Special Administrative Measures
1. Agriculture, Forestry, Animal Husbandry, and Fishery
1. It is prohibited to invest in R&D, breeding, cultivation of China’s rare or peculiar species and production of relevant propagation materials including superior genes in crops, husbandry and aquatic sectors;
2. It is prohibited to invest in GMO variety breeding of crops, breeding stock and poultry, aqua-cultural seeding and production of transgenic seeds (seedling).
3. Investment in new variety breeding of crops and seeding production are restricted and equity should be controlled by Chinese party.
4. It is prohibited to collect the germplasm resources of crops without permission
5. The fishery activities in China’s territorial waters shall be approved by Chinese government.
6. The application of quotas for fishing vessel and fishing gear for the fishing vessel operation in territorial waters by means of cooperation or joint venture is not approved.
Exploration and Development of Exclusive Economic Zone and Continental Shelf
7. Any exploration and development activities for natural resources on China’s exclusive economic zone and continental shelf or any drilling activities on Chinese Mainland by any means shall be approved by Chinese government.
Petroleum and Natural Gas Extraction
8. Exploration and development of the petroleum and natural gas (including unconventional oil & gas such as oil shale, oil sand, shale gas, coal bed gas, etc) are restricted to joint venture and cooperation.
Mining and Dressing of Rare Earth and Rare Metal Ores
11. It is prohibited to invest in the exploration, exploitation and beneficiation of radioactivity associated mine.
Mining and Dressing of Metal Ores and Non-metal Ores
12. Investment in exploration and exploitation of precious metal ores, such as gold, silver, and platinum, are restricted.
13. Investment in the exploration and exploitation of lithium ores are restricted.
14. Investment in exploration and exploitation of graphite ores are restricted.
16. Design, manufacturing and maintenance of general-purpose plane are restricted to joint venture and cooperation.
17. Manufacturing of low- and medium-speed diesel engines and crankshaft for vessels (equity should be controlled by Chinese party)
18.Manufacturing and maintenance of ocean engineering equipment (model included) (equity should be controlled by Chinese party)
19.Design, manufacturing and maintenance of vessels (sub-block included) (restricted, equity should be controlled by Chinese party)
20. Investment in manufacturing of automobile and special purpose motor vehicles are restricted and Chinese stock proportion should not be less than 50%. One foreign investor may establish up to two equity joint ventures to manufacture automobiles in the same category (including passenger vehicle and commercial vehicle). But his restriction may not apply to the case of acquiring other domestic automobile manufacturing companies together with its Chinese partners.
21. The newly set-up pure electrical passenger vehicle products must use private brand, and has proprietary intellectual property and related authorized invention patents.
Railway Traffic Equipment Manufacturing
22. Manufacturing of railway traffic equipment is restricted to joint venture and cooperation (excluding R&D, design and manufacturing of passenger service facilities and equipment matching high-speed rail, railway passenger dedicated line and intercity rail; R&D, design and manufacturing of rail and bridge equipment related to the high-speed rail, railway passenger dedicated line and intercity rail; Manufacturing of electrified railway equipment and apparatus; Manufacturing of waste removal equipment on passenger train.)
23. The equipment domesticization of urban railway system should reach 70% or above.
Communication Equipment Manufacturing
24. Design and manufacturing of commercial satellite and manufacturing of commercial satellite payload. (equity should be controlled by Chinese party)
25. Manufacturing of ground satellite TV broadcasting receiving facilities and key components are restricted.
Smelting and Rolling Processing of Minerals
26. Investment in smelting of rare non-ferrous metals, e.g. tungsten, molybdenum, tin (excluding tin components), antimony (including antimony oxides and antimony sulphides) are restricted.
27. Investment in smelting and separation of rare earth are restricted to joint venture and cooperation.
28. It is prohibited to invest in the smelting and processing of radioactive minerals.
29. It is prohibited to invest in processing of Chinese medicinal materials listed in the “Regulations on Protection of Wild Medical Resources” and “Catalogue of Rare and Endangered Chinese Plants”.
30. It is prohibited to invest in processing of traditional Chinese medicines (through steaming, frying, moxibustion, calcination, etc.) and production of traditional Chinese medicine patent drugs with secret formulas.
Other Manufacturing Industries
31. It is prohibited to invest in traditional native crafts such as ivory carving, tiger bone processing, production of Chinese art paper and ink stick.
4. Production and Supply of Electricity, Heating, Gas and water.
32. Construction and operation of nuclear power stations (equity should be controlled by Chinese party)
33. The production, operation, and import and export of nuclear fuel, nuclear material, uranium product and relevant nuclear technology should be solely operated by qualified state-owned key enterprises.
34. Only state-owned enterprises or state holding enterprises are allowed to dispose of the radioactive solid waste.
35. Investment in construction and operation of pipeline of gases, heat, and water supply and drainage in cities with urban population of more than 500 thousands are restricted and equity should be controlled by Chinese party.
36. Construction and operation of power grid (equity should be controlled by Chinese party)
5. Wholesale and Retail Trade
Monopoly and Franchise
37. Implement the monopoly system for the tobacco. The production, sales, import and export of tobacco monopoly commodities, such as the cigarette, cigar, pipe tobacco, redrying tobacco leaf, tobacco leaf, filter rod, filter tow, cigarette manufacturing equipment, etc are in monopoly management and it implements the system of tobacco monopoly retail license. It is prohibited to invest in the wholesale and retail of tobacco leaf, cigarette, redrying tobacco leaf and other tobacco products.
38. Implement the monopoly system for the central reserved grain and oil. China Grain Reserves Corporation is responsible for the purchase, storage, operation and management of the central reserved grain (central reserved oil is included).
39. Implement the franchise and the centralized and unified management for selling the duty free goods.
40. Implement the franchise for issuing and selling lottery. It is prohibited to issue and sell the overseas lottery within the territory of the People’s Republic of China.
6. Transport, Warehouse and Postal Service
41. Highway passenger transport company is restricted.
42. Construction and operation of trunk railway network (equity controlled by Chinese party)
43. Railway passenger transport company is restricted and equity should be controlled by Chinese party.
44. Water transport company (excluding the international maritime transport companies set up in Shanghai Pilot Free Trade Zone) is restricted and equity should be controlled by Chinese party. It is not allowed to operate the following businesses: (1) Domestic waterway transport, including the operation of waterway transport in disguised form by renting Chinese registered vessels or shipping space. (2) Domestic vessel management, waterway passenger transport agent, and waterway cargo transport agency.
46. Ocean shipping tally is restricted to joint venture and cooperation.
47. Waterway transport operator should not use foreign vessels to operate the domestic waterway transport business, except the special circumstances approved by Chinese government.
48. Maritime transport and towage between Chinese ports should be operated by vessels hanging the National Flag of the People’s Republic of China. The maritime transport and towage between Chinese port operated by foreign vessels should be approved by Chinese government.
Public Air Transport
49. The equity of public air transport company should be controlled by Chinese party and the investment proportion of a single foreign investor (including its affiliated company) should not exceed 25%.
50. The chairman and legal representative of the public air transport company should be Chