CHINA SCIENCE AND TECHNOLOGY 2002-08
CHINA SCIENCE AND  TECHNOLOGY
NEWSLETTER
The Ministry of Science and Technology
People's Republic of China
　
N0.288 March 10,2002

Guidance Catalog for Foreign Investment
Categories Encouraged for Foreign Investment

1. Agriculture, forestry, animal husbandry and fishery

1) Transformation of low and medium yield farming land.
2) Pollution free techniques for growing vegetables (including edible fungus and water melon), fruits and tea, and development and production of associated product lines.
3) Development of new techniques and species ( excluding genetically modified species) for growing sugar, fruit trees, flowers and grazing grass and associated production.
4) Production of flowers, and construction and operation of flower gardens.
5) Fertilizer applications of crop stalk and associated integrated utilization, development of organic fertilizer resources and associated production.
6) Growing or breeding of Chinese traditional medical materials ( only allowed for joint ventures or cooperation)
7) Timber (bamboo) afforestation and fine species breeding.
8) Growing of natural rubber, sisal hemp and coffee.
9) Reproduction oriented breeding of fine domestic animals, birds and aquatic species (excluding China's unique fine and rare species).
10) Breeding of brand-named, special and fine aquatic products and deep water caged breeding.
11) Construction and operation of ecological environment protection projects such as trees and grass growing aiming at prevention of desertification or soil erosion.

2. Mining industry

*1) Venture prospecting and development of oil and natural gas.
*2) Development of oil and gas reserves (fields) of low permeability.
*3) Development and applications of new techniques able to improve crude oil recovery.
*4) Development and applications of new techniques for oil prospecting and development such as geophysical prospecting, boring, well logging and in-the-pit operation, etc.
5) Prospecting and development of coal and associated resources.
6) Prospecting and development of coal gas.
7) Mining and separation of low grade or difficult metallurgical mines ( only allowed for joint ventures or cooperation. Independent foreign investment may be allowed in the western regions).
8) Prospecting, mining and separation of iron and manganese reserves.
9) Prospecting and mining of copper, lead and zinc ( only allowed for joint ventures or cooperation. Independent foreign investment may be allowed in the western regions).
10) Prospecting and mining of aluminum (only allowed for joint ventures or cooperation. Independent foreign investment may be allowed only in the western regions).
11) Mining and separation of chemical reserves such as sulfur, phosphor and potassium.

3. Manufacturing Industry

1) Food processing.
a. Storage and processing of grains, vegetables, fruits, livestock and poultry products.
b. Processing of aquatic products, cleaning and processing of shell products, and development of algae based functional food.
c. Development and production of fruit and vegetable beverage, protein beverage, tea beverage and coffee beverage.
d. Development and production of baby food, food for aged people and functional food.
e. Production of dairy products.
f. Development and production of biological and protein feed.
2) Tobacco processing.
a. Processing of  diacetin acid fiber and tows.
b. Production of tobacco sheets with paper making method.
3) Textiles.
a. Production of special textile products for engineering applications.
b. Dyeing and finishing of high grade textile materials.
4) Leather and fur processing.
a. New techniques for wet blue pig, beef and sheep skin processing.
b. New techniques for leather finishing and dressing.
5) Timber processing and manufacturing of bamboo, cane, palm and grass products .
a. Development of new techniques and products for integrated utilization of defected, small and firewood timbers in forested areas and bamboo, and associated production.  
6) Paper making and associated products.
a. Construction and operation of projects integrated with timber growing and pulp making for an annual capacity of 300,000 tons chemical pulp or 100,000 tons CTMP, BCTMP or APMP (only allowed for joint ventures or cooperation).
b. Production of high grade paper products, excluding news printing paper.
7) Petroleum processing and coke making.
a. In-depth processing of needle coke and coal tar.
b. Production of tamping coke and dry quenching coke.
c. Production of heavy pitch for road applications.
8) Chemical raw materials and chemical products manufacturing.
a. Heavy oil catalyzing and cracking based alkene production.
b. Ethylene manufacturing with an annual capacity for 600,000 tons or above (Chinese party shall hold relative majority equity).
c. Integrated utilization of by-product of ethylene such as C5-C9.
d. Massive production of Corvic（ethylene approach）.
e. Production of chemical product lines for organic chlorine (excluding the products of high residues).
f. Basic organic chemical raw materials: integrated utilization of derivative products of benzene, methylbenzene and xylol.
g. Supplementary raw materials for synthetic materials: production of  bisgallic acid A, 4．4' diphenyl methane, vulcabond, toluenevulcabond
h. Raw materials for synthetic fiber: production of diphenyl acid, acrylconitrile, hexanediamine, nylon 66 salt.
i. Synthetic rubber: production of soluble butadiene styrene rubber, butyl rubber,  isopentyl rubber, polychloroprene, duprene rubber, polyester rubber; polyurethane rubber; Daltoflex, acrylic rubber, chlorohydrin rubber.
j. Production of engineering plastics and plastic alloy.
k. New products and techniques for fine chemicals, catalysts, auxiliary agent and petroleum additive agent, commercialized processing techniques for dye products, and production of high tech chemicals for electronic and paper making applications, food additive, feed additive, leather chemicals, oil field auxiliary, surface active solvent, water treatment reagent, adhesive and inorganic fiber and powder filling.
l. Production of auxiliary, oiling agent and dye stuff for textile and chemical fiber drawing applications.
m. Production of auto tail gas purifying agent, catalyst and other supporting agents.
n. Production of natural spices, synthetic spices and mono-isolate.
o. Production of high performance paint.
p. Production of chloridized titanium white.
q. Production of fluorochlorohydrocarbon substitutes.
r. Massive production of coal based chemicals.
s. Development of new techniques and products for timber chemicals and associated production.
t. Production of ion film for caustic soda applications.
u. Production of biological fertilizer, high concentration fertilizer (potassium and  phosphor) and compound fertilizer.
v. Development and production of new raw pesticide products of high effect with low toxicity and residue.
w. Development and production of biological pesticides.
x. Development and production of inorganic, organic and biological film for environment protection applications.
y. Integrated utilization, treatment and disposal of waste gas, fluids and dregs.
9）Medication manufacturing industry.
a. Production of raw medicinal materials under China's patent or administrative protection and raw chemical materials that need importation.
b. Production of vitamins and niacin.
c. Production of amino acids, serine, tryptophan and hercynine.
d. Production of  febrifuge and pain killers with new techniques and equipment.
e. Production of advanced anti-cancer medications and cardiovascular and cerebrovascular medications.
f. Production of new, efficient and economic contraceptive tools.
g. Production of new drugs with bioengineering techniques.
h. Production of genetic engineering vaccines (AIDs vaccines, hepatitis C vaccine and contraception vaccine).
i. Development and production of marine medications.
j. Production of reagents for diagnosing AIDS viruses and radioimmuno diseases.
k. Medicinal preparations: production of new prescriptions and products by taking advantage of new techniques such as delayed release, controlled release, targeting and skin penetrated absorption.
l. Development and applications of new medicinal adjuvant.
m. Processing and production of Chinese traditional medical herbs, extracts and Chinese patent drug (excluding traditional preparing techniques for Chinese traditional medicinal tablets).
n. Production of biomedical materials and products.
o. Production of antibacterial raw materials for vet applications, including antibiotics and chemical compounds.
p. Development and production of new products and new prescriptions for vet antibacterial, parasiticide, pesticide, anticoccidium and antifilarial.
10) Chemical fiber manufacturing.
a. Production of high tech chemical fibers such as differentiating chemical fiber, aryl fiber, polyurethane fiber and carbon fibers.
b. Production of environment friendly adhesive and non-toxicant chemical fibers.
c. Production of fiber and non-fiber polyester with a daily capacity for 400 tons.
11) Plastic manufacturing.
a. Production of polyimide freshness keeping film.
b. Development of new techniques for producing farming films of photo degradation or multiple functions, and associated raw material production.
c. Decomposition and recycling of plastic wastes.
12) Non-metal products manufacturing.
a. Production of fine float glass with a daily capacity for 500 tons or above ( only allowed for middle and western regionss).
b. Dry cement production with a daily capacity for 2000 tons or above of clinker ( only allowed for middle and western regionss).
c. Production of glass fiber (from kiln based glass fiber drawing production line) and  glass fiber reinforced plastics with an annual capacity for 10,000 tons or above.
d. Production of high grade ceramics with an annual capacity for 500,000 pieces or above.
e. Standardized fine making of ceramic raw materials and production of high grade ceramic decoration materials.
