BIZCHINA / Foreign Investment Catalogue
Provisions on Guiding Foreign Investment Direction
Updated: 2006-04-18 17:01
(Approved and promulgated by the State Council on Feb. 21, 2002.)
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 in accordance with the plan of the national
economy and social development of our country, and to serve the purpose
of protecting legitimate rights and interests of investors.
Article 2 These provisions shall apply to the projects of Sino-foreign
equity joint ventures, Sino-foreign contractual joint ventures, wholly
foreign owned enterprises(hereafter referred to as "foreign investment
enterprises"), as well as to other forms of foreign investment (hereafter
referred to as "foreign investment projects") within the territory of the
People's Republic of China.
Article 3 The State Development Planning Commission (SDPC), the State
Economy and Trade Commission (SETC) and the Ministry of Foreign Trade and
Economic Cooperation (MOFTEC), in conjunction with the concerned
ministries of the State Council, shall formulate Catalogue for the
Guidance of Foreign Investment Industries and Catalogue of Advantaged
Industries for Foreign Investment in Mid-west China, and promulgate these
Catalogues after approval of the State Council. According to practical
circumstance that partial adjustment need to be made to these Catalogues,
SETC, SDPC and MOFTEC, in conjunction with the concerned ministries of
the State Council shall make revision and promulgation in time.
Catalogue for the Guidance of Foreign Investment Industries and Catalogue
of Advantaged Industries for Foreign Investment in Mid-west China shall
be the basis for the guidance of examination and approval of foreign
investment projects and for the policy application of foreign investment
enterprises.
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 Catalogue for the Guidance of Foreign
Investment Industries. Those permitted foreign investment projects which
do not belong to the above three categories are not to be listed in
Catalogue for the Guidance of Foreign Investment Industries.
Article 5 Those foreign investment projects under one of the following
circumstances shall be listed as encouraged foreign investment projects:
1. Projects for new agricultural technology, comprehensive agricultural
development and for energy, transportation and key raw materials
industries;
2. Projects for new and high technology, advanced applicable technology
which can improve performance of products and increase tech-economic
efficiency of enterprises or produce new equipment and new material that
domestic capacity is deficient.
3. Projects that meet market demands, and can promote the quality of
products, enter into new markets or strengthen the competing capability
of products in intentional markets.
4. Projects adopting new technology and new equipment for saving energy
and raw materials, for comprehensive utilization of resources and
renewable resources, and for prevention environment pollution;
5. Projects that can make full use of man power and resource advantage in
mid-west region and are in accordance with the State's industrial
policies;
6. Other cases that are regulated by laws and administrative regulations
of the State.
Article 6 Those foreign investment projects under one of the following
circumstances shall be listed as restricted foreign investment projects:
1. Projects adopting out-of-date technologies;
2. Projects unfavorable to resource-saving and ecological environment
improvement;
3. Projects for resources protected by laws and regulations of the State;
4. Projects in those industries that shall be opened gradually;
5. Other cases that are regulated by laws and administrative regulations
of the State.
Article 7 Those foreign investment projects under one of 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 environment, destroy natural resources or impair
the health of human beings;
3. Projects that occupy large amounts of arable land, unfavorable to
protection and development of land resources;
4. Projects that endanger the safety of military facility and its
performance;
5. Projects that adopt the unique craftsmanship or technology of our
country to make products;
6. Other cases that are regulated by laws and administrative regulations
of the State.
Page: 1 2
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Foreign firms look to hotel sector
� Steelmakers to reject 19% iron ore hike
� Talks start over gov't contracts
� Boeing expects B747-8 success in Asia
� Money supply growth still climbing
Today's Top News
� 21 killed, 1mln evacuated as typhoon hits S.China
� FM brands spying claims 'fictitious'
� US gov't limits Chinese computers use
� Chairman Mao portrait up for auction
� Pay rises by 16% for State sector workers
Top Biz News
� China bans import, export of endangered species
� China Mobile in talks with Google to add Web services
� UK offers aid to improve life in poorest areas
� Nation's first A380 pilot to receive training
� Export of fishery workers to Taiwan resumed
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Learn Chinese
