Laws of the People's Republic of China

Ministry of Construction

Circular on the Qualification Administration of Foreign-owned Enterprises Operating Contracted Projects within China

[2003] No. 193 of the Ministry of Construction

September 28, 2003

The construction departments of every province and autonomous region, the construction commissions of the municipalities directly under the Central Government, the construction administration bureaus of Shandong and Jiangsu Provinces, the construction departments of the relevant departments of the State Council, the Engineering Bureau of the Barracks Section of the General Logistics Department of the PLA:

Article 26 of the Rules for the Administration of Foreign-funded Construction Enterprises (Order of the Ministry of Construction and Ministry of Foreign Trade and Economic Cooperation No. 113) ordains: "the Interim Measures for the Qualification Administration of Foreign-funded Enterprises Operating Contracted Projects within China (Order of the Ministry of Construction No. 32) issued by the Ministry of Construction in 1994 shall be abolished as of October 1, 2003". In the meanwhile, under Rules for the Administration of Foreign-funded Construction Enterprises, no foreign-owned enterprises may contract projects after October 1, 2003 until it acquired the construction enterprise qualification certificate. Because of SARS in the first half of this year, the work related to the foundation and the qualification application of the foreign-owned construction enterprises was affected. For the work to go on smoothly, we hereby announce the following:

1.

Where a foreign enterprise has obtained the Qualification Certificate for Foreign-owned Enterprises to Contract Projects, but failed to obtain the Foreign-funded Construction Enterprise Qualification Certificate before October 1, 2003, may apply for an extension of its qualification certificate or an expansion of geographic scope of the contracted projects on the basis of the contracts it has concluded prior to April 1, 2004.

The foreign-owned enterprises that meet the requirements as mentioned in the preceding paragraph may apply for the extension of their respective qualification certificates or for the expansion of geographic scope of the contracted projects prior to April 1, 2004. The applications shall be subject to the preliminary examination of the administrative departments for construction of all provinces, autonomous regions and the municipalities directly under the jurisdiction of the central government, and all of the applications approved in the preliminary examination shall be submitted to the Ministry of Construction for approval.

2.

Foreign investors in the enterprises that have acquired the Foreign-funded Construction Enterprise Qualification Certificate in accordance with the relevant provisions of the No. 133 Order of the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation are not permitted to continue to contract projects within China by acting as a foreign investor with the Qualification Certificate of Foreign Enterprises to Contract Projects. At the time of issuing the Foreign-funded Construction Enterprise Qualification Certificate, the administrative departments for construction of all provinces, autonomous regions, and municipalities directly under the jurisdiction of the central government shall take back the Foreign-funded Construction Enterprise Qualification Certificate.

3.

The administrative departments for construction of all provinces, autonomous regions and municipalities directly under the jurisdiction of the central government shall, according to the requirements mentioned above, strengthen the administration work related to the qualification applications of foreign enterprises, and in the meanwhile, make great effort to collect all the information on the implementation of the Interim Measures for the Qualification Administration of Foreign Enterprises Contracting Projects within China (Order of the Ministry of Construction, No. 32) (For specific requirements, See the Attachment) and shall submit the Information Summary Form for Foreign Enterprises Operating Contracted Projects within China to the Construction Market Management Department of this Ministry before April 1, 2004.

4.

The enterprises of Hong Kong, Macao and Taiwan that may operate contracted projects within Mainland China shall refer to the statements above.

Annex: Information Summary Form for Foreign Enterprises Operating Contracted Projects Within China

htm/e03243.htm

Attachment:

Information Summary Form for Foreign Enterprises Contracting Projects Within China

 (1994-2004)

Province or Municipality directly under the Central Government or Autonomous Regions: