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. Revised Edition was approved by the State Council on December 29, 1997, and promulgated by the State Planning Commission, the State Economic and Trade Commission, and the Ministry of Foreign Trade and Economic Cooperation on December 31, 1997.

Encouraged Foreign Investment Industries

I. Agriculture, forestry, animal husbandry, fishery and related industries
1. Reclaiming and development of wasteland, waste mountain, intertide zone (except those with military facilities), as well as improvement of low-and mediumyielding field
2. Development of new varieties of fine quality, high-yielding crops such as sugar-yielding crops, fruit trees, vegetables, flowers and related new techniques
3. Serialization production of soilless cultivation vegetables, flowers-and plants.
4. Planting of forest trees and introduction of fine strains of forest trees
5. Breeding of good strains of domestic animals, fowls and aquatic fingerlings (not including special, precious good strains of our country)
6. Breeding of famous, special and fine aquatic products
7. New varieties of effective and safe agricultural chemicals and pesticides (over 80 percent insect death rate, safe to people animals and crops)
8. High-density fertilizers (potash fertilizer, phosphate fertilizer
9. New technologies for the production of agricultural films, and development of new products (fibre film, photolysis film, multi-functional film and raw materials)
10. Antibiotic material medicals (including antibiotic and chemical synthesis)
11. New products or new forms of anthelmintic, insecticide anti-coccidiosis medicines used for animals
12. Development of feed additive, and feed protein resources
13. New technology and equipment for the storage, preservation, frying and processing of food, vegetables, fruits, meat products, and aquatic products
14. Forestry chemicals and new technology and products for the comprehensive utilization of "sub-quality, small and firewood'' lumber and bamboo in the forest area
15. Construction and management of key water control projects for comprehensive utilization ( The Chinese party will be the holding party or play a leading role.)
16. Manufacture of new type water - saring inigation technical equipment
17. Manufacture of new technical agricultural machinery
18. Improvement and construction of ecological environment.

II. Light industry
1. Design, processing, and manufacture of molds for non-mental products
2. Paper pulp (with and annual production capacity of over 170 thousand tons of wood pulp and a related raw material base)
3. Post ornament and processing leather and related new - tech equipment
4. Production of non-mercury alkali-manganese secondary battery and lithium-ion battery
5. Manufacturing of high-tech involved special industrial sewing machines
6. Production of polyamide film
7. Production of new-type, highly efficient enzymatic preparations
8. Production of synthetic spices, single ion spices
9. Research and popularization of the applied technology of freon substitution
10. Production of diacetate for cigarette making and processing of tows

IIII. Textile Industry
1. Production of wood pulp for textile chemical fibre (construction of raw material base with an annual output capacity of over 100 thousand tons)
2. Special textiles for industrial use
3. Printing and dyeing as well as post processing of high emulation chemical fibre plus material
4. Production of assistant, grease, and dye-stuff for textile

IV. Communication and Transportation as well as Post & Telecommunications Services
1. Technical equipment for railway transportation: the design and manufacture of locomotives and main parts, the design and manufacture of line facility and equipment, related technology and equipment for communicational signals and transportation safety monitoring, manufacture of electric railway equipment and instruments
2. Construction and management of feeder railways, local railways, and related bridges, tunnels, and ferry facilities (wholly foreign owned enterprises are not allowed)
3. Design and manufacture of new-type mechanical equipment for highway and port and related designing and manufacturing technologies
4. Construction and management of city subway and light rail (The Chinese party will be the holding party or play a leading role)
5. Construction and management of highways, independent bridges and tunnels, and port facilities (for public wharfs and the Chinese part will be the holding part or play a leading role)
6. Construction and management of public dock facilities of port (the Chinese part will be the holding part and play am leading role)
7. Construction and management of civil airport (the Chinese part will be the holding part or play a leading role)
8. Production of the equipment of DCS/CDMA
9. Production of digital serial transmission equipment of phototoming and micro-wave synchronization of 2. 5 GB/S or above
10. Production of metering devices of 2. 5 GB/S for photocomunication, wireless communication and data communication
11. Production of AMT exchange boards

V. Coal Industry
1. Design and manufacture of coal mining, conveyance and concentration equipment
2. Coal's mining and ate-dressing by washing (the Chinese party will be the bolding party or play a leading role in the rnining and ore-dressing by washing of special and rate kinds of coal)
3. Production of water-coal and liquefied coal
4. Comprehensive development and utilization of coal
5. Comprehensive development and utilization of low-thermal-value fuel and associated resources
6. Pipe-transportation of coal
7. Exploration and development of coal bed gas

VI. Power Industry
1. Construction and management of heat power station with a single machine's installed-capacity of 100 thousand kilowatts or above
2. Construction and management of hydropower station with the main purpose of power generating
3. Construction and management of nuclear power station (the Chinese party will be the holding party or play a leading role)
4. Construction and management of power station with the technology of clean coal-burning
5. Construction and management of new energy power station (including solar energy, wind energy, magnetic energy, geothermal energy and tide energy, etc.)

VII. Ferrous Metallurgical Industry
1. 50 ton or above super-high power electric furnace (equipped with the ability of external refining and continuous casting) and 50 ton or above convertor steel-making
2. Smelting of stainless steel
3. Production of cold-rolled silicon steel tape
4. Production of hot-rolled and cold-rolled stainless steel plate
5. Steel pipeline for transmitting petroleum
6. Processing and treatment of steel scrap
7. Extraction and selection of iron and manganese ores
8. Production of direct reduced iron and retailed iron
9. High alumina vitriol earth hard clay mining and grog production
10. Deep processing of needle coke, hard coke and coal tar
11. Production of dry coke quenching

VIII. Non-ferrous Metal industry
1. Production of mono-crystalline silicon (with a diameter of 8 inches or over), multi-crystalline silicon
2. Production of hard alloy, tin compound, and antimony compound
3. Production of non-ferrous composite materials, new type alloy materials
4. Copper, lead, tin mining (wholly foreigner owned enterprises are on allowed)
5. Aluminum mining (wholly foreign owned enterprises are not allowed) and alumina (3,000,000 tons or more a year)
6. Rare-earth application

IX. Petroleum, Petrochemical and Chemistry Industries
1. Manufacture of Ion film for caustic soda
2. Ethylene (with an annual production capacity of 600, 000 tons or over, and the Chinese party will be the holding party or play a leading role)
3. Corvic ( the Chinese party will be the holding party or play a leading role)
4. Comprehensive utilization of ethylene side-products such as CS - C9
5. Engineering plastics and plastic alloys
6. Supporting raw materials for synthesized materials (bisphenol-A, butadiene-styrene latex, pyridine, 4.4' diphenylmethane, diiso-cyan ester, and vulcabond toluece)
7. Comprehensive utilization of basic organic chemical raw materials: the derivative of benzene, methylbenzene, (para-ortho-, or meta- ) dimethylobenzene
8. Synthetic rubber (liquid butadiene styrene rubber by butadiene method, butyl rubber, isoamyl rubber, ethyl rubber, butadiene neopreme rubber, butadiene rubber, acrylic rubber, chlorophydrin rubber)
9. Fine chemistry: new products and technology for dye-stuff, intermediate, catalytic agent, auxiliary, and pigment; processing technology for the commercialization of dye ( pigment ); electronics and high-tech chemicals for paper-making, food additives, feed additives, leather chemical products, oil-well auxiliaries, surface active agent, water treatment agent, adhesives inorganic fiber, inorganic powder stuffing and equipment
10. Chloridized titanium dioide
11. Production of chemical products using coal as raw material
12. Comprehensive utilization of exhaust gas, discharge liquid, waste slag
13. Production of depurant of automobile tail gas; catalytic agent and other assistant
14. Development and utilization of tertiary oil recovery which can increase the recovery ratio of petroleum (the Chinese party will be the holding party or play a leading role)
15. Construction and management of oil and gas delivery pipes, as well as oil depot and oil wharf ( the Chinese party will be the holding party or play a leading role )

X. Mechanical Industry
1. Manufacture of high performance welding robot and effective welding and assembling production line
2. High temperature resistant insulation material (with F, H insulation class) and mould casted insulation products
3. Manufacture of equipment for mining, loading and transporting in the well, 100 or over tons of mechanical power-driven dump trucks for mining, mobile crushers, double input and output coal grinder, 3,000 m3/ h or over bucket excavator, 5 m3 or larger mining loader, full-face tunneling machines
4. Manufacture of multi-color offset press for web and folio or paper of lager size
5. Manufacture of cleaning equipment for electro-mechanical wells and production of medicals
6. Manufacture of turbine compressor and combined powder machine for the complete set of equipment for an annual production of 300, 000 tons or over of synthetic ammonia, 480, 000 tons or over of urea, 300,000 tons or over ethylene
7. Manufacture of complete set of equipment of new type of knitting machine, new type of papr ( including pulp ) making machine
8. Development and manufacture of precision on-line measuring t instrument
9. Manufacture of new technical equipment for safe production and environment protection detecting instruments
10. New type of meters' spare parts and materials ( mainly new switches and function materials for meters such as intelligent sensors, electrical adapters, flexible circuit plate, photoelectric switches, and proximity switch, and so on)
11. Research, design and development center of important basic machinery, basic parts and important technical equipment
12. Development of proportional, servo-hydraulic technology and production of low-power pneumatic control valve and stuffing static seal
13. Production of precision triumming dies, precision cavity modes and matrix standard components
14. Manufacture of 250, 000 tons/day city sewage-disposal equipment, industrial sewage film treatment, and other biological sewage disposal equipment, slab making equipment of powder coal ash ( 5-10 tons/ year), recycling equipment for desulphurization and denitration of industrial boiler, large high-temperature resistant, acid resistant bag dust remover
15. Manufacture of precision bearings and all kinds of bearings used specially for main engines.
16. Manufacture of key spare parts for cars: complete brakes, complete driving rods, gearbox, steering knuckle, fuel pump of diesel engine, piston (including pistoning), valve, hydraulic tappet, axle bush, booster, filter (3 filtering), even speed cardan joint, shock absorber, seat adjuster, car lock, backview mirror, glass lifter, compound meter, light, bulb, car fastener
17. Manufacture of car and motorcycle molds (including strike moulds, plastics filling moulds, nould-pressing moulds, etc.) and clippers (welding clipper, testing clippers, etc. )
18. Production of casted and forged semifinished products for cars and motorcycles
19. Car and motorcycle technology research center, and design and development institute
20. Cars for special purposes such as desert cars for petroleum industry
21. Production of key spare parts for motorcycles: carburetors, magnetos, starting motors, lamps, disc brakes
22. Manufacture of new-tech equipment of water quality online detecting instrument
23. Manufacture of special machines and equipment for flood prevention and emergency rescue
24. Manufacture of earth-moves for wet land and desilting
25. Manufacture of integrated equipment with a feed processing capacity of 10 tons or more an hour, and the production of spare parts
26. Design and manufacture of new instruments and equipment for petroleum exploration and development

XI. Electronic Industry
1. Large scale production of integrated circuit with a line width of 0.35 micron or a smaller line width
2. New type electronic spare parts (including slice spare parts) and electric and electronic spare parts
3. Manufacture of photoelectric components, sensitive components and sensors
4. Manufacture of large and medium sized computers
5. Manufacture of compatible digital TV, HDTV, digital video tape recorder and player
6. Development of semi-conductor photoelectronic materials
7. Manufacture of new type displays (plate displays and displaying screens)
8. Development of 3-dimension CAD, CAT, CAM, CAE and other computer application systems
9. Manufacture of special electronic equipment, instruments, and industrial mould
10. Manufacture of hydrological data collection instrument and equipment
11. Manufacture of equipment of satellite communication
12. Manufacture of digital cross-linking equipment
13. Manufacture of air traffic control equipment (wholly foreign owned enterprises are not allowed)
14. Development and manufacture of high-capacity mass storage of laser disks, disks and parts
15. Development and manufacture of new type printing devices (laser-printers, etc.)
16. Manufacture of equipment of multi-media system of data communication
17. Production of single mode optical fiber
18. Manufacture of equipment for cut-in communication system
19. New technical equipment supporting communication network
20. Manufacture of ISDN

