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November 30, 2004

Catalogue for the Guidance of Foreign Investment Industries
Order of the State Development and Reform Commission, the Ministry of Commerce of the People's Republic of China
http://english.mofcom.gov.cn/aarticle/topic/lawsdata/ForeignInvestment/200501/20050100015843.html

The Catalogue for the Guidance of Foreign Investment Industries and its Attachment have been amended and are promulgated now for the purpose of meeting the need of economy and social development and adjustment of industrial structure, and shall come into force on January 1st, 2005. The Catalogue for the Guidance of Foreign Investment Industries which was promulgated by the former State Development Planning Commission, the former State Economy and Trade Commission and the former Ministry of Foreign Trade and Economic Cooperation on March 11, 2002 shall be annulled at the same time.


Catalogue for the Guidance of Foreign Investment Industries
(Amended in 2004)

Catalogue of Encouraged Foreign Investment Industries
I. Farming, Forestry, Animal Husbandry and Fishery Industries
  1. Improvement of low and medium yielding field
  2. Planting technology, without social effects of pollution, of vegetables (including edible fungus and melon-watermelon), fruits, teas and serial development and production of these products
  3. Development and production of new breed varieties (excluding those gene-modified varieties) of fine quality, high-yielding crops such as sugar-yielding crops, fruit trees, flowers and plants, forage grass and related new techniques
  4. Production of flowers and plants, and construction and operation of nursery base
  5. Reusing in fields and comprehensive utilization of straws and stalks of crop, development and production of resources of organic fertilizers
  6. Cultivation of traditional Chinese medicines (equity joint ventures or contractual joint ventures only)
  7. Planting of forest trees (including bamboo) and cultivation of fine strains of forest trees
  8. Planting of caoutchoucs, sisals and coffees
  9. Breeding of quality varieties of breeder animals, breeder birds and aquatic offspring (excluding precious quality varieties peculiar to China)
  10. Breeding of famous, special and fine aquatic products, as well as cage culture in deep water
  11. Construction and operation of ecological environment protection projects preventing and treating desertification and soil erosion such as planting trees and grasses, etc.
II. Mining and Quarrying Industries
  *1. Venture prospecting and exploitation of petroleum, natural gas
  *2. Exploitation of oil and gas deposits (fields) with low osmosis
  *3. Development and application of new technologies that can increase the recovery factor of crude oil
  *4. Development and application of new technologies for prospecting and exploitation of petroleum, such as geophysical prospecting, well drilling, well-logging and downhole operation, etc.
  5. Prospecting and exploitation of coal and associated resources
  6. Prospecting and exploitation of coal-bed gas
  7. Exploration and beneficiation of gold mines with low quality or difficult to beneficiate (equity joint ventures or contractual joint ventures only)
  8. Prospecting, exploitation, and beneficiation of iron ores and manganese ores
  9. Prospecting and exploitation of copper ores, plumbum ores and zinc ores (equity joint ventures or contractual joint ventures only, wholly foreignowned enterprises are permitted in west regions)
  10. Prospecting and mining of aluminum ores (equity joint ventures or contractual joint ventures only, wholly foreign-owned enterprises are permitted in west regions)
  11. Mining and beneficiation of chemical mines including sulfur ores, phosphate ores, kalium ores, etc.
III. Manufacturing Industries
  1. Food Processing Industry
(1) Storage and processing of food, vegetables, fruits, fowl and livestock products
(2) Aquatic products processing, seashell products cleansing and processing, and development of function food made from seaweed
(3) Development and production of drinks of fruits, vegetables, albumen, teas and coffees
(4) Development and production of fond for babies and agedness, as well as function food
(5) Production of dairy products
(6) Development and production of biology feeds and albumen feeds
  2. Tobacco Processing Industry
(1) Production of secondary cellulose acetate and processing of tows
(2) Production of tobacco slices in the way of paper making
  3. Textile Industry
(1) Production of special textiles for engineering use
(2) Weaving and dyeing as well as post dressing of high-grade loomage face fabric
  4. Leather, Coat Products Industry
(1) Processing of wet blue skin of pig, cow and sheep with new technology