f. Production of high grade fireproof materials for glass, ceramic and glass fiber kilns.
g. Production of inorganic metalloid materials and associated products (artificial crystals, high performance compound materials, special glass, special ceramics, special sealing materials and special gelatinizing materials).
h. Production of new construction materials (light wall materials of high intensity and multiple functions, high grade environment friendly decoration materials, fine quality waterproof sealing materials and efficient heat preservation materials).
i. In-depth processing of nonmetallic ores  ( super fine smashing, high purity, refining and property changing).
13) Ferrous metal melting, pressing and processing.
a. Production of wide and thick plates.
b. Production of galvanized and erosion resistant lead-zinc alloy plates and coated plates.
c. Production of immediate melting reductive iron.
d. Processing of waste steel.
14) Non-ferrous metal melting, pressing and processing.
a. Production of alumina with an annual capacity for 300, 000 tons or above
b. Melting of low class ores difficult for separation (only allowed for joint ventures or cooperation.  Independent foreign investment may be allowed in the western regions).
c. Production of hard alloy, tin compound and stibium compound.
d. Production of non-ferrous metal compounds and new alloy materials.
e. Applications of rare earth.
15) Metal products manufacturing.
a. Design and manufacturing of non-metal molds.
b. Molds for automobiles and motorcycle including die mold, injection mold, mould pressing mold and fixtures (welding fixture and testing fixture).
c. Development and production of hardware including heating and piping materials for high grade structures and regular hardware.
16) Conventional machinery manufacturing.
a. Manufacturing of digital machine tools, control system and servers geared with at least triaxial.
b. Manufacturing of high performance robot welder and efficient welding equipment.
c. Production of high temperature resistant insulation materials (class F and H) and insulation components.
d. Proportioned and serving hydraulic pressure techniques, low power pneumatic control valve and production under static sealing condition.
e. Production of fine die mold, accurate chamber mold and standard molds
f. Manufacturing of accurate bearing and special bearing of different specifications.
g. Manufacturing of cast semi-finished products for automobile and motorcycles.
17) Special equipment manufacturing.
a. Development of new techniques and equipment manufacturing for storage, freshness keeping, sorting, packaging, drying, shipping and processing of grain, cotton, edible oil, vegetables, fruits, flowers, feed grass, meat and aquatic products.
b. Manufacturing of agricultural facilities and equipment.
c. Manufacturing of farming and forestry machinery with new technology.
d. Design and manufacturing of engines for farming machinery such as tractors and combined harvesters.
e. Manufacturing of equipment for turning crop stalk into fertilizer in the field and associated integrated utilization.
f. Manufacturing of equipment for integrated utilization of rural wastes and wastes discharged from domestic animal or poultry farms.
g. New technologies for water efficient irrigation machinery and associated manufacturing.
h. Manufacturing of machinery for wetland earthwork and sludge cleaning.
i. Environment protection techniques and equipment manufacturing for aquatic ecological system.
j. Manufacturing of commanding system for distant water diversion projects.
k.  Manufacturing of rescuer machinery and equipment for flood events.
l. Manufacturing of key equipment for fast and sterile food filling and sealing as well as sticker making.
m. Production techniques and key equipment manufacturing for amino acid, enzyme preparation and food additive.
n. Production of set equipment and key components for feed processing with a capacity of 10 tons/hour or above.
o. Manufacturing of multiple color offset press for single sheet web or folio.
p.  New techniques and equipment for leather finishing.
q. Manufacturing of high tech industrial sewing machines.
r.  Manufacturing of set equipment for new textile machinery and paper making machinery (including pulp).
s. Design and manufacturing of new machinery and equipment for highway and harbors.
t. Manufacturing of equipment for road and bridge maintenance and self-testing.
u. Manufacturing of equipment for road and tunnel operation monitoring, ventilation, disaster prevention and rescue.
v. Design and manufacturing of equipment for major railway construction and maintenance.
w. New techniques and equipment and tools for gardening.
x. Manufacturing of equipment for urban environment maintenance applications.
y. Manufacturing of equipment for road surface milling and repairing.
z. Manufacturing of equipment for tunnel digging and underground subway digging.
aa. Manufacturing of equipment with a capacity of 80,000 tons/day or above for urban sewage water treatment, industrial waste water, upper stream anaerobic fluid-bed and other biological waste water treatment, waste plastic recycling equipment, industrial boiler desulfur and desaltpetre, large high temperature and acid resistant dust remover and garbage incinerator.
bb. Manufacturing of turbine presser and pellet mixer for set ethylene equipment with an annual capacity of 300,000 tons or above for synthetic ammonia and 480,000 tons or above for urea and 450,000 tons or above for ethylene.
cc. Desulfur techniques and equipment manufacturing for thermal power station.
dd. Manufacturing of continuous thin plate caster.
ee. In-depth processing and equipment manufacturing for flat glass.
ff.  Manufacturing of equipment for underground mining, loading and shipping, automatic mechanic unloading vehicle for 100 tons or above, mobile roller, bucket wheel grab capable for 3000 m3/hour, loading vehicle for 5 m3 and sectional tunnel digger.
gg. Design and manufacturing of new equipment for oil prospecting and development.
hh. Manufacturing of equipment for machinery clearing and production of associated cleaning solvent.
ii. Manufacturing of electronic endoscope.
jj. Manufacturing of 80 kw medical X ray device of high frequency, direct digital image processing with low radiation.
kk. Manufacturing of MRI with high field and strong superconductivity.
ll. Manufacturing of equipment for individual plasma collection.
mm. Manufacturing of full automatic enzyme immune system with functions of sampling, enzyme indicator, washing, incubating and data processing.
nn. New techniques and equipment for medical products quality control.
oo. New techniques for analyzing effective matters in Chinese traditional medications and development of new techniques and equipment for extraction.
pp. Manufacturing of advanced equipment for new medicinal packaging materials, containers and medicine making.
18) Transportation equipment manufacturing.
*a. Manufacturing of automobiles and motor cycles.
c. Manufacturing of automobiles and motor cycles' engines.