XII. Building Materials, Equipment and Other Non-metal Mineral Product Industries
1. Production line of fine-quality floating glass with a daily melting capacity of 500 tons or over
2. Production line of high level sanitation porcelain with an annual production of 500,000 pieces as well as auxiliary hardware parts and plastic parts
3 New building material (materials for wall, decorating and finishing materials, water-proof materials, and thermal insulation materials)
4. Production line of new type dry process cement of clinker with a daily output capacity of 4,000 tons or more (only in the mid-west region of this country)
5. Bulk cement storage and transportation facilities
6. Production line of glass fiber (through direct melting process) and glass fibre reinforced plastics with an annual capacity of 10,000 tons or more
7. Manufacture of non-organic, non-metal material and products (quartz glass, artificial crystal)
8. Production of high-class refractory material used in furnaces for glass, ceramics and glass fibre
9. Deep processing technique and equipment of plate glass
10. Manufacture of tunneling machine, equipment for covered digging of city metro
11. Manufacture of special equipment for cities sanitation work
12. Manufacture of tree tranplanters
13. Manufacture of machines for road planing and repairing

XIII. Medicine Industry
1. Chemical medicines under patent and administrative protection in our country, medical intermediate specially used in medicine
which we have to import
2. Analgesic-antipyretic which has to be produced through new technical equipment
3. Vitamins: niacin
4. New type of anticarcinogen and cardio-vascular and cerebtovascular medicines
5. Medicines and pharmaceutics: new products and new forms of drugs produced by means of slow release, control release, target preparation and those absorbed through skins
6. Amino acid: serine, typetophan, histidine, etc.
7. Wrapping materials and containers for new medicines and other advanced pharmaceutical equipment
8. New, effective and economical contraceptive medicines and devices
9. New technology, equipment and instruments that control the quality of traditional Chinese medicine
10. New analytical and extraction technology and equipment of the effective part of traditional Chinese medicine
11. New medicines which are produced by means of biological engineering technology
12. Development and utilization of new type adjutant
13. Production of diagnosis reagent for hepatitis, AIDS, and radio-immunity diseases

XIV. Medical Equipment Industry
1. Medical X-ray machine set with medium - frequency technique, computer control technique, and digital imagery processing technique
2. Electronic endoscope
3. Tube for medical use

XV. Aerospace Industry
1. Design and manufacture of aeroplane engines (the Chinese party will be the holding party or play a leading role)
2. Manufacture of spare parts for civil planes
3. Design and manufacture of aeroplane engines (the Chinese party will be the holding party or play a leading role)
4. Manufacture of air-borne equipment
5. Manufacture of light gas turbine engine
6. Design and manufacture of civil satellites (the Chinese party will be the holding party or play a leading role)
7. Manufacture of civil satellite payload (the Chinese party will be the holding party or play a leading role)
8. Manufacture of spare parts for civil satellites
9. Development of the application technique of civil satellite
10. Design and manufacture of civil carrier rockets (the Chinese party will be the holding party or play a leading role)

XVI. New Industries
1. Microelectronics technology
2. New materials
3. Biological engineering techniques (not including genetic engineering)
4. Network techniques of information, communications systems
5. Isotopic irradiation and laser techniques
6. Ocean and ocean energy development technology
7. Seawater desalting and seawater utilization technology
8. Development of energy-saving technology
9. Technology for recycling and comprehensive utilization of resources
10. Projects for improving polluted environment and related monitoring and improving technology

XVII. Service Business
1. Information Consultation about information of international economy, science & technology and environmental protection
2. Maintenance of precision instruments and equipment, service after sales
3. Construction of new and high technology and building of new product developing center as well as incubation of enterprise

XVIII. Permitted projects whose products are to be wholly exported directly

Restricted Foreign Investment Industries

(A)
I. Light Industry
1. Production of washing machines, refrigerators, freezers
2. Production of synthetic emtrol, alcohol ether and alcohol ether sulfate
3. Manufacture of compressors with a shaft power of 2kw or leas which are specially used for air-conditioners and refrigerators.

