. Manufacture of large and medium sized computers, portable computers and high-class servers 6. Development and manufacture of high-volume disk drives and CD drives and the parts 7. Manufacture of computer-aided design (three-dimension CAD), computer, computer-aided testing (CAT), computer-aided manufacturing and computer-aided engineering system and other computer application system 8. Development of manufacture of software products 9. Development and manufacture of special materials for semiconductor, the elements and parts 10. Manufacture of special electronic equipment, instruments, and industrial moulds 11. New type electronic spare parts (including slice spare parts, sensitive components and sensors, frequency control and selection components, hybrid integrated circuits, electric and electronic spare parts, photoelectric components and new type electro ¨C mechanical spare parts) 12. Production of high-tech green battery such as non-mercury alkali-manganese battery, nickel-hydrogen battery, lithium-ion battery, high-volume, complete-sealed and maintenance-free lead acid accumulator, fuel battery, column zinc air battery, etc. 13. Development and production of key parts of high-density digital CD 14. Production of recordable CD (CD-R, CD-RW¡¢DVD-R¡¢DVD-ARM) 15. Design and Manufacture of civil satellites (the Chinese party shall be the holding party) 16. Manufacture of civil satellite payload (the Chinese party shall be the holding party) 17. Manufacture of spare parts for civil satellites 18. Design and manufacture of civil carrier rockets (the Chinese party shall be the holding party) 19. Manufacture of equipment of satellite communication 20. Receiving equipment of satellite navigation and the key parts (limited to equity joint ventures and cooperative joint ventures) 21. Manufacture of optical fibre prefabricated sticks 22. Production of digital serial transmission equipment of micro-wave synchronization of 0.622 GB/S or above 23. Production of digital serial transmission equipment of phototiming synchronization of 10 GB/S or above 24. Manufacture of equipment for wide band access network communication system 25. Manufacture of optical cross-connect (OXC) equipment 26. Manufacture of asynchronous transfer mode (ATM) and IP data communication system 27. Manufacture of mobile phones, base station, exchange equipment and digital trunk system equipment using mobile telecommunication system (including GSM¡¢CDMA¡¢DCS1800¡¢PHS¡¢DECT¡¢IMT2000, etc.) 28. Development of high-end routers and network exchanges of 1 gigabit and above 29. Manufacture of equipment for air traffic control (limited to equity joint ventures and cooperative joint ventures) (21) Instruments and Meters, and Cultural and Office Machinery 1. Development and production of digital cameras and the key parts 2. Development and manufacture of precision on-line measuring instruments 3. Manufacture of new technical equipment for safe production and environment protection detecting instruments 4. Manufacture of new -tech equipment of water quality and smoke on - line detecting instruments 5. Manufacture of instrument and equipment for hydrological data collection, process and transfer and flood prevention and precaution 6. New type of meters' spare parts and materials (mainly new switches and function materials for meters such as intelligent sensors, electrical adapters, flexible circuit plate, photoelectric switches, and proximity switch, and so on) 7. Development and manufacture of new type printing devices (laser-printers, inkjet-printers, etc.) 8. Maintenance of precision instruments and equipment, service after sales (22) Other Manufacturing 1. Development and utilization of products using clean coal technique (coal gasification, liquefaction, water-coal and industrial coal) 2. Ore-dressing by washing and comprehensive utilization of powder coal ash (including decarbonized gesso), and coal refuses D. Production & Supply of Electricity, Gas and Water (1) Construction and management of heat power station with a single machine's installed-capacity of 100 thousand kilowatts or above (2) Construction and management of power station with the technology of clean coal-burning (3) Construction and operation of power station yielding both heat and power (4) Construction and operation of natural gas power station (5) Construction and operation of hydropower station with the main purpose of power generating (6) Construction and operation of nuclear power station (the Chinese party will be the holding party) (7) Construction and operation of new energy power station (including solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.) (8) Construction and operation of urban water supply plants E. Water Conservancy (1) Construction and operation of key water control projects for comprehensive utilization (the Chinese party shall hold the relatively dominant position) F. Transportation, Warehouse Management and Post £¦ Communication (1) Construction and operation of main lines of railways (the Chinese party will be the holding party) (2) Construction and operation of feeder railways, local railways, and related bridges, tunnels, and ferry facilities (limited to equity joint ventures and cooperative joint ventures) (3) Construction and operation of highways, independent bridges and tunnels (4) Construction and operation of public dock facilities of ports (5) Construction and management of civil airports (the Chinese part shall be the holding party) (6) Air freight companies (the Chinese party shall be the holding party) (7) General aviation companies for agriculture, forestry and fishery (limited to equity joint ventures and cooperative joint ventures) (*8) Fixed-term or non-fixed term international shipping (*9) International container multi-modal through transportation (*10) Road goods transport companies (11) Construction and management of oil and gas delivery pipes, as well as oil depot and oil wharf (12) Construction and management of facilities of coal transportation pipelines (13) Construction and management of warehouse facilities related to transportation business G. Wholesale and Retail Trade (*1) Wholesale, retail and logistic delivery of general commodities H. Real Estate (1) Development and construction of ordinary residence houses I. Social Services (1) Public Facility Services 1. Construction and operation of urban closed roads 2. Construction and operation of urban subways and light rails (the Chinese party shall be holding party) 3. Construction and operation of sewage and refuse treatment plants, dangerous waste treatment and disposal plants (incineration plant, landfill) and environment pollution treatment facilities (2) Information and Consultancy Services 1. Information consultancy services of international economy, science and technology, and environment protection *2. Accounting and auditing J. Healthcare, Sports and Social Welfare (1) Services for the old and the disabled K. Education, Culture, Art and Broadcasting, Television & Movie (1) Higher education institution (limited to equity joint ventures and cooperative joint ventures) L. Scientific Research and Poly-technical Services (1) Biological engineering and biomedical engineering technology (2) Isotope, radiation and laser technology (3) Ocean and ocean energy development technology (4) Seawater desalting and seawater utilization technology (5) Ocean monitoring technology (6) Technology for energy ¨C saving development (7) Technology for recycling and comprehensive utilization of resources (8) Technology for improving polluted environment and monitoring (9) Technology for desertification prevention and desert treatment (10) Development of the application technique of civil satellites (11) Research and development centers (12) Development centers of high-tech and new products and enterprise incubation centers M. Permitted foreign-funded projects whose products are to be wholly exported directly II. CATALOG OF RESTRICTED FOREIGN INVESTMENT INDUSTRIES A. Agriculture, Forestry, Animal Husbandry and Fishery (1) Development and production of food (including potatoes), cotton and oil-seeds (the Chinese party shall be the holding party) (2) Processing and export of the logs of precious varieties of trees (limited to equity joint ventures and cooperative joint ventures) B. Mining and Quarrying (1) Exploration and mining of mineral resources such as wolfram, tin, antimony, molybdenum, barite and fluorite, etc. (limited to equity joint ventures and cooperative joint ventures) (2) Exploration and mining of precious metals (gold, silver, platinum families) (3) Exploration and mining of diamonds and other natural gems (4) Exploration and mining of special and rare kinds of coal (the Chinese party shall be the holding party) (5) Mining of szaibelyite and szaibelyite ironstone (6) Mining of celestine C. Manufacturing (1) Food Processing 1. Production of millet wine and famous brands of spirits 2. Production of carbonic acid beverage of foreign brands 3. Production of synthesized sweet sauce such as saccharine, etc 4. Processing of fat or oil (2) Tobacco Processing 1. Production of cigarettes and filter tips (3) Textile 1. Wool spinning, cotton spinning 2. Filature (4) Printing and Copying 1. Printing of publications (the Chinese party shall be the holding party, with the exception of printing of package and decoration) (5) Petroleum Processing and Coking 1. Construction and operation of refineries (6) Chemical Raw Materials and Chemical Products Manufacturing 1. Production of ionic membrane caustic soda 2. Production of sensitive materials 3. Production of benzidine 4. Production of precursors (ephedrine, 3,4-Methylenedioxyphenyl-2-propanone, phenyl acetic acid, 1-phenyl-2-propanone, piperonal, safrole, Isosafrole, acetic oxide) 5. Production of sulphuric acid basic titanium white 6. Processing of szaibelyite ironstone 7. Production of barium salt (7) Medical and Pharmaceutical Products 1. Production of chloramphenicol, penicillin G, lincomycin, gentamicin, dihydrostreptomycin, amikacin, tetracycline hydrochloride, oxytetracycline, medecamycin, kitasamycin, ciprofloxacin, norfloxacin, and ofloxacin 2. Production of Analgin, paracetamol, Vitamin B1, Vitamin B2, Vitamin C and Vitamin E 3. Immunity vaccinums included in the State's plan, bacterins, antitoxins and anatoxin (BCG vaccine, poliomyelitis vaccine, DPT vaccine, measles vaccine, Type-B encephalitis vaccine, epidemic cerebrospinal meningitis vaccine) 4. Production of addiction narcotic and psychoactive material drug (the Chinese party will be the holding party) 5. Production of blood products 6. Non-self-destruction