National Development and Reform Commission and Ministry of Commerce, Foreign Investment Industrial Guidance Catalogue (Amended in 2007)

国家发展和改革委员会、商务部外商投资产业指导目录 (2007年修订)

November 30, 2007 | BY

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China closes the gate to mining of important mineral resources by foreign investors but opens the door to investment in futures companies

Clp Reference: 2100/07.10.31 Promulgated: 2007-10-31 Effective: 2007-12-01

Promulgated: October 31 2007
Effective: December 1 2007

Main Contents: Compared to the 2004 Catalogue, the 2007 Catalogue removes the exploration for, and mining of, copper, lead, zinc and aluminium ores from the encouraged category. Mining and dressing of chemical ores of sulphur, phosphorus and potassium are also removed from the encouraged category. The exploration for, and mining of, tungsten, molybdenum, tin, antimony and fluorspar are moved from the restricted category to the prohibited category. The following items in the encouraged category are now limited to equity or cooperative joint ventures:

(1) Exploration for, and development of, coalbed methane, and utilization of mine gas.

(2) Risk exploration and development of petroleum and natural gas.

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

(4) Development and application of new technologies for increasing the crude oil recovery factor and of other relevant new technologies.

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

The 2007 Catalogue also removes the development and construction of ordinary residential premises from the encouraged category. At the same time it adds real property secondary market trading and real property intermediaries or brokerages to the restricted category.

On the other hand, the 2007 Catalogue moves futures companies from the prohibited category to the restricted category with the Chinese party holding the controlling interest.

Repealed Legislation: Foreign Investment Industrial Guidance Catalogue (Amended in 2004), Nov 30 2004

clp reference:2100/07.10.31promulgated:2007-10-31effective:2007-12-01

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