d. Manufacturing of key automobile components: brake assembly, driving bridge assembly, transmission gear, diesel engine oil pump, diesel engine turbine supercharger, diesel engine external exhaust control device, filters, constant speed gimbal, shock absorber, gauge panel, special high intensity fixtures.
e. Electronically controlled fuel jet system, electronically controlled ABS system, air bag and other automobile electronic systems.
f. Manufacturing of motorcycles' key components: carburetor, magnetor, starting motor and disk brake.
g.  Manufacturing of special desert vehicle for oil field applications.
h. Railway transportation technologies and equipment: design and manufacturing of locomotive and rolling stocks and associated major components; design and manufacturing of rail lines and bridge equipment; technologies and equipment for high speed trains; equipment for traffic signals and transportation security and equipment for electric railway system.
i. Equipment for fast urban transportation: design and manufacturing of urban light rail locomotives and associated major components.
j. Design and manufacturing of civil aircraft (Chinese party shall hold majority equity).
k. Manufacturing of civil aircraft's components.
l. Design and manufacturing of civil helicopter (Chinese party shall hold majority equity).
m. Design and manufacturing of aircraft engines (Chinese party shall hold majority equity).
n. Design and manufacturing of civil aircraft air-born equipment (Chinese party shall hold majority equity).
o. Manufacturing of light gas burning turbine.
p. Design and manufacturing of diesel engine's crank for slow speed boat.
q. Repairing, design and manufacturing of special boats and high performance boats (Chinese party shall hold relative majority equity).
r. Design and manufacturing of medium and high speed diesel engine, auxiliary engine, radio telecommunication equipment and navigation equipment for boat applications (Chinese party shall hold relative majority equity).
s. Manufacturing of glass fiber reinforced plastic fishing and cruising boats.
19) Electric machinery and equipment manufacturing.
a. Thermal power generation equipment: 600,000 kw super critical generation units and large gas burning turbines; 100,000 kw gas- steam cogeneration units, IGCC, PFBC and 600,000 kw or above air cooling generation units (only allowed for joint ventures or cooperation).
b. Hydraulic power generation units: large pumping generator of 150,000 kw or above and  large through-flow generation units of 150,000 kw or above (only allowed for joint ventures or cooperation).
c. Nuclear power generation equipment: generation units of 600,000 kw or above (only allowed for joint ventures or cooperation).
d. Power transmission and transforming equipment: super high voltage direct current transmission and transforming equipment of 500 kv or above ( only allowed for joint ventures or cooperation).
20) Electronic and telecommunication equipment manufacturing.
a. Manufacturing of digital TV, digital video camera, digital recorder and player, digital audio equipment.
b. Production of new flat displaying components, color kinescopes and display tubes of medium or high resolution and glass tubes.
c. Manufacturing of digital audio and video coding and decoding equipment, digital radio broadcasting and TV studio equipment, digital cable TV system equipment, digital audio broadcasting transmitters.
d. Design and production of large IC products with a width of 0.35 microns.
e. Manufacturing of large and medium electric com puter, portable mini-computer and high performance server.
f. Development and manufacturing of optic and magnetic drivers of large volume and associated components.
g. Manufacturing of 3-D CAD, CAT, CAM, CAW systems and other computation application systems.
h. Development and production of software products.
i. Development and production of special materials for making semiconductor and components.
j. Manufacturing of special electronic equipment, testing instruments and molds.
k. Production of new electronic components ( chip components, sensitive elements and sensors, frequency control and selective components, mixed integrated circuits, power electronic components, optic electronic components and new mechanic electronic components.
l. Production of high tech and environment friendly batteries such as mercury free alkaline-manganese battery, dynamic nickel-hydrogen battery, lithium ion battery, maintenance free high volume and full sealed lead-acid storage battery, fuel cells, cylinder zinc air cells.
m. Development and production of key components for high density digital optic disc unit.
n. Production of CD-R, CD-RW, DVD-R, DVD-ARM.
o. Design and manufacturing of civil satellites (Chinese party shall hold majority equity).
p. Manufacturing of civil satellite payloads (Chinese party shall hold majority equity).
q. Manufacturing of civil satellites' components and parts.
r. Design and manufacturing of civil carrier rockets (Chinese party shall hold majority equity).
s. Manufacturing of satellite telecommunication system.
t. Manufacturing of satellite navigation and receiving equipment and associated key components (only allowed for joint ventures or cooperation).
u. Manufacturing of optic-fiber preparation bar.
v. Manufacturing of series digital microwave synchronous transmission equipment of 622 megabit/second or above.
w. Manufacturing of series optic synchronous transmission equipment of 10 kilomegebit/second or above.
x. Manufacturing of broadband accessing network telecommunication system.
y. Manufacturing of OXC equipment.
z. Manufacturing of ATM and IP data telecommunication system.
aa. Manufacturing of mobile telecommunication system (including GSM, CDMA, DCS1800, PHS, DECT, IMT2000), mobile phone, base station, switch equipment and digital integration system.
bb. Development and manufacturing of high end router, network switchboard of kilomegabit or above.
cc. Manufacturing of air traffic control system (only allowed for joint ventures or cooperation).
21) Instruments and office equipment manufacturing.
a. Development and production of digital camera and associated key components.
b. Development and manufacturing of sophisticated online measuring instruments.
c. New technologies and equipment for production security and environment protection related monitoring and measuring.
d. New technologies and equipment for water quality and smoke watch and measuring.
e. Manufacturing of instruments and equipment for hydraulic data collection, processing and transmission and flood warning.
f. Production of new instruments and gauge components and materials (mainly sensors for intelligent instruments, plug parts, soft circuit board, optic-electric on-off switch, approaching on-off switch and functional materials for instrument applications).
g. Manufacturing of advanced printer devices such as laser and jet printers.
h. Maintenance and service for sophisticated instrument and equipment.
22) Other manufacturing sectors.
a. Development and utilization of clean coal technology and associated products (coal gasification, liquidation, liquid coal slurry and industrial coal).
b. Integrated utilization of coal washing, coal powder including desulfur plaster and gangue .

