Order No.24 of the National Development and Reform Commission and the Ministry of Commerce


In order to accommodate with the demands of national economic and social development and industrial restructure, the Catalogue of Encouraged Foreign Investment Industries and its Appendix have been enacted, are hereby promulgated and shall come into effect as of January 1, 2005. The Guiding Catalogue of Foreign Invested Industries promulgated by the former State Development Planning Commission, the former State Economy and Trade Commission and the former Ministry of Foreign Trade and Economic Cooperation on March 11, 2002 shall be simultaneously repealed.


Director of the National Development and Reform Commission: MA, Kai
Minister of the Ministry of Commerce: BO, Xilai
November 30, 2004



CATALOGUE OF ENCOURAGED FOREIGN INVESTMENT INDUSTRIES 

I. Agriculture, forestry, animal husbandry, and fishery 

1. Transformation of cropland with low to medium yield 

2. Development of nuisance-free cultivation techniques for vegetables (including domestic fungus, watermelon, and muskmelon), fruits, and tea, and production of such products series 

3. Development and production of new technologies for high quality and high yield of such agricultural crops as sugar plants, fruit trees, flowers, forage grass, etc. and new varieties of products 

4. Construction and operation of bases for flower production and seeding nursery 

5. Return to cropland and comprehensive utilization of straws of agricultural crops, development and production of organic fertilizer resources 

6. Planting and cultivation of traditional Chinese medicinal materials (limited to Chinese-foreign equity and cooperative joint ventures) 

7. Building forest trees (bamboos) and cultivation of improved varieties 

8. Planting of caoutchouc, sisal hemp, and coffee 

9. Breeding of excellent breeding livestock and poultry as well as aquatic product offspring (except rare improved varieties owned by China exclusively) 

10. Aquatic breeding of well-known, special, and high-grade aquatic products and deep-water live and wired cage aquatic breeding 

11. Construction and operation for ecological environment protection projects such as tree and grass planting to prevent and control desertification and water loss and soil erosion 


II. Excavating industry 

*1. Risk prospecting and exploitation of petroleum and natural gas 

*2. Development of low-leakage oil and gas pools (fields) 

*3. Development and application of new technologies to improve the percentage recovery of crude oil 

*4. Development and application of new technologies to prospect and exploit petroleum such as geophysical prospecting, well drilling, well logging, and borehole operation 

5. Prospecting and exploitation of coal and associated resources 

6. Prospecting and exploitation of coal-bed gas 

7. Exploitation of gold mines with low grade and difficulty to be separated and smelted and mineral separation (limited to Chinese-foreign equity and cooperative joint ventures) 

8. Prospecting, exploitation, and mineral separation of iron ore mines and manganese ore mines 

9. Prospecting and exploitation of copper, lead, and zinc ore mines (limited to Chinese-foreign equity and cooperative joint ventures, and solely foreign-funded enterprises may be allowed in western regions) 

10. Prospecting and exploitation of aluminum ore mines (limited to Chinese-foreign equity and cooperative joint ventures, and solely foreign-funded enterprises may be allowed in western regions) 

11. Exploitation and mineral separation of such chemical ore mines such as sulfur, phosphor, and kalium 


III. Manufacturing industries 

(1) Food processing industry 

1. Storage and processing of grain, vegetables, fruits, livestock and poultry products 

2. Processing of aquatic products, cleaning and processing of shellfish, and development of marine algae function foods 

3. Development and production of fruit and vegetable beverage, albumen beverage, tea beverage, and coffee beverage 

4. Development and processing of foods for babies and senior citizens and function foods 

5. Production of dairy products 

6. Development and production of biological feedstuff and albumen feedstuff 

(2) Tobacco processing industry 

1. Processing of secondary cellulose acetate and filament bundle 

2. Production of paper-making tobacco slices 

(3) Textile industry 

1. Production of special textile products for engineering 

2. Twining, dyeing, and subsequent assortment as well as processing of high-grade face fabric 

(4) Industry of leather and fur products 

1. New technology processing of wet blue pig hide, cattle hide and goat hide 

2. New technology processing of subsequent leather finishing 

(5) Industry of wood processing, bamboo, vine, palm, and grass products 

1. Development of new technologies for comprehensive utilization of "inferior, small, and firewood" wood in forest regions and bamboos, and production of new products 

(6) Industry of paper making and paper products 

1. Construction on the basic of forest-paper integrated mode of chemical wood pulp with the annual yield of 300,000 tons or more, chemic ground wood  with the annual yield of 100,000 tons or more(limited to Chinese-foreign equity and cooperative joint ventures) 

2. Production of high-grade paper and paperboards (limited to Chinese-foreign equity and cooperative joint ventures) 

(7) Industry of petroleum processing and coking 

1. Deep processing of needle coke and coal tar 

2. Production of asphalt for roads with heavy traffic 

(8) Industry of chemical raw materials and chemical products manufacturing 

1. Production of alpha olefin through catalytic cracking of heavy oil 

2. Production of ethylene with the scale of annual output of 600,000 tons or more (relatively controlled by the Chinese parties) 

3. Comprehensive utilization of C5 to C9 byproducts of ethylene 

4. Production of large-scale polyvinyl chloride resin (ethylene method) 

5. Production of chemical products of organic chlorine series (except high-residue organic chlorine products) 

6. Production of basic organic chemical raw materials such as benzene, toluene, xylene, glycol and their derivatives products 

7. Production of auxiliary raw materials for composite materials: bisphenol A, 4.4' diphenylmethane vulcabond, and toluene diisocynate 

8. Production of synthetic fiber raw materials: pure p-Phthalic Acid, acrylic nitrile, caprolactam, and adipic acidhexamethylene diamine salt 

9. Production of synthetic rubber: liquor buna s rubber, butyl rubber, synthetic polyisoprene, butadiene process chlorobutadiene rubber, diisocyanate rubber, acrylic rubber, and chloro hydrin rubber 

10. Production of engineering plastics and plastic alloy 

11. New products and technologies for fine chemistry: catalyzer, accessory ingredient, petroleum additive, processing technologies for commercialization and dyestuff (coloring agents), and production of hi-tech chemicals for electronics and paper making, food additive, feed additive, leather chemicals, auxiliary agents for oilfields, surface active agents, amps, adhesive, inorganic fiber, and inorganic powder filling agents 

12. Production of auxiliary agents, finishing oil, and dyestuff for spinning, weaving, and chemical fiber spinning 

13. Production of automobile tail gas cleanser, catalyzer, and other auxiliary agents 

14. Production of natural aromatic substance, aromatic chemicals, and separately distilled aromatic substance 

15. Production of high-performance coating compound 

16. Production of chlorination process titanium dioxide 

17. Production of fluoro-chloro-hydrocarbon substitutes 

18. Production of large-scale coal chemicals 

19. Development and production of new technologies and new products for forestry chemicals 

20. Production of ion film for sodium hydroxide 

21. Production of bio fertilizer, heavy concentration chemical fertilizers (potash fertilizer and phosphor fertilizer), and compound fertilizer 

22. Development and production of new varieties of high-efficiency, low-toxin, and low-residue pesticidal chemicals 

23. Development and production of biological pesticides 

24. Development and production of organic, inorganic, and biological film for environmental protection 

25. Comprehensive utilization, handling, and disposal of waste gas, waste liquid, and waste residues 

(9) Pharmacy 

1. Production of medicine raw materials under this State's patent or administrative protection and chemical medicine raw materials to be imported 

2. Production of vitamins: nicotinic acid 

3. Production of amino acid: serine, tryptophan, and histidine 

4. Production of antipyretic analgesics through adopting new technologies and equipment 

5. Production of new-type anticancer pharmaceuticals and new-type pharmaceuticals for blood vessel of brain and heart 

6. Production of new-type, high-efficiency, and economical contraceptives and anticonceptives 

7. Production of new-type medicines through adopting biotechnology 

8. Production of gene engineering vaccine (AIDS vaccine, B-type hepatitis vaccine, contraception vaccine, etc.) 

9. Development and production of sea medicines 

10. Production of dialogists agents for AIDS and radio immunity 

11. Production of new does types and new products of medicine preparations adopting such new technologies as slow release, controlled release, targeting, skin-infiltrating absorption, etc. 

12. Development and application of new-type medicinal adjuvant 

13. Processing and production of traditional Chinese medicinal materials, extractives from traditional Chinese medicinal materials, and prepared Chinese medicines (except traditional techniques to prepare traditional Chinese medicines prepared in ready-to-use forms) 

14. Production of biomedical materials and products 

15. Production of antibacterial medicine raw materials for animals (including antibiotics and chemical synthesis) 

16. Development and production of new products and new dose types of antibacterial medicines, antihelmintic, vermifuge, anti-coccidium medicines 

(10) Industry of chemical fiber making 

1. Production of differentiated chemical fibers and such hi-tech chemical fibers as aramid fiber, functionalized environmental urethane elastic fiber with annual yield of 5,000 tons or more, carbon fiber and ultra high molecular weight polyethylene

2. Production of environmental protection type chemical fibers such as direct viscose innocuity spinning fibers 

3. Production of polyester not for fiber with the daily output of 500 tons or more, and production of fibers and new type polyester (PTT, PEN, PBT, etc.) not for fiber 

(11) Industry of plastic products 

1. Production of medlin fresh-keeping film 

2. Development and production of new agricultural film technologies and new products (including photolysis film, multifunctional film, raw materials, etc.)

3.      Counteracting and recycling of waste and second-hand plastics 

(12) Industry of non-metal mineral products 

1. Production of high-quality float glass with the daily melting of 500 tons or more (limited to central and western regions) 

2. Production of cement clinker and new-type dry process cement with the daily output of 2,000 tons or more (limited to central and western regions) 

3. Production of fiberglass (Tank Furnace Drawn Wire technique product line) and glass reinforced plastics products with the annual output of 10,000 tons or more 

4. Production of high-grade sanitation porcelain with the annual output of 500,000 pieces or more 

5. Production of high-grade decoration materials for standardized refining of ceramics raw materials and ceramics 

6. Production of high-grade fire resisting materials for kilns of glass, ceramics, and glass fiber 

7. Production of inorganic non-metal materials and products (artificial lens, high-performance compound materials, special glass, special ceramics, special encapsulation materials, and special cement) 

8. Production of new-type building materials (light high-strength multifunctional wall materials, high-grade environmental protection type decoration materials, high-quality waterproof sealing materials, high-efficiency heat preservation materials) 

9. Deep processing of non-mental (superfine grinding, high purity, refining, and modification) 

(13) Industry of smelting and calendering of ferrous metal 

1. Production of direct-reduced iron and fusing-reduced iron 
 
(14) Industry of smelting and calendering of nonferrous metal 

1. Smelting of gold mines with low grade and difficulty to be separated and smelt and mineral separation (limited to Chinese-foreign equity and cooperative joint ventures, and solely foreign-funded enterprises may be allowed in western regions) 

2. Production of carbide alloys, stannic compound, and antimony compound 

3. Production of compound materials and new-type of alloy materials of nonferrous metal 

4. Application of rare earth 

(15) Industry metal products 

1. Design and making molds for non-mental products 

2. Design and making of molds for automobiles and motorcycles (including dies, jet molding molds, and contour forging molds), and clamping devices (welding clamping devices, inspection clamping devices, etc) 

3. Development and production of hardware for high-grade buildings, hot-water heating apparatus and hardware 

(16) Industry of general mechanical engineering

1. Manufacturing of three (or more)-axis linkage numerically-controlled machines, numerical control system, and servomechanism installation 

2. Manufacturing of high-performance welding robots and high-performance welding equipment 

3. Production of high temperature resistant insulating materials (insulating degrees: F and H) and paper moulded insulating parts 

4. Production of proportion and servo oil hydraulics, low-power pneumatic control valves, and filling compound gasket type seal 

5. Production of refined dies, precise cavity die, and standard parts for molds 

6. Making of precise bearings and bearings specialized for all kinds of principal machine 

7.      Making of forging and casting blanks for automobiles and motorcycles 

(17) Industry of manufacturing specialized equipment 

1. Development and manufacturing of new technologies and new equipment to store, keep fresh of, classify, pack, dry, transport, and process foods, cotton, oil plants, fruits, flowers, forage grass, meet foods, and aquatic products 

2. Manufacturing of agricultural equipment 

3. Manufacturing of new technological equipment for the agriculture and forestry 

4. Design and manufacturing of such agricultural engines such as tractors and combine harvesters 

5. Manufacturing of equipment to return straws of agricultural crops to cropland and comprehensive utilization of them 

6. Manufacturing of equipment for comprehensive utilization of agricultural wastes and wastes from livestock and poultry breeding of scale. 

7. Manufacturing of new technological equipment for water-saving irrigation 

8. Manufacturing of machines for wetland earth work and dredging 

9. Manufacturing technological equipment for environmental protection of the aquatic ecosystem 

10. Manufacturing of equipment for the dispatching system for the long-distance water-dispatch project 

11. Manufacturing of special flood prevention and emergency-dealing machines and equipment 

12. Manufacturing of key equipment such as high-speed and aseptic filling equipment and label affixing machines 

13. Development and manufacturing of production technologies and key equipment for amino acid, enzyme preparation, and food additive 

14. Production of complete-set equipment and key parts for feedstuff processing at the speed of 10 tons or more per hour 

15. Manufacturing of continuous paper, and unit-paper and multi-color rotary offset machines above folio 

16. Manufacturing of new technological equipment for subsequent leather finishing 

17. Manufacturing of sewing machines for special industries with high technological contents 

18. Manufacturing of complete-set equipment such as new-type textile machines and new-type paper (pulp)-making machines 

19. Design and manufacturing of new-type mechanical equipment for highways and ports 

20. Manufacturing of equipment for maintenance of automatic detection of highways and bridges 

21.     Manufacturing of equipment for the system of operation supervision, ventilation, disaster prevention, and salvation for highway tunnels 

21. Design and manufacturing of large-volume construction and maintenance equipment for railways 

22. Manufacturing of new technological equipment for gardening machines and tools 

23. Manufacturing of special equipment for urban environmental sanitation 

24. Manufacturing of mechanical equipment to level and overhaul road surface 

25. Manufacturing tunnel excavators and urban metro excavating equipment 

26. Manufacturing of urban sewage processing equipment with the daily processing capacity of 80,000 tons or more, industrial waste water processing equipment, up flow type anaerobic fluid bed equipment, other biological waste-water processing equipment, waste plastic restoration process equipment, industrial boiler desulfuration and denitrifying equipment, large-volume, high temperature resistant, acid resistant, and bag-type dust catchers, refuse burning processing equipment 

27. Manufacturing of turbo compressors and mixing tablet machines from the complete-set equipment for ammonia synthesis with annual output of 300,000 tons or more, for cabamide with annual output of 480,000 tons or more, and ethylene with annual output of 450,000 tons or more 

28. Manufacturing of technology and equipment of sulfur removal for thermal power plants 

29. Manufacturing of light-sheet conticasters 

30. Flat glass deep-processing technology and equipment manufacturing 

31. Manufacturing of downhole railless exploiting, loading, and transporting equipment, mechanical drive self-unloading vehicles for mines with the load capacity of 100 tons or more, movable crushers, bucket wheel excavators with the speed of 3,000 cubic meters or more per hour, mechanical loaders for mines of five cubic meters or more, and gross-section laneway excavators 

32. Design and Manufacturing of new-type apparatus for petroleum prospecting and exploitation 

33. Manufacturing of electromechanical well cleansing equipment and production of pharmaceuticals 

34. Manufacturing of electronic endoscope 

35. Manufacturing of 80-kilowatt or higher X-ray assembling units for medical purposes with high frequency technology, direct digital image processing technology, low radiation dose 

36. Manufacturing of magnetic resonance imaging (MRI) installations with high field intensity and supraconduction 

37. Manufacturing of machines only for blood plasma sampling 

38. Manufacturing of full-automatic enzyme immunity system equipment (including some functions as application of sample, microplate reader, incubation, and subsequent data processing) 

39. Manufacturing of new technologies and new equipment for control over quality of pharmaceutical products 

40. Development of new technologies for analysis of effective substances in traditional Chinese medicines, development of new techniques to distill such substances, and manufacturing of new equipment to distill such substances 

