Foreign Investment Industrial Guidance Catalogue

Revised on April 10 2015. Latest revision can be found at:
http://www.chinalawandpractice.com/Article/3453570/Foreign-Investment-Industrial-Guidance-Catalogue-Amended-in-2015.html

(Promulgated by the State Development Planning Commission, the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation on March 11 2002. Effective as of April 1 2002.)

(Supersedes the Foreign Investment Industrial Guidance Catalogue approved by the State Council on December 29 1997 and issued by the State Planning Commission, the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation on December 31 1997.)

CATALOGUE OF INDUSTRIES IN WHICH FOREIGN INVESTMENT IS ENCOURAGED

1. Agriculture, Forestry, Animal Husbandry and Fisheries

(1) Improvement of medium- and low-yield agricultural fields.

(2) Development and production of non-polluting technologies for, and product serialization of, vegetables (including edible fungi, watermelons and musk melons), fruit and tea.

(3) Development of new, high-quality, high-yield technologies for, and development and production of new high-quality, high-yield varieties of, such crops as sugar, fruit trees, flowers, plants, herbage, etc. (excluding transgenic varieties).

(4) Production of flowers and plants and the construction and operation of nursery centres.

(5) Mulching and comprehensive utilization of crop straw and the development and production of organic fertilizer resources.

(6) Growing and breeding of traditional Chinese medicine materials (limited to equity and cooperative joint ventures).

(7) Forest (bamboo) planting and cultivation of improved varieties.

(8) Planting of natural rubber, sisal and coffee.

(9) Breeding and raising of good breeding stock, poultry and aquaculture brood stock (not including precious and fine varieties unique to China).

(10) Breeding and raising of famous, special and fine aquaculture products and deep water net-pen breeding.

(11) Construction and operation of ecological environment protection projects such as the planting of trees and grasses to prevent and treat desertification and prevent water loss and soil erosion.

2. Mining

(1)* Risk exploration and development of petroleum and natural gas.

(2)* Development of oil/gas pools (fields) in low permeability formations.

(3)* Development and application of new technologies for increasing the crude oil recovery factor.

(4)* Development and application of new technologies for petroleum exploration and development such as geophysical prospecting, drilling, logging, downhole operation, etc.

(5) Exploration for, and development of, coal and associated resources.

(6) Exploration for, and development of, coalbed methane.

(7) Mining and dressing of low-grade, refractory metallurgical ores (limited to equity and cooperative joint ventures; foreign investors may establish wholly owned enterprises in Western China).

(8) Exploration for, and mining and dressing of, iron ore and manganese ore.

(9) Exploration for, and mining of, copper, lead and zinc ores (limited to equity and cooperative joint ventures; foreign investors may establish wholly owned enterprises in Western China).

(10) Exploration for, and mining of, aluminium ores (limited to equity and cooperative joint ventures; foreign investors may establish wholly owned enterprises in Western China).

(11) Mining and dressing of chemical ores of sulphur, phosphorus, potassium, etc.

3. Manufacturing

(1) Food processing

(i) Storage and processing of grains, vegetables, fruits, poultry and livestock products.

(ii) Processing of aquatic products, cleansing and processing of shellfish and development of functional foods made from kelp.

(iii) Development and production of fruit, vegetable, protein, tea and coffee beverages.

(iv) Development and production of infant and geriatric foodstuffs and functional foods.

(v) Production of dairy products.

(vi) Development and production of biological feeds and protein feeds.

(2) Tobacco Processing

(i) Processing of diacetate cellulose and tow.

(ii) Production of tobacco sheet by paper-making process.

(3) Textile Industry

(i) Production of special textile products for engineering uses.

(ii) Weaving, dyeing and finishing of high-grade lining fabric.

(4) Leather and Fur Products Industry

(i) Processing of wet blue skin leather of swine, bovine animals and sheep using new technologies.

(ii) Leather finishing using new technologies.

(5) Lumber Processing and Bamboo, Rattan, Coir and Grass Product Industry

(i) Development of new technologies for the comprehensive utilization of secondary wood, small wood and fuel wood and bamboo from forest areas and the development and production of new products from such comprehensive utilization.

(6) Paper-Making and Paper Product Industry

(i) Construction and operation of projects for the production of pulp by chemical process with an annual output of not less than
300,000 tonnes, projects for the production of pulp by chemical and mechanical processes (CTMP, BCTMP, APMP) with an annual output of not less than 100,000 tonnes and integrated projects for pulp from raw material forest centres.

(ii) Production of high-grade paper and paperboard (with the exception of newsprint).

(7) Petroleum Processing and Coking Industries

(i) Processing of needle coke and coal tar into downstream products.

(ii) Production of tamped coke and dry-quenched coke.

(iii) Production of asphalt for roads with heavy traffic.

(8) Chemical Raw Material and Chemical Product Manufacturing

(i) Production of olefin through the catalytic cracking of heavy oil.

(ii) Scale annual production of 600,000 tonnes or more of ethylene (the Chinese party shall hold a dominant position).

(iii) Comprehensive utilization of ethylene by-products C5