4. Utilities production and supply

1) Construction and operation of thermal power station with individual unit capacity reaching 300,000 kw or above.
2) Construction and operation of power stations with clean burning technologies.
3) Construction and operation of cogeneration power station for both electricity and heat.
4) Construction and operation of natural gas burning power station.
5) Construction and operation of electricity generation oriented hydraulic power station.
6) Construction and operation of nuclear power station (Chinese party shall hold major equity).
7) Construction and operation of power station using new energy such as solar energy, wind energy, magnetic energy, geothermal energy, tidal energy and biomes energy.
8) Construction and operation of urban water supply works.

5. Water irrigation management

1) Construction and operation of integrated water irrigation network ( Chinese party shall hold relative majority equity).

6. Transportation, storage and post and telecommunication

1) Construction and operation of railway trunk lines ( Chinese party shall hold majority equity).
2) Construction and operation of railway branch lines, local railway lines and associated bridges, tunnels and ferry system ( only allowed for joint ventures or cooperation).
3) Construction and operation of highway, detached bridges and tunnels.
4) Construction and operation of public piers in harbor areas.
5) Construction and operation of civil airports (Chinese party shall hold relative majority equity).
6) Airliners (Chinese party shall hold majority equity).
7) General airliners for agriculture, forestry and fishery ( only allowed for joint ventures or cooperation).
*8) Regular or irregular international ocean-going shipment.
*9) International combined container transport service in different modes.
*10) Highway goods shipment company.
11) Construction and operation of oil (gas) transmission pipeline, oil (gas) tanks and piers for oil transmission.
12) Construction and operation of pipeline based coal transmission facilities.
13) Construction and operation of transportation oriented storage facilities.

7. Wholesales and retails

*1) Wholesale, retail and distribution of regular commodities.

8. Real estate

1) Development and construction of common residential structures.

9. Social services

1) Infrastructures.
a. Construction and operation of urban enclosed roads.
b. Construction and operation of urban subway and light rail system ( Chinese party shall hold majority equity).
c. Construction and operation of sewage water and garbage treatment works, hazardous wastes treatment works such as incinerator and filling ground, and environment pollution control facilities.
2) Information and consultation services.
a. International economy, S&T and environment protection information consultation services.
*b. Accounting and auditing.

10. Health, sports and social welfare

1) Services for aged and disabled population.

11. Education, culture and arts, and radio broadcasting, film and TV

1) Higher learning institutions (only allowed for joint ventures and cooperation).

12. Scientific research and integrated technical services

a. Bioengineering and biomedical engineering technologies.
b. Isotope, radiation and laser technologies.
c. Marine development and marine energy development technologies.
d. Seawater desalination technologies and associated applications.
e. Ocean monitoring technologies.
f. Energy efficiency technologies.
g. Resources cycling and associated integrated utilization technologies.
h. Environmental pollution control and monitoring technologies.
i. Desertification prevention and desert control technologies.
j. Civil satellite applications.
k. Research and development centers.
l. High technology and new products development and industrial incubator centers.

13. Foreign invested projects whose entire products go for export in the Categories Allowed for Foreign Investment.

Categories Restricted for Foreign Investment

1. Agriculture, forestry, animal husbandry and fishery

1) Development and production of grains (including potato), cotton, edible oil seeds (Chinese party shall hold majority equity).
2) Processing of rare species timbers.

