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Restricted Foreign Investment Industries

( A )

I. Light Industry

1. Production of washing machines, refrigerators, freezers

2. Production of synthetic emtrol, alcohol ether and alcohol ether sulfate

3. Manufacture of compressors with a shaft power of 2 kw or less which are specially used for air-conditioners and refrigerators.

II. Textile Industry

1. Chemical fibre drawnwork of conventional chipper

2. Production of viscose staple fibre with an annual single thread output capacity of less than 20, 000 tons

III . Petroleum, Petrochemical, Chemical Industries

1. Barium salt production

2. Refinery with an output capacity of less than 5 million tons a year

3. Cross-ply and old tire reconditions ( not including radial tire)

4. Production of sulphuric acid basic titanium white

IV. Machinery Industry

1. Manufacture of equipment for producing long dacron thread and short fiber

2. Manufacture of power generating units of diesel engines

3. Production of all kinds of ordinary abrasives (containing boule and silicon carbide), grindstone with a diameter of less than 400 mm and man-made diamond saw bit

4. Production of electric drill and electric grinder

5. Ordinary carbon steel welding rod

6. Ordinary standard fasteners, small and medium sized ordinary bearings

7. Ordinary lead acid accumulator

8. Containers

9. Elevators

10. Alufer hub

V. Electronics Industry

1. Satellite television receiver and key parts

2. Exchange boards for the use of digital programme-control bureau and for the use of private branch exchange

VI. Medicine Industry

1. Production of chloramphenicol, lincomycin, gentamicin, dihydrostreptomycin, amikacin, tetracycline hydrochloride, oxytetracycline, acetyl spiramycin, medemycin, kitasamycin, ilotycin, norfloxacinum and ofloxacin

2. Production of Analgin, aspirin, paracetamol, Vitamin B1, Vitamin B2 and Vitamin B6

VII . Medical Apparatus and Instruments

1. Production of low or medium class type-B ultrasonic displays

VIII. Transportation Service

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

2. Gas station (restricted to projects related to super highway)

( B )

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

1. Development and production of food, cotton and oil-seed (the Chinese part will be the holding party or play a leading role)

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

3. Inshore and continental-river fishing (wholly foreign owned enterprises are not allowed)

4. Cultivation of traditional Chinese medicines (wholly foreign owned enterprises are not allowed)

II . Light Industry

1. Product of table salt, and salt for industrial use

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

3. Production of millet wine and famous brands of spirits

4. Tobacco processing industries such as cigarettes and filter tips

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

6. Production of natural spices

7. Processing of fat or oil

8. Paper and paper plate

III. Textile industry

1. Wool spinning, cotton spinning

2. Raw silk, grey silk fabric

3. Highly emulated chemical fibre and special kinds of fibre such as aromatic synthetic fibre, and carbon fibre (wholly foreign owned enterprises are not allowed)

4.Fibre and polyester, acrylic fibre and spandex which are not used as fibre (wholly foreign owned enterprises are not allowed)

IV. Communication and Transportation, Post and Telecommunications Industries

1. Construction and management of main lines of railways (the Chinese party will be the holding party or take a leading role)

2. Transportation by water (the Chinese party will be the holding party and take a leading role)

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

4.Air freight (the Chinese party will be the holding party or play a leading role)

5. General aviation (the Chinese party will be the holding party or play a leading role)

V. Power Industry

1. Construction and management of conventional coal-fired power plants whose single-machine capacity is less than 300, 000 kw (with the exception of small power grid, power plants in remote area and power plants of low-quality coal and coal refuses)

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

1. Copper and aluminum processing

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

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

4. Exploration, mining, selection, smelting and separation of rare-earth metal

VII. Petroleum, Petrochemical Industry and Chemical Industry

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

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

3. Benzidine

4.Chemical industry products such as ionic membrane caustic soda and organochlorine serial products

5. Radial tire (the Chinese party will be the holding party or play a leading role)

6. Synthetic fibre raw materials: precision terephthalic acid, vinyl cyanide, caprolactam and nylon 66 salt

VIII. Mechanical Industry

1.Complete automobiles (including limousines, trucks, passenger cars, and reequipped cars) and complete motorcycles (the Chinese party will be the holding party and take a leading role)

2. Engines of automobiles and motorcycles (the Chinese party will be the holding party or take a leading role)

3.Production of compressors of air conditioners for cars, electron-controlled fuel-oil injecting systems, electronic controlled brake and locking-prevention systems, safety aerocysts and other electronic equipment, power generating machines and aluminum radiating machines

