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CATALOGUE FOR THE GUIDANCE OF FOREIGN INVESTMENT INDUSTRIES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-12-31 Effective Date  1997-12-31  

Catalogue for the Guidance of Foreign Investment Industries



Catalogue for the Encouragement of Foreign Investment Industries
Catalogue of Restricted Foreign Investment Industries
Catalogue of Prohibited Foreign Investment Industries

(Approved by the State Council on December 29, 1997, and revised and

promulgated by the State Planning Commission, the State Economy and Trade
Commission and the Ministry of Foreign Trade and Economic Cooperation on
December 31, 1997)
Catalogue for the Encouragement of Foreign Investment Industries

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

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

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

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

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

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

    6. Cultivation of famous aquatic products

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

    8. High-density fertilizers (potash fertilizer, phosphate fertilizer)

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

    10. Antibacterial raw medicines for animals (including antibiotics and
chemical compound medicines)

    11. New products and preparations of antiscolic, insecticide and
anticoddiosis medicine for animals

    12. Development of feed additives and feed protein resources

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

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

    15. Construction and management of comprehensive utilization of
irrigation works (with the Chinese party taking the holding or leading
position)

    16. New water-saving irrigation technology and equipment manufacture

    17. New farm implements technology and equipment manufacture

    18. Ecological and environmental treatment and control and construction
projects

    II. Light Industry

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

    2. Paper pulp (with an annual production of 170,000 tons and over wood
pulp, and having corresponding raw materials bases)

    3. Post ornament and processing of leather as well as its new technology
and equipment manufacture

    4. Production of mercuryless alkaline manganese storage battery and
lithium-ion battery

    5. Production of high-tech involved special industrial sewing machine

    6. Production of ployamide film

    7. Production of new high-efficiency enzyme preparations

    8. Production of synthetic spices and single icon spices

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

    10. Processing of diactate cellulose for cigarettes and collection of
filaments

    III. Textile Industry

    1. Wood pulp for textile chemical fibres (with an annual production of
100,000 tons and over and having corresponding raw materials bases)

    2. Special textiles for industry

    3. Printing and dyeing of high emulation chemical fibres and high-grade
textile cloth and their post arrangement and processing

    4. Production of auxiliaries, oils, dyes and chemicals for textile

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

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

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

    3. Design and manufacture of new highway and port mechanical equipment

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

    5. Construction and management of highway, independent bridge and tunnel

    6. Construction and management of port facilities for public wharfs (with
the Chinese party taking the holding or leading position)

    7. Construction and management of civil airport (with the Chinese party
taking the holding or leading position)

    8. Equipment manufacture for honey-comb mobile communications DCS/CDMA
system

    9. Manufacture of transmission equipment for 2.5GB/S and over optical
synchronized and microwave synchronized digital series

    10. Manufacture of measuring instrument and meter for 2.5GB/S optical
communications, radio communications and data communications

    11. Manufacture of ATM switchboard equipment

    V. Coal Industry

    1. Design and manufacture of coal mining, transportation and washing
equipment

    2. Coal mining and washing (for special and rare kinds of coal, the
Chinese party will take the holding or leading position)

    3. Production of water coal pulp and liquefied coal

    4. Comprehensive development and utilization of coal

    5. Comprehensive development and utilization of low calorific value fuel
and accompanying resources

    6. Coal pipeline transmission

    7. Coal rake gas exploration and exploitation

    VI. Power Industry

    1. Construction and management of thermal power station with generating
unit capacity of 300,000 kilowatts and over

    2. Construction and management of hydropower station with power generation
as its main function

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

    4. Construction and management of clean coal burning technology power
station

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

    VII. Ferrous Metallurgical Industry

    1. 50 tons and over superhigh power electric furnace process (with
out-of-furnace refining and continuous casting) and 50 tons and over
converting process