41. Manufacturing of new-type packing materials and cases for medicines and advanced pharmaceutical equipment 

(18) Industry of manufacturing transport and communication facilities 

1. *Manufacturing of entire automobiles (including research and development)

2. Manufacturing of engines for automobiles (including research and development)

3. Manufacturing of automobile components and parts: caliper type brake assembly, driving axle assembly, automatic transmission case, diesel engine fuel injection pumps, engine admission turbochargers, engine discharging control installations, electrical power steering, viscous coupling (used for four-wheel drive), air shock adsorbed, air suspension, hydraulic pressure jib and cluster gauge 

4. Manufacturing of automobile electronic devices (including engine control system, chassis control system and car body electronic control system) 

5. Manufacturing of special custom built automobiles such as special dune buggy for the petroleum industry 

6. Design and manufacturing of motor vehicles and main parts for railway transportation, design and manufacturing of track and bridge equipment, high-speed railway technology and equipment manufacturing, manufacturing of equipment for telecommunication signals and transportation safety supervision, and manufacturing of equipment and devices for electric railways 

7. Design and manufacturing of rail-transport and communication facilities for urban areas: motor train units and main parts for metros and urban light rail 

8. Design and manufacturing of civil aircrafts (controlled by the Chinese parties) 

9. Manufacturing of components and parts for civil aircrafts 

10. Design and manufacturing of civil helicopters (controlled by the Chinese parties) 

11. Design and manufacturing of aero engine (controlled by the Chinese parties) 

12. Design and manufacturing of civil airborne equipment (controlled by the Chinese parties) 

13. Manufacturing of light combustion gas turbine 

14. Design and manufacturing of crankshaft for low-speed diesel engines of watercrafts 

15. Repair, design and manufacturing of special watercrafts and high-performance watercrafts (controlled by the Chinese parties relatively) 

16. Design and manufacturing of middle to high-speed diesel engines, auxiliary set, wireless communication equipment, navigators and parts for watercrafts (controlled by the Chinese parties relatively) 

17. Manufacturing of fiberglass reinforced plastics fishing vessels and yachts 

(19) Industry of manufacturing electric machines and equipment 

1. Manufacturing of thermal power equipment: supercritical units of 600,000 KW and above, large-volume combustion gas turbine, combustion gas-steam combined cycle generation equipment of 100,000 KW and above, IGCC, PFBC, large-volume air cooling units of 600,000 KW and above, and large-volume CFB boiler of 300,000 KW (limited to Chinese-foreign equity and cooperative joint ventures) 

2. Manufacturing of hydraulic power equipment: large-volume pump storage groups of 150,000 KW and above, and large-volume outer gate barrel units of 150,000 KW and above 

3. Manufacturing of nuclear electric power units: units of 600,000 KW and above (limited to Chinese-foreign equity and cooperative joint ventures) 

4. Manufacturing of electricity transmission and transformation equipment: ultra-voltage DC transmission and transformation equipment of 500 KV and above (limited to Chinese-foreign equity and cooperative joint ventures) 

(20) Industry of manufacturing electronic and communication equipment 

1. Manufacturing of digital TV sets, digital video cameras and recorders, digital record-replay equipment, and digital sound reproduction equipment 

2. Production of new-type panel displays, color display tubes with medium to high-resolution power and glass bulbs 

3. Manufacturing of key parts such as optical engine, light source, projection screen, high-definition project tube and LCOS module used for color projection display of large screen

4. Manufacturing of digital audio and video frequency decoders, digital broadcasting and television studio equipment, digital CATV system equipment, and digital audio frequency broadcasting transmitting equipment 

5. Design of integrated circuits and production of large-volume integrated circuits with the line width of 0.35 micron or below 

6. Manufacturing of medium to large-volume computers, portable microcomputers, and high-grade servers 

7. Development and manufacturing of bulk-memory CD-ROM and disk drivers and their parts 

8. Manufacturing of CAD, CAT, CAM, CAE, and other computer application systems 

9. Development and production of software products 

10. Development and production of materials specialized for semiconductors, components, and parts 

11. Manufacturing of specialized electronic equipment, testing instruments, and tools as well as molds 

12. Production of new-type electronic components and parts (piece-like parts and components, sensitive components and parts as well as sensors, frequency control and selection components and parts, hybrid integrated circuits, electronic devices for electric power, optoelectronic devices, and new-type electromechanical components and parts) 

13. Production of hi-tech "green" batteries such as no-mercurial alkali-manganese batteries, dynamical nickel-hydrogen batteries, lithium ion batteries, high-volume closed-cycle maintenance-free lead acid batteries, fueling batteries, cylindrical-model zinc-gas batteries, etc. 

14. Development and production of key parts for high-density digital optical disk drives 

15. Copy of read-only discs and production of recording discs 

16. Design and manufacturing of commercial satellites (controlled by the Chinese parties) 

17. Manufacturing of useful load for commercial satellites (controlled by the Chinese parties) 

18. Manufacturing of components and parts for commercial satellites 

19. Design and manufacturing of carrier missiles for civil use (controlled by the Chinese parties) 

20. Manufacturing of satellite communication system equipment 

21. Manufacturing of satellite navigation, navigation, and receiving equipment and key critical components (limited to Chinese-foreign equity and cooperative joint ventures) 

22. Manufacturing of optical fiber preform 

23. Manufacturing of digital microwave synchronous transmitting equipment of 622 mega-bit/second 

24. Manufacturing of optical synchronous transmitting equipment of 10 mega-bit/second 

25. Manufacturing of communication system equipment for the broadband connection network 

26. Manufacturing of OXC 

27. Manufacturing of ATM and IP data communication system 

28. Manufacturing of mobile phones, base stations, exchange equipment, and digital concentrating system equipment for the mobile communication system (GSM, CDMA, DCS1800, DECT, IMT2000, etc.) 