II. Textile Industry
1. 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

III. Petroleum, Petrochemical, Chemical Industries
1. Barium salt production
2. Refinery with an output capacity of less than 5 million tons a year
3. Cross-ply and old tire reconditions (not including radial tire)
4. Production of supphuric acid basic titanium white

IV. Machinery Industry
1. Manufacture of equipment for producing long dacron thread and short fiber 2. Manufacture of power generating units of diesel engines
3. Production of all kinds of ordinary abrasives (containing boule and silicon-carbide), grindstone with a diameter of less than 400 mm and man-made diamond saw bit
4. Production of electric drill and electric grinder
5. Ordinary carbon steel welding rod
6. Ordinary standard fasteners, small and medium sized ordinary bearings
7. Ordinary lead acid accumulator
8. Containers
9. Elevators
10. Alufer hub

V. Electronic Industry
1. Satellite television receiver and key parts
2. Exchange boards for the use of digital programme-control bureau and for the use of private branch exchange

VI. Medicine Industry
1. Production of chloramphenicol, lincomycin, gentamicin, dihydrostreptomycin, amicacin, tetracycline hydrochloride, oxytetracycline, acetyle spiramycin, medemycin, kitasamycin, ilotycin, norfloxacinum, ciprofloxacin and ofloxacin
2. Production of Analgin, aspirin, paracetamol, Vitamin B1, Vitamin B2 and Vitamin B6

VII. Medical Apparatus and Instruments
1. Production of low or medium class type-B ultra- . sonic displays

VIII. Transportation Service
1. Taxi (The purchase of cars is restricted within China)
2. Gas station (restricted to projects related to super highway)

(B)
I. Agriculture, Forestry, Animal Husbandry, Fishery . and Related Industries.
1. Development and production of food, cotton and oil-seed (the Chinese party will be the holding party or play a leading role)
2. Processing and export of the logs of precious varieties of trees (wholly foreign owned enterprises are not allowed)
3. Inshore and continental- river fishing (wholly foreign owned enterprises are not allowed)
4. Cultivation of traditional Chinese medicines (wholly foreign owned enterprises are not allowed)

II. Light Industry
1. Product of table salt, and salt for industrial use
2. Production of non-alcoholic beverage of foreign brand (including solid beverage)
3. Production of millet wine and famous brands of poirits
4. Tobacco processing industries such as cigarettes and filter tips
5. Processing and production of blue wet hide of pig, cow and sheep
6. Production of natural spices
7. Processing of fat or oil
8. Paper and paper plate

III. Textile Industry
1. Wool spinning, cotton spinning
2. Raw silk, gray silk fabric
3. Highly emulated chemical fibre and special kinds of fibre such as aromatic synthetic fibre, and carbon fibre (wholly foreign owned enterprises are not allowed)
4. Fibre and polyester, acrylic fibre and spandex which are not used as fibre (wholly foreign owned enterprises are not allowed)

IV. Communication and Transportation, Post and Telecommunications Industries
1. Construction and management of main lines of railways (the Chinese party will be the holding party or take a leading role)
2. Transportation by water (the Chinese party will be the holding party or take a leading role)
3. Entry and exit automobile transportation (wholly foreign owned enterprises are not allowed)
4. Air freight (the Chinese party will be the holding party or take a leading role)
5. General aviation (the Chinese party will be the holding party or take a leading role)

V. Power Industry
1. Construction and management of conventional coal-fired power plants whose single-machine capacity is less than 300,000kw (with the exception of small power grid, power plants in remote area and power plants of low-quality coal and coal refuses)

VI. Non-ferrous Metal Industry (wholly foreign owned enterprises are not allowed)
1. Copper and aluminum processing
2. Mining, dressing, smelting, and processing of precious metals (gold, silver, platinum families)
3. Mining of non - ferrous metals such as wolfram, tin and antimony
4. Exploration, mining, selection, smelting and separation of rare-earth metal

VII. Petroleum, Petrochemical Industry and Chemical Industry
1. Sensitive materials (cartridge, film, PS plate, and photographic paper)
2. Mining and processing of baron, magnesium, iron ores
3. Benzidine
4. Chemical industry products such as ionic membrane caustic soda and organochlorine serial products
5. Radial tire (the Chinese party will be the holding party or play a leading role)
6. Synthetic fibre raw materials: precision terephthalic acid, vinyl cyanide, caprolactam and nylon 66 salt

VIII. Mechanical Industry
1. Complete automobiles (including limousines, trucks, passenger cars, and reequipped ears) and complete motorcycles (the Chinese party will be the holding party and take a leading role)
2. Engines of automobiles and motorcycles (the Chinese party will be the holding party or take a leading role)
3. Production of compressors of air conditioners for cars, electron-controlled fuel-oil injecting systems, electronic controlled brade and locking-prevention systems, safety aeocysts and other electronic equipment, power generating machines and aluminum radiating machines
4. Recondition and disassembling refitting of old cars and motorcycles
5. Fire power equipment: (power unit, turbine, boiler, supplementary machine and controlling equipment) manufacture of units of over 100,000kw, gas turbine conbined cycle power equipments, cyclic fluidized bed boiler, coal gasification combined cycli technique and equipment (IGCC), pressure boost fluidized bed (PFBC), desulfurization and denitrification equipment (wholly foreign owned enterprises are not allowed)
6. Hydroelectric equipment: manufacture of hydropower generating units with a wheel diameter of over meters (including hydropower supplementary machines and controlling units), large scale pump storage groups of over 50,000kw, large scale tubular turbine units of 10,000kw over (wholly foreign owned enterprises are not allowed)
7. Nuclear power group: manufacture of nuclear power groups of 600,000kw or over (wholly foreign owned enterprises are not allowed)
8. Manufacture of power transmitting and transforming equipment: large scale transforming of 200 kilovolts or over high-voltage switches, mutual inductor, cable equipment (wholly foreign owned enterprises are not allowed)
9. Manufacture of crawler dozers of less than 320 horsepower, wheeled fork-lifts of less than 3 cubic meters, and cranes of less than 50 tons (wholly foreign owned enterprises are not allowed)
10. Manufacture of sheet continuous caster

IX . Electronic Industry
1. Color TV (including projection television), color kinescope and glass shielding
2. Video cameras (including camera-recorder in one unit)
3. Video recorders and magnetic heads, magnetic drums and movement of video recorders
4. Analog type mobile communications systems (honey-comb, colony, wireless beeper call, wireless telephone)
5. Receiving equipment of satellite navigation and key parts wholly foreign owned enterprises are not allowed)
6. Manufacture of the system of VSAT
7. Manufacturing of phototiming digital serial communication systems of less than 2.5 GB/ S and microwave communication systems of 144MB/S and lower

X. Building Material Equipment and Other Nonmetal Products Industries Exploration, mining and processing of diamond and other natural gems (wholly foreign owned enterprises are not allowed)

XI. Medicine Industry
1. Traditional Chinese herb medicines, Chinese patent drug semis and finished products (with the exception of preparing technique of traditional Chinese herb medicine in small pieces ready for decoction)
2. Precursor of narcotics: ephedrine, pseudo-ephedrine, ergotamine, ergotamine, lsergic acid and so on
3. Pennicillin G
4. Production of addiction marcotic and psychoactiove drug (the Chinese party will be the holding party or play a leading role)
5. Production of vaccinums that involve high tech: vaccinum against AIDS, vaccinum against type-C hepatitis, contraceptive vaccinum and so on (the Chinese party will be the holding party or play a leading role)
6. Immunity vaccinums included in the State' 6 plan, bacterins, antitoxins and antitoxin (BCG vaccine, pliomyelitis, DPI vaccine, measles vaccine, Type-B encephalitis, epidemic cerebrospinal menignitis vaccine)
7. Production of Vitamin C
8. Production of blood products

