Circular on Matters Relevant to the Review and Administration of Foreign-invested Enterprises in Certain Service Sectors by Competent Provincial-level Commerce Departments and State-level Economic and Technology Development Zones

1. Responsibility for the review and administration of the establishment of and changes to foreign-invested enterprises in the encouraged and permitted categories of the Foreign Investment Industrial Guidance Catalogue with a total investment of less than US$100 million and in the restricted category with a total investment of less than US$50 million engaged in the industries set forth below is hereby delegated to the competent commerce departments of provinces, autonomous regions, municipalities directly under the central government, cities with independent development plans, sub-provincial level municipalities and the Xinjiang Production and Construction Corp, and state-level economic and technological development zones:

(1) Sino-foreign equity and co-operative joint medical institutions:

(2) auction houses;

(3) book, newspaper and periodical distribution enterprises;

(4) Sino-foreign co-operative joint wholesalers of audio and video products;

(5) foreign-invested non-oil-and-gas mineral exploration enterprises; and

(6) various non-oil-and-gas mining enterprises.

2. The authority for the examination and approval of acquisitions effected with foreign funds is divided based on the amount of the transactions, with those of less than US$100 million in the encouraged and permitted categories and those of less than US$50 million in the restricted category being subject to the examination and approval of the competent provincial-level commerce departments and state-level economic and technological development zones.

3. Competent provincial level commerce departments and state-level economic and technological development zones shall perform their duties relating to the granting of market access in strict accordance with the Tentative Measures for the Administration of Sino-Foreign Equity and Co-operative Joint Medical Institutions, the Measures for the Administration of Auctions, the Measures for the Administration of Foreign-invested Book, Newspaper and Periodical Distribution Enterprises, the Measures for the Administration of Sino-foreign Co-operative Joint Audio and Video Product Distribution Enterprises, the Measures for the Administration of Foreign-invested Mineral Exploration Enterprises, the Several Opinions on Further Encouraging Foreign Investment in the Exploration and Mining of Non-oil-and-gas Mineral Resources, relevant state laws and regulations and related policies.

A Sino-foreign equity or Sino-foreign co-operative joint medical institution approved by the competent provincial level commerce authority or state-level economic and technological development zone shall obtain permission for establishment from the Ministry of Health. If a change in an established Sino-foreign equity or Sino-foreign co-operative joint medical institution involves particulars such as the parties that established the same (the co-operating parties), its name, type, number of beds, practice address, medical specialties, term of co-operation or preparation period, the consent of the Ministry of Health shall be obtained first. The establishment of and changes to a foreign-invested book, newspaper and/or periodical distribution enterprise or wholesaler of audio and/or video products shall require an approval document from the General Administration of Press and Publication. The establishment of or changes to a non-oil-and-gas mineral exploration enterprise or mining enterprise shall only be approved after the opinion of the land and resources department at the same level has been sought. A foreign-invested auction house shall require an auction business approval certificate issued by the competent provincial-level auction industry department. Simultaneously with the issuance of the approval document and the approval certificate for a foreign-invested enterprise, record filing shall be carried out online with the Ministry of Commerce through the foreign investment examination and approval management system or the national auction industry administration information system.

4. Changes in the particulars of foreign-invested enterprises in the aforementioned industries whose establishment was originally approved by the Ministry of Commerce shall be subject to examination and approval in accordance with the law of the competent provincial-level commerce departments and state-level economic and technological development zones with reference to this Circular.

5. Competent provincial-level commerce departments and state-level economic and technological development zones shall report to the Ministry of Commerce, in a timely manner, problems encountered in the course of review and administration. If examination and approval is carried out in violation of regulations, the Ministry of Commerce shall, depending on the circumstances, circulate a notice of criticism.

6. This Circular shall be effective as of the date of issuance.