Laws of the People's Republic of China

The Ministry of Communications

Circular on Further Opening the Investment Field of Road Transport to Foreign Investors

JiaoGongLuFa [2002] No.551

November 28, 2002

The departments (bureaus, commissions) of communications of the provinces, autonomous regions and municipalities directly under the Central Government:

In accordance with the relevant commitments of China for the accession to the World Trade Organization (WTO) and the Provisions on Foreign Investment in Road Transport Industry (Decree of the Ministry of Communications of the People's Republic of China and the Ministry of Foreign Trade and Economic Cooperation, No.9 of 2001), the relevant issues concerning the further opening of the investment field of road transport to foreign investors are hereby notified as follows:

Article 1

From December 1, 2002, upon the approval for projects by the Ministry of Communications, companies, enterprises, other economic organizations or individuals of foreign countries, and those of Hong Kong, Macao and Taiwan areas (hereinafter referred to as foreign investors) will be allowed to, jointly with companies, enterprises or other economic organizations of China, establish Chinese-foreign equity joint road transport enterprises, in which the foreign investors are in the holding position, in the road transport fields such as road goods transport, road goods convey, loading and unloading, road goods storage and other auxiliary services and vehicle maintenance etc that relate to road transport, by taking the form of Chinese-foreign equity joint ventures, among which the ratio of foreign investment may reach 75%.

Article 2

The ratio of foreign investment may be further raised for the Chinese-foreign equity joint road transport enterprises that undertake container transport, transport of refrigerated and heat preserved goods, multi modal transport of goods, express goods transport, logistic distribution, car rentals, and testing of automobile comprehensive performance, for the Chinese-foreign equity joint road transport enterprises that invest to construct and operate infrastructures of goods transport and logistic stations and sites, and for the Chinese-foreign equity joint road transport enterprises that, jointly with road transport enterprises of the west regions, engage in the business operations mentioned in Item 1 of this Circular.

Article 3

Upon the approval of the Ministry of Communications, foreign enterprises established in China will be allowed to, by the form of reinvestment, establish Chinese-foreign equity joint road transport enterprises jointly with road transport enterprises of the west regions, however, in the newly established Chinese-foreign equity joint road transport enterprises, the ratio of foreign investment may not be lower than 25%.The approval for projects of foreign investment in road transport industry and the relevant matters shall be dealt with according to the Regulations on Foreign Investment in Road Transport Industry.