Suzhou China

Interim Provisions for Guiding Overseas Investment

SuZhou China http://www.suzhou.gov.cn

Jointly promulgated by the State Planning Commission, the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation on June 20, 1995

Article 1

These provisions are formulated in accordance with the stipulations of the state laws for overseas investment and requirements of the industrial policies in order to guide overseas investment, make the direction of such investment suit to China' s program of national economic and social development, and benefit the protection of the legal rights and interests of investors.

Article 2

These provisions are applicable to projects of Chinese overseas joint ventures, Chinese -overseas cooperative joint ventures and wholly overseas-owned enterprises as well as overseas-invested projects in other forms ( hereinafter referred to as overseas-invested projects ) .

Article 3

The State Planning Commission, together with other relevant departments of the State Council, will regularly compile and timely amend the Guiding Directory on Industries Open to Overseas Investment in accordance with these provisions and the development of state economy and technology, and have the Directory released with the approval of the State Council.

The Guiding Directory on Industries Open to Overseas Investment shall be the basis for guiding the examination and approval of overseas-invested projects.

Article 4

Projects for overseas investment are to be divided into four categories : those in which overseas investment shall be encouraged, permitted, restricted or prohibited.

Projects in which overseas investment shall be encouraged, restrictedor prohibited are to be listed in the Guiding Directory on Industries Open to Overseas Investment. Projects in which overseas investment shall be permitted are not to be listed in the Guiding Directory.

The Guiding Directory on Industries Open to Overseas Investment may explicitly list projects in which exclusive overseas investment shall not be allowed and projects in which state-owned assets shall take a holding or leading position.

Article 5

The following overseas-invested projects shall be listed as ones in which overseas investment shall be encouraged.

(1) Pertaining to new agro-techniques, comprehensive agricultural development and the construction of energy, communications and essential raw material industries;

(2) Pertaining to those involving new, high and advanced technology, capable of improving product properties, saving energy and raw materials, raising the technical and economic benefits of enterprises, or producing new equipment and new materials which fit in with market demand and which domestic production capacity is inadequate to produce;

(3) Pertaining to those meeting the demand of international market, capable of raising the grade of products, opening up new market, expanding the marketing of products overseas, and increasing export volume;

(4)Pertaining to new technologies and new equipment for the comprehensive utilization of resources and renewable resources, and preventing and remedying environmental pollution;

(5) Pertaining to those capable of displaying the advantages of manpower and natural resources in the central and western parts of the country, and tallying with state industrial policies;

(6) Pertaining to other projects stipulated by state laws and administrative rules and regulations.

Article 6

The following overseas-invested projects shall be entered into the category under which overseas investment shall be restricted:

(1) Pertaining to those already developed in the country or those with absorbed technology whose production capacity can meet the demand in the domestic market;

(2) Pertaining to state-absorbed overseas-invested enterprises as experimental or those industries with monopoly sales;

(3) Pertaining to exploration and mining of rare and valuable mineral resources;

(4) Pertaining to industries under state overall planning;

(5) Others stipulated by state laws and administrative rules and regulations.

Projects in which overseas investment shall be restricted are to be classified into Category A and Category B according to state industrial policies and the demand of macroeconomic control.

Article 7

The following overseas-invested projects shall be grouped into the category under which overseas investment shall be prohibited:

(1) Pertaining to those jeopardizing the security of the state or harming social public interest;

(2) Pertaining to those polluting the environment, damaging natural resources or harming people's health;

(3) Pertaining to those occupying large tracts of arable land, unfavorable to the protection and development of land resources, or detrimental to the safety, availability and efficiency of military installations;

(4) Pertaining to those using the country's specific technology or techniques in production;

(5) Others stipulated by state laws and administrative rules and regulations.

The projects listed in the preceding clauses must not be undertaken by any company, enterprise, other economic organization or individual.

Article 8

Apart from enjoying preferential treatment in accordance with relevant state laws and administrative rules and regulations, projects in which overseas investment shall be encouraged can expand their pertinent business scope when approved if they involve construction and operation of energy and communications facilities (coal, electricity, regional railway, highway and port ) that call for large sums of investment and long periods of investment recovery.