4. Reconditioning and disassembling refitting of old cars and motorcycles

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

6. Hydroelectric equipment: manufacture of hydropower generating units with a wheel diameter of over 5 meters (including hydropower supplementary machines and controlling units), large scale pump storage groups of over 50,000kw, large scale tubular turbine units of 10, 000 kw or over (wholly foreign owned enterprises are not allowed)

7. Nuclear power group: manufacture of nuclear power groups of 600, 000kw or over (wholly foreign owned enterprises are not allowed)

8. Manufacture of power transmitting and transforming equipment: large-scale transformers of 200 kilovolts or over high-voltage switches, mutual inductor, cable equipment (wholly foreign owned enterprises are not allowed)

9. Manufacture of crawler dozers of less than 320 horsepower, wheeled fork-lifts of less than 3 cubic meters, and cranes of less than 50 tons (wholly foreign owned enterprises are not allowed)

10. Manufacture of sheet continuous caster

11. Duplicators and cameras

IX. Electronic Industry

1. Color TV (including projection television) , color picture tube and glass envelope

2. Video cameras (including camera-recorder in one unit)

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

4. Analogue type mobile communications systems (honey-comb, colony, wireless beeper call, wireless telephone)

5. Receiving equipment of satellite navigation and key parts (wholly foreign owned enterprises are not allowed )

6. Manufacture of the system of VSAT

7. Manufacture of phototiming digital serial communication systems of less than 2.5 GB/S and microwave communication systems of 144MB/S and lower

X. Building Material Equipment and Other Non-metal Product Industries Exploration, mining and processing of diamond and other natural gems (wholly foreign owned enterprises are not allowed)

XI . Medicine Industry

1. Traditional Chinese herb medicines, Chinese patent drug semis and finished products (with the exception of preparing technique of traditional Chinese herb medicine in small pieces ready for decoction)

2. Precursor of narcotics: ephedrine, pseudoephedrine, ergotinine, ergotamine, lysergic acid and so on

3. Penicillin G

4. Production of addiction narcotic and psychoactive drug (the Chinese party will be the holding party or play a leading role)

5. Production of vaccinums that involve high tech: vaccinum against AIDS, vaccinum against type-C hepatitis, contraceptive vaccimum and so on (the Chinese party will be the holding party or play a leading role)

6. Immunity vaccinums included in the State' s plan, bacterins, antitoxins and anatoxin (BCG vaccine, poliomyelitis, DPT vaccine, measles vaccine, Type-B encephalitis, and epidemic cerebrospinal meningitis vaccine

7. Production of Vitamin

8. Production of blood products

XII . Medical Apparatus and Instruments Industry

1. Disposable injectors, transfusion systems, blood transfusion systems and blood bags

2. Manufacture of large medical treatment equipment such as CT, MRI and accelerators for medical use

XIII. Shipping Industry (the Chinese party will be the holding party or play a leading role)

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

2. Design and manufacture of diesel engines for ships, auxiliary machines, wireless communication, navigation equipment and parts

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

1. Domestic commerce (the Chinese party will be the holding party or play a leading role)

2. Foreign trade (the Chinese party will be the holding party or play a leading role)

3. Tourist agencies

4. Cooperative school-running (with the exception of elementary education)

5. Medical establishments (the Chinese party will be the holding party or play a leading role)

6. Accounting, audit and legal consultation services and agent company

7. Agent services (boats and ships, freight, futures, sales, advertisement, etc.)

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

9. Golf links

10. Development of pieces of land

11. Large scale tourist, cultural and recreational parks and artificial landscapes

12. Construction and management of State-ranking tourist areas

XV. Finance and Relevant Trades

1. Banks, finance companies and trust investment companies

2. Insurance companies, insurance brokerages and underwriting agent companies

3. Bond companies, investment banks, merchant banks, fund management companies

4. Financial lease

5. Foreign exchange brokerages

6. Financial, insurance and foreign exchange consultation

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

XVI. Miscellaneous

1. Printing, publishing and issuing business (the Chinese party will be the holding party or play a leading role)

2. Testing, appraising and attestation business of import and export goods (wholly foreign owned enterprises are not allowed)

3. Production, publications and issuing of audio and video products and electronic publications (the Chinese party will be the holding party or play a leading role)

XVII. Other industries Restricted by the State or International Treaties that China Has Concluded or Taken Part in




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