29. Development and manufacturing of high-extreme routers and network exchangers of 1,000 mega-bit or above 

30. Manufacturing of equipment for the Air Traffic Control System (limited to Chinese-foreign equity and cooperative joint ventures) 

(21) Industry of manufacturing instruments and meters as well as machines for cultural and office purposes 

1. Development and manufacturing of digital cameras and critical components 

2. Development and manufacturing of precise online metering equipment 

3. Manufacturing of new technological equipment for instruments for safe production and environmental protection detecting 

4. Manufacturing of new technological equipment for water quality and fume online monitoring instruments 

5. Manufacturing of instruments and equipment for hydrographic data gathering, processing, transmission, and flood prevention early-warning 

6. Production of new-type components, parts, and materials for instruments (mainly referring to such new-type switches and functional materials for instruments as intelligence-type sensors for instruments, socket connectors for instruments, flexible circuit boards, photoelectric switches, proximity switch, etc.) 

(22) Other manufacturing industries 

1. Development and utilization of clean coal technology products (coal gasification, coal liquefaction, water gas, and industrial section coal) 

2. Coal dressing by washing and comprehensive utilization of fly ash (including devulcanizing gypsum), gangue, etc. 


IV. Industries of production and supply of electric power, coal gas, and water 

1. Construction and operation of thermal power plants with the unit capacity of 300,000 KW and above 

2. Construction and operation of power plants using clean coal burning technology 

3. Construction and operation of power plants with combined heat and power 

4. Construction and operation of natural gas power plants 

5. Construction and operation of power plants with priority to electricity generation 

6. Construction and operation of nuclear power plants (controlled by the Chinese parties) 

7. Construction and operation of new energy source power plants (including solar energy, wind energy, magnetic energy, terrestrial heat energy, tide energy, biomass energy, etc.) 

8. Construction and operation of urban water supply plants 


V. Water management industry 

1. Construction and operation of comprehensive hydro junctions (relatively controlled by the Chinese parties) 


VI. Industries of traffic, warehousing, post, and telecommunication 

1. Construction and operation of trunk railway network (controlled by the Chinese parties relatively)

2. Construction and operation of feeder railways, local railways, and their bridges, tunnels, and ferry facilities (limited to Chinese-foreign equity and cooperative joint ventures) 

3. Construction and operation of highways, independent bridges, and tunnels

4. Construction and operation of public terminal facilities for ports 

5. Construction and operation of airports for civil use (controlled by the Chinese parties relatively) 

6. Air transportation companies (controlled by the Chinese parties) 

7. Agriculture, forestry, and fishery general-purpose airline companies (limited to Chinese-foreign equity and cooperative joint ventures) 

*8.  Regular or irregular international ocean transportation businesses 

*9.  International container multi-modal transport businesses 

*10. Highway cargo transportation companies 

11. Construction and operation of petroleum (gas) delivery pipes, petroleum (gas) depots, and docks specialized for petroleum 

12. Construction and operation of coal pipe transportation facilities 

13. Construction and operation of warehousing facilities related to transportation businesses 


VII. Wholesale and retail trade industries 

*1. Wholesale, retail, and distribution of general goods 


VIII. Industry of real estate 

1. Development and construction of general residential housing 


IX. Industries of social services 

(1) Industry of public facility services 

1. Construction and operation of closed-type roads in urban areas 

2. Construction and operation of urban metros and light rails (controlled by the Chinese parties) 

3. Construction and operation of sewage and refuse processing factories, factories to handle and dispose dangerous wastes (burning factories and landfill) and facilities to prevent and control environmental pollution 

(2) Information and consulting service industries 

1. International economic, science and technology, and environmental protection information consulting services 

*2. Accounting and auditing 


X. Industries of health, sports, and social welfare 

1. Services for the aged and the disabled 


XI. Industries of education, culture and arts, broadcasting and movie 

1. Institutions of higher education (limited to Chinese-foreign equity and cooperative joint ventures) 


XII. Scientific research and comprehensive technical service industries 

1. Biological engineering and biomedical engineering technologies 

2. Isotope, radiation, and laser technologies 

3. Ocean development and ocean energy development technologies 

4. Seawater desalinization and utilization technologies 

5. Ocean monitoring technologies 

6. Energy-saving development technologies 

7. Resource regeneration and comprehensive utilization technologies 

8. Environmental pollution control and monitoring technologies 

9. Anti-desertification and desertification control technologies 

10. Commercial satellite application technologies 

11. Research and development centers 

12. High technology, new products development, and enterprise incubation centers 


XIII. Allowed foreign investment projects whose products shall be directly exported in total 



CATALOGUE OF RESTRICTED FOREIGN INVESTMENT INDUSTRIES 


I. Agriculture, forestry, animal husbandry, and fishery 

1. Development and production of foods (including potato), cotton, and seeds of oil plants (controlled by the Chinese parties) 

2. Processing of crude wood of rare species of trees 


II. Excavating industry 

1. Prospecting and exploitation of mineral products such as tungsten, tin, antimony, molybdenum, barite, fluorite, etc. (limited to Chinese-foreign equity and cooperative joint ventures) 

2. Prospecting and exploitation of noble metal (gold, silver, and platinum)

3. Prospecting and exploitation of noble non-metal ores such as diamond 

4. Prospecting and exploitation of special and rare coal varieties (controlled by the Chinese parties) 

5. Exploitation of boromagnesite and magnesioludwigite 

6. Exploitation of celestite 


III. Manufacturing industries 

(1) Food processing industry 

1. Production of yellow wine and well-know and high-quality distilled spirit 

2. Production of soda pop of foreign brands 

3. Production of compound food sweetening agents 

4. Grease processing 

(2) Tobacco processing industry 

1. Production of cigarettes and filter tip 

(3) Textile industry 

1. Wool spinning and cotton spinning 

2. Silk reeling 

(4) Printing and reproduction industries 

1. Printing of publications (controlled by the Chinese parties, except printing of decoration publications) 

(5) Petroleum processing and coking industries 

1. Construction and operation of refineries 

(6) Industry of chemical feedstock and chemical products 

1. Production of ion film sodium hydroxide 

2. Production of photorecording materials 

3. Production of benzidine 

4. Production of easily-making toxicant chemicals (ephedrine, 3, 4-methylenedioxyphenyl-2-propanone, phenylacetic acid, 1-phenyl-2-propanone, heliotropin, safrole, isosafrole, and acetic anhydride) 

5. Production of sulfuric acid method titanium dioxide 

6. Processing of boron, magnesium, and iron ores 

7. Production of barium salt 

(7) Pharmacy 

1. Production of choloramphenicol, penicillin G, cillimycin, gentamycin, dihydrostreptomycin, AMK, tetracycline hydrochloride, terramycin, medemycin, leucomycin, ciprofloxacin, norfloxacin, and o20floxacin 

2. Production of benzalagen, acetaminophen, vitamine B1, vitamine B2, vitamine C, and vitamine E 

3. Production of vaccine and bacterin for the State planning immunity, antitoxin, and toxoid (bacille calmette guerin and vaccine for poliomyelitis, DPT, measles, encephalitis B, and epidemic cerebrospinal meningitis) 

4. Production of medicine raw materials for addiction stupefacient and psychotropic drugs (controlled by the Chinese parties) 

5. Production of blood products 

6. Production of non-self-destruction-type injectors, apparatus infusions, apparatus transfusions, and blood bags 

(8) Industry of chemical fiber manufacturing 

1. Production of chemical fiber spinning for regular slice textile 

2. Production of mucilage glue cut fiber with the single-line capacity of 20,000 tons or less per year 

3. Production of fiber and polyester not for fiber with the daily output of 400 tons or less, and production of urethane elastic fiber 

(9) Industry of rubber products 

1. Production of bias angle tires, junk tire renovation (except belt tires), and low-performance industrial rubber fittings 

(10) Industry of smelting and calendering of nonferrous metal 

1. Smelting and abstraction of rare earth (limited to Chinese-foreign equity and cooperative joint ventures) 

(11) Industry of general mechanical engineering 

1. Production of containers 

2. Manufacturing of small to medium-sized bearings 

3. Manufacturing of auto cranes of 50 tons or less (limited to Chinese-joint equity and cooperative joint ventures) 

(12) Industry of manufacturing specialized equipment 

1. Manufacturing of low to medium-grade B-type ultrasound image displaying instruments 

2. Manufacturing of general terylene filament and cut fiber equipment 

3. Manufacturing of crawler dozers of 320 horse power or less, and wheel loaders of three cubic meters or less (limited to Chinese-foreign equity and cooperative joint ventures) 

(13) Industry of manufacturing electronic and communication equipment 

1. Production of satellite television receivers and their critical components 


IV. Industries of production and supply of electric power, coal gas, and water 

1. Construction and operation of regular coal thermal power plants with priority to electricity generation with the unit capacity of 300,000 KW or less (except small electric networks) 


V. Industries of traffic, warehousing, post, and telecommunication 

1. Highway passenger transportation companies 

*2. Entry and exit automobile transportation companies 

*3. Water transportation companies 

*4. Railway cargo transportation companies 

5. Railway passenger transportation companies (controlled by the Chinese parties) 

6. General airline companies for photographing, prospecting, industry, etc. (controlled by the Chinese parties) 

*7. Telecommunication companies 


VI. Wholesale and retail trade industries 

*1. All kinds of commercial companies for commodity trading, direct selling, mail-order selling, online selling, franchise operation, sales agency, business administration, etc., wholesale, retail, and distribution of foods, cotton, plant oil, sugar, medicines, tobacco, automobiles, crude petroleum, and agricultural production means 

*2. Wholesale and retail of books, newspapers, and periodicals 

*3. Distribution of audiovisual products (except movies) 

4. Auction of commodities 

*5. Goods release companies 

*6. Service agencies (shipping, cargo transportation, customs brokerage for foreign ships, advertising, etc.) 