Article 9

Projects in which overseas investment shall be restricted should observe relevant state laws and administrative rules and regulations as well as the following provisions:

(1) In case of joint venture projects with joint Chinese and overseas investment, the time limit of operation should be agreed upon between the parties involved;

(2) In case of overseas-invested projects listed in Category A, the fixed assets invested by the Chinese party should be funds owned by the Chinese investor.

Article 10

Projects in which overseas investment shall be encouragedor permitted shall be examined, approved and put on file according to procedures and measures stipulated in present regulations.

Overseas-invested projects listed in Category A shall be examined, approved and put on file according to procedures and measures stipulated in present regulations. Those projects under Category A with investment sums below the examination and approval mark set by the State Council shall according to their construction character, be examined and approved respectively by the planning department and department in charge of technical transformation of enterprises at the provincial, autonomous regional and municipal level or the city listed separately in the state budget. The examination and approval power over such projects shall not be transferred to departments at lower levels.

For projects under Category B with investment sums below the examination and approval mark set by the State Council, the letter of proposal for such projects shall be examined and approved by a department in charge of the specific trade under the State Council; the feasibility study report of such projects shall, according to their construction character, be examined and approved respectively by the planning department or department in charge of technical transformation of enterprises at the provincial, autonomous regional and municipal level of the city listed separately in the state budget, and then reported to the State Planning Commission or the State Economic and Trade Commission for record. The power for examining and approving these projects shall not be transferred to departments at lower levels. Those projects with investment sums above the State Council's examination and approval mark shall be examined and approvedaccording to procedures and approval mark shall be examined and approved according to procedures and measures under current implementation.

Projects involving quotas or licenses should first apply for quotasor licenses from departments in charge of foreign trade and economic cooperation.

If different stipulations on the procedures and measures of project examination and approval are provided in separate laws oradministrative rules and regulations, these stipulations shall be observed.

Article 11

If an overseas-invested project falling into the category described in Clause 1 of Article 6 exports more than 70 percent of its products, this project can be treated, with approval, as one in which overseas investment shall be permitted. This project shall not be subject to restrictions as set in Article 9. Restrictions can also be appropriately loosened over projects that can truly bring out the resource superiority of the middle and western parts of the country and at the same time fall into line with State industrial policies.

Article 12

When an overseas-invested project has been examined and approved in violation of the provisions, the examination and approval organ of the higher level shall cancel it within 30 days after receiving documents of record concerning the project. The articles of association and contract of this project shall be invalid; the enterprise registration organ shall refuse or cancel its registration; and the customs shall turn it away from import or export procedures.

Article 13

If the party of an overseas-invested project wins approval of the project proposal by cheating or other unjustified means, this party shall be brought to hold legal responsibility in accordance with the law according to the seriousness of the case; the examination and approval organ shall revoke the approval. And the case shall be handled duly by responsible departments in accordance with the law.

Article 14

The staff of an examination and approval organ who examine and approve projects by abusing their power and position, resorting to fraud for personal gains, neglecting their duties, or overstepping their authority shall be disciplined administratively or be brought to hold criminal responsibilities in accordance with the law if the cases are so serious as to be criminal.

Article 15

Investment projects launched by overseas Chinese, Hong Kong, Macao and Taiwan investors shall be treated with reference to these provisions.

Article 16

The implementation of these provisions is organized by the State Planning Commission, the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation.

Article 17

These provisions shall come into effect on the date of promulgation.

Industrial Catalogue Guiding Overseas Investment(A)