    2. Stainless steel smelting

    3. Production of cold-rolled silicon steel plates

    4. Production of cold and hot-rolled stainless steel plates

    5. Petroleum steel pipe

    6. Scrap steel processing and disposal

    7. Iron and manganese mine concentration

    8. Production of direct reduction iron and melting reduction iron

    9. Mining of high-alumina bauxite, hard clay ore and production of chamotte

    10. Deep processing of acicular coke, hard coke and coke oil

    11. Dry coke quenching production

    VIII. Non-Ferrous Metal Industry

    1. Production of monocrystalline silicon (with diameter 8 inches and
over), multicrystalline silicon

    2. Production of hard alloy, tin compound, antimony compound

    3. Production of non-ferrous compounds, new type alloys

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

    5. Aluminum mine opening (wholly foreign-owned enterprises are not
allowed) and alumina production with a capacity of 300,000 tons and over per
year

    6. Rare earth application

    IX. Petroleum, Petrochemical and Chemical Industries

    1. Production of ion film for caustic soda

    2. Ethylene with an annual production of 600,000 tons and over (with the
Chinese party taking the holding or leading position)

    3. Polyvinyl chloride resin (with the Chinese party taking the holding or
leading position)

    4. Comprehensive utilization of C5C9 products that are by-products of
ethylene

    5. Engineering plastics and plastic alloys

    6. Supporting raw materials for synthesized materials: biphenol-A,
styrene-butadiene latex, pyridine, 4.4' diphenylmethane diisocyanate and
methylbenzene diisocyanate

    7. Basic organic chemical raw materials: comprehensive utilization of
the derived products of benzene, methylbenzene, dimethylbenzene (O-, M-, P-)

    8. Synthetic rubber: production of liquid styrene-butadiene rubber, butyl
rubber, isoamyl rubber, ethyl rubber, butadiene neoprene rubber, butadiene
rubber, acrylic rubber, chlorinated rubber

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

    10. Production of chloridized titanium dioxide

    11. Production of coal chemical products

    12. Comprehensive utilization of waste gases, waste liquids, waste slag

    13. Production of purification agent, catalytic agent and other
auxiliaries for automobile exhaust

    14. Development and application of new tertiary oil recovery technology
for raising oil recovery ratio (with the Chinese party taking the holding or
leading position)

    15. Construction and management of oil and gas transmission pipelines, as
well as oil depot and oil wharf (with the Chinese party taking the holding or
leading position)

    X. Mechanical Industry

    1. Manufacture of high-performance welding robot and high-efficiency
welding and assembling production line equipment

    2. Production of high temperature resistant insulation material (with F, H
insulation class) and insulation products

    3. Manufacture of equipment of the trolley car for mining, loading and
transporting in the well, 100 tons or over mechanical power-driven dump
truck for mining, mobile crusher, 3,000 cubic metre/hour or over bucket
excavator, 5 cubic metres or over mining loader, total cross-section lane
entry-drilling machine

    4. Manufacture of web- and sheet-fed multi-colour off-set printing machine

    5. Manufacture of washing equipment for mechanical and electric wells and
production of chemicals

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

    7. Manufacture of complete sets of equipment such as new knitting machine,
new paper (including pulp) making machine

    8. Development and manufacture of delicate on-line measuring instrument

    9. New technology of safe production and environmental protection
monitoring instrument as well as equipment manufacture

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

    11. Research, design and development centre for important basic machinery,
basic components and major technical equipment

    12. Proportional servohydraulic technology, low-power pneumatic control
valve, and filling static sealing production

    13. Production of precision die, precision cavity mould, and mould
standard parts

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

    15. Manufacture of delicate bearings and special bearings for various
kinds of main engines

    16. Manufacture of car-related key spare parts: complete brakes, complete
drive rod, transmission, fuel pump of diesel engine, piston (including piston
ring), valve, hydraulic tappet, carton shaft, booster, filter (3 filter),
even speed carton joint, shock absorber, seat adjustment, car lock, backview
mirror, glass lifter, compound meter, lights, bulb, high-strength special
fastener

