Farming, Forestry, Animal Husbandry & Fishery, Varied

Encouraged
(1) Improvement of low and medium yielding fields
(2) Planting technology, without social effects of pollution, of vegetables (including edible fungus and melon-watermelon), fruits, teas and serial development and production of these products
(3) Development and production of new breed varieties (excluding those gene-modified varieties) of fine quality, high-yielding crops such as sugar-yielding crops, fruit trees, flowers and plants, forage grass and related new techniques
(4) Production of flowers and plants, and construction and operation of nursery base
(5) Reusing in fields and comprehensive utilization of straws and stalks of crop, development and production of resources of organic fertilizers
(6) Cultivation of traditional Chinese medicines (equity joint ventures or contractual joint ventures only)
(7) Planting of forest trees (including bamboo) and cultivation of fine strains of forest trees
(8) Planting of caoutchoucs, sisals and coffees
(9) Breeding of quality varieties of breeder animals, breeder birds and aquatic offspring (excluding precious quality varieties peculiar to China)
(10) Breeding of famous, special and fine aquatic products, as well as cage culture in deep water
(11) Construction and operation of ecological environment protection projects preventing and treating desertification and soil erosion such as planting trees and grasses, etc.

Restricted
(1)Development and production of grain (including potatoes), cotton and oil-seed (Chinese partner shall hold the majority of shares)
(2) Processing of the logs of precious varieties of trees (equity joint ventures or contractual joint ventures only)

Prohibited
(1) Cultivation of China's rare precious breeds (including tine genes in plants industry, husbandry and aquatic products industry)
(2) Production and development of genetically modified plants' seeds
(3) Fishing in the sea area within the Government jurisdiction and in in-land waters

Financial Intermediaries, Restricted

Encouraged

Not Applicable

(1) Banks, financial leasing companies, finance companies, trust investment companies and money brokers

(2) Insurance companies (Life insurance companies: the proportion of foreign investments shall not exceed 50%).

(3) Security companies (only underwriting A stock, underwriting and trading B stock, H stock, government and corporate bond, with the proportion of foreign investment not exceeding 1/3), security investment fund management companies (the proportion of foreign investment not exceeding 49%)

(4) Insurance brokerage companies

(5) Future companies (Chinese partner shall hold the majority of shares)

Prohibited

(1) Futures companies

Chemical Raw Materials and Products, Varied

Encouraged

(1) Production of alkene through catalyzing and cracking of heavy oil

(2) Production of ethylene with an annual production capacity of 600 thousand tons or over (the Chinese partners shall hold relative majority of shares)

(3) Comprehensive utilization of ethylene side-products such as C5 C9

(4) Mass production of corvic (in the way of ethylene)

(5) Production of organochlorine serial chemical industrial products (excluding high-residual organochlorine products)

(6) Comprehensive utilization of basic organic chemical industrial raw materials: the derivatives of benzene, methylbenzenc, (para-, ortho-, or meta-) dimethylobenzene

(7) Production of supporting raw materials for synthesized materials (bisphenol-A, 4.4' diphenylmethane, diiso-cyan ester, and vulcabond toluene)

(8) Production of synthetic fibre raw materials: precision terephthalic acid, vinyl cyanide, caprolactam and nylon 66 salt

(9) Production of synthetic rubber (liquid butadiene styrene rubber by butadiene method, butyl rubber, isoamyl rubber, butadiene neoprene rubber, butadiene rubber, acrylic rubber, chlorophydrin rubber)

(10) Production of engineering plastics and plastic alloys

(11) Fine chemistry industry: new products and technology for catalytic agent, auxiliary and pigment; processing technology for the commercialization of dye (pigment); production of high-tech chemicals for electronics and paper-making, food additives, feed additives, leather chemical products, oil-well auxiliaries, surface active agent, water treatment agent, adhesivcs, inorganic fibre, inorganic powder stuffing and equipment

(12) Production of auxiliary agent, preparation agent, and dye-stuff for textile and chemical fibre ladder

(13) Production of depurant of automobile tail gas, catalyzer and other assistant agents

(14) Production of nature spices, synthetic spices and single ion spices

(15) Production of high capability dope

(16) Production of chloridized titanium white

(17) Production of chlorofluorocarbon substitution

(18) Production of mass coal chemical industrial products

(19) Development and production of new technology and products for the forestry chemicals

(20) Production of ion film for caustic soda

(21) Production of biologic fertilizers, high-density fertilizers (potash fertilizer, phosphate fertilizer) and compound fertilizers