2. Mining

1) Prospecting and mining of tungsten, tin, stibium, platinum, barite, fluorite  (only allowed for joint ventures or cooperation).
2) Prospecting and mining of precious metals (gold, silver and platinum).
3) Prospecting and mining of diamond and other precious metalloid ores.
4) Prospecting and mining of special and rare coals (Chinese party shall hold majority equity).
5) Prospecting and mining of  boron-magnesium ore and boron-magnesium-iron ore.
6) Mining of celestite.

3. Manufacturing industries

1) Food processing.
a. Production of rice wine and famous Chinese liquors.
b. Production of foreign brand carbonate beverage.
c. Production of saccharin and other sweeteners.
d. Oil and fat processing.
2) Tobacco processing.
a. Production of cigarettes and filter tips.
3) Textile.
a. Wool and cotton textile.
b. Silk.
4) Printing and photocopying.
a. Publication printing (Chinese party shall hold majority equity, excluding for package and cover printing).
5) Petroleum refinery and coking.
a. Construction and operation of oil refinery.
6) Manufacturing of raw chemical materials and products.
a. Ion film based caustic soda production.
b. Production of photosensitive materials.
c. Production of benzidine.
d. Production of toxicants making chemicals such as ephedrine, 3，4-diphenyl oxide-2-acetone, benzene acetic acid, 1-phenyl-2-acetone, heliotropin, yellow camphor, isosafrole, acetic oxide.
e. Production of vitriol based titanium white.
f. Processing of boron-magnesium-iron ore.
g. Production of baric salt.
7) Medication manufacturing.
a. Production of chloromycetin, penicillium G, lincomycinum, gentamycin, dihydrostreptomycin, amikacin, chlorhydric acid cyclomycin, terramycin, medemycin, kitasamycin, ciprofloxacin hydrochloride, norfloxacin, fluoroacid.
b. Production of analginum, paracetamol, vitamin B1, vitamin B2, vitamin C and vitamin E.
c. Production of vaccines under state planned immunity program, vaccines, antitoxin and toxoid (BCG, tephromyelitis, chincough, measles, encephalitis B, epidemic cerebrospinal meningitis).
d.  Production of addictive narcotic drugs and raw materials for mental diseases medications (Chinese party shall hold majority equity).
e. Production of blood products.
f. Production of disposable injector, fluid and blood transfusion device and blood bag.
8） Chemical fiber manufacturing.
a. Production of conventional textile chemical fiber drawing.
b. Production of viscose staple fiber with single thread annual capacity under 20,000 tons.
c. Production of fiber and non-fiber polyester and spandex with daily capacity under 400 tons.
9) Rubber products manufacturing.
a. Production of cross-ply, old tire renovation (excluding radial tire) and lower performance industrial rubber components.
10) Non-ferrous metal melting, pressing and processing.
a. Rare earth melting and separation (only allowed for joint ventures or cooperation).
11) Conventional machinery manufacturing.
a. Production of containers.
b. Manufacturing of small and medium conventional bearing.
c. Manufacturing of auto crane under 50 tons (only allowed for joint ventures or cooperation).
12) Special equipment manufacturing.
a. Manufacturing of low or medium B type ultrasonoscope.
b. Manufacturing of common long polyester thread and short fiber making equipment.
c. Manufacturing of caterpillar bulldozer under 320 horsepower and wheeled loading machine under 3 cubic meters ( only allowed for joint ventures or cooperation).
13) Electronic and telecommunication equipment manufacturing.
a. Manufacturing of satellite TV receiver and associated key components.

4. Utilities production and supply

1) Construction and operation of conventional coal burning power plant with single unit capacity under 300,000 kw, designed mainly for power generation (excluding small power grid).

5. Transport, storage and post and telecommunication

1) Highway passenger transportation company.
*2) Cross border automobile transportation company.
*3) Water route shipping company.
*4) Railway goods shipping company.
5) Railway passenger transportation company (Chinese party shall hold majority equity).
6) General airliners for photographing, mine exploration or industrial applications ( Chinese party shall hold majority equity).
*7) Telecommunication companies.

6. Wholesales and retails

*1) Companies for commodity trading, direct selling, mail purchasing, online selling, franchising, licensing, sales agent and business management; companies doing business of wholesale, retail and delivery of grains, cotton, edible plant oil, sugar, medicine, tobacco, automobile, crude oil, farming production materials.
*2) Wholesale and retail of books, newspapers and periodicals.
*3) Distribution of audio and video products (excluding films).
4) Commodity auction.
*5) Goods leasing companies.
*6) Agent company (ships, shipment, foreign freight shipment agent, advertisement, etc.).
*7) Wholesale of finished oil and construction and operation of gas stations.
8) Foreign trade companies.

7. Banking and insurance

1) Banks, financial companies, credit and investment companies.
*2) Insurance companies.
*3) Stock and securities, securities investment and fund management companies.
4) Banking leasing companies.
5) Foreign exchange brokerage.
*6) Insurance brokerage.

8. Real estates

1) Land development in whole piece (only allowed for joint ventures or cooperation).
2) Construction and operation of star hotels, villas, office buildings and international exhibition and conference centers.

