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INTERIM PROVISIONS ON GUIDING FOREIGN INVESTMENT DIRECTION

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1995-06-20 Effective Date  1995-06-20  

Interim Provisions on Guiding Foreign Investment Direction




Appendix: Catalogue for the Guidance of Foreign Investment Industries
Catalogue for the Encouragement of Foreign Investment Industries
Restricted Foreign Investment Enterprises
Prohibited Foreign Investment Industries

(Approved by the State Council on June 7, 1995, and promulgated by Decree

No.5 of the State Planning Commission, the State Trade and Economy Commission
and the Ministry of Foreign Trade and Economic Cooperation on June 20, 1995)
(Editor's Note: For the revised text, see Catalogue for the Guidance of
Foreign Investment Industries promulgated on December 31, 1997, and effective
as of the same date)

    Article 1 These provisions are formulated according to the related
legal provisions on foreign investment and requirements of industrial
policies of the state, in order to guide the direction of foreign investment,
to make foreign investment direction in accordance with the plan of the
national economy and social development of our country, and beneficial
to the protection of the legitimate rights and interests of the investors.

    Article 2  These provisions shall apply to the projects of Chinese-foreign
joint ventures, Chinese-foreign cooperative enterprises, wholly  foreign
-owned enterprises, as well as to other forms of foreign investment
projects (hereafter referred to as "foreign investment projects") within
the territory of China.

    Article 3  The State Planning Commission in conjunction with the
concerned departments of the State Council shall compile at regular
intervals and revise in time the Catalogue for the Guidance of Foreign
Investment Industries according to these provisions and the development
of the country's economy and technology.

    Catalogue for the Guidance of Foreign Investment Industries shall
be the basis for the guidance of examination and approval of foreign
investment projects.

    Article 4  Foreign investment projects shall be classified into four
categories: encouraged, permitted, restricted and prohibited projects.

    Foreign investment projects belonging to encouraged, restricted and
prohibited categories are listed in the Catalogue for the Guidance of
Foreign Investment Industries. Those do not belong to the above three
categories are permitted foreign investment projects which are not to be
listed in the Catalogue for the Guidance of Foreign Investment Industries.

    The Catalogue for the Guidance of Foreign Investment Industries may
list foreign investment projects such as wholly foreign-owned enterprises
that are not allowed or enterprises in which the State assets shall take
the holding or leading position.

    Article 5  Those foreign investment projects under the following
circumstances shall be listed as encouraged foreign investment projects:

    (1) Projects for new agricultural technology and comprehensive
agricultural development and for industrial construction in energy,
transportation and key raw materials;

    (2) Projects of new high technology, advanced technology which can
improve performance of products, save energy and raw materials, and increase
tech-economic efficiency of enterprise or produce new equipments or
new materials that meet the demands of the market but the domestic
production capacity is deficient;

    (3) Projects that meet the demands of the international market, and
can promote the quality of products, enter into new markets, expand overseas
sales, and increase exportation;

    (4) Projects adopting new technology and equipments for comprehensive
utilization of resources and renewable resources, and for prevention of
environment pollution;

    (5) Projects that can make full use of the man power and resource
advantage in the Mid-west regions and are in accordance with the state's
industrial policies; or

    (6) Other projects that are encouraged by laws and administrative
regulations of the state.

    Article 6  Those foreign investment projects under the following
circumstances shall be listed as restricted foreign investment projects:

    (1) Projects involving technology that has been developed within or
has been introduced into the country, and the production capacity can
meet the demands of the domestic market;

    (2) Projects for experiment industries of the state to introduce
foreign investment or industries under the monopolized sales of the state;

    (3) Projects for exploring or mining rare or precious mineral resources;

    (4) Projects involving industries that need the state's overall
planning; or

    (5) Other projects that are restricted by laws and administrative
regulations of the state.

    Foreign investment projects belonging to the restricted category are
separately classified into Restricted Foreign Investment Group A or
Restricted Foreign investment Group B according to the industrial policies
and the need for macroeconomic control of the state.

    Article 7  Those foreign investment projects under the following
circumstances shall be listed as prohibited foreign investment projects:

    (1) Projects that endanger the safety of the state or damage social
and public interests;

    (2) Projects that pollute or damage the environment, destroy natural
resources or impair the health of human beings;

    (3) Projects that occupy large amounts of land, unfavorable to the
protection and development of land resources, or endanger the safety of
military facility and its performance;

    (4) Projects that utilize the unique craftsmanship or technology of
the country to make products; or

    (5) Other projects that are prohibited by laws and administrative
regulations of the state.