(22) Development and production of new varieties of effective, low poison and low residual agriculture chemicals and pesticides

(23) Development and production of biology agriculture chemicals and pesticides

(24) Development and production of inorganic, organic and biologic films for environment protection

(25) Comprehensive utilization and disposure of exhaust gas, discharge liquid, waste residue

(1) Production of ionic membrane caustic soda

(2) Production of sensitive materials

(3) Production of benzidine

(4) Production of chemical products from which narcotics are easily made (ephedrine, 3, 4-idene dihydro phenyl-2-acctonc, phenylacetic acid, 1-phenyl-2-acetone, heliotropin, safrole, isosafrole, acetic oxide)

(5) Production of sulphuric acid basic titanium white

(6) Processing of baron, magnesium, iron ores

(7) Barium salt production

Not Applicable

Chemical Fibre Manufacturing, Encouraged

Encouraged

(1) Production of differential chemical fibre and high, new technological fibre such as aromatic synthetic fibre, ammo synthetic Fibre and carbon fibre

(2) Production of chemical fibre of environmental protection variety such as direct viscose and asepsis spinning, etc.

(3) Production of polyester used for fibre and non-fibre with a daily production capacity of 400 tons or over

(1) Production of 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) Production of polyester and spandex used for fibre and non-fibre with a daily production capacity of less than 400 tons

Not Applicable

Communication and Transportation Equipment, Encouraged

Encouraged

(1) Manufacture of complete automobiles and complete motorcycles: The proportion of foreign investments shall not exceed 50%.

(2) Manufacture of engines for automobiles and motorcycles

(3) Manufacture of key spare parts for automobiles: complete brakes, complete driving rods, gearboxes, steering knuckles, fuel pumps of diesel engine, fillers (3 filtering), even speed cardan joints, shock absorber, compound meters, car fastener

(4) Production of electron-controlled fuel-oil injecting systems, electronic controlled brake and locking-prevention systems, safety aerocysts and other electronic equipment

(5) Manufacture of key spare pans for motorcycles: carburetors, magnetors, starting motors, disc brakes

(6) Manufacture of vehicles for special-purpose in petroleum industry: vehicles for deserts, etc.

(7) Technology and equipment for railway transportation: design and production of locomotives and main parts, design and production of equipment for railways and bridges, related technology and equipment production for rapid transit railway, production of equipment for communicational signals and transportation safety monitoring, production of electric railway equipment and instrument

(8) Equipment for urban rapid transit track transportation: design and manufacture of sc( of powered car and main parts for metro, city light rail

(9) Design and manufacture of civil planes (Chinese partner shall hold the majority of shares)

(10) Production of spares parts for civil planes

(11) Design and manufacture of civil helicopters {Chinese partner shall hold the majority of shares)

(12) Design and manufacture of aeroplane engines (Chinese partner shall hold the majority of shares)

(13) Design and manufacture of civil air-borne equipment (Chinese partner shall hold the majority of shares)

(14) Manufacture of light gas-turbine engine

(15) Design and manufacture of crankshafts of low-speed diesel engine for vessel

(16) Repairing, design and manufacture of special vessels, high-performance vessels (the Chinese party shall hold the relative majority of shares)

(17) Design and manufacture of the equipment and accessories of high-speed diesel engines, auxiliary engines, radio communication and navigation for vessels (the Chinese party should hold relative majority shares)

(18) Manufacture of fishing boats and yachts made of glass fibre reinforced plastic

Not Applicable

Not Applicable

Public Telecom, Transport, and Post Service, Varied

Encouraged

(1) Construction and management of grid of national trunk railways (Chinese partner shall hold the majority of shares)

(2) Construction and management of feeder railways, local railways and related bridges, tunnels and ferry facilities (equity joint ventures or contractual joint ventures only)

(3) Construction and management of highways, independent bridges and tunnels

(4) Construction and management of public dock facilities of ports

(5) Construction and management of civil airports (the Chinese party shall hold the relative majority of shares)

(6) Air transportation companies (Chinese partner shall hold the majority of shares)

(7) General aviation companies for agriculture, forest and fishery (equity joint ventures or contractual joint ventures only)

(8) International liner and tramp maritime transportation business: The proportion of foreign investments shall not exceed 49%.

(9) International containers inter-model transportation: The proportion of foreign investments shall not exceed 50%. Foreign majority ownership will be permitted no later than Dee. 11, 2002. Wholly foreign ownership will be permitted no later than Dec. 11, 2005.