XII. Medical Apparatus and Instruments Industry
. 1. Disposable injectors, transfusion systems, blood transfusion systems and blood bags
2. Manufacture of large medical treatment equipment, such as CT, MRI and accelerators for medical use

XIII. Shipping Industry(the Chinese party will be the I holding party or play a leading role)
1. Repairing, design and manufacture of special ships, high performance ships and over 35,000-ton ships
2. Design and manufacture of diesel engines for ships, auxiliary machines, wireless communication, navigation equipment and parts

XIV. Domestic and Foreign Trade, Tourism, Real Estate and Service Industry (wholly foreign owned enterprises are not allowed)
1. Domestic commerce (the Chinese party will be the holding party or play a leading role)
2. Foreign trade (the Chinese party will be the holding party or play a leading role)
3. Tourist agencies
4. Cooperation school-running (with the exception of elementary education)
5. Medical establishments (the Chinese party will be the holding play or play a leading role)
6. Accounting, audit and legal consultation services and agent company
7. Agent services (boats and ships, freight, futures, sales, advertisement, etc.)
8. High-ranking hotels, villas, high-class office buildings, and international exhibition centers
9. Golf links
10. Development of pieces of land
11. Large scale tourist, cultural and recreational parks and artificial landscapes
12. Construction and management of State-ranking tourist areas

XV. Finance and Relevant Trades
1. Banks, finance companies and trust investment companies
2. Insurance companies, insurance brokerages and underwriting agent companies
3. Bond companies, investment banks, merchant banks, fund management companies
4. Financial lease
5. Foreign exchange brokerages
6. Financial, insurance and foreign exchange consultation
7. Production, processing, wholesales and retail of gold, silver, gems and jewelry

XVI. Miscellaneous
1. Printing, publishing and issuing business (the Chinese party will be the holding party or play a leading role)
2. Testing, appraising and attestation business of import and export goods (wholly foreign - owned enterprises are not allowed)
3. Production, publishing and issuing of audio and video products and electronic publication (the Chinese party will be the holding party or play a leading role)

XVII. Other industries restricted by the State or International Treaties that China has concluded or take part in

Prohibited Foreign Investment Industries

I. Agriculture, Forestry, Animal 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, dark 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, and ingot-shaped tablets of Chinese ink

III. Power Industry and Urban Public Utility
1. Construction and management of electricity network
2. Construction and 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. Petroleum Industry, Petrochemical Industry and Chemical Industry
1. Mining and processing of szaibelyite
2. Mining and processing of celestine

VI. Medicine industry
1. Traditional Chinese medicines which have been listed as State protection resources (musk, licoriceroot, etc.)
2. Preparing technique of traditional Chinese medicine, in small pieces ready for decoction and products of secret recipe of traditional Chinese medicine already prepared

VII. Transportation and Post & Telecommunications Service
1. Management of post and telecommunications business
2. Air traffic control

VIII. Trade and Finance
1. Commodity future, financial future and related fines business

IX. Broadcasting and Film Industries
1. Broadcasting stations, TV stations (networks) at various levels, lanching stations and relay stations
2. Production, publishing, issuing or showing of films
3. Video tape showing

X. Journalism

XI. Manufacturing industry of Weapons

XII. Miscellaneous
1. Projects that endanger the safety and performance of military facilities
2. Developing and processing of carcinogenic, teratogenic, and mutagenesis raw materials
3. Racecourse, gambling
4. Pornographic service

XIII. Other industries Prohibited by the State or by international Treaties China Has Concluded or Taken Part In

ANNEX

INTERIM PROVISIONS ON GUIDING FOREIGN INVESTMENT DIRECTION

[Note] (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)

Full Text

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 and 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 foreignowned
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.