    The foreign investment projects stipulated in the previous paragraph
are not allowed to be sponsored by any company, enterprise, other economic
organization or individual.

    Article 8  Encouraged foreign investment projects apart from the
preferential terms stipulated in the relevant laws or administrative
regulations of the state, may enlarge their scope of business operations
with approval, if they are engaged in the construction and operation of
infrastructure facilities related to energy or transportation (coal,
electric power, local railway, highway, port) which need a large amount
of investment and a long payoff period.

    Article 9  Restricted foreign investment projects must comply with the
relevant laws and administrative regulations of the state, as well as the
following provisions:

    (1) Chinese-foreign joint venture projects belonging to the restricted
category must have the operation termination period of the enterprises
agreed upon; and

    (2) In Restricted Foreign Investment Projects (group A), the fixed assets
invested by the Chinese party shall be the funds of his or her own or
assets owned by the Chinese party.

    Article 10  Encouraged or permitted foreign investment projects shall
be submitted for examination and approval, or put on file according to the
existing procedures and measures.

    Projects belonging to the restricted foreign investment (Group A) shall
be submitted for examination and approval or put on file according to the
existing procedures and measures. Among the restricted foreign investment
projects (group A), those whose investment is lower than the competence limit
stipulated by the State Council and therefore are not subject to examination
or approval by the State Council, shall be examined and approved  respectively
by the planning departments or departments in charge of enterprises' technical
transformation in the provinces, autonomous regions, municipalities directly
under the Central Government, or cities of direct planning by the State
according to the construction nature of the projects. The authority of
examination and approval of this category of projects shall not be allowed
to be delegated to the lower levels.

    For restricted foreign investment projects (Group B), whose investment
is lower than the competence limit stipulated by the State Council and
therefore are not subject to examination or approval by the State Council,
the projects shall be subject to approval and examination by the relevant
industry administrative departments of the State Council; and the feasibility
study reports of these projects shall, according to the nature of
construction projects, be subject to examination and approval respectively by
the planning departments or departments in charge of enterprises' technical
transformation in the provinces, autonomous regions, municipalities directly
under the Central Government, or cities of direct planning by the State, and
shall be submitted to the State Planning Commission or the State Trade and
Economy Commission for the record. The authority of examination and approval
of this category of projects shall not be allowed to be delegated to the
lower levels. Projects with an investment at or above the competence limit
stipulated by the State Council shall be submitted for examination and
approval according to the existing procedures and measures.

    Foreign investment projects that involve issues of quota or license
shall apply to the competent departments of foreign trade and economic
cooperation for quota or license.

    If laws or administrative regulations have otherwise provisions
concerning the procedures and measures of examination and approval of foreign
investment projects, those provisions of laws or administrative regulations
shall be followed.

    Article 11  Restricted foreign investment projects (Group A) within the
category provided in subparagraph 1 of Article 6, may be deemed as permitted
foreign investment projects, and not subject to the restriction of Article 9
of these provisions with approval, if the export sales of products amount
to over 70 percent of the total sales of products. Restrictions may be
appropriately eased to the above mentioned foreign investment projects that
can really make full use of the advantage of resources in the Mid-west
regions, and conform to the industry policies of the state.

    Article 12  Examination and approval organs of higher levels shall cancel
the foreign investment projects that are examined and approved in violation of These Provisions within 30 days after receiving the recorded files of the
concerned projects. The contracts and articles of association shall be  
invalid. The enterprise registration organs shall not register these projects,
or shall cancel the registration. And the Customs shall not handle import or
export formalities for these projects.

    Article 13  The relevant parties of foreign investment projects, who have
obtained approval of project proposals through swindle or other illicit
means, shall be investigated for legal responsibility in the light of the
seriousness of the cases according to law. The examination and approval
organs shall cancel the approval of the projects, and relevant competent
organs shall deal with these projects correspondingly according to law.

    Article 14  The work personnel of examination and approval organs, who
abuse their power, engage in malpractices for personal gains, neglect their
duties, or examine and approve certain projects beyond their competence, shall
be given administrative sanctions. If the circumstances of a case are so
serious as to constitute a crime, they shall be investigated for their
criminal responsibility according to law.

    Article 15  Investment projects sponsored by overseas Chinese and
investors from regions of Hong Kong, Macao, and Taiwan shall be handled
by reference of These Provisions.