Catalogue of Industries in Which Overseas Investment Will Be Encouraged:
Ⅰ Agriculture, forestry, animal husbandry, fishery and related industries
1. Reclamation and development of wasteland, barren mountains, tidal land and shallows ( excluding those with military installations); transformation of average or low-yielding fields and low yielding forests.
2. Development of new strains of agricultural crops with fine quality and high yields such as grain, cotton, oil, sugar, fruit, vegetables, flowers and forage grass.
3. Serialized production of vegetables, flowers and plants through soil less cultivation.
4. Building of forests and introduction of improved tree species.
5. Multiplication of fine strains of animal and poultry stocks, fish fry and the young of other aquatic products ( excluding rare and valuable fine strains peculiar to China ).
6. Breeding of famous, special and high-quality aquatic products and marine fishery.
7. New varieties of safe and highly efficient pesticides ( with an 80 percent insect and germ-killing rate and safe to men, animals and crops ) .
8. High-concentration chemical fertilizers (urea, synthetic ammonia and ammonium phosphate) .
9. Development of new techniques for and new products of farm film ( fibrous, photolytic and multi-functional film and their raw materials).
10. Antibiotics for animals ( antibiotics specially for animals, antibiotics for killing internal and external parasites, and new types of animal antibiotics ) and animal vermifuges.
11. Development of complete feed, additives and protein resources for feed.
12. New techniques and equipment for storing, fresh-keeping and processing vegetables, fruit, meat and aquatic products.
13. Forestry chemical products, new techniques and products for comprehensive use of " inferior small and firewood '' timber and new products.
14. Construction and management of multi-purpose water control projects ( capable of supplying over 300,000 tons of water daily or with a power generating capacity of over 250,000 kw in which the state assets will take a holding or a dominant position ).
15. Manufacture of water- saving irrigation installations.
16. Farm machinery, farm tools and related spare parts and accessories.

Ⅱ Light industry
l. Designing, processing and manufacture of non-metallic moulds.
2. Commercial pulp.
3. Post-processing of leather and hides.
4. Mercury-free, alkaline-manganese battery; lithium ion battery and hydrogen-nickel battery.
5. Special-purpose technologically advanced industrial sewing machines.
6. Kapton.
7. Enzymic preparation and raw materials of synthetic detergents(straight chain alkyebenzene ).
8. Composite and mono-isolate perfume.
9. Research and popularization of applied techniques for replacing freon.

Ⅲ Textile industry
1. Composite modified and highly imitative chemical fibers with super-fine, het-eroshrinking, electrostatic-resistant and fire-retardant properties, polyurethane fiber, carbon fiber, aromatic polyamide and other special chemical fibers.
2. Dyeing and post-printing and dyeing treatment of fabric.
3. Highly simulating chemical fiber fabrics.
4. Oiling agents for textile use.
5. Special textiles for industrial use.

Ⅳ Transportation, posts and telecommunications.
1. Technical equipment for railway transportation: designing and manufacture of locomotives and rolling stock and their main parts, designing and manufacture of track equipment, techniques concerning express railways and production of related equipment, manufacture of equipment for monitoring communication signals and transportation safety, and production of equipment and apparatuses for electrified railways.
2. Construction and operation of local railways as well as bridges, tunnels and ferries related (exclusive operation by foreign investors is not allowed ).
3. Road and harbor equipment and machinery as well as relevant designing and production techniques.
4. Construction and operation of urban subways and light rails (in which State property holds a controlling interest or a dominant position).
5. Construction and operation of highways, independent bridges and tunnels, and harbor facilities ( with State property holding a controlling interest or a dominant position in case of public berths ).
6. Construction and operation of civil airports ( with State assets taking a holding or a dominant position).
7. Production of 900 MHz digital cellular systems.
8. Production of synchronous quintic group optical-fiber, microwave communication systems and metering installations.
9. Production of equipment for asynchronous terminal mode switchboards.

Ⅴ Coal industry
1. Designing and manufacture of coal mining and transportation equipment.
2. Designing and manufacture of complete equipment for gasification.
3. Manufacture of equipment for producing high-concentration coal pulp and additives.
4. Comprehensive development and utilization of fuels with low heat value and associated resources.
5. Comprehensive development and utilization of coal.

Ⅵ Power industry
1. Construction and operation of thermal power stations ( including conventional thermal power stations and power stations using technology of clean coal burning ).
2. Construction and running of hydro-electric power stations ( with State assets taking a holding or dominant position in stations each with a generating capacity of over 250,000 kw ).
3. Construction and operation of nuclear power stations ( with State assets taking a holding or dominant position ).
4. Construction and operation of power stations using new energy sources ( such as solar energy, wind, magnetic energy, terrestrial heat and tidal energy ).