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

    18. Manufacture of casting body for car and motorcycle

    19. Technology research centre and design and development centre for cars
and motorcycles

    20. Production of special-purpose cars such as desert car for petroleum
industry

    21. Manufacture of key spare parts for motorcycles: carburettor, magneto,
starting motor, lights, and disk brake

    22. New technology and equipment manufacture for water quality on-line
monitoring instrument

    23. Manufacture of special machinery and equipment for flood control and
emergency rescue

    24. Manufacture of wetland earthmover and dredging machinery

    25. Manufacture of complete sets of 10 ton/h and over feed processing
equipment, and production of their key spare parts

    26. Design and manufacture of new petroleum exploration and exploitation
instrument and equipment

    XI. Electronics Industry

    1. Production of 0.35 micron wire width and below large integrated circuit

    2. Production of new electronic spare parts (including slice spare parts)
and electric and electronic spare parts

    3. Production of optic-electro parts, sensitive spare parts and sensor

    4. Manufacture of large- and medium-size electronic computer

    5. Production of compatible digital TV, HDTV, digital tape video recorder

    6. Development of special-purpose materials for semi-conductor and
photo-electronics

    7. Manufacture of new displayer (plate displayer and screen)

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

    9. Manufacture of equipment, instrument and industrial mould for
electronics

    10. Manufacture of hydrological data collection instrument and equipment

    11. Manufacture of satellite communications system equipment

    12. Manufacture of DCS equipment

    13. Manufacture of air traffic control equipment (wholly foreign-owned
enterprises are not allowed)

    14. Development and manufacture of high-capacity CD and magnetic disk
memory and their parts

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

    16. Equipment manufacture for data communications multimedia system

    17. Production of monomode optical fibre

    18. Equipment manufacture for access-to-the-network communications system

    19. New technology and manufacture of equipment supporting communications
networks

    20. Manufacture of wide-band ISDN equipment

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

    1. High-quality floating glass production line with a daily melting
capacity of 500 tons and over

    2. High-grade sanitation porcelain production line with an annual
production of 500,000 pieces and over and production of its matching metal and
plastic parts

    3. New building materials (walling materials, decoration and renovation
materials, water-proof materials, insulation materials)

    4. New dry-process cement production line with a daily production of 4,000
tons and over cement chamotte (restricted to production in the central and
western regions of China)

    5. Bulk cement storage and transportation facilities

    6. Glass fibre (direct melting process production line) with an annual
production of 10,000 tons and over and glass fibre reinforced plastic products

    7. Inorganic non-metal material and products (quartz glass, artificial
crystal)

    8. High-grade refractory material for glass, porcelain or glass fibre
furnaces and kilns

    9. Technology for deep processing of plate glass as well as equipment
manufacture

    10. Manufacture of tunnel drilling machine and city subway excavating
equipment

    11. Manufacture of special equipment for city sanitation

    12. Manufacture of tree and plant removing and planting machinery and
equipment

    13. Manufacture of road grader, tar finisher

    XIII. Medicine Industry

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

    2. Production of antipyretic and analgesic medicines by adopting new
technology and equipment

    3. Vitamins: nicotinic acid

    4. New anticarcinogen and new cardio-vascular and cerebrovascular medicines

    5. Medicines and pharmaceutics: new preparations and products by adopting
new technologies such as buffer, control, target and skin-penetrating

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

    7. New packing material and container for medicine and advanced
pharmaceutical equipment

    8. New, effective and economical contraceptive medicines and devices

    9. New technology, equipment and instrument for product quality control of
prepared traditional Chinese medicine and changing preparation packing

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

    11. New medicines which are produced using biological engineering
technology

    12. Development and application of new adjuvant

    13. Production of diagnosis agents for hepatitis, AIDS and radiation
immunization

    XIV. Medical Apparatus Manufacturing Industry

    1. 80 kilowatts and over medical X-ray apparatus with intermediate
frequency technology, computer control technology and digital image processing
technology and with small radiation dosage