(2) Post ornament and processing of bather with new technology
  5. Lumber Processing Industry and Bamboo, Bine, Palm, Grass Products Industry
    (1) Development and production of new technology and products for the comprehensive utilization of "sub-quality, small wood and fuel wood" and bamboo in the forest area
  6. Paper Making and Paper Products Industry
(1) Project based on the mode of integration of forest and paper with an annual production capacity of over 300 thousand tons of chemical wood pulp or an annual production capacity of over 100 thousand tons of chemical mechanical wood pulp
(equity joint ventures or contractual joint ventures only)
(2) Production of high-quality paper and cardboard
(equity joint ventures or contractual joint ventures only)
  7. Petroleum Refining and Coking Industry
(1) Deep processing of needle coke and coal tar
(2) Production of heavy traffic road asphalt
  8. Chemical Raw Material and Products Manufacturing Industry
(1) Production of alkene through catalyzing and cracking of heavy oil
(2) Production of ethylene with an annual production capacity of 600 thousand tons or over
(the Chinese partners shall hold relative majority of shares)
(3) Comprehensive utilization of ethylene side-products such as C5-C9
(4) Mass production of corvic (in the way of ethylene)
(5) Production of organochlorine serial chemical industrial products (excluding high-residual organochlorine products)
(6) Production of basic organic chemical industrial raw materials such as the of benzene, methylbenzenc, dimethylobenzene, etc. and its derivatives
(7) Production of supporting raw materials for synthesized materials (bisphenol-A, (4)' diphenylmethane, diiso-cyan ester, and vulcabond toluene)
(8) Production of synthetic fibre raw materials: precision terephthalic acid, vinyl cyanide, caprolactam and nylon 66 salt
(9) Production of synthetic rubber (liquid butadiene styrene rubber by butadiene method, butyl rubber, isoamyl rubber, butadiene neoprene rubber, butadiene rubber, acrylic rubber, chlorophydrin rubber)
(10) Production of engineering plastics and plastic alloys
(11) Fine chemistry industry: new products and technology for catalytic agent, auxiliary and pigment; processing technology for the commercialization of dye (pigment); production of high-tech chemicals for electronics and paper-making, food additives, feed additives, leather chemical products, oil-well auxiliaries, surface active agent, water treatment agent, adhesivcs, inorganic fibre, inorganic powder stuffing and equipment
(12) Production of auxiliary agent, preparation agent, and dye-stuff for textile and chemical fibre ladder
(13) Production of depurant of automobile tail gas, catalyzer and other assistant agents
(14) Production of nature spices, synthetic spices and single ion spices
(15) Production of high capability dope
(16) Production of chloridized titanium white
(17) Production of chlorofluorocarbon substitution
(18) Production of mass coal chemical industrial products
(19) Development and production of new technology and products for the forestry chemicals
(20) Production of ion film for caustic soda
(21) Production of biologic fertilizers, high-density fertilizers (potash fertilizer, phosphate fertilizer) and compound fertilizers
(22) Development and production of new varieties of effective, low poison and low residual agriculture chemicals and pesticides
(23) Development and production of biology agriculture chemicals and pesticides
(24) Development and production of inorganic, organic and biologic films for environment protection
(25) Comprehensive utilization and disposure of exhaust gas, discharge liquid, waste residue
  9. Medicine Industry
(1) Production of material medicines under patent and administrative protection in our country or chemical material medicines which we have to import
(2) Vitamins: production of niacin
(3) Amino acid: production of serine, tryptophan, histidine, etc.
(4) Production of analgesic-antipyretic medicines with new technique and new equipment
(5) Production of new variety of anticarcinogen medicines, as well as cardiovascular and cerebrovascular medicines
(6) Production of new, effective and economical contraceptive medicines and devices
(7) Production of new variety of medicines which are produced by means of biological engineering technology
(8) Production of vaccine through genie engineering technology (vaccine against AIDS, vaccine against type-C hepatitis, contraceptive vaccine, etc.)
(9) Development and production of medicines made from allopelagics
(10) Production of diagnostic reagent for AIDS and radioimmunity diseases
(11) Medicines and pharmaceutics: production of new products and new dosage forms adopting new techniques such as slow release, control release, target preparation and absorbed through skins