(10) Road freight transportation companies: Foreign majority ownership will be permitted no later than Dec. 11, 2002. Wholly foreign ownership will be permitted no later than Dec. 11, 2004.

(11) Construction and management of oil (gas) pipelines, oil (gas) depots and petroleum wharf

(12) Construction and management of the facilities of coal delivery pipelines

(13) Construction and management of storage facilities relating to transportation services

(1) Road passenger transportation companies

(2) Cross-border automobile transportation companies: Foreign majority ownership will be permitted no later than Dec. 11. 2002. Wholly foreign owned enterprises will be permitted no later than Dec. 11, 2004.

(3) Water Transportation companies: The proportion of foreign investment shall not exceed 49%.

(4) Railway freight transportation companies: The proportion of foreign investment shall not exceed 49%. Foreign majority ownership will he permitted no later than Dec. 11. 2004. Wholly foreign owned enterprises will be permitted no later than Dec, 11. 2007.

(5) Railway passenger transportation companies (Chinese partner shall hold the majority of shares)

(6) General aviation companies engaging in photographing, prospecting and industry (Chinese partner shall hold the majority of shares)

(7) Telecommunication companies:

(8) Value-added services and paging services in basic telecommunication services: Foreign investments are permitted no later than Dec. 11, 2001 with the proportion of foreign investment not exceeding 30%. The proportion of foreign investment in joint venture shall not exceed 49% no later than Dec. 11. 2002, and shall be allowed to reach 50% no later than Dec. 11, 2003.

(9) Mobile voice and data services in basic telecommunication services; Foreign investments are permitted no later than Dec. 11, 2001 with the proportion of foreign investment not exceeding 25%. The proportion of foreign investment in joint venture shall not exceed 35% no later than Dec. 11, 2002, and shall he allowed to reach 49% no later than Dec. 11,2004.

(10) Domestic and international services in basic telecommunication services: Foreign investments will be permitted no later than Dec. 11, 2004 with the proportion of foreign investment not exceeding 25%. The proportion of foreign investment in joint venture shall not exceed 35% no later than Dec. 11, 2006 and shall be allowed to reach 49% no later than Dec. 11, 2007.

(1) Companies of air traffic control

(2) Companies of postal services

Education and Media, Varied

Encouraged

(1) Higher education institutes (equity joint ventures or contractual joint ventures only)

(1) Education establishments for senior high school students (equity joint ventures or contractual joint ventures only)

(2) Construction and operation of cinemas (Chinese partner shall hold the majority of shares)

(1) Educational institutes for basic education (compulsory education)

(2) Business of publishing, producing, master issuing, and importing of books, newspaper and periodical

(3) Business of publishing, producing, master issuing and importing of audio and visual products and electronic publications

(4) News agencies

(5) Radio stations, TV stations, radio and TV transmission networks at various levels (transmission stations, relaying stations, radio and TV satellites, satellite up-linking stations, satellite receiving stations, microwave stations, monitoring stations, cable broadcasting and TV transmission networks)

(6) Companies of producing, publishing, issuing and playing of broadcast and TV programs

(7) Companies of films producing and issuing

(8) Companies of video tape showing

Electrical Machinery and Equipment, Encouraged

Encouraged

(1) Thermal power plant equipment: manufacture of super critical units of 600,000kW or over, large gas-turbine, gas-steam combined cycle power equipment, coal gasfication combined cyclic (TGCC) technique and equipment, pressure boost fluidized bed (PFBC), large air-cooling power units of 600,000kW or over (equity joint ventures or contractual joint ventures only)

(2) Hydropower plant equipment: manufacture of large pump-storage power units of 150,000kW and over, large tubular turbine units of 150,000kW or over (equity joint ventures or contractual joint ventures only)

(3) Nuclear-power plant equipment: manufacture of power units of 600,000kW or over (equity joint ventures or contractual joint ventures only)

(4) Power transmitting and transforming equipment: manufacture of super high-voltage DC power transmitting and transforming equipment of 500 kilovolts or over (equity joint ventures or contractual joint ventures only)

Electronics and Telecom, Encouraged

Encouraged

(1) Manufacture of digital television, digital video camera, digital record player, digital sound-playing equipment

(2) Manufacture of new type plate displays, medium and high resolution color kinescope and glass shielding