disposable injectors, transfusion systems, blood transfusion systems and blood bags (8) Chemical Fibre 1. Chemical fibre drawnwork of conventional chipper 2. Production of viscose staple fibre with an annual single thread output capacity of less than 20,000 tons 3. Fibre and polyester, and spandex not used as fibre with a daily output capacity of less than 400 tons (9) Rubber Product 1. Cross - ply and old tire reconditions (radial tire excluded) and production of low-performance industrial rubber spare parts (10) Smelting and Pressing of Nonferrous Metals 1. Smelting and separation of rare-earth metal (limited to equity joint ventures and cooperative joint ventures) (11) Ordinary Machinery 1. Production of containers 2. Manufacture of small and medium sized ordinary bearings 3. Manufacture of cranes of less than 50 tons (limited to equity joint ventures and cooperative joint ventures) (12) Equipment for Special Purposes 1. Production of low or medium class type-B ultrasonic displays 2. Manufacture of equipment for producing long dacron thread and short fiber 3. Manufacture of crawler dozers of less than 320 horsepower, wheeled fork-lifts of less than 3 cubic meters (limited to equity joint ventures and cooperative joint ventures) (13) Electronic and Telecommunication Equipment 1. Production of satellite television receiver and the key parts D. Production & Supply of Electricity, Gas and Water (1) Construction and management of conventional coal-fired power plants whose single-machine capacity is less than 300,000 kw (small power grid excluded) E. Transportation, Warehouse Management, and Post & Telecommunications (1) Highway passenger transport companies (*2) Entry and exit automobile transport companies (*3) Water transport companies (*4) Railway goods transport companies (5)Railway passenger transport companies (the Chinese party shall be the holding party) (6)General aviation companies for photography, prospecting, industry, etc. (the Chinese party shall be the holding party) (*7) Telecommunication companies F. Wholesale and Retail Trade (*1) Various kinds of companies engaging in commodity trade, direct sales, mail order, online sales, licensed business, commission business, sales agent and business management, etc., and the wholesale, retail and logistic delivery of food, cotton, vegetable oil, sugar, medicine, tobacco, automobile, crude oil and agriculture productive materials (*2) Wholesale and retail of books, newspapers and magazines (*3) Distribution of audio and video products (movies excluded) (4) Auction (*5) Goods leasing companies (*6) Agency companies (ship, freight, ocean shipping tally and advertisement, etc.) (*7)Wholesale of product oil and construction and operation of gas stations (8) Foreign trade companies G. Finance and Insurance (1) Banks, finance companies and trust & investment companies (*2) Insurance companies (*3) Securities companies and fund management companies (4) Financial leasing companies (5) Foreign exchange broker (*6) Insurance broker companies H. Real Estate (1) Development of pieces of land (limited to equity joint ventures and cooperative joint ventures) (2) Construction and operation of high-ranking hotels, villas, high-class office buildings, and international exhibition centers I. Social Services (1) Public Facility Services 1. Construction and management of urban networks of water supply, water drainage, gas and heat power (the Chinese party shall be the holding party) (2) Information and Consultancy Services 1. Legal consultancy J. Healthcare, Sports and Social Welfare (1) Medical institutions (limited to equity joint ventures and cooperative joint ventures) (2) Construction and operation of golf links K. Education, Culture, Art and Broadcasting, Television & Movie (1) Educational institutions for high school (limited to equity joint ventures and cooperative joint ventures) (2) Construction and operation of cinemas (the Chinese party shall be the holding party) L. Scientific Research and Overall Technological Services (1) Surveying and mapping companies (the Chinese party shall be the holding party) (*2) Checking, appraising, attestation and notarization of import and export goods M. Other industries restricted by the State or International Treaties that China has concluded or taken part in III. CATALOG OF PROHIBITED FOREIGN INVESTMENT INDUSTRIES A. Agriculture, Forestry, Animal Husbandry and Fishery (1) Breeding and planting of China's rare precious breeds (including fine genes in plants industry, husbandry and aquatic products industry) (2) Production and development of gene modified plant seeds (3) Fishing in the sea area under China's jurisdiction and the continental-river B. Mining and Quarrying (1) Exploration, mining and selection of radioactive mineral products (2) Exploration, mining and selection of rare-earth metal C. Manufacturing (1) Food Processing 1. Processing of green tea and special tea with Chinese traditional technics (famous tea, dark tea, etc.) (2) Medical and Pharmaceutical Products 1. Traditional Chinese medicines listed as State protection resources (musk, licorice root, jute, etc.) 2. Application of preparing technique of traditional Chinese medicine in small pieces ready for decoction and products of secret recipe of traditional Chinese medicine already prepared (3) Smelting and Pressing of Nonferrous Metals 1. Smelting and Processing of radioactive minerals (4) Manufacturing Industry of Weapons and Ammunition (5) Other Manufacturing Industries 1. Ivory carving 2. Tiger-bone processing 3. Production of bodiless lacquerware 4. Production of enamel products 5. Production of Xuan paper, and ingot-shaped tablets of Chinese ink 6. Production of carcinogenic, teratogenic, and mutagenesis products and continuing organic pollutants D. Production and Supply of Electric Power, Gas and Water (1) Construction and management of electricity network E. Transportation, Warehouse Management, and Post £¦ Communications (1) Air traffic control companies (2) Post companies F. Finance and Insurance (1) Futures companies G. Social Services (1) Development of wild animal and plant resources protected by the State (2) Construction and operation of animal and plant natural reserves (3) Gambling industry (including hippodromes for gambling purpose) (4) Pornographic industry H. Education, Culture, Art, and Broadcasting, Television & Movie (1) Elementary education (compulsory education) institutions (2) Publication, distribution and import of books, newspapers and magazines (3) Publication, manufacturing, distribution and import of audio and video products and electronic publications (4) News agencies (5) Broadcasting stations (networks), television stations (networks), broadcasting and television transmitting and covering networks (launching stations, relay stations, broadcasting and television satellites, satellite uplink stations, satellite receiving and transmitting stations, micro-wave stations, monitoring platforms, and cable broadcasting and television transmitting and covering networks at various levels) (6) Companies of production, publishing, issuing or playing of broadcasting and TV programs (7) Movie production and issuing companies (8) Video tape showing companies I. Other Industries (1) Projects that endanger the safety and performance of military facilities J. Other Industries Prohibited by the State or by International Treaties China Has Concluded or Taken Part In Note: the items with "*" are relating to the commitments of China's entry into the WTO, see the attachment for detailed contents. IV. ATTACHMENT OF THE CATEGORY OF INDUSTRIES FOR GUIDING FOREIGN INVESTMENT A. Encouraged industries (1) Exploration and exploitation of oil and natural gas with venture capital: limited to cooperative ventures (2) Exploitation of low permeability reservoirs (fields) of oil and gas: limited to cooperative ventures (3) Development and application of new technologies that increase the recovery ration of crude oil: limited to cooperative ventures (4) Development and application of new oil exploration and exploitation technologies such as geophysical exploration, drilling, well logging, and downhole operation, etc.: limited to cooperative ventures (5)( Manufacture of complete automobiles and motorcycles: the proportion of foreign investment shall not exceed 50% (6) Fixed-term or non-fixed term international shipping: the proportion of foreign investment shall not exceed 49% (7) International container multi-modal transportation: the proportion of foreign investment shall not exceed 50%; foreign parties shall be allowed to take the holding position no later than Dec.11, 2002; solely foreign-funded enterprises shall be allowed no later than Dec.11, 2005 (8) Road goods transportation companies: foreign parties shall be allowed to take the holding position no later than Dec.11, 2002; solely foreign-funded enterprises shall be allowed no later than Dec.11, 2004 (9) Wholesale, retail and logistic delivery of general commodities: see 5) of the Restricted Industries for the restrictive conditions (10) Accounting and auditing: limited to cooperative joint ventures and partnerships B. Restricted Industries (1) Entry and exit automobile transportation companies: foreign parties shall be allowed to take the holding position no later than Dec.11, 2002; solely foreign-funded enterprises shall be allowed no later than Dec.11, 2004 (2) Water transportation companies: the proportion of foreign investment shall not exceed 49% (3) Railway goods transportation companies: the proportion of foreign investment shall not exceed 49%; foreign parties shall be allowed to take the holding position no later than Dec.11, 2004; solely foreign-funded enterprises shall be allowed no later than Dec.11, 2007 (4) Telecommunication companies 1. Paging service in value-added telecommunication and basic telecommunication: foreign parties shall be allowed to make investment from Dec.11, 2001, and the proportion of foreign investment shall not exceed 30%; the proportion of foreign investment shall be allowed to reach 49% no later than Dec. 11, 2002; and the proportion of foreign investment shall be allowed to reach 50% no later than Dec. 11, 2003 2. Mobile voice and data services in the basic telecommunication: foreign parties shall be allowed to make investment from Dec 11. 2002 and the proportion of foreign investment shall not exceed 25%; the proportion of foreign investment shall be allowed to reach 35% no later than Dec. 11, 2002; the proportion of foreign investment shall be allowed to reach 49% no later than Dec. 11, 2004; and solely foreign funded enterprises shall be allowed no later than Dec 11, 2006 3. Domestic and international business in basic telecommunication: foreign parties shall be allowed to make investment from Dec 11. 2004 and the proportion of foreign investment shall not exceed 25%; the proportion of foreign investment shall be allowed to reach 35% no later than Dec. 11, 2006; and the proportion of foreign investment shall be allowed to reach 49% no later than Dec. 11, 2007 (5) Various kinds of companies engaging in commodity trade, direct sales, mail order, online sales, licensed business, commission business, sales agent and business management, etc., and the wholesale, retail and logistic delivery of food, cotton, vegetable oil, sugar, medicine, tobacco, automobile, crude oil and agriculture productive materials; wholesale and retail of books, newspapers and magazines; wholesale of product oil and construction and operation of gas stations 1. Commission agent, wholesale (salt and tobacco excluded): foreign parties shall be allowed to make investment no later than Dec. 11, 2002 and the proportion of foreign investment may reach 50%, but they are not allowed to engage in the business of books, newspapers, magazines, medicines, pesticide, agriculture membrane, fertilizer, product oil or crude oil; foreign parties shall be allowed to take the holding position no later than Dec 11, 2003; solely foreign-funded enterprises shall be allowed no later than Dec 11, 2004 to engage in books, newspapers, magazines, medicines, pesticide and agriculture membrane; and be allowed to engage in fertilizer, product oil or crude oil no later than Dec. 11, 2006 2. Retail (tobacco excluded): foreign parties are allowed to make investment but may not engage in the business of books, newspapers, magazines, medicines, pesticide, agriculture membrane, fertilizer or product oil; the proportion of foreign investment shall be allowed to reach 50% no later than Dec.11, 2002 and the business of books, newspapers and magazines shall be allowed; foreign parties shall be allowed to take the holding position no later than Dec 11, 2003; solely foreign-funded enterprises shall be allowed no later than Dec 11, 2004 to engage in medicines, pesticide, agriculture membrane, fertilizer and product oil; and the business of fertilizer shall be allowed no later than Dec.11, 2006. Foreign parties may not take the holding position in the chain stores with more that 30 branches engaging in the retail of products including automobiles (the restriction shall be unfrozen no later than Dec. 11, 2006), books, newspapers, magazines, medicines, pesticide, agriculture membrane, fertilizer, product oil, crude oil, food, vegetable oil, sugar, tobacco, and cotton. 3. Licensed wholesale and retail and those without fixed business places: foreign parties shall be allowed to make investment no later than Dec.11, 2004 (6) Distribution of audio and video products (movies excluded): limited to cooperative joint ventures and the Chinese party shall be the holding party (7) Goods leasing companies: foreign parties shall be allowed to take the holding position no later than Dec 11, 2002; solely foreign-funded enterprises shall be allowed no later than Dec 11, 2004 (8) Agency companies 1. Ship: the proportion of foreign investment shall not exceed 49% 2. Goods transportation (not including the services operated by the post departments exclusively): the proportion of foreign investment shall not exceed 50% (not to exceed 49% as for the express service); foreign parties shall be allowed to take the holding position no later than Dec 11, 2002; solely foreign-funded enterprises shall be allowed no later than Dec 11, 2005 3. Ocean shipping tally: limited to equity joint ventures and cooperative joint ventures 4. Advertisement: the proportion of foreign investment shall not exceed 49%, foreign parties shall be allowed to take the holding position no later than Dec 11, 2003; solely foreign-funded enterprises shall be allowed no later than Dec 11, 2005 (9) Insurance companies 1. Non-life-insurance companies: the proportion of foreign investment shall not exceed 51%; solely foreign-funded enterprises shall be allowed no later than Dec 11, 2003 2. Life insurance companies: the proportion of foreign investment shall not exceed 50% (10) Securities companies and fund management companies 1. Securities companies: solely foreign-funded enterprises shall be allowed no later than Dec 11, 2004, and the proportion of foreign investment shall not exceed one third 2. Fund management companies: foreign parties are allowed to make investment and the proportion of foreign investment shall not exceed 33%; and the proportion of foreign investment shall be allowed to reach 49% no later than Dec.11, 2004 (11) Insurance broker companies: the proportion of foreign investment shall not exceed 50%; the proportion of foreign investment shall be allowed to reach 51% no later than Dec.11, 2004; and solely foreign-funded enterprises shall be allowed no later than Dec.11, 2006 (12) Checking, appraising, attestation and notarization of import and export goods: foreign parties shall be allowed to take the holding position no later than Dec 11, 2003; solely foreign-funded enterprises shall be allowed no later than Dec 11, 2005 |
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