(12) Development and applications of new variety of adjuvant medicines
(13) Processing and production of traditional Chinese herb medicines, products which distill from traditional Chinese herb medicines and Chinese patent medicines (excluding preparing technique of traditional Chinese medicines in small pieces ready for decoction)
(14) Production of biological medical materials and products
(15) Production of antibiotic material medicines used for animals (including antibiotics and chemical synthesis medicines)
(16) Development and production of new products and new dosage forms of antibiotic medical, anthelmintic, insecticide, anti-coccidiosis medicines used for animals
  10. Chemical Fibre Manufacturing Industry
(1) Production of differential chemical fibre and high, new technological fibre such as aromatic synthetic fibre, functional environment-amicable ammo synthetic fibre with an annual production capacity of over 5000 tons, carbon fibre, high tensible and high modulus polythene
(2) Production of chemical fibre of environmental protection variety such as direct viscose and asepsis spinning, etc.
(3) Production of polyester used for non-fibre with a daily production capacity of over 500 tons, and production of new type polyester used for fibre and non-fibre (poly terephthalic acid propylene glycol ester, poly sebacic acid glycol ester, polybutylene terephthalate(PBT), etc.)
  11. Plastic Products Industry
(1) Production of polyamide film which can keep fresh
(2) Development and production of new products and new technologies for agricultural films (photolysis film, multifunctional film and the raw materials, etc.)
(3) Reutilization and counteraction of waste and old plastic
  12. Non-metal Mineral Products Processing Industry
(1) Production of fine-quality floating glass with a daily melting capacity of 500 tons or over
(only in mid-west region of China)
(2) Production of new type dry process cement of clinker with a daily output capacity of 2,000 tons or over
(only in midwest region of China)
(3) Production of glass fibre (product line with technology of wire drawing in tank furnace) and glass fibre reinforced plastic products with an annual capacity of 10,000 tons or more
(4) Production of high level sanitation porcelain with an annual production of 500,000 pieces or over
(5) Standardization refine of ceramic material and production of high-level decorative materials used for ceramics
(6) Production of high-level refractory material used in furnaces for glass, ceramics and glass fibre
(7) Production of inorganic, non-metal materials and products (artificial crystal, high-capability complex materials, special kind of glass, special kind of ceramics, special kind of airproof materials and special kinds of cementation materials)
(8) Production of new type of building materials (lightweight high-intensity and multi-function materials for wall, high-level environment protecting decorating and finishing materials, high quality water-proof and airproof materials, and effective thermal insulation materials)
(9) Deep processing of non-metal mineral products (super-thin comminution, high level pure, fine production, modification)
  13. Ferrous Metallurgical Smelting and Rolling Processing Industry
(1) Production of direct and fusion reduced iron
  14. Non-Ferrous Metallurgical Smelting and Rolling Processing Industry
(1) Smelting of gold mines with low quality or difficult to beneficiate (equity joint ventures or contractual joint ventures only, wholly foreignowned enterprises are permitted in west regions)
(2) Production of hard alloy, tin compound and antimony compound
(3) Production of non-ferrous composite materials, new type of alloy materials
(4) Utilization of rare-earth
  15. Metal Products Industry
  16. General Machine-building Industry
  17. Special Equipment Manufacturing
  18. Communication and Transportation Equipment Industries
  19. Electric Machinery and Equipment Industries
  20. Electronic and Telecommunications Industries
  21. Machinery Industries for Instrument and Meter, Culture and Office
  22. Other Manufacture Industries
IV. Production and Supply of Power, Gas and Water
V. Water Resources Management Industry
VI. Communication and Transportation, Storage, Post and Telecommunication Services
VII. Wholesale and Retail Trade Industry
VIII. Real Estate Industry
IX. Social Service Industry
X. Public Health, Sports and Social Welfare Industries
XI. Education, Culture and Arts, Broadcasting, Film and TV Industries
XII. Scientific Research and Poly-technical Services Industries
XIII. Permitted foreign invested projects whose products are to be wholly exported directly