(3) Manufacture of digital audio and visual coding or decoding equipment, digital broadcasting TV studio equipment, digital cable TV system equipment, digital audio broadcast transmission equipment

(4) Design of integrated circuit and production of large scale integrated circuit with a line width of 0.35 micron or smaller

(5) Manufacture of medium- and large-sized computers, portable microcomputers, high-grade server

(6) Development and manufacture of drivers of high capacity compact disk and disk and related parts

(7) Manufacture of 3-dimension CAD, CAT, CAM, CAE and other computer application system

(8) Development and manufacture of software

(9) Development and production of materials specific for semi-conductor and components

(10) Manufacture of electronic equipment, testing equipment, tools and moulds

(11) Manufacture of new type electronic components and parts (slice components, sensitive components, sensors, frequency monitoring and selecting components, hybrid integrated circuit, electrical and electronic components, photoelectric components, new type components for machinery and electronics)

(12) Manufacture of hi-tech green batteries: non-mercury alkali-manganese batteries, powered nickel-hydrogen batteries, lithium-ion batteries, high-capacity wholly sealed maintenance-proof lead-acid accumulators, fuel batteries, pillar-shaped zinc-air batteries

(13) Development and manufacture of key components for high-density digital compact disk driver

(14) Manufacture of recordable compact disk (CD-R, CD-RW, DVD-R, DVD-ARM)

(15) Design and manufacture of civil satellites (Chinese partner shall hold the majority of shares)

(16) Manufacture of civilian satellites effective payload (Chinese partner shall hold the majority of shares)

(17) Manufacture of spare pans for civilian satellites

(18) Design and manufacture of civilian carrier rockets (Chinese partner shall hold the majority of shares)

(19) Manufacture of telecommunication system equipment for satellites

(20) Manufacture of receiving equipment of satellite navigation and key components (equity joint ventures or contractual joint ventures only)

(21) Manufacture of optical fibre pre-formrod

(22) Manufacture of serial transmission equipment of digital microwave synchronization of 622 MB/S

(23) Manufacture of serial transmission equipment of phototiming synchronization of 10 GR/S

(24) Manufacture of equipment for cut-in communication network with broad bond

(25) Manufacture of optical cross-linking equipment (OXC)

(26) Manufacture of ATM and IP data communication system

(27) Manufacture of mobile communication systems (GSM, CDMA, DCS1800, PHS, DECT, IMT2000): mobile telephone, base station, switching equipment and digital colonization system equipment

(28) Development and manufacture of high-end router, network switchboard of gigabit per second or over

(29) Manufacture of equipment for air traffic control system (equity joint ventures or contractual joint ventures only)

(1) Production of satellite television receivers and key parts

Not Applicable

Ferrous Metallurgical Smelting & Rolling, Encouraged

Encouraged
(1) Production of broad and thick armor plate
(2) Production of aluminium-zincum alloy plates and clad plates which are zincification and corrosion proof
(3) Production of direct and fusion reduced iron
(4) Processing of steel scrap

Restricted
Not Applicable

Prohibited
Not Applicable

Food Processing, Varied

Encouraged

(1) Storage and processing of food, vegetables, fruits, fowl and livestock products

(2) Aquatic products processing, seashell products cleansing and processing, and development of function food made from seaweed

(3) Development and production of biology feeds and albumen feeds

(1) Production of millet wine and spirits of famous brands

(2) Production of soda beverage of foreign brands

(3) Production of synthetic sweet agents such as saccharin

(4) Processing of fat or oil

(1) Processing of green leaf and special tea with China's traditional crafts (famous tea, dark tea, etc.)

Information & Consultancy, Varied

Encouraged
(1) Information consulting agencies of international economy, science and technology, environmental protection
(2) Accounting and auditing: In cooperation with Chinese partner and in the form of partnership only.

Restricted
(1) Legal consulting

Prohibited
Not Applicable

Leather and Coat Products, Encouraged

Encouraged
(1) Processing of wet blue skin of pig, cow and sheep with new technology
(2) Post ornament and processing of bather with new technology

Restricted
Not Applicable

Prohibited
Not Applicable

Lumber Processing, Encouraged

Encouraged
(1) Development and production of new technology and products for the comprehensive utilization of "sub-quality, small wood and fuel wood" and bamboo in the forest area