    2. Electronic endoscope

    3. Medical tubes

    XV. Aviation and Aerospace Industry

    1. Design and manufacture of civil planes (with the Chinese party taking
the holding or leading position)

    2. Manufacture of spare parts of civil planes

    3. Design and manufacture of aeroplane engines (with the Chinese party
taking the holding or leading position)

    4. Manufacture of airborne equipment

    5. Manufacture of light gas turbine engines

    6. Design and manufacture of civil satellites (with the Chinese party
taking the holding or leading position)

    7. Manufacture of civil satellite pay load (with the Chinese party taking
the holding or leading position)

    8. Manufacture of spare parts of civil satellites

    9. Technological development for civil satellite application

    10. Design and manufacture of civil carrier rocket (with the Chinese party
taking the holding or leading position)

    XVI. New Industries

    1. Micro-electronic technology

    2. New materials

    3. Biological engineering technology (not including gene engineering
technology)

    4. Network technology of information, communications systems

    5. Isotope, irradiation and laser technology

    6. Ocean and ocean energy development technology

    7. Technology for seawater desalination and utilization

    8. Energy-saving technology development

    9. Technology for recycle and comprehensive utilization of resources

    10. Projects for the control of environment pollution as well as
monitoring and treatment technology

    XVII. Service Industry

    1. Information consultancy of international economy, science and
technology, environmental protection

    2. Maintenance and post-sale service of delicate instruments and
equipment

    3. Construction of new high-tech and new product development centre and
enterprise incubation

    XVIII. Permitted Projects in Which All Products Are to Be Directly Exported

Catalogue of Restricted Foreign Investment Industries

                              (A)

    I. Light Industry

    1. Production of washing machines, refrigerators, freezers

    2. Synthetic embro, alcohol ether, alcohol sulphate

    3. Production of air-conditioner and refrigerator compressors with shaft
power lower than 2,000 watts

    II. Textile Industry

    1. Chemical fibre reeled silk woven by means of conventional chipper

    2. Production of viscose staple fibre with a single-line capacity of
20,000 ton/year below

    III. Petroleum, Petrochemical and Chemical Industries

    1. Production of barium salt

    2. Construction of refinery of less than 5,000,000 tons

    3. Retreading of cross-ply tyre and old tyre (not including meridian tyre)
and production of low-performance industrial rubber attachments

    4. Production of titanium dioxide through sulphuric acid method

    IV. Mechanical Industry

    1. Equipment manufacture for ordinary dacron filament and staple fibre

    2. Manufacture of diesel power generating units

    3. Production of various kinds of ordinary abrasives (including corundum,
carborundum), grinding wheel with diameter less than 400mm and artificial
diamond saw blade

    4. Production of electric drill, power-driven grinder

    5. Ordinary carbon steel welding rods

    6. Ordinary standard fasteners, small- and medium-size ordinary bearings

    7. Ordinary lead acid accumulators

    8. Containers

    9. Elevators

    10. Aluminium alloy wheel hub

    V. Electronics Industry

    1. Satellite television receivers and key parts

    2. Digital programmed local and user switches

    VI. Medicine Industry

    1. Production of chloramphenicol, lincomycin, gentamycin,
dibydrostreptomycin, amikacin, tetracycline hydrochloride, terramycin,
acetylspiramycin, medemycin, leucomycin, erythromycin, ciprofloxacin,
norfloxacin and ofloxacin

    2. Production of analgin, aspirin, paracetamol, vitamin B1, vitamin B2
and vitamin B6

    VII. Medical Apparatus Manufacturing Industry

    1. Production of low- and medium-class B-mode supersonic displayers

    VIII. Transportation Service Industry

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

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

                              (B)

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

    1. Development and production of seeds of foodgrains, cotton and oil crops
(with the Chinese party taking the holding or leading position)

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

    3. Inshore and inland water area fishing (wholly foreign-owned enterprises
are not allowed)

    4. Planting and breeding of traditional Chinese medicinal materials
(wholly foreign-owned enterprises are not allowed)

    II. Light Industry

    1. Production of table salt, industrial salt

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

    3. Production of millet wine and well-known spirits

    4. Tobacco processing industry producing cigarettes and filter tips

    5. Processing and production of blue wet hide of pig, ox, and sheep

    6. Production of natural spices

    7. Processing of fat

    8. Paper and paperboard

    III. Textile Industry

    1. Wool spinning, cotton spinning

    2. Raw silk, grey silk fabric

    3. High-emulation chemical fibres and special chemical fibres such as
arylon, carbon fibre (wholly foreign-owned enterprises are not allowed)