    Article 16  These provisions shall be implemented by the State Planning
Commission, in conjunction with the State Trade and Economy Commission, and
the Ministry of Foreign Trade and Economic Cooperation.

    Article 17  These provisions shall enter into force on the date of
promulgation.

Appendix: Catalogue for the Guidance of Foreign Investment Industries
Catalogue for the Encouragement of Foreign Investment Industries

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

    1. Cultivation and development of wasteland, waste mountain, flood land
(except those with military facilities), as well as improvement of
low-yielding field and forest

    2. Development of fine high-yielding and new varieties of crops such
as grain, cotton, oil crops, sugar crops, fruit trees, vegetables, flowers
and plants, forage grass

    3. Serial production of soiless cultivation of vegetables, flowers
and plants

    4. Planting of forest trees and introduction of fine seeds of forest
trees

    5. Breeding of good strains of domestic animals and aquatic fingerlings
(not including the good strains of the rare ones of our country)

    6. Cultivation of famous aquatic products and deep-sea fishery

    7. New varieties of effective and safe agricultural chemicals and
pesticides (80 percent death rate, safe to people, animals and crops)

    8. High-density fertilizers (urea, synthetic ammonia and ammonium
superphosphate)

    9. New technologies for the production of agricultural films, and
development of new products (fibre film, photolysis film, multifunctional
film and raw materials)

    10. Antibiotics for animals (special antibiotics for animals,
antibiotics for external and internal parasites of animals, new antibiotics
for animals), antiscolic for domestic animals

    11. Development of full valence mixed feed, additives, and feed
protein resources

    12. New technology and equipment for the storage, preservation, and
processing of vegetables, fruits, meat products, and aquatic products

    13. Forestry chemicals and new technology and products for the
comprehensive utilization of "sub-quality, small and firewood" lumber
in the forest area

    14. Construction and management of comprehensive utilization of
irrigation works (daily water supply over 300,000 tons, or over
250,000 kilowatts installed capacity, with the state assets taking
the holding or leading position)

    15. Water-saving irrigation equipment production

    16. Agricultural mechanical equipment, farm tools and related spare parts

    II. Light Industry

    1. Design, processing, and manufacture of molds for non-metal products

    2. Commodity pulp

    3. Post ornament and processing of leather

    4. Non-mercury alkali-manganese battery, lithium-ion battery,
hydrogen-nickel battery

    5. High-tech involved special industrial sewing machine

    6. Ployimide film

    7. Enzyme preparation, raw material for synthetic detergent
(straight-chain alkylbenzene)

    8. Synthetic spices, single icon spices

    9. Research and popularization of the applied technology of freon
substitution

    III. Textile Industry

    1. Special chemical fibers such as compound super thin, anti-contractive,
anti-electrostatic, anti-inflammable, high emulation chemical fibers, and
arylon, spandex, and carbon fibre

    2. Textile printing and dyeing as well as post arrangement and processing

    3. High emulation chemical fibre cloth

    4. Oils for textile

    5. Special textiles for industry

    IV. Communication and Transportation as well as Post & Telecommunications
Industries

    1. Equipment and technology for railway transportation: the design and
manufacture of locomotives and main parts, the design and manufacture of
wiring and equipment, related technology and equipment manufacture for
high-speed railway, manufacture of the equipment for communications signal
and transportation safety monitoring, manufacture of electric railway
equipment and instrument

    2. Construction and management of local railway, bridge, tunnel, and
ferry facilities (wholly foriegn-owned enterprises are not allowed)

    3. Highway and port mechanical equipment and their design and
manufacture technologies

    4. Construction and management of city subway and light track (with
the state assets taking the holding or leading position)

    5. Construction and management of highway, independent bridge and tunnel,
and port facilities (for public wharfs, the state assets will take the
holding or leading position)

    6. Construction and management of civil airport (with the state assets
taking the hold or leading position)

    7. Manufacture of 900 megahertz honey-comb mobile communications
equipment

    8. Manufacture of over quintic synchronized fiber, microwave
communications system, and measure equipment

    9. Manufacture of ATM switchboard equipment

    V. Coal Industry

    1. Design and manufacture of coal mining and transportation equipment

    2. Design and manufacture of complete set of equipment of coal
gasification

    3. Manufacture of high-density water-coal equipment and additives

    4. Comprehensive development and utilization of low-heat valve fuel
and accompanying resources

    5. Comprehensive development and utilization of coal

    VI. Power Industry

    1. Construction and management of heat power station (including routine
heat power station and clean coal burning technology power station)

    2. Construction and management of hydropower station (with
250,000 kilowatts installed capacity, and the state assets taking the
holding or leading position)

    3. Construction and management of nuclear power station (with the state
assets taking the holding or leading position)

    4. Construction and management of new energy power station (including
solar energy, wind energy, magnetic energy, earth heat energy and tide
energy, etc.)