Restricted
Not Applicable

Prohibited
Not Applicable

Manufacturing General Machinery, Varied

Encouraged
(1) Manufacturing of numerically controlled machine tools, digital control system and servomechanism installations which exceed triaxiality linkage
(2) Manufacturing of high performance welding robots and effective welding and assembling production equipment
(3) Production of high temperature resistant and insulation material (with F, H insulation class), as well as insulation shaped parts
(4) Production with techniques of proportional, servo-hydraulic pressure, low-power pneumatic control valve and stuffing static seal
(5) Production of precision plunger dies, precision cavity molds and standard components of molds
(6) Manufacturing of precision hearings and all kinds of bearings used specially for principal machines
(7) Manufacturing of casting and forging workblanks for cars and motorcycles

Restricted
(1) Manufacture of containers
(2) Manufacture of small and medium type ordinary bearings
(3) Manufacture of truck cranes of less than 50 tons (equity joint ventures or contractual joint ventures only)

Prohibited
Not Applicable

Manufacturing Machinery for Meters, Offices, & Cultures, Encouraged

Encouraged
(1) Development and production of digital cameras and key components
(2) Development and manufacture of precision on-line measuring instrument
(3) Manufacture of new technical equipment for safe production and environmental protection detecting instruments
(4) Manufacture of new-tech equipment for water quality and fumes on-line detection instruments
(5) Manufacture of instruments and equipment for hydrological data collection, processing, transmitting and flood warnings
(6) Production of new type of meters' spare parts and materials (mainly new switches and function materials for meters such as intelligent sensors, socket connector, flexible circuit board, photoelectric switches and proximity switches.)
(7) Manufacture of new type printing devices (laser printers, ink-jet printers)
(8) Maintenance of precision instruments and equipment, post-sale services

Restricted
Not Applicable

Prohibited
Not Applicable

Manufacturing Others, Varied

Encouraged
(1) Development and utilization of clean-coal technical product (coal gasification, coal liquefaction, water-coal, industrial lump-coal)
(2) Coal ore dressing by washing and comprehensive utilization of powered coal (including desulphurized plaster), coal gangue

Restricted
Not Applicable

Prohibited
(1) Ivory carving
(2) Tiger-bone processing
(3) Production of bodiless lacquerware
(4) Production of enamel products
(5) Production of Xuan-paper (rice paper) and ingot-shaped tablets of Chinese ink
(6) Production of carcinogenic, teratogenic, mutagenesis and persistent organic pollutant products

Medical and Pharmaceutical Products, Varied

Encouraged
(1) Production of material medicines under patent and administrative protection in our country or chemical material medicines which we have to import
(2) Vitamins: production of niacin
(3) Amino acids: production of serine, tryptophan, histidine, etc.
(4) Production of analgesic-antipyretic medicines with new techniques and new equipment
(5) Production of new varieties of anti-carcinogenic medicines, as well as cardiovascular and cerebrovascular medicines
(6) Production of new, effective and economical contraceptive medicines and devices
(7) Production of new varieties of medicines which are produced by means of biological engineering technology
(8) Production of vaccines through genetic engineering technology (vaccine against AIDS, vaccine against type-C hepatitis, contraceptive vaccine, etc.)
(9) Development and production of medicines made from allopelagics
(10) Production of diagnostic reagents for AIDS and radioimmunity diseases
(11) Medicines and pharmaceutics: production of new products and new dosage forms adopting new techniques such as slow release, control release, target preparation and absorbed through skins
(12) Development and applications of new variety of adjuvant medicines
(13) Processing and production of traditional Chinese herb medicines, products which distill from traditional Chinese herb medicines and Chinese patent medicines (excluding preparing technique of traditional Chinese medicines in small pieces ready for decoction)
(14) Production of biological medical materials and products
(15) Production of antibiotic material medicines used for animals (including antibiotics ami chemical synthesis medicines)
(16) Development and production of new products and new dosage forms of antibiotic medical, anthelmintic, insecticide, anti-coccidiosis medicines used for animals

Restricted
(1) Production of chloramphenicol, penicillin G, lincomycin, gentamicin, dihydrostreptomycin, amikacin, tetracycline hydrochloride, oxytetracycline, medemycin, kitasamycin, ilotyin, ciprofloxacin and offoxacin
(2) Production of analgin, paracetamol, Vitamin B1, Vitamin B2, Vitamin C, Vitamin E
(3) Production of immunity vaccines, bacterins, antitoxins and anatoxin (BCG vaccine, poliomyelitis, DPT vaccine, measles vaccine, Type-B encephalitis, epidemic cerebrospinal meningitis vaccine) which included in the State's Plan
(4) Production of material medicines for addiction narcotic and psychoactivc drug (Chinese partner shall hold the majority of shares)
(5) Production of blood products
(6) Production of non-self-destructible expendable injectors, transfusion systems, blood transfusion systems, blood bags