Ⅶ Ferrous metallurgical industry
1. Spongy iron ( using the technology with coal as reductant ).
2. Powder metallurgy (iron powder).
3. Over 200,000-ton short technological process and over 500,000-ton iron and steel production line.
4. Cold-rolled silicon steel sheets, galvanized sheets, tin-plated sheets and stainless steel plates.
5. Hot-rolled and cold-rolled steel sheets.
6. Bearing steel tube, oil pipes, stainless steel tubes, and steel tubes for high-pressure boilers.
7. Wheel and wheel tyres of locomotives and vehicles.
8. Super-capacity electrodes and acerose coke.
9. High aluminum, hard clay mine and clinker.
10. Mining and dressing of iron ore.
11. Deep-processing of tamped coke and coal tar.
12. Magnesite of high purity ( exclusive operation by foreign investors is not allowed ).
13. High-quality refractory materials for continuous casting, steel ladling and top-bottom blowing, and special protective slag.

Ⅷ Non-ferrous industry
1. Monocrystalline silicon ( with a diameter of over 5 in ) an polycrystalline silicon.
2. Hard alloys, tin compounds and antimony compounds.
3. Non-ferrous metal composite materials and new-type alloys.
4. Mining of copper, lead and zinc ( exclusive operation by foreign investors in not allowed ).
5. Mining of aluminum ( exclusive operation by foreign investors is not allowed ) , and aluminum oxide ( over 300,000 tons) .
6. Application of rare earth.

Ⅸ Oil, petro-chemical and chemical industries
1. Serial products of ion membrane caustic soda and new organic chlorine.
2. Production of ion membranes for caustic soda.
3. Comprehensive utilization of ethylene ( with an annual output of over 300,000 tons ), propylene and C4-C9 products.
4. Engineering plastic products and plastic alloys.
5. Synthetic rubber ( liquid butadiene styrene rubber, butyl rubber, isoprene rubber, ethylene-propylene rubber, butadiene chloroprene rubber, poleyster rubber, acrylic rubber and chlorohydrin rubber ).
6. Fine chemicals: new products and technology for making dyestuff, intermediates, catalysts, assistants and pigments; processing techniques for commercializing dyestuff ( pigments); high-tech chemicals for electronics and paper-making; food additives, and feeder additives; leather and hide chemicals; oilfield assistants; surface active agents; water treatment agents; adhesives; inorganic fibers; and inorganic powder fillings and equipment.
7. Chlorinated titanium white.
8. Chemicals with coal as raw materials.
9. Complementary materials of synthetic materials ( bysphenol A, butadiene-vinyl pyridiene polymer latex, 4.4-biphenyl methane and vulcabond ) .
10. Basic organic chemicals: comprehensive utilization of products of benzene, methylbenzol and xylene and their derivatives.
11. Comprehensive utilization of waste gas, used liquid and residue.
12. Construction and operation of oil and gas pipelines, oil depots and oil docks ( with State assets taking a holding or dominant position ).

Ⅹ Machine-building industry
1. Manufacture of equipment for welding robots and highly efficient welding production lines.
2. High temperature-resisting insulating materials ( of F and H classes ) and insulating moulds.
3. Production of continuous casting and sheet rolling mills, large-size cold and hot continuous rolling mills, urban gasification equipment and non-pollution gas producers for industrial use.
4. Manufacture of railless mine equipment for extraction, loading and transportation, 100-ton and bigger tip elorries, mobile crushers, double inlet and outlet coal-grinders, 3,000-cu m/hour and above excavators, 5-cum and above loading machines, and mole excavators.
5. Production of container loading and unloading bridges and tubular conveyors.
6. Manufacture of complete sets of 30,000-cum and above air separators.
7. Production of color offset presses.
8. Production of 4,500 m desert and offshore oil drilling and recovering equipment 70 megapascal and above blowout preventers for oil and gas wells, 105 megapascal and above fracturing units and 50-ton and above workover rigs.
9. Production of turbine compressors for completed sets of equipment with an annual output of 300,000 tons and more of synthetic ammonia, 480,000 tons and more of urea and 300,000 tons and more of ethylene; aminomethane pumps; and compound granulators ( with State assets taking a holding or dominant position ).
10. Production of complete sets of equipment for electronics and paper -making ( containing pulp ) , new-type spinning frames, etc..
11. Production of large-size precision scientific measuring instruments.
12. Safety checking and testing instruments ( for telling oscillation, noise, toxic matter, density of powder, gas breakout and impact geopressure ).
13. New-type parts and elements of meters and instruments and materials ( mainly intelligence-type sensors, connectors for use on instruments, soft circuit boards, new-type switches such as photo and approach switches and functional materials for use in instruments ).
14. Manufacture of precision, highly efficient and large-size digital machine-tools and functional parts.
15. Hydraulic elements, pneumatic-driven elements and sealing parts.
16. Precision dies, precision cavity dies, and standard components of dies.
17. Production of equipment capable of treating 250,000 tons of urban used water a day, equipment for treating industrial waste water, upstream-type anaerobic fluidization equipment and other equipment for biological treatment of used water, equipment for producing fly-ash bricks (50,000 - 100,000 tons/year ), waste plastics recycling equipment, industrial boiler desulphrization and denitration equipment, and large-size thermostable and acidfast dusters.
18. Production of large-size road surface construction machines.
19. Production of large-size (with an outer caliber of 200 - 430 mm ), precision and special bearings.
20. Production of key motor vehicle components and spare parts: brake assembly, driving gear assembly, gearshifts, steering gears, fuel pumps for diesel engines, pistons ( including piston rings ), air valves, hydraulic jibs, axle bushes, pressurisers, filters, aluminum radiators, membrane clutches, constant-velocity universal joints, oscillation absorbers, air-conditioning systems for cars, safety air cells, seat adjustors, car locks, rear-view mirrors, glass lifters, panel combinations, electric motors, lighting apparatuses and bulbs, special high-strength fasteners and special bearings.
21. Production of motor vehicle moulds (including dies, injection moulds) and chucks (for welding and inspection purposes).
22. Cast and forged semi-finished products for motor vehicles.
23. Motor vehicle technology research center and designing and development institutions.
24. Special desert vehicles for use in oil industry, airport vehicles and other special-purpose vehicles.

Ⅺ Electronics industry
1. Production of large-scale integrated circuits.
2. New-type electronic components and parts (including sheet-form elements and parts), and power electronic components and parts.
3. Production of photoelectric components, sensitive elements and components, and sensors.
4. Manufacture of large and medium-sized computers.
5. Manufacture of high-grade micro-computers with more than 32 bits(not including 32 bits).
6. Manufacture of key parts of photo and letter facsimiles (heat-inducing printers, picture sensors, etc.).
7. Compatible digital television sets, high-definition television sets(HDTV), digital cassette recorders and laser discs.
8. Special material for semiconductors and photoelectrons.
9. New-type display devices (color liquid crystal devices an panel display devices).
10. Systems of computer-aided designing (CAD), computer-aided testing(CAT), computer-aided manufacturing (CAM), and computer-aided engineering (CAE), and other computer application systems.
11. Manufacture of special electronics equipment, meters and instruments, and moulds.
12. Manufacture of hydrological data collecting instruments and equipment.
13. Manufacture of slow traffic earth stations (TES) and data stations (PES) of satellite communications and key parts.
14. Manufacture of SDH optical communication systems, cross-connecting equipment and equipment for network management.
15. Development and production of software (including computer and telecommunications software).
16. Manufacture of equipment for air traffic control systems.
17. Development and manufacture of big-capacity optical and magnetic disc memories and their components.
18. Development and manufacture of new-type printers (laser printers and others).

Ⅻ Equipment for producing building materials and other non-metallic mineral products
1. Float-glass production line with a melting capacity of 500 tons and more a day.
2. Production line capable of producing 500,000 pieces of high-grade sanitation porcelain a year.
3. New building materials.
4. Special cement.
5. Cement additives.
6. Installations for storing and transporting bulk cement.
7. Production of special urban sanitation equipment.
8. Manufacture of tunnel machines and metro undermining equipment.
9. Manufacture of tree transplanting machines.
10. Manufacture of road paving and repairing equipment.
11. Fibre glass and toughened glass-fibre products.
12. Inorganic non-metallic materials and products.
13. Non-metallic ore and deep-processed products.

ⅩⅢ Pharmaceutical industry.
1. Pharmaceuticals with valid patents or under administrative protection of the Chinese Government, and special medicinal intermediates that have to be imported.
2. Analgesic-antipyretic medicines: new varieties with excellent cure but not produced in the county.
3. Vitamins: Vitamin D3, dextrorotation calcium pantothemate, and nicotinic acid.
4. New types of anti-cancer medicines and cerebrovascular an cardiovascular medicines.
5. Medical preparations: continuous action agent, controlled action agent, target-aiming agent, skin-absorption agent and other new agents, products and supplementary materials.
6. Amino acids: serene, tryptophan, histidine, etc.
7. New types of medicinal packing materials and containers, and advanced pharmaceutical equipment.
8. New-type, highly efficient and economical contraceptives not yet produced domestically.
9. New technology and equipment for improving the quality of Chinese patent drugs and transforming their forms and packaging.
10. New technology for analyzing the effective elements of traditional Chinese medicine and new extracting technological process.
11. New kinds of medicine produced with bioengineering techniques.

