I. Light Industry

1. Production of washing machines, refrigerators, freezers

2. Production of synthetic ethanol, 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 supphuric 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. Electronic 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, amicacin, tetraycline hydrochloride,
oxytetracycline, acetyle spiramycin, medemycin, ktasamycin, ilotycin,
norfloxacinum, ciprofloxacin and ofloxacin

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


VII. Medical Apparatus and Industrments

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)

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

1. Development and production of food, cotton and oil-seed (the Chinese
party 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 poirits

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
or take a leading role)

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

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

5. General aviation (the Chinese party will be the holding party or take
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 automobile 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 fule-oil injecting systems, electronic controlled
brade and locking-prevention systems, safety aeocysts and other
electronic equipment, power generating machines and aluminum radiating
machines

4. Reconditiong 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 100,000
kw, gas turbine conbined cycle power equipments, cyclic fludized bed
boiler, coal gasification combined cycli 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 stroage
groups of over 50,000 kw, large scale tubular turbine units of 10,000 kw
over (wholly foreign owned enterprises are not allowed)

7. Nuclear power group: manufacture of nuclear power groups of 600,000 kw
or over (wholly foreign owned enterpirses 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


IX. Electronic Industry

1. Color TV (including projection television), color kinescope and glass
shielding

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

3. Video recorders and magnetic heads, magnetic drums and movement 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. Manufacturing 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 Products
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, lsergic acid and so on

3. pennicillin G

4. Production of addiction marcotic 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 vaccinum 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, pliomyelitis, DPT vaccine, measles vaccine,
Type-B encephalitis, epidemic cerebrospinal menignitis vaccine)

7. Production of Vitamin C

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
acclelerators for medical use


XIII. Shipping Industry (the Chinese part 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. Cooperation 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, wholesales 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, publishing and issuing of audio and video products and
electronic publication (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 take part in

Prohibited Foreign Investment Industries

I. Agriculture, Forestry, Animal 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 plants industry,
husbandry and aquatic products industry)

3. Construction of animal and plant natural reserves

4. Processing of green tea and special teas (famous teas, dark 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 network of water supply, water
drainage, gas and heat power


IV. Exploration, Selection, or Processing of Mining Industry,
Exploration, selection, smelting or processing of radioactive
mineral products


V. Petroleum Industry, Petrochemical Industry and Chemical Industry

1. Mining and processing of szaibelyite

2. Mining and processing of celestine


VI. Medicine Industry

1. Traditional Chinese medicines which have been listed as State
protection resources (musk, licoriceroot, etc.)

2. Preparing technique of traditional Chinese medicine in small pieces
ready for decoction and products of secret recipe of traditional Chinese
medicine already prepared


VII. Transportation and Post & Telecommunications Service

1. management of post and telecommunication business

2. Air traffic control


VIII. Trade and Finance

1. Commodity future, financial future and related finance business


IX. Broadcasting and film Industries

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

2. Production, publishing, issuing or showing of films

3. Video tape showing


X. Journalism


XI. Manufacturing Industry of Weapons


XII. Miscellaneous

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

2. Developing and processing of carcinogenic, teratogenic, and
mutagenesis raw materials

3. Racecourse, gambling

4. Pornographic service


XIII. Other Industry Prohibited by the State or by International
Treaties China Has Concluded or Taken Part In