Prohibited
(1) Processing of traditional Chinese medicines that have been listed as State protection resources (musk, licorice, jute, etc.)
(2) Application of preparation techniques of traditional Chinese medicines in small pieces ready for decoction, and production of the products of secret recipe of traditional Chinese patent medicines

Metal Products, Encouraged

Encouraged
(1) Design and manufacturing of non-metal products molds
(2) Design and manufacturing of car and motorcycle molds (including plunger die, injection mold, moldingdie, etc.) and chucking appliances (chucking appliances for welding, inspection jig, etc.)
(3) Development and production of high-grade hardware for construction, hot-water heating equipment and hardware parts

Restricted
Not Applicable

Prohibited
Not Applicable

Mining and Quarrying, Varied

Encouraged

(1) Venture prospecting and exploitation of petroleum, natural gas (equity joint venture or contractual joint venture only)

(2) Exploitation of oil and gas deposits (fields) with low osmosis (equity joint venture or contractual joint venture only)

(3) Development and application of new technologies that can increase the recovery factor of crude oil (equity joint venture or contractual joint venture only)

(4) Development and application of new technologies for prospecting and exploitation of petroleum, such as geophysical prospecting, well drilling, well-logging and downhole operation, etc. (equity joint venture or contractual joint venture only).

(5) Exploration and smelting of gold mines with low quality or difficult to smelt (equity joint ventures or contractual joint ventures only)

(6) Prospecting, exploitation, and smelting of iron ores and manganese ores

(7) Prospecting and exploitation of copper ores, plumbum ores and zinc ores (equity joint ventures or contractual joint ventures only, wholly foreign-owned enterprises are permitted in west regions) (8) Prospecting and mining of aluminum ores (equity joint ventures or contractual joint ventures only, wholly foreign-owned enterprises are permitted in west regions)

(9) Mining and smelting of chemical mines including sulfur ores, phosphate ores, kalium ores, etc.

(1) Exploring and mining of Tungsten, molybdenum, tin, antimony and fluorite

(2) Exploring, mining and dressing of radioactive mineral products

(3) Exploring, mining and dressing of rare earth metal

Non-metal Mineral Products, Encouraged

Encouraged
(1) Production of fine-quality floating glass with a daily melting capacity of 500 tons or over (only in mid-west region of China)

(2) Production of new type dry process cement of clinker with a daily output capacity of 2,000 tons or over (only in midwest region of China)

(3) Production of glass fibre (product line with technology of wire drawing in tank furnace) and glass fibre reinforced plastic products with an annual capacity of 10,000 tons or more

(4) Production of high level sanitation porcelain with an annual production of 500,000 pieces or over

(5) Standardization refine of ceramic material and production of high-level decorative materials used for ceramics

(6) Production of high-level refractory material used in furnaces for glass, ceramics and glass fibre

(7) Production of inorganic, non-metal materials and products (artificial crystal, high-capability complex materials, special kind of glass, special kind of ceramics, special kind of airproof materials and special kinds of cementation materials)

(8) Production of new type of building materials (lightweight high-intensity and multi-function materials for wall, high-level environment protecting decorating and finishing materials, high quality water-proof and airproof materials, and effective thermal insulation materials)

(9) Deep processing of non-metal mineral products (super-thin comminution, high level pure, fine production, modification)

Restricted
Not Applicable

Prohibited
Not Applicable

Non-Ferrous Metallurgical Smelting and Rolling, Varied

Encouraged
(1) Production of alumina with an annual production of 300,000 tons or more
(2) Smelting of gold mines with low quality or difficult to beneficiate (equity joint ventures or contractual joint ventures only, wholly foreign-owned enterprises are permitted in west regions)
(3) Production of hard alloy, tin compound and antimony compound
(4) Production of non-ferrous composite materials, new type of alloy materials
(5) Utilization of rare-earth

Restricted
(1) Smelting and separation of rare earth metal (equity joint ventures or contractual joint ventures only)

Prohibited
(1) Smelting and processing of radioactive mineral products

Paper, Encouraged

Encouraged
(1) Construction and operation of integrated engineering of raw material base with an annual production capacity of over 300 thousand tons of chemical wood pulp or an annual production capacity of over 100 thousand tons of chemical mechanical wood pulp (CTMP, BCTMP, APMP) (equity joint ventures or contractual joint ventures only)
(2) Production of high-quality paper and cardboard (excluding news paper)