    VII. Ferrous Metallurgical Industry

    1. Sponge iron (using coal as the reducing agent technology)

    2. Powder metallurgy (iron ore)

    3. Over 200,000-ton short-flow and 500,000-ton iron and steel combined
production line

    4. Cold-rolled silicon steel plates, galvanized plate, tin-plating
plate, stainless steel plate

    5. Hot and cold-rolled steel sheet

    6. Tubes for bearing, oil; seamless steel tube; tube for high-pressure
furnace

    7. Wheel and hoop of locomotives and vehicles

    8. Superhigh power electrode, acicular coke

    9. High alumina vitriol earth, hard clay mine and grog

    10. Iron mine concentration

    11. Deep processing of hard coke and coke oil

    12. High and Pure magnesia (wholly foreign-owned enterprises are not
allowed)

    13. Fine quality refractory material and special protection slag for
continuous casting, steel wrapping, and combined blow steel smelting

    VIII. Non-Ferrous Metal Industry

    1. Monocrystalline silicon (with diameters over 5 inches),
multicrystalline silicon

    2. Hard alloy, tin compound, Sb compound

    3. Non-ferrous compounds, new type alloys

    4. Copper, lead, tin mine opening (wholly foreign-owned enterprises
are not allowed)

    5. Aluminum mine opening (wholly foreign-owned enterprise are not
allowed) and alumina (over 300,000 tons)

    6. Rare metal application

    IX. Petroleum, Petrochemical and Chemistry Industries

    1. Ironic caustic soda and new organic chlorine serial products

    2. Ionic caustic soda manufacture

    3. Comprehensive utilization of ethylene (with an annual output of
over 300,000 tons), acrylene and C4--C9 products

    4. Project plastic products and plastic alloys

    5. Synthetic rubber (liquid styrene-butadiene rubber, butyl rubber,
isoamyl rubber, ethyl rubber, butadiene neoprene rubber, butadiene rubber,
acrylic rubber, chlorinated rubber)

    6. Fine chemistry: new products and technology of dye, intermediate,
catalytic agent, auxiliary and pigment, processing technology for the
commercialization of dye (pigment) commodities, electronics, high-tech
chemicals for paper-making, food additives, feed additives, leather
chemical products, oilwell auxiliaries, surface active agent, water
treatment agent, adhesive, inorganic fibre, inorganic powder agent feeder
and equipment

    7. Chroridized titanium dioxide

    8. Chemical products using coal as raw materials

    9. Supporting raw materials for synthesized materials (bisphenol-A,
styrene-butadiene rubber cream, pyridine, 4.4' diphenylmethane group,
diisocranene)

    10. Basic organic chemical raw material: comprehensive utilization of
the derived products of benzene, mythylbenzene, dimethylobenzene(O-, M-, P-)

    11. Comprehensive utilization of exhaust gas, discharge liquid,
waste slag

    12. Construction and management of oil and air delivery pipes, as well
as oil depot and oil wharf (with state assets taking the holding or
leading position)

    X. Mechanical Industry

    1. Manufacture and welding robot and effective welding and assembling
production line equipment

    2. High temperature resistant insulation material (with F, H insulation
class) and insulation products

    3. Manufacture of steel sheet continuous casting and rolling machine,
large hot and cold continuous rolling equipment, city gas and industrial
non-polluting gas producing furnace

    4. Manufacture of equipment of the trolley car for mining, loading and
transporting in the well, 100 or over tons of mechanical power-driven dump
truck for mining, mobile crusher, double input and output coal grinder,
3,000 m3/h or over bucket excavator, 5 m3 or over mining loader, total
cross-section lane entry-driving machine

    5. Manufacture of container loading and unloading bridge, tube
delivering machine

    6. Manufacture of 30,000 m3 and over large complete set of vacuum
equipment

    7. Manufacture of multi-color off-set printing machine

    8. Manufacture of 4,500 meter high or over desert, sea oil-drilling
equipment, 70 megapar oil and gas oil blowout preventer, 105 megapar or
over pressing crack equipment, 50-ton or over well-excavator

    9. Manufacture of turbine compressor, methylamine pump and combined
powder machine for the complete set of equipment for an annual production
of 300,000 tons or over of synthetic amine, 480,000 tons or over of urea,
300,000 tons or over ethylene (with state assets taking the holding or
leading position)

    10. Manufacture of complete sets equipment of electronics, new knitting
machine, new paper (including pulp) making machine

    11. Manufacture of large delicate scientific measure instrument

    12. Safety monitoring instrument and equipment (vibration, noise,
poisonous matter, dust density monitoring, prediction of gas leak, shock
earth volt)

    13. New meter spare parts and material (mainly new switches and function
material for meters such as intelligent sensors, electrical adapters,
flexible circuit plate, fiber switch, and proximity switch)

    14. Manufacture of delicate, effective, large digital controlled lathe
and functional spare parts

    15. Hydraulic pressure spare parts, pneumatic components, sealing
equipment

    16. Standard parts for precision die, precision cavity mould, and mould

    17. Manufacture of 250,000 ton/day city sewage disposal equipment,
industrial sewage film treatment equipment, up-flow anaerobic sulfide floor
equipment, and other biological sewage disposal equipment, production
equipment slab making equipment of powder coal dust (50,000-100,000 ton/year),
recycling equipment for waste plastics, equipment for desulphurization and
denigration equipment, large high-temperature resistant, acid resistant bag
dust remover

    18. Manufacture of large road construction machinery

    19. Manufacture of large (external diameter 200-430 mm) delicate and
special bearings

    20. Manufacture of car-related spare parts: complete brakes, complete
drive rod, acceleration, steering knuckle, fuel pump of diesel engine,
piston (including piston ring), valve, hydraulic tappet, carton shaft,
booster, filter (3 filter), aluminum radiator, diaphragm clutch, even speed
carton joint, shock absorber, car air conditioning system, safety ball, seat
adjustor, car lock, backview mirror, glass lifter, compound meter, motor,
lights, bulb, car fastener, bearing

    21. Manufacture of car moulds (including strike mould, plastics filling
mould, mould-pressing mould, etc.) clippers (welding clipper, testing
clippers, etc.)

    22. Car casting body

    23. Car technology research center, and design and development institute

    24. Special purpose cars such as desert car for petroleum industry and
special cars for airport

    XI. Electronics Industry

    1. Manufacture of large integrated circuit

    2. New electronic spare parts (including slice spare parts) and electric
and electronic spare parts

    3. Manufacture of fiber parts, sensitive spare parts and sensor

    4. Manufacture of large and medium sized computer

    5. Manufacture of over 32-bit (not including 32-bit) advanced
microcomputers

    6. Manufacture of key spare parts of fax machine (heat sense printing
head, image sensor, etc.)

    7. Compatible digital TV, HDTV, digital tape video recorder, laserdisk
player

    8. Semi-conductor, fiber material

    9. New displayer (color liquid crystal parts and plate displayer)

    10. CAD, CAT, CAM, CAE and other computer application systems

    11. Manufacture equipment, and instrument for electronics, and
industrial mould

    12. Manufacture of hydrological data collection instrument and equipment

    13. Satellite communication rare route from TES and PES as well as
manufacture of key parts

    14. SDH fibre communication system, cross linking equipment, and network
management equipment manufacture

    15. Software development and production (including computer,
communications programs, etc.)

    16. Manufacture of equipment of air communication control system

    17. Development and manufacture of high capacity lazerdisk, disk
memory and parts

    18. Development and manufacture of new printing devices (lazerprinter,
etc.)

    XII. Building Materials and Equipment and Other Non-metal Mineral Product
Industry

    1. Floating glass production line with a daily melting capacity of
500 tons or over

    2. High sanitation porcelain line with an annual production of
500,000 pieces

    3. New building material

    4. Special cements

    5. Cement additives

    6. Bulk cement storage and transportation facilities

    7. Manufacture of special equipment for city sanitation

    8. Manufacture of tunnel excavator and city subway excavating equipment

    9. Manufacture of tree and plant removing and planting equipment

    10. Manufacture of road grader, tar finisher

    11. Products of glass fiber and fiber glass

    12. Inorganic non-metal material and products

    13. Non-metal mines and deep processing products

    XIII. Medicine Industry

    1. Chemical medicines in patent period or administratively protected
by our country, medical intermediate which we have to import