ⅩⅣ Medical apparatuses and instruments
1. X-ray machines of more than 800 milliamperes.
2. Digital picture-reducing devices.
3. Biochemical analytical instruments.
4. Electronic endoscopes.
5. Medical monitoring apparatus.
6. Multi-functional anesthesia apparatus.
7. Medical catheters.

ⅩⅤ Aerospace and aviation industry
1. Manufacture of civilian aircraft.
2. Aircraft engines
3. Airborne equipment.
4. Light gas turbine.
5. Manufacture of satellite for civilian use.
6. Manufacture of satellite payload.
7. Satellite application (with State assets taking a holding or dominant position).

ⅩⅥ Ship-building industry
1. Repair of special-purpose and high-performance ships and ships above 35,000 tons.
2. Manufacture of complementary products for ships.

ⅩⅦ Newly emerging industries
1. Microelectronics technology.
2. New materials.
3. Bio-engineering technology.
4. Technologies of information and telecommunication networking.
5. Isotope radiation and laser technology.
6. Technology for ocean and marine energy development.
7. Energy-saving technology.
8. Technology for the regeneration and comprehensive use of resources.
9. Projects and technology of environmental pollution control.

ⅩⅧ Service industry
1. International economic, scientific and technical information and consulting.
2. Maintenance and after-sale service of precision instruments

Industrial Catalogue Guiding Overseas Investment(B)

Catalogue of Industries in Which Foreign Investment is Restricted

(A)

Ⅰ Light industry

1. Assembly of mechanical and electronic watches and their chips, bicycles and household sewing machines.

2. Household electrical appliances: washing machines, refrigerators and ice-chests.

3. Ring-pull cans.

Ⅱ Textile industry

Polyester filament project with an annual output below 5,000 tons.

Ⅲ Coal industry

Coke making with indigenous method.

Ⅳ Ferrous metallurgical industry

1. Silicon iron and plain carbon electrode.

2. Steel making with electric furnaces and converters of less than 30 tons and blast furnaces of 300 cum and below as well as their complementary sintering and coking.

3. Welded pipes of 100 mm and below, seamless tube rolling mills of 76 mm and below, blooming mills and roughing mills.

Ⅴ Non-ferrous metal industry

Aluminium structural sections, aluminum doors and windows.

Ⅵ Petrochemical and chemical industries

1. Barium salt and naphthalene phthalic anhydrides.

2. Oil refinery with a capacity of less than 2.5 million tons.

3. Retreatment of cross-ply tyres and worn-out tyres (excluding meridian tyres) and appendages of low-performance industrial rubber.

4. Extraction of iodine from kelp.

Ⅶ Machine-building industry

1. Equipment for making ordinary polyester filament and short fibers.

2. Manufacture of ordinary passenger ships and freighters, marine diesel engines and diesel generating sets.

3. Processing of silicon-carbide material.

4. Electric drills and power-operated grinders.

5. Ordinary welding rods of carbon steel.

6. Ordinary standard fasteners and small and medium-sized ordinary bearings.

7. Ordinary lead-acid batteries.

8. Containers.

9. Elevators.

Ⅷ Electronics industry

1. Radio recorders and radio sets.

2. Black and white television sets and black and white picture tubes.

3. Micro-computers of 16 bits and below.

4. Wireless telephone equipment below 450Mhz.

5. Broadcasting and television transmitting systems.

Ⅸ Equipment for producing building materials and other non-metallic mineral products

1. Cement production line with an annual output of less than 300,000 tons.

2. Ordinary plate glass production line with a daily melting capacity of below 200 tons.

Ⅹ Pharmaceutical industry

1. Antibiotics: Chloromycin, lincomycinum, gentamycin, and dihydrostreptomycin.

2. Synthetic chemicals: analgin, vitamin B1 and vitamin B6.

3. Traditional Chinese medicine in pieces (excluding those prepared with traditional processes).

4. Finished and semi-finished products of Chinese patent drugs.

Ⅺ Medical apparatuses and instruments

1. Non-self-destructive disposable syringes.

2. Medium and low-class B ultrasonoscopic apparatuses.

3. Electric-cardiographs.

Ⅻ Service industry

1. Taxis (cars bought in China only).

2. Gas stations (only those going with relevant construction and management projects).

(B)

Ⅰ Agriculture, forestry, animal husbandry, fishery and related industries

1. Processing and export of logs of precious and valuable trees(exclusive operation by foreign investors is not allowed).