Restricted
Not Applicable

Prohibited
Not Applicable

Petroleum Refining and Coking, Varied

Encouraged
(1) Deep processing of needle coke and coal tar

(2) Production of hard coke and dry coke quenching

(3) Production of heavy traffic road asphalt

Restricted
(1) Construction and management of refineries

Prohibited
Not Applicable

Plastic Products, Encouraged

Encouraged
(1) Production of polyimide film which can keep produce fresh
(2) Development and production of new products and new technologies for agricultural films (photolysis film, multifunctional film and the raw materials, etc.)
(3) Reutilization and counteraction of waste and old plastic

Restricted
Not Applicable

Prohibited
Not Applicable

Power, Gas and Water, Encouraged

Encouraged
(1) Construction and management of thermal-power plants with a single unit installed capacity of'300,000kW or above
(2) Construction and management of power plants with the technology of clean coal burning
(3) Construction and management of heat power plants
(4) Construction and management of power plants with natural gas
(5) Construction and management of hydropower stations with the main purpose of power generating
(6) Construction and management of nuclear-power plants (Chinese partner shall hold the majority of shares)
(7) Construction and management of new energy power plants (solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.)
(8) Construction and management of urban water plants

Restricted
(1) Construction and operation of conventional coal-fired power plants whose unit installed capacity is less than 300,000kW (with the exception of small power grid)

Prohibited
(1) Construction and operation of power networks

Printing and Recording Medium Reproduction, Restricted

Encouraged
Not Applicable

Restricted
(1) Printing of publications (Chinese partner shall hold the majority of shares except printing of package decoration)

Prohibited
Not Applicable

Public Facility Services, Varied

Encouraged
(1) Construction and management of urban access-controlled roads
(2) Construction and management of metro and city light rail (Chinese partner shall hold the majority of shares)
(3) Construction and management of treatment plants for sewage, garbage, the dangerous wastes (incineration and landfill), and the facilities of environment pollution treatment

Restricted
(1) Construction and operation of networks of gas, heat, water supply and water drainage in large and medium sized cities (Chinese partner shall hold the majority of shares)

Prohibited
(1) Development of wild animal and plant resources protected by the State
(2) Construction and operation of animal and plant natural reserves
(3) Gambling (including racecourses for gambling)
(4) Pornographic services

Public Health, Sports and Social Welfare, Varied

Encouraged
(1) Service agencies for the elderly and the handicapped

Restricted
(1) Medical treatment establishments (equity joint ventures or contractual joint ventures only)
(2) Construction and operation of golf courses

Prohibited
Not Applicable

Real Estate, Varied

Encouraged
(1) Development and construction of ordinary residential houses

Restricted
(1) Development of pieces of land (equity joint ventures or contractual joint ventures only)
(2) Construction and operation of high-ranking hotels, villas, high-class office buildings and international exhibition centers

Prohibited
Not Applicable

Scientific Research, Encouraged

Encouraged
(1) Biological engineering techniques and bio-medical engineering techniques
(2) Isotope, irradiation and laser techniques
(3) Ocean and ocean energy development technology
(4) Seawater desalting and seawater utilization technology
(5) Oceanic monitoring technology
(6) Development of energy-saving technology
(7) Technology for recycling and comprehensive utilization of resources
(8) Technology for environment pollution treatment and monitoring
(9) Technology for prevention of desertification and desert improvement
(10) Application technique of civilian satellite
(11) Research and development centers
(12) Centers for hi-tech, new products developing, and incubation of enterprises

Restricted
(1) Mapping companies (Chinese partner shall hold the majority of shares)
(2) Inspection, verification and attestation companies for imported and exported goods: Foreign majority ownership shall be permitted no later than Dec. 11, 2003. Wholly foreign owned enterprises shall be permitted no later than Dec. 11, 2005.

