Laws of the People's Republic of China

Ministry of Construction, Ministry of Commerce

Decree of the Ministry of Construction and the Ministry of Commerce

No. 121

The Supplementary Provisions of the Provisions on the Administration of Foreign-funded Construction Enterprises were deliberated and adopted on December 9th, 2003 at the 24th executive meeting of the Ministry of Construction and the Ministry of Commerce, which are hereby promulgated and shall come into force as of January 1st, 2004.

Wang Guangtao, Minister of the Ministry of Construction

Lv Fuyuan, Minister of the Ministry of Commerce

December 19, 2003

Supplementary Provisions of the Provisions on the Administration of Foreign-funded Construction Enterprises

With a view to promoting the development of the economic & trade relations between the Mainland and Hong Kong/Macao and to encouraging service providers from Hong Kong and Macao to establish construction enterprises in the Mainland, the following supplementary provisions are formulated in accordance with the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement approved by the State Council, and the Provisions on the Administration of the Foreign-funded Construction Enterprises (Decree No. 113 of the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation):

1.

When a service provider from Hong Kong or Macao files an application for establishing a construction enterprise, its performance records in Hong Kong, Macao and the Mainland shall all be taken into consideration for the purpose of assessing its qualifications for establishing such an enterprise in the Mainland. The number of its managerial and technical personnel shall be based on the actual number of personnel in the construction enterprise established in the Mainland for its qualifications assessment.

2.

A service provider from Hong Kong or Macao is permitted to wholly purchase a Mainland construction enterprise.

3.

Where a construction enterprise established by a service provider from Hong Kong or Macao in the Mainland undertakes Sino-foreign construction projects, it shall not be subject to the restrictions on Chinese and foreign investment percentages.

4.

Where a construction enterprise invested in the Mainland by a Hong Kong provider or Macao service provider applies for a qualification certificate, the relevant regulations of the Mainland shall be followed. If it has acquired the qualifications of a construction enterprise, it may participate in the nationwide project tenders in pursuance of law.

5.

Where a service provider from Hong Kong or Macao invests in establishing a construction enterprise in the Mainland and applies for the corresponding qualifications, the Provisions on the Administration of Foreign-funded Enterprises and the relevant provisions on the administration of the qualifications of construction enterprises shall be followed.

6.

The terms of "Hong Kong service providers" and "Macao service providers" as mentioned in the present Supplementary Provisions shall be in conformity with the definitions and meet the relevant requirements as respectively provided in the Mainland and Hong Kong Closer Economic and Trade Partnership Arrangement and the Mainland-Macao Closer Economic and Trade Partnership Arrangement.

7.

The responsibility to interpret the present Supplementary Provisions shall remain with the Ministry of Construction and the Ministry of Commerce according to their respective functions.

8.

The present Supplementary Provisions shall come into force as of January 1st, 2004.