9. Social services

1) Infrastructures.
a. Construction and operation of cooking gas, heating and water supply and sewage pipeline networks in large and middle cities (Chinese party shall hold majority equity).
2) Information and consultation services.
a. Legal affairs consultation.

10. Health, sports and social welfare

1) Medical institutions (only allowed for joint ventures or cooperation).
2) Construction and operation of golf course.

11. Education, culture and arts, and radio broadcasting, film and TV

1) Middle level education institutions (only allowed for joint ventures or cooperation).
2) Construction and operation of cinemas (Chinese party shall hold majority equity).

12. Scientific research and integrated technical services

1) Measuring and mapping companies (Chinese party shall hold majority equity).
*2) Companies for imported and exported goods testing, verification and authentication.

13. Other industries restricted by state or international treaties where China is a signatory party
Categories Prohibited for Foreign Investment

1. Agriculture, forestry, animal husbandry and fishery

1) Breeding and growing of China's rare and precious species (including fine genes of plants, animals and aquatic animals).
2) Production and development of genetically modified plant seeds.
3) Aquatic products catching within sea water areas under China's jurisdiction and inland waters.

2. Mining

1) Prospecting, mining and dressing of radioactive ores.
2) Prospecting, mining and separation of rare earth.

3. Manufacturing industries

1) Food processing.
a. Green tea and special tea such as famous tea and black tea processed with Chinese traditional techniques.
2) Medical engineering.

a. Processing of Chinese traditional medical herbs listed under the state resources protection (muskiness, licorice, jute etc.).
b. Applications of Chinese traditional medicinal slices making techniques and production of traditional medicines made of secret recipe.
3) Non-ferrous metal melting, pressing and processing.
a. Melting and processing of radioactive ores.
4) Arsenal manufacturing.
5) Other manufacturing.
a. Ivory carving.
b. Tiger bone processing.
c. Production of bodiless lacquerware.
d. Production of enamel products.
e. Production of rice paper and Chinese inker.
f. Production of products leading to cancer, deformation, sharp changes and long lasting organic pollution.

4. Utilities production and supply

1) Construction and operation of power grids.

5. Transportation, storage and post and telecommunication

1) Air traffic control companies.
2) Post and telecommunication companies.

6. Banking and insurance

1) Futures companies.

7. Social services

1) Development of wild animal and plant resources under state protection.
2) Construction and operation of natural animal and plant conservation zones.
3) Lottery (including gambling such as horse racing).
4) Pornography.

8. Education, culture and arts, and radio broadcasting, film and TV

1) basic education (compulsory education) institutions.
2) Publication, general distribution and import of books, newspapers and periodicals.
3) Publication, preparation, general distribution and import of audio and video products and e-publications.
4) News media institutions.
5) Radio broadcasting station and TV station at different levels and radio and TV transmission network (transmitting station, relay station, broadcasting and TV satellite, satellite uplink station, satellite receiving and relay station, microwave station, monitoring station, and cable radio and TV transmission network).
6) Companies for radio and TV program making, publication and distribution.
7) Film studio and film distribution companies.
8) Video show companies.

9. Other sectors

1) Projects endangering security and use of military facilities.

10. Other industries restricted by state or international treaties where China is a signatory party

Note: items marked with * mean the ones related to China's conformity to its accession to WTO and please see details in the Appendix.

Appendix

1. Categories encouraged

1) Venture prospecting and development of oil and natural gas: only allowed for cooperation.
2) Development of oil and gas reserves (fields) of low permeability: only allowed for cooperation.
3) Development and applications of new techniques for improving crude oil recovery: only allowed for cooperation.
4) Development and applications of new techniques for oil prospecting and development such as geophysical prospecting, boring, well logging and in-the-pit operation, etc.: only allowed for cooperation.
5) Manufacturing of automobiles and motor cycles:  foreign investorsss shall hold an equity no more than 50%.
6) Regular or irregular international ocean-going shipment:  foreign investorsss shall hold an equity no more than 49%.
7) International combined container services in different modes:  foreign investorsss will be allowed to hold majority equity not later than December 11, 2002, and  foreign investorsss will be allowed to hold full equity not later than December 11, 2005.
8) Highway goods shipment companies:  foreign investorsss will be allowed to hold majority equity not later than December 11, 2002, and  foreign investorsss will be allowed to hold full equity not later than December 11, 2004.
9) Wholesale, retail and distribution of regular commodities: see restriction conditions in 5) under categories restricted.
10) Accounting and auditing: only allowed for cooperation or partnership.