Prohibited
Not Applicable

Textiles, Varied

Encouraged
(1) Production of special textiles for engineering use
(2) Weaving and dyeing as well as post dressing of high-grade loomage face fabric

Restricted
(1) Wool spinning, cotton spinning
(2) Silk reeling

Prohibited
Not Applicable

Tobacco Processing, Varied

Encouraged
(1) Production of secondary cellulose acetate and processing of tows
(2) Production of tobacco slices in the way of paper making

Restricted
(1) Production of cigarettes and filter tips

Prohibited
Not Applicable

Water Resources Management, Encouraged

Encouraged
(1) Construction and management of key water control projects for comprehensive utilization (the Chinese party shall hold the relative majority of shares)

Restricted
Not Applicable

Prohibited
Not Applicable

Weapons and Ammunition, Prohibited

Encouraged
Not Applicable

Restricted
Not Applicable

Prohibited
(1) Manufacture of Weapons and Ammunition

Wholesale and Retail Trade, Varied

Encouraged
(1) Wholesale, retail and logistic distribution of general goods: Commodities trade, direct selling, mail-order selling. Internet selling, sales agent, franchising, commercial management; whole sale, retail and logistic distribution of grain, cotton, vegetable oil, sugar, pharmaceutical products, tobacco, automobile, crude oil, capital goods for agricultural production; whole sale and retail of books, newspapers, periodicals; whole sale of product nil, construction and operation of gasoline station
(2) Commission agents' services and wholesale trade services (excluding salt, tobacco): Foreign invested enterprises are permitted no later than Dec. 11, 2002 with foreign investment not exceeding 50%, but can not engage in the distribution of books, newspapers, magazines, pharmaceutical products, pesticides, mulching films, chemical fertilizers, processed oil and crude oil. Foreign majority ownership will be permitted no later than Dec. 11, 2003. And wholly foreign-owned enterprises will be permitted no later than Dec. 11, 2004, and can engage in the distribution of books, newspapers, magazines, pharmaceutical products, pesticides, mulching films. The distribution of chemical fertilizers, processed oil and crude oil are permitted no later than Dec. 11,2006.
(3) Retailing services (excluding tobacco): Foreign invested enterprises are permitted but can not engage in the distribution of books, newspapers, magazines, pharmaceutical products, pesticides, mulching films, chemical fertilizers, processed oil. The proportion of foreign investment can reach 50% no later than Dec. 11, 2002, and can engage in the distribution of books, newspapers and magazines. Foreign majority ownership will be permitted no later than Dee. 11, 2003. And wholly foreign-owned enterprises will be permitted no later than Dee. 11, 2004, and can engage in the distribution of pharmaceutical products, pesticides, mulching films, and processed oil. The distribution of chemical fertilizers are permitted no later than Dec. 11, 2006. Foreign investors can not take majority ownership of a Chain-store that has over 30 branch stores and engages in the distribution of automobiles (the limitation will be lift no later than Dec. 11, 2006), books, newspapers, magazines, pharmaceutical products, pesticides, mulching films, processed oil, chemical fertilizers, grain, vegetable oil, sugar, tobacco, cotton.
(4) Franchising and wholesale or retail trade services away from a fixed location: Foreign invested enterprises are permitted no later than Dec. 11, 2004.

Restricted
(l) Commercial companies of commodity trading, direct selling, mail order selling, Internet selling, franchising, commissioned operation, sales agent, commercial management companies, and wholesale, retail and logistic distribution of grain, cotton, vegetable oil, sugar, medicines, tobaccos, automobiles, crude oil, capital goods for agricultural production
(2) Wholesale or retail business of books, newspaper and periodicals
(3) Distributing and selling of audiovisual products (excluding movies): Foreign investments shall be permitted no later than Dee.11, 2004.
(4) Commodity auctions
(5) Goods leasing companies: Foreign majority ownership shall be permitted no later than Dec.11,2002. Wholly foreign owned enterprises shall be permitted no later than Dec. 11,2004.
(6) Agencies (ship, freight forwarding, tally for foreign vessels, advertising):
- Ship agencies: The proportion of foreign investment shall not exceed 49%.
- Freight forwarding agencies (excluding those services specially reserved for Chinese postal authorities): The proportion of foreign investment shall not exceed 50% (not exceed 49% in the case of courier services). Foreign majority ownership shall be permitted no later than Dec. 11, 2002. Wholly foreign owned enterprises shall be permitted no later than Dec. 11, 2005.
- Cargo handling for foreign vessels: In forms of equity joint ventures or contractual joint ventures only
- Advertising agencies: Tile proportion of foreign investment shall not exceed 49%. Foreign majority ownership shall be permitted no later than Dec. 11, 2003. Wholly foreign owned enterprises shall be permitted no later than Dec. 11, 2005.
(7) Wholesaling product oil. and construction and operation of gasoline stations
(8) Foreign trade companies

Prohibited
Not Applicable