2. Offshore and inland water fishing (exclusive operation by foreign investors is not allowed).

Ⅱ Light industry

1. Table salt and industrial salt.

2. Alcohol-free soft drinks with foreign brands (including solid drinks).

3. Name-brand spirits.

4. Diacetate fibers and tows for cigarette use.

5. Tobacco-processing industry including the making of cigarettes and filter rods.

6. Processing and production of wet blue hogskin, goatskin and cattlehide.

7. Natural perfumes and spices.

Ⅲ Textile industry

1. Woolen and cotton textiles.

2. Raw silk and greige.

3. Chemical fibres and materials (polyester, vinylcyanide, caprolactam and nylon 66 salt).

Ⅳ Coal industry

Mining of coking coal (exclusive operation by foreign investors is not allowed).

Ⅴ Non-ferrous metal industry (exclusive operation by foreign investors is not allowed)

1. Processing of copper.

2. Extraction, dressing and processing of precious metals (gold, silver and platinum).

3. Mining of tungsten, tin, antimony and other non-ferrous metals.

4. Mining and smelting of rare earth.

Ⅵ Petrochemical and chemical industries

1. Black and white, and color films.

2. Mining and processing of ludwigite ore.

3. Strontium salt.

4. Benzidine.

Ⅶ Machine-building industry

1. Sedan cars (with State assets taking a holding or leading position).

2. Motorcycles (with State assets taking a holding or leading position).3. Light vehicles (light passenger cars and vans, with State assets taking a holding or leading position).

4. Engines of motor vehicle and motorcycles (with State assets taking a holding or leading position).

5. Air compressors and electronic-controlled fuel injection systems for motorcycles.

6. Transformation and dismantling (remoulding) of worn-out motor vehicles and motorcycles.

7. Compressors with a shaft power below 2kw for air-conditioners and refrigerators (excluding air-conditioning compressors for motor vehicles).

8. Decentralized control systems (including programmable controllers).

9. Desktop electrostatic copiers.

10. Equipment of thermal power stations: generation sets of 100,000kw and above (generators, steam turbines, biolers, auxiliary engines and controlling devices), integrated generating sets with gas turbine combinations, circulating fluidization boilers (IGCC), PFBC, and manufacture of desulphurization and denitration equipment (exclusive operation by foreign investors is not allowed).

11. Equipment of hydro-electric power stations: manufacture of hydro -power generating units having rotors with a diameter of 5ml and more (including auxiliary machines and control devices ), large pump-storage generating units of 50,000kw and above, and large through-flow turbine units (exclusive operation by foreign investors is not allowed).

12. Nuclear power generating units: manufacture of generating units of 600,000kw and above (exclusive operation by foreign investors is not allowed).

13. Power transmission and transformation equipment: manufacture of large transformers of 220kv and above, high-pressure switches, mutual inductors and cables (exclusive operation by foreign investors is not allowed).

Ⅷ Electronics industry

1. Color television sets and tuning devices, remote controllers and kickback transformers.

2. Color picture tubes and glass bulbs.

3. Telecameras (including picture shooting and video recording machines) and videocorders.

4. Magnetic heads, drums, and movements of video recorders.

5. Analogue mobile communication systems (cellular, group, paging and wireless and cordless telephones).

6. Facsimiles.

7. Satellite television receivers and key parts.

8. Micro relay communication equipment below fourth group.

Ⅸ Equipment producing building materials and other non-metallic mineral products

Prospecting, mining and processing of precious non-metallic ores such as diamond and other natural precious stones (exclusive operation by foreign investors is not allowed).