*7. Wholesale of product oil and construction and operation of fuelling stations 

8. Foreign trade companies 


VII. Finance and insurance industries 

1. Banks, financial companies, and trust and investment companies 

*2. Insurance companies 

*3. Securities companies and securities investment fund management companies 

4. Financial lease companies 

5. Foreign exchange brokerage 

*6. Insurance brokerage companies 


VIII. Industry of real estate 

1. Land tract development (limited to Chinese-foreign equity and cooperative joint ventures) 

2. Construction and operation of high-grade hotels, villas, high-grade office buildings and international exhibition centers 

3. Construction and operation of grand theme parks


IX. Industries of social services 

(1) Industry of public facility services 

1. Construction and operation of pipe networks for fuel gas, heat, and water supply and drainage in medium to large cities (controlled by the Chinese parties) 

(2) Information and consulting service industries 

1. Legal advice 

2. Market survey (limited to Chinese-foreign equity and cooperative joint ventures)


X. Industries of health, sports, and social welfare 

1. Medical organizations (limited to Chinese-foreign equity and cooperative joint ventures) 

2. Construction and operation of gold courses 


XI. Industries of education, culture and arts, broadcasting and movie 

1. Educational institutions at the high-school stage (limited to Chinese-foreign equity and cooperative joint ventures) 

2. Construction and operation of movie theaters (controlled by the Chinese parties) 

3. Production and distribution of radio and TV programs and production of films (controlled by the Chinese parties)


XII. Scientific research and comprehensive technical services 

1. Surveying and mapping companies (controlled by the Chinese parties) 

*2. Companies for inspection, authentication, and certification of import and export goods 


XIII. Other industries restricted by the provisions in international treaties concluded by the State or to which the State has acceded 



CATALOGUE OF PROHIBITED FOREIGN INVESTMENT INDUSTRIES 


I. Agriculture, forestry, animal husbandry, and fishery 

1. Breeding and planting of China's rare improved varieties (including high-quality gene of crop production, animal husbandry, and aquaculture)

2. Production and development of seeds of gene-altered plants 

3. Harvesting of aquatic products in sea areas and inland waters of China 


II. Excavating industry 

1. Prospecting, exploitation, and mineral separation of radioactive minerals 

2. Prospecting, exploitation, and mineral separation of rare earth 


III. Manufacturing industries 

(1) Food processing industry 

1. Processing of green tea with China's traditional techniques and special tea (well-known tea, dark tea, etc.) 

(2) Pharmacy 

1. Processing of traditional Chinese medicinal materials (muskiness, liquorice, jute, etc.) listed into China's protected resources 

2. Application of technologies to prepare traditional Chinese medicines prepared in ready-to-use forms, and production of prepared Chinese medicines based on secret prescriptions 

(3) Industry of smelting and calendering of nonferrous metal 

1. Smelting and processing of radioactive minerals 

(4) Firearms and ammunition manufacture industry 

1. Ivory carving 

2. Tiger bone processing 

3. Production of remolded lacquer works 

4. Production of enamel products 

5. Production of rice paper and ink ingots 

6. Production of products causing cancer, abnormality, and revulsion and permanent organic pollutants 


IV. Industries of production and supply of electric power, coal gas, and water 

1. Construction and operation of electric networks 


V. Industries of traffic, warehousing, post, and telecommunication 

1. Air traffic control companies 

2. Post companies 


VI. Finance and insurance industries 

1. Futures companies 


VII. Industries of social services 

1. Development of wild animal and plant resources under the State's protection 

2. Construction and operation of natural protection zones for animals and plants 

3. Social investigation

4. Gambling and lottery industries (including hippodromes for gambling) 

5. Pornographic industry 


VIII. Industries of education, culture and arts, broadcasting and movie 

1. Basic education (compulsory education) institutions 

2. Publication, overall distribution, and import of books, newspapers, and periodicals 

3. Publication, making, overall distribution, and import of audiovisual products and electronic publications 

4. Press institutions 

5. Broadcasting and television stations, broadcasting and television transmission coverage network (transmit stations, rebroadcast stations, broadcasting and television satellites, satellite television stations, satellite receiving and re-transmitting stations, microwave stations, monitoring stations, cable broadcasting and television transmission coverage network) 

6. Companies that publish and play broadcasting and television programs 

7. Companies that release movies 

8. Video rejecting companies 


IX. Other industries 

1. Projects endangering the safety and performance of the military installations 


X. Other industries prohibited by the provisions in international treaties concluded by the State or to which the State has acceded 

Notes: 1. If otherwise provided in the Mainland and Hong Kong Closer Economic Partnership Arrangement and its supplementary agreement, and the Mainland and Macao Closer Economic Partnership Arrangement and its supplementary agreement, such provisions shall prevail.

2. Entries with * are correlated with China's commitments of entry into the WTO, and please see Appendix for the specific contents. 



APPENDIX TO GUIDING CATALOGUE OF FOREIGN INVESTED INDUSTRIES 

I. Encouraged category 

1. Prospecting and exploitation of petroleum and natural gas, limited to Chinese-foreign contractual joint venture 

2. Development of low-leakage oil and gas pools (fields), limited to Chinese-foreign contractual joint venture 

3. Development and application of new technologies to improve the percentage recovery of crude oil, limited to Chinese-foreign contractual joint venture 

4. Development and application of new technologies to prospect and exploit petroleum such as geophysical prospecting, well drilling, well logging, and borehole operation, limited to Chinese-foreign contractual joint venture 

5. Manufacturing of entire automobiles and motorcycles, with 50% or less foreign capital 

6. Regular or irregular international ocean transportation businesses, with 49% or less foreign capital 

7. International container multi-modal transport businesses, with 50% or less foreign capital, may be held by the foreign parties no later than 11th December 2002, and may be solely invested by the foreign parties no later than 11th December 2005 

8. Highway cargo transportation companies, may be held by the foreign parties no later than 11th December 2002, and may be solely invested by the foreign parties no later than 11th December 2004 

9. Wholesale, retail, and distribution of general goods, see restriction conditions in Item (5) of the restricted category 