    2. Anti-inflammatory and antipyretic medicines: new effective medicines
which are not yet produced in our country

    3. Vitamins: Vitamin D3, dextrogyric calcium pantothenate, nicotinic acid

    4. New anticarcinogen and cardio-vascular and cerebrovascular medicines

    5. Medicines and pharmaceutics: new preparations, products such as
buffer, control, target and skin-penetrating preparation, and the relevant
subsidiary materials

    6. Amino acid: serine, tryptophan, histidine, etc.

    7. Wrapping material and container for new medicines and advanced
pharmatical equipment

    8. New, effective and economical contraceptive medicines and devices
that are not yet produced in China

    9. New technology and equipment that improve the quality of traditional
Chinese medicine and change the preparation packing

    10. New technology for analysis and new technique for extraction of
the effective part of traditional Chinese medicine

    11. New medicines which are produced using biological project technology

    XIV. Medical Equipment

    1. Over 800 mm ampere X-ray machine

    2. Digital phantom devices

    3. Biochemical analysis instrument

    4. Electronic endoscope

    5. Medical monitoring devices

    6. Multi-functional anesthesia apparatus

    7. Medical tubes

    XV. Aerospace Industry

    1. Manufacture of civil planes

    2. Aeroplane engines

    3. Aeroplane equipment

    4. Light gas turbine engines

    5. Manufacture of civil satellites

    6. Manufacture of satellite pay load

    7. Satellite application (with the state assets taking the holding
or leading position)

    XVI. Shipping Industry

    1. Manufacture of special ships, high performance ships and over
35,000-ton ships

    2. Manufacture of products attached to boats and ships

    XVII. New Industries

    1. Micro-electronic techniques

    2. New materials

    3. Biological engineering techniques

    4. Network technique of information, communications systems

    5. Isotopic irradiation and laser technique

    6. Ocean and ocean energy development technology

    7. Energy-saving technology development

    8. Technology for recycle and comprehensive utilization of resources

    9. Engineering and technology for the control of environment pollution

    XVIII. Service Industry

    1. Information consultancy of international economy, science and
technology

    2. Maintenance and post-sale service of delicate instruments and
equipments
Restricted Foreign Investment Enterprises

                          (A)

    I. Light Industry

    1. Machinery, assemblage of movements of digital watches and finished
watches, bikes, knitting machines

    2. Electric appliances: washing machines, refrigerators, freezers

    3. Tins

    II. Textile industry

    Long dacron fibre with annual output lower than 5,000 tons  

    III. Coal Industry

    Local way coking

    IV. Ferrous Metallurgical Industry

    1. Silicon iron, ordinary carbon electrode

    2. Ordinary electric furnace process of less than 30 tons, converting
process of less than 30 tons, sintering process and coking of furnace of
300 or less than 300 cubic meters and its attachment

    3. Welding pipe of 100 or less than 100 minimeters and seamless tube
mill, normal steel blooming mill, roughing mill of less than 76 millimeters

    V. Non-ferrous Metallurgical Industry

    Aluminum section, aluminum doors and windows

    VI. Petrochemical, Chemical Industries

    1. Barium salt, naphthalene benzoic anhydride

    2. Refinery of less than 2,500 thousand tons

    3. Cross-ply, old tire reconditions (not including meridian tire) and
low performance industrial rubber attachments

    4. Abstraction of iodine from kelp

    VII. Machinery Industry

    1. Equipments for producing long dacron thread and short fibre

    2. Manufacture of ordinary passenger and cargo ships, diesel engine
and power generating units of diesel engines used in ships

    3. Processing of raw materials of carbofrax

    4. Electric drill, power driven grinding welding rod

    5. Ordinary carbon steel welding rods

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

    7. Ordinary lead acid accumulators

    8. Containers

    9. Elevators

    VIII. Electronics Industry

    1. Tape recorders with radio, radios

    2. Black and white TV sets, and black and white kinescopes

    3. Micro-computer of 16 or below 16 bits

    4. Wireless telephone equipment below 450 megahertz

    5. Broadcasting and TV launching system

    IX. Building Material Equipment and Other Non-metal Product Industry

    1. Production line with an annual output capacity below 300,000 tons

    2. Production line of plate glass for ordinary construction use, with
a daily capacity below 200 tons

    X. Medicine Industry

    1. Antibiotics: chloramphenicol, lincomycin, gentamicin,
dihydrostreptomycin

    2. Chemical compound medicines: analgin, Vitamin B1, Vitamin B6

    3. Prepared traditional Chinese herbal medicine in small pieces ready
for decoction (traditional preparation technique excluded)