    4. Fibre-grade and non-fibre-use polyester, acrylic fibre, spandex (wholly
foreign-owned enterprises are not allowed)

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

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

    2. Water transportation (with the Chinese party taking the holding or
leading position)

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

    4. Air transportation (with the Chinese party taking the holding or
leading position)

    5. General aviation (with the Chinese party taking the holding or leading
position)

    V. Power Industry

    1. Construction and management of conventional coal-burning thermal power
plant with generating unit capacity of 300,000 kilowatts below (small-scale
electric network, remote border mountain areas as well as low-quality
coal-burning and gangue-burning power plant excluded)

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

    1. Copper and aluminium processing

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

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

    4. Prospecting, mining, dressing, smelting and separation of rare-earth
metals

    VII. Petroleum, Petrochemical and Chemical Industries

    1. Sensitive materials (film, roll film, PS plate, photographic paper)

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

    3. Benzidine

    4. Ion film caustic soda and organic chlorine serial chemical products

    5. Meridian tyre (with the Chinese party taking the holding or leading
position)

    6. Raw materials of synthetic fibre: phthalic acid, acrylonitrile,
caprolactam, nylon 66 salt, etc.

    VIII. Mechanical Industry

    1. Complete automobile (including various kinds of limousine, lorry, bus,
refitted car) and complete motorcycle (with the Chinese party taking the
holding or leading position)

    2. Engines of automobiles and motorcycles (with the Chinese party taking
the holding or leading position)

    3. Manufacture of air conditioner compressor for automobile, electronic
controlling fuel-oil injecting system, electronic controlling braking
anti-blocking system, safety ball and other automobile electronic equipment
system, motor, aluminium radiator

    4. Reconditioning and disassembling (refitting) of old automobile and
motorcycle and their engines

    5. Thermal power equipment: manufacture of 100,000 kilowatts and over
generating units (power unit, turbine, boiler, supplementary machine and
controlling equipment), gas turbine combined cycle power equipment, cyclic
fluidized bed boiler, coal gasification combined cyclic technology and
equipment (IGCC), pressure boost fluidized bed (PFBC), desulfurization and
denitrification equipment (wholly foreign-owned enterprises are not allowed)

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

    7. Nuclear power generating units: manufacture of nuclear power generating
units of 600,000 kilowatts and over (wholly foreign-owned enterprises are not
allowed)

    8. Power transmitting and transforming equipment: manufacture of
large-scale transformers of 220 kilovolts and over, high-tension switches,
mutual conductors, cable equipment (wholly foreign-owned enterprises are
not allowed)

    9. Caterpillar bulldozer of 320 h.p. below, wheeled loader of 3 cubic
metres below, automobile crane of 50 tons below (wholly foreign-owned
enterprises are not allowed)

    10. Manufacture of steel sheet continuous casting machine

    11. Photocopier and camera

    IX. Electronics Industry

    1. Colour television sets (including projection television sets), colour
kinescope and glass shielding

    2. Video cameras (including video camera recorders)

    3. Video recorders, magnetic heads, magnetic drums and movements of video
recorders

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

    5. Satellite navigation positioning reception equipment and its key parts
(wholly foreign-owned enterprises are not allowed)

    6. Manufacture of equipment for VSAT system

    7. Manufacture of equipment for 2.5GB/S below optical synchronized digital
series and 144MB/S and below microwave communications system

    X. Building Material and Equipment and Other Non-metal Mineral Product
Industries

    1. Exploration, mining and processing of precious non-metal ores such as
diamond and other natural gems (wholly foreign-owned enterprises are not
allowed)

    XI. Medicine Industry

    1. Traditional Chinese medicinal materials, semi-finished and finished
traditional Chinese medicine (traditional techniques for preparing
ready-to-eat traditional Chinese medicines excluded)

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

    3. Penicillin G

    4. Production of addictive narcotics and psychotropic substances (with the
Chinese party taking the holding or leading position)

    5. Production of high-tech vaccines (AIDS vaccine, hepatitis C vaccine,
contraceptive vaccine, etc., with the Chinese party taking the holding or
leading position)

    6. Production of vaccines, bacterines, antitoxin, toxoid (BCG,
poliomyelitis vaccine, diphtheria vaccine, pertussis vaccine, tetanus vaccine,
measles vaccine, epidemic encephalitis B vaccine, epidemic cerebrospinal
meningitis vaccine, etc.) under the state immunization plan

    7. Production of vitamin C

    8. Production of blood products

    XII. Medical Apparatus Manufacturing Industry

    1. Disposable syringe, infusion system, blood transfusion tube and blood
bag

    2. Manufacture of large-size medical apparatuses such as computerized
tomography device (CT), magnetic resonance imaging device (MRI) and medical
accelerator

    XIII. Shipping Industry (with the Chinese party taking the holding or
leading position)

    1. Repair, design and manufacture of special ships, high-performance ships
and 35,000-ton and over ships

    2. Design and manufacture of diesel engines, supplementary machine,
wireless communications equipment, navigation equipment and their fittings
used in ships

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

    1. Domestic trade (with the Chinese party taking the holding or leading
position)

    2. Foreign trade (with the Chinese party taking the holding or leading
position)

    3. Tourist agency

    4. Collaborative education project (elementary education excluded)

    5. Medical service (with the Chinese party taking the holding or leading
position)

    6. Accountancy, audit and legal consultancy services and brokerage company

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

    8. High-ranking hotels, villas and high-class office buildings,
international conference and exhibition centre

    9. Golf links

    10. Development of tracts of land

    11. Large park for tourism, culture and recreation and large artificial
landscape

    12. Construction and management of state-rank tourist areas

    XV. Finance and Relevant Trades

    1. Bank, finance company, trust investment company

    2. Insurance company, insurance brokerage and underwriting agent company

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

    4. Financial lease

    5. Foreign exchange brokerage

    6. Financial, insurance and foreign exchange consultancy

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

    XVI. Miscellaneous

    1. Printing and publishing and issuing business (with the Chinese party
taking the holding or leading position)

    2. Inspection, appraisal and authentication business of import and export
commodity (wholly foreign-owned enterprises are not allowed)

    3. Production, publishing and issuing of audio-visual products, electronic
publications (with the Chinese party taking the holding or leading position)

    XVII. Other Industries Restricted by the State or International Treaties
That China Has Concluded or Acceded to

Catalogue of Prohibited Foreign Investment Industries

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

    1. Wild animal and plant resources protected by the State

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

    3. Construction of animal and plant natural reserves

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

    II. Light Industry

    1. Ivory carving and tiger-bone processing

    2. Hand-made carpet

    3. Bodiless lacquerware

    4. Enamel products

    5. Blue and white porcelain

    6. Xuan paper and ingot-shaped tablets of Chinese ink

    III. Power Industry and Urban Public Utility

    1. Construction and management of electricity network

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

    IV. Exploration, Selection and Processing of Mining Industry

    1. Exploration, selection, smelting and processing of radioactive
mineral products

    V. Petroleum, Petrochemical and Chemical Industries

    1. Mining and processing of szaibelyite

    2. Mining and processing of celestite

    VI. Medicine Industry

    1. Traditional Chinese medicinal materials which have been listed as state
protection resources (musk, liquorice root, etc.)

    2. Traditional techniques for preparing ready-to-eat traditional Chinese
medicines, and products of secret recipe of prepared traditional Chinese
medicine

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

    1. Management of post and telecommunications business

    2. Air traffic control

    VIII. Trade and Finance

    1. Commodity futures, financial futures and other derivative financial
business

    IX. Broadcasting, Film and Television Industries

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

    2. Production, publishing, issuing and broadcasting of radio and TV
programmes

    3. Production, publishing and showing of films

    4. Video tape showing

    X. Journalism

    XI. Weapon Manufacturing Industry

    XII. Miscellaneous

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

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

    3. Racecourse, gambling

    4. Pornographic service

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



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