Catalogue of Restricted Foreign Investment Industries

I. Farming, Forestry, Animal Husbandry and Fishery Industries
  1. Development and production of grain (including potatoes), cotton and oilseed (Chinese partner shall hold the majority of shares)
  2. Processing of the logs of precious varieties of trees (equity joint ventures or contractual joint ventures only)
II. Mining and Quarrying Industries
  1. Exploring and mining of minerals such as wolfram, tin, antimony, molybdenum, barite, fluorite (equity joint ventures or contractual joint ventures only)
  2. Exploring and mining of precious metals (gold, silver, platinum families)
  3. Exploring and mining of precious non-metals such as diamond
  4. Exploring and mining of special and rare kinds of coal (Chinese partner shall hold the majority of shares)
  5. Mining of szaibelyite and szaibelyite iron ores
  6. Mining of celestine
III. Manufacturing Industries
  1. Food Processing Industry
(1) Production of millet wine and spirits of famous brands
(2) Production of soda beverage of foreign brand
(3) Production of synthetic sweet agent such as saccharin
(4) Processing of fat or oil
  2. Tobacco Processing Industry
(1) Production of cigarettes and filter tips
  3. Textile Industry
(1) Wool spinning, cotton spinning
(2) Silk reeling
  4. Printing and Record Medium Reproduction Industry
(1) Printing of publications
(Chinese partner shall hold the majority of shares except printing of package decoration)
  5. Petroleum Processing and Coking Industries
(1) Construction and management of refineries
  6. Chemical Raw Material and Products Manufacturing Industry
(1) Production of ionic membrane caustic soda
(2) Production of sensitive materials
(3) Production of benzidine
(4) Production of chemical products from which narcotics are easily made (ephedrine, 3, 4-idene dihydro phenyl-2-acctonc, phenylacetic acid, 1-phenyl- 2-acetone, heliotropin, safrole, isosafrole, acetic oxide)
(5) Production of sulphuric acid basic titanium white
(6) Processing of baron, magnesium, iron ores
(7) Barium salt production
  7. Medical and Pharmaceutical Products Industry
(1) Production of chloramphenicol, penicillin G, lincomycin, gentamicin, dihydrostreptomycin, amikacin, tetracycline hydrochloride, oxytetracycline, medemycin, kitasamycin, ilotyin, ciprofloxacin and offoxacin
(2) Production of analgin, paracetamol, Vitamin B1, Vitamin B2, Vitamin C, Vitamin E
(3) Production of immunity vaccines, bacterins, antitoxins and anatoxin (BCG vaccine, poliomyelitis, DPT vaccine, measles vaccine, Type-B encephalitis, epidemic cerebrospinal meningitis vaccine) which included in the State's Plan
(4) Production of material medicines for addiction narcotic and psychoactivc drug
(Chinese partner shall hold the majority of shares)
(5) Production of blood products
(6) Production of non-self-destructible expendable injectors, transfusion systems, blood transfusion systems, blood bags
  8. Chemical Fibre Production Industry
(1) Production of 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
(3) Production of polyester and spandex used for fibre and non-fibre with a daily production capacity of less than 400 tons
  9. Rubber Products
(1) Cross-ply and old tire recondition (not including radial tire), and production of industrial rubber fittings of low-performance
  10. Non-Ferrous Metal Smelting and Rolling Processing Industry
(1) Smelting and separation of rare earth metal
(equity joint ventures or contractual joint ventures only)
  11. Ordinary Machinery Manufacturing Industry
(1) Manufacture of containers
(2) Manufacture of small and medium type ordinary bearings
(3) Manufacture of truck cranes of less than 50 tons
(equity joint ventures or contractual joint ventures only)
  12. Special Purpose Equipment Manufacturing Industry
(1) Production of low or middle class type-B ultrasonic displays
(2) Manufacture of equipment for producing long dacron thread and short fibre
(3) Manufacture of crawler dozers of less than 320 horsepower, wheeled mechanical loaders of less than 3 cubic meter
(equity joint ventures or contractual joint ventures only)
  13. Electronic and Telecommunication Equipment Manufacturing Industry
(1) Production of satellite television receivers and key parts
IV. Production and Supply of Power, Gas and Water
V. Communication and Transportation, Storage, Post and Telecommunication Services
VI. Wholesale and Retail Trade Industries
VII. Banking and Insurance Industries
VIII. Real Estate Industry
IX. Social Service Industry
X. Public Health, Sports and Social Welfare Industries
XI. Education, Culture and Arts, Broadcasting, Film and TV Industries
XII. Scientific Research and Poly-technical Services Industries
XIII. Other industries restricted by the State or international treaties that China has concluded or taken part in
     

Catalogue of Prohibited Foreign Investment Industries

I. Farming, Forestry, Animal Husbandry and Fishery Industries
1. Cultivation of China's rare precious breeds (including tine genes in plants industry, husbandry and aquatic products industry)
2. Production and development of genetically modified plants' seeds
3. Fishing in the sea area within the Government jurisdiction and in in-land water
II. Mining and Quarrying Industries
1. Exploring, mining and dressing of radioactive mineral products
2. Exploring, mining and dressing of rare earth metal
III. Manufacturing Industry
  1. Food Processing Industry
(1) Processing of green lea and special tea with China's traditional crafts (famous tea, dark tea, etc.)
  2. Medical and Pharmaceutical Products Industry
(1) Processing of traditional Chinese medicines that have been listed as the State protection resources (musk, licorice, jute, etc.)
(2) Application of preparing technique of traditional Chinese medicines in small pieces ready for decoction, and production of the products of secret recipe of traditional Chinese patent medicines
  3. Non-Ferrous Metal Smelting and Rolling Processing Industry
(1) Smelting and processing of radioactive mineral products
  4. Manufacture of Weapons and Ammunition
  5. Other Manufacturing Industries
(1) Ivory carving
(2) Tiger-hone processing
(3) Production of bodiless lacquerware
(4) Production of enamel products
(5) Production of Xuan-paper (rice paper) and ingot-shaped tablets of Chinese ink
(6) Production of carcinogenic, teratogenic, mutagenesis and persistent organic pollutant products

IV. Production and Supply of Power, Gas and Water
V. Communication and Transportation, Storage. Post and Telecommunication Services
VI. Finance, Insurance Industries
VII. Social Service Industry
VIII. Education, Culture and Arts, Broadcasting, Film and TV Industries
IX. Other Industries
X. Other industries restricted by the State or international treaties that China has concluded or taken part in