    4. Finished and semi-finished traditional Chinese medicine

    XI. Medical Apparatus and Instruments

    1. Non-self-destructive one-time-use injectors

    2. B-mode supersonic displayers of medium or low class

    3. Electrocardiographs

    XII. Service Industry

    1. Taxi (the purchase of cars is restricted within China)

    2. Gas station (restricted to construction and management of
enterprises attached to related projects)

                            (B)

    I. Agriculture, Forestry, Husbandry, Fishery and Related Industries

    1. Processing and export of precious varieties of logs (wholly foreign-
owned enterprises are not allowed)

    2. Inshore and continental-river fishing (wholly foreign-owned
enterprises are not allowed)

    II. Light Industry

    1. Table salt, industry salt

    2. Non-alcoholic beverage of foreign brand (including solid beverage)

    3. Well-known spirits

    4. Diactate cellulose for cigarettes and collection of filaments

    5. Tobacco processing industry producing cigarettes and filter tips

    6. Processing and production of blue wet hide of pig, cow, and sheep

    7. Natural spice

    III. Textile Industry

    1. Wool spinning, cotton spinning

    2. Raw silk, grey silk fabric

    3. Chemical fibre and raw material of chemical fibre (polyester,
acrylonitrile, caprolactam, nylon 66 salt, etc.)

    IV. Coal Industry

    Coking coal mining (wholly foreign-owned enterprises are not allowed)

    V. Non-ferrous Metal Industry (wholly foreign-owned enterprises are
not allowed)

    1. Copper processing

    2. Mining, dressing, smelting, and processing of precious metals
(gold, silver, platinum families)

    3. Mining of non-ferrous metals such as wolfram, tin, antimony

    4. Mining and smelting of rare-earth metals

    VI. Petrochemical, Chemical Industries

    1. Black-and-white films and color films

    2. Mining and processing of baron, magnesium, iron ores

    3. Strontian

    4. Benzidine

    VII. Mechanical Industry

    1. Complete limousine (with the state assets taking the holding or
leading position)

    2. Complete motorcycles (with the state assets taking the holding
or leading position)

    3. Complete light-duty cars (light-duty buses, carriage-style buses)
(with the state assets taking the holding stock or leading position)

    4. Engines of cars and motorcycles (with the state assets taking
the holding or leading position)

    5. Compressors of air conditioners for cars, fuel-oil injecting systems

    6. Old cars and motorcycles' reconditioning and disassembling (refit)

    7. Air-conditioner and refrigerator compressors with shaft power lower
than 2,000 watts (air-conditioner compressors for cars excluded)

    8. Decentralized controlling system (including controllers capable of
programming)

    9. Table electrostatic copiers

    10. Manufacture of sets of fire power equipments (power unit, turbine,
boiler, supplementary machine and controlling equipments); of over 100,000
kilowatts, gas turbine combined cycle power equipments, cyclic fluidized
bed boiler, coal gasification combined cyclic technique and equipments
(IGCC), pressure boost fluidized bed (PFBC), desulfurization and
denitrification equipments (wholly foreign-owned enterprises are not allowed)

    11. Water and electricity equipment: manufacture of hydropower generating
units with a wheel diameter of over 5 meters (including hydropower
supplementary machine and controlling units), large scale pump storage
groups of over 50,000 kilowatts, large scale tubular turbine units of
10,000 or over kilowatts (wholly foreign-owned enterprises are not allowed)

    12. Nuclear power group: manufacture of nuclear power groups of 600,000
or over kilowatts (wholly foreign-owned enterprises are not allowed)

    13. Manufacture of power transmitting and transforming equipment:
large scale transformers of 220 or over kilovolts, high-tension switches,
mutual conductors, cable equipments (wholly foreign-owned enterprises are
not allowed)

    VIII. Electronics Industry

    1. Color TV sets as well as tuners, teleswithes, flyback voltage
transformers

    2. Color kinescope and glass shielding

    3. Video cameras (including video camera recorders), video recorders

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

    5. Analogue type mobile communications systems (honeycomb, colony,
wireless beeper call, wireless telephone)

    6. Fascilile equipment

    7. Satellite television receivers and key parts

    8. Microwave relay communications equipments below biquadratic group

    IX. Building Material Equipment and Other Non-metal Product Industries

    Exploration, mining and processing of diamond and other natural gems
(wholly foreign-owned enterprises are not allowed)