10. Accounting and auditing, limited to Chinese-foreign contractual joint venture and partnership 


II. Restricted category 

(1) Entry and exit highway cargo transportation companies, may be held by the foreign parties no later than 11th December 2002, and may be solely invested by the foreign parties no later than 11th December 2004 

(2) Water transportation companies, with 49% or less foreign capital 

(3) Railway cargo transportation companies, with 49% or less foreign capital, may be held by the foreign parties no later than 11th December 2002, and may be solely invested by the foreign parties no later than 11th December 2007 

(4) Telecommunication companies 

1. Paging services out of the value-added telecommunication and basic telecommunication services: may be invested by foreign merchants as of 11th December 2001 with 30% or less foreign capital, may be invested by foreign merchants with 49% or less foreign capital as of 11th December 2002, and may be invested by foreign merchants with 50% or less foreign capital as of 11th December 2003 

2. Mobile sound and data services out of the basic telecommunication services, may be invested by foreign merchants as of 11th December 2001 with 25% or less foreign capital, may be invested by foreign merchants with 35% or less foreign capital no later than 11th December 2002, and may be invested by foreign merchants with 49% or less foreign capital no later than 11th December 2004 

3. Domestic and international services out of the basic telecommunication services, may be invested by foreign merchants no later than 11th December 2004 with 25% or less foreign capital, may be invested by foreign merchants with 35% or less foreign capital no later than 11th December 2006, and may be invested by foreign merchants with 49% or less foreign capital no later than 11th December 2003 

(5) All kinds of commercial companies for commodity trading, direct selling, mail-order selling, online selling, franchise operation, sales agency, business administration, etc., wholesale, retail, and distribution of foods, cotton, plant oil, sugar, medicines, tobacco, automobiles, crude petroleum, and agricultural production means, wholesale and retail of books, periodicals, and newspapers, wholesale of product oil, and construction and operation of fueling stations 

1. Commission-based agency and wholesale (except salt and tobacco): they may be allowable for foreign investment no later than 11th December 2002 with 50% or less foreign capital. However, commission-based agency and wholesale of books, newspapers, magazines, medicines, pesticides, agricultural films, chemical fertilizers, product oil, and crude oil are not allowable for foreign investment; they may by allowable to be held by the foreign parties no later than 11th December 2003; they may be allowable for the foreign parties' sole proprietorship, and the commission-based agency and wholesale of books, newspapers, magazines, medicines, pesticides, and agricultural films, no later than 11th December 2004. Commission-based agency and wholesale of chemical fertilizers, product oil, and crude oil are allowable for foreign investment no later than 11th December 2004. 

2. Retail (except tobacco): it is allowable for foreign investment (retail of books, periodicals, magazines, medicines, pesticides, agricultural films, chemical fertilizers, crude oil is no not allowable to foreign investment). Retail may be allowable for foreign investment with 50% or less foreign capital, and retail of books, newspapers, and magazines may be allowed for foreign investment, no later than 11th December 2002; retail may be allowed for foreign holding no later than 11th December 2003. Retail may be allowable for foreign sole proprietary, and retail of medicines, pesticides, agricultural films, and product oil may be allowable for foreign investment, no later than 11th December 2004; retail of chemical fertilizers may be allowable for foreign investment no later than 11th December 2006. Chain stores that, with 30 or more branch stores, deal in automobiles (restriction hereof shall not be removed no later than 11th December 2006), books, newspapers, magazines, medicines, pesticides, agricultural films, product oil, chemical fertilizers, foods, plant oil, sugar, tobacco, and cotton shall not be held by the foreign parties. 

3. Franchise operation and whole and retail based on non-fixed places: may be allowable for foreign investment no later than 11th December 2004 

(6) Distribution of audiovisual products (except movies), limited to Chinese-foreign cooperative joint venture, controlled by the Chinese parties 

(7) Goods release companies, may be held by the foreign parties no later than 11th December 2002, and may be solely invested by the foreign parties no later than 11th December 2004 

(8) Service agencies 

1. Shipping: with 49% or less foreign capital 

2. Cargo transportation (except services monopolized by the post offices), with 50% or less foreign capital (49% or less foreign capital for express delivery), may be held by the foreign parties no later than 11th December 2002, and may be solely invested by the foreign parties no later than 11th December 2005 

3. Customs brokerage for foreign ships, limited to Chinese-foreign equity and cooperative joint ventures 

4. Advertising, with 49% or less foreign capital, may be held by the foreign parties no later than 11th December 2003, and may be solely invested by the foreign parties no later than 11th December 2005 

(9) Insurance companies 

1. Non-life insurance companies, with 51% or less foreign capital, may be solely invested by the foreign parties no later than 11th December 2003 

2. Life insurance companies, with 50% or less foreign capital 

(10) Securities companies and securities investment fund management companies 

1. Securities companies, may be solely invested by the foreign parties no later than 11th December 2004 with 1/3 or less foreign capital 

2. Securities investment fund management companies, may be invested by the foreign parties with 33% or less foreign capital, and may be invested with 49% or less foreign capital no later than 11th December 2004 

(11) Insurance brokerage companies, with 50% or less foreign capital, may be invested by the foreign parties with 51% or less foreign capital no later than 11th December 2004, and may be solely invested by the foreign parties no later than 11th December 2006 

(12) Companies for inspection, authentication, and certification of import and export goods, may be held by the foreign parties no later than 11th December 2003, and may be solely invested by the foreign parties no later than 11th December 2005