2. Categories restricted

1) Cross border automobile transportation companies:  foreign investorsss will be allowed to hold majority equity not later than December 11, 2002, and to hold full equity not later than December 11, 2004.
2) Water route shipping companies:  foreign investorss shall hold an equity no more than 49%.
3) Railway goods shipping companies:  foreign investorss shall hold an equity no more than 49%.  foreign investorsss will be allowed to hold majority equity not later than December 11, 2004, and to hold full equity not later than December 11, 2007.
4) Telecommunication company.
a. Paging service in value added and basic telecommunication systems: foreign investment will be allowed from December 11, 2001 and  foreign investorss may hold an equity no more than 30%.  foreign investorsss will be allowed to hold an equity no more than 49% not later than December 11, 2002, and to hold an equity up to 50% not later than December 11, 2003.
b. Mobile voice and data service in basic telecommunication system: foreign investment will be allowed from December 11, 2001 and  foreign investorss may hold an equity no more than 25%.  foreign investorsss will be allowed to hold an equity up to 35% not later than December 11, 2002, and to hold an equity up to 49% not later than December 11, 2004.
c. Domestic and international services in basic telecommunication system: foreign investment will be allowed not later than December 11, 2004 and  foreign investorss may hold an equity no more than 25%.  Foreign investorsss will be allowed to hold an equity no more than 35% not later than December 11, 2006, and to hold an equity up to 49% not later than December 11, 2007.
5) Companies for commodity trading, direct selling, mail purchasing, online selling, franchising, licensing, sale agent, business management; wholesale, retail and delivery of grains, cotton, edible plant oil, sugar, medicine, tobacco, automobile, crude oil, farming production materials; wholesale and retail of books, newspapers and periodicals; wholesale of finished oil and construction and operation of gas stations.
a. Commissioned agent and wholesale (excluding salt and tobacco). Foreign investment will be allowed not later than December 11, 2002 and  foreign investorsss may hold an equity up to 50%. However, no business operation will be allowed for books, newspapers, periodicals, medicine, pesticide, farming films, fertilizer, finished oil and crude oil.  foreign investorsss will be allowed to hold majority equity not later than December 11, 2003 and to hold full equity not later than December 11, 2004, allowing  foreign investorsss to run businesses of books, newspapers, periodicals, medicine, pesticide, farming film, and not later than December 11, 2006 of chemical fertilizer, finished oil and crude oil.
b. Retails (excluding tobacco): foreign investment will be allowed but no business operation of books, newspapers, periodicals, medicine, pesticide, faring film, fertilizer, finished oil;  foreign investorsss will be allowed to hold an equity up to 50% not later than December 11, 2002 and to run businesses of books, newspapers and periodicals not later than December 11, 2003.  foreign investorsss will be allowed to hold full equity not later than December 11, 2004, and allowed for business operation of medicine, pesticide, farming film, chemical fertilizer and finished oil.  foreign investorsss will be allowed to run businesses of chemical fertilizer not later than December 11, 2006. When branch stores exceeding 30 in number, chain stores whose commodities cover automobiles (the restriction will be removed no later than December 11, 2006), books, newspapers, periodicals, medicine, pesticide, farming film, finished oil, chemical fertilizer, food, edible oil, sugar, tobacco and cotton, will not be allowed for  foreign investorsss to hold majority equity.
c. Franchising, wholesale and retail without fixed location: foreign investment will be allowed not later than December 11, 2004.
6) Distribution of audio and video products (excluding films): only allowed for cooperation and Chinese party shall hold majority equity.
7) Goods leasing companies:  foreign investorss will be allowed to hold majority equity not later than December 11, 2002 and to hold full equity not later than December 11, 2004.
8) Agent companies.
a. Ships:  foreign investorss may hold an equity no more than 49%.
b. Freight shipment (excluding services provided solely by post authorities):  foreign investorss may hold an equity no more than 50% (no more than 49% for express services);  foreign investorss will be allowed to hold majority equity not later than December 11, 2002 and to hold full equity not later than December 11, 2005.
c. Foreign freight shipping agent: only allowed for joint ventures or cooperation.
d. Advertisements:  foreign investorss may hold an equity no more than 49% and will be further allowed to hold majority equity not later than December 11, 2003 and eventually to hold full equity not later than December 11, 2005.
9) Insurance companies.
a. Non life insurance company:  foreign investorss may hold an equity no more than 51%；   foreign investorsss will be allowed to hold majority equity not later than December 11, 2003.
b. Life insurance companies:  foreign investorss may hold an equity no more than 50%.
10) Securities companies and securities investment and fund management companies.
a. Securities companies: foreign investment will be allowed not later than December 11, 2004 with foreign equity holding no more than one third.
b. securities investment and fund management companies: foreign investment will be allowed with foreign equity holding no more than 33% and further up to 49% not later than December 11, 2004.
11) Insurance brokerage companies:  foreign investorss may hold an equity no more than 50% and be allowed for up to 51% not later than December 11, 2004 and to full equity not later than December 11, 2006.
12) Companies for imported and exported goods testing, verification and authentication:  foreign investorss may hold a majority equity not later than December 11, 2003 and full equity not later than December 11, 2005.