Ministry of Commerce, Supplementary Provisions for the «Measures for the Administration of Foreign Investment in the Commercial Sector»

Promulgated: January 9 2006
Effective: as of date of promulgation

Main contents: Hong Kong and Macao service providers are allowed to establish wholly-owned enterprises and equity and co-operative joint ventures to engage in commission agency business for chemical fertilizers, oil products and crude oil, as well as wholesale and retail of chemical fertilizers (Article 1). For Hong Kong and Macao service providers that have established over 30 stores in aggregate in the mainland, if the commodities they deal with include books, newspapers, magazines, automobiles (this restriction will be cancelled from December 11 2006 onwards), pharmaceutical products, pesticides, mulching films, chemical fertilizers, grains, vegetable oil, sugar and cotton, and such commodities are from different brands and suppliers, such Hong Kong and Macao service providers are allowed to hold a controlling interest, but their capital contribution ratios may not exceed 51% (Article 2).
Related legislation: Mainland and Hong Kong Closer Economic Partnership Arrangement; Mainland and Macao Closer Economic Partnership Arrangement; Supplement II to the Mainland and Hong Kong Closer Economic Partnership Arrangement; Supplement II to the Mainland and Macao Closer Economic Partnership Arrangement and Measures for the Administration of Foreign Investment in the Commercial Sector, Apr 16 2004, CLP 2004 No.4 p.24