Ⅹ Pharmaceutical industry

1. Traditional Chinese medicinal herbs covered by export licenses.

2. Precursors of narcotic drugs: ephedrine, fake ephedrine, ergometrine ergotamine and ergotic acid.

3. Penicillin G, qinghaosu and other anti-malaria medicines.

4. Additive unaesthetic and psychotropic drugs.

5. Vitamin C.

6. Blood products.

Ⅺ Communications, transportation, and post and telecommunications

1. Construction and operation of trunk railways (with State assets taking a holding or leading position).

2. Water transportation (exclusive operation by foreign investors is not allowed).

3. Cross-border truck transportation (exclusive operation by foreign investors is not allowed).

4. Air transportation (with State assets taking a holding or leading position).

5. General-purpose aviation (in industrial aviation with State assets taking a holding or leading position, while exclusive operation of agricultural and forestry aviation by foreign investors is not allowed).

6. Manufacture of equipment for use by digital program-control telephone exchange stations and end users.

Ⅻ Internal and foreign trade, tourism, real estate development, and service trade ( exclusive operation by foreign investors is not allowed)

1. Commercial retails and wholesales.

2. Material supply and marketing .

3. Foreign trade.

4. Construction and management of national tourist areas.

5. Deluxe hotels, villas and office buildings.

6. Golf courses.

7. Travel services.

8. Accounting, auditing, legal consultation and brokerages.

9. Agent service (shipping, freight transport, futures, marketing and advertisement).

10. Teaching and translation service.

ⅩⅢ Finance and related trades

1. Banks, financial institutions, and trust and investment institutions.

2. Insurance companies, insurance broker and agent companies.

3. Securities companies, investment banks, commercial banks and fund management corporations.

4. Financial leasing.

5. Foreign exchange brokerage.

6. Finance, insurance and foreign exchange consulting.

7. Production, processing, wholesaling and marketing of gold, silver and jewelry.

ⅩⅣ Others

1. Printing, publishing and distribution (exclusive operation by foreign investors is not allowed).

2.Inspection and appraisal of import and export commodities (exclusive operation by foreign investors is not allowed).

3. Production, publishing and distribution of audio products.

Other industries restricted by China or by international treaties Chinahas concluded or joined.

Catalogue of Industries in Which Foreign Investment Is Forbidden

Ⅰ Forestry, agriculture, animal husbandry, fishery and relevant industries
1. Wild animal and plant resources under State protection.
2. Rare, valuable fine strains or stocks (including fine genes of farm crops, animal husbandry and aquatic products industry).
3. Construction of natural reserves of animals and plants.
4. Processing of green tea and special kinds of tea (famed tea and black tea, etc.).

　 Ⅱ Light industry
1. Ivory carving, processing and tiger bones.
2. Hand-made carpets.
3. Bodiless lacquerware.
4. Products of enamel and hawksbill turtles.
5. Blue and white porcelain.
6. Xuan paper, ink sticks.

　 Ⅲ Power industry and urban public utilities.
6.1. Construction and management of power grids.
6.2. Construction and management of water supply, drainage, gas and heating networks in urban areas.

　 Ⅳ Ore extraction, dressing and processing extraction, dressing and processing of radioactive minerals.

　 Ⅴ Petrochemical and chemical industries

6.1. Mining and processing of boromagnesites.
2. Extraction of celestites.

　 Ⅵ Pharmaceutical industry
6.1. Resources of Chinese medicinal herbs under State protection (musk, licorice root, bark of eucommia and magnolia).
6.2. Preparation techniques of traditional Chinese tablets and products of secret prescriptions of Chinese patent drugs.

　 Ⅶ Post, telecommunications, communications and transport
6.1. Operation and management of post and telecommunications business.
6.2. Air traffic control.

　 Ⅷ Trade
6.Futures trade.

　 Ⅸ Radio, film and television industry
1. Various levels of radio stations (substations), television stations(including cable television networks, transmitting and relay stations or substations).
2.Production, distribution and showing of films.
3. Video shows.

　 Ⅹ Journalism

　 Ⅺ Industry of military weapon production

　 Ⅻ Others
1. Projects endangering the safety and efficiency of military installations.
2. Carcinogenic materials and materials causing deformity and sudden mutation and processing of these materials.
3. Horse race course and gambling.
4. Pornographic service.
Other industries in which foreign investment is forbidden by China orby international treaties China has concluded or joined.

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