    X. Medicine Industry

    1. Traditional Chinese medicine subject to export licensing administration

    2. Precursor of narcotics: ephedrine, pseudoephedrine, ergotinine,
ergotamine, lysergic acid

    3. Penicillin G, antimalarial arteannuin

    4. Addition narcotic and psychoactive drug

    5. Vitamin C

    6. Blood products

    XI. Communication and Transportation, Post and Telecommunications
Industries

    1. Construction and management of main lines of railways (with the
state assets taking the holding or leading position)

    2. Sea transportation (wholly foreign-owned enterprises are not allowed)

    3. Entry and exit automobile transportation (wholly foreign-owned
enterprises are not allowed)

    4. Air freight (with the state assets taking the holding or leading
position)

    5. General aviation (with the state assets taking the holding or
leading position in industrial aviation, wholly foreign-owned
enterprises are not allowed in agricultural and forestry aviation)

    6. Manufacture of switchboard used by digital program bureau and users

    XII. Domestic and Foreign Trade, Tourism, Real Estate and Service
Industries (wholly foreign-owned enterprises are not allowed)

    1. Commercial retail and whole sale

    2. Supply and sales of goods and materials

    3. Foreign trade

    4. Construction and management of state-rank tourist areas

    5. High-ranking hotels, villas and high-class office buildings

    6. Golf links

    7. Tourist agency

    8. Accountancy, audit and legal consultation services and agent company

    9. Agency service (boats and ships, freight, futures, sales,
advertisement, etc.)

    10. Education, translation service

    XIII. Finance and Relevant Trades

    1. Bank, finance company, trust investment company

    2. Insurance company, insurance brokerage and underwriting agent company

    3. Bond company, investment bank, merchant bank, fund management company

    4. Financial lease

    5. Foreign exchange brokerage

    6. Financial, insurance and foreign exchange consultation

    7. Production, processing, wholesales and retail of gold, silver,
gems, and jewelry

    XIV. Miscellaneous

    1. Printing and publishing and issuing business (wholly foreign-owned
enterprises are not allowed)

    2. Testing and appraisal business of import and export goods (wholly
foreign-owned enterprises are not allowed)

    3. Production, publishing and issuing of sound and video recording
products

    XV. Other Industries Restricted by the State or International Treaties
that China has Concluded or Taken Part in
Prohibited Foreign Investment Industries

    I. Agriculture, Forestry, Husbandry, Fishery and Related Industries

    1. Wild animal and plant resources protected by the State

    2. China's rare precious breeds (including fine genes in plants
industry, husbandry and aquatic products industry)

    3. Construction of animal and plant natural reserves

    4. Processing of green tea and special teas (famous teas, black tea, etc.)

    II. Light Industry

    1. Ivory carving and tiger-bone processing

    2. Hand-made carpet

    3. Bodiless lacquerware

    4. Enamel products

    5. Blue and white porcelain

    6. Xuan paper, or ingot-shaped tablets of Chinese ink

    III. Power Industry and Urban Public Utility

    1. Construction or management of electricity network

    2. Construction or management of urban networks of water supply,
water drainage, gas and heat power

    IV. Exploration, Selection, or Processing of Mining Industry

    Exploration, selection, smelting or processing of radioactive
mineral products

    V. Petrochemical, Chemical Industries

    1. Mining and processing of szaibelyite

    2. Mining of celestine

    VI. Medicine Industry

    1. Traditional Chinese medicines which have been listed as state
protection resources (musk, licorice root, the bark of eucommia, the
bark of official magnolia)

    2. Preparing technique of traditional herbal medicine in small
pieces ready for decoction and products of secret recipe of traditional
Chinese herbal medicine already prepared

    VII. Communication and Transportation, Post and Telecommunications
Industries

    1. Management of post and telecommunications business

    2. Air transportation control

    VIII. Trade

    Futures trade

    IX. Broadcasting and Film Industries

    1. Broadcasting station, TV stations at various levels (including
cable TV networks and launching stations and relay stations)

    2. Production, publishing, or issuing of broadcasting and TV programs

    3. Producing, publishing, or issuing of films

    4. Video tape showing

    X. Journalism

    XI. Manufacture Industry of Military Weapons

    XII. Miscellaneous

    1. Projects that endanger the safety and performance of military
facilities

    2. Developing or processing of carcinogenic, teratogenic, mutagenesis
raw materials

    3. Racecourse, gambling

    4. Pornographic service

    XIII. Other Industries Prohibited by the State or by International
Treaties that China has Concluded or Acceded to



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