Laws of the People's Republic of China

Ministry of Commerce

Order of the Ministry of Commerce of the People's Republic of China

No.30

The Supplementary Provisions to the Measures for the Administration on Foreign Investment in Commercial Fields were examined and approved by the Ministry of Commerce, hereby promulgated and shall come into force as of promulgated date.

Bo Xilai, Minister of the Ministry of Commerce

January 9, 2006

The Supplementary Provisions to the Measures for the Administration on Foreign Investment in Commercial Fields

In order to promote Hong Kong and Macao to establish closer economic and trade relationship with the Mainland, encourage service providers from Hong Kong and Macao to establish commercial enterprises in Mainland, and according to the Mainland and Hong Kong Closer Economic Partnership Arrangement (supplementary agreement 2) and the Mainland and Macao Closer Economic Partnership Arrangement (supplementary agreement 2) as approved by the State Council, we hereby make the following supplementary provisions on the commercial fields invested by Service providers from Hong Kong and Macao in the Measures for the Administration on Foreign Investment in Commercial Fields (No. 8, Order of the Ministry of Commerce).

I.

Service providers from Hong Kong and Macao are permitted to establish the enterprises as the form of solely-funded, equity joint venture or cooperation to deal in commission agent business on fertilizer, finished oil, crude oil, and the wholesale retail business of the fertilizer..

II.

Service provider from Hong Kong and Macao is permitted to control the shares and the proportion of invested capital may not exceed 51% if one service provider from Hong Kong and Macao established more than 30 shops accumulated to deal the commodity like: books, newspaper, automobile (the restrict will be abolished as of December 11, 2006), drug, pesticide, farming film, fertilizer, plant oil, sugar, cotton and etc. and above commodities come from different brands and different suppliers.

III.

The service providers from Hong Kong and Macao as mentioned in these Measures shall separately meet the requirements on the definition of "service providers" in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement, and in other relevant provisions.

IV.

Other matters of service providers from Hong Kong and Macao to invest on commercial fields in Mainland shall be implemented according to the Measures for the Administration on Foreign Investment in Commercial Fields.

V.

These Measures shall be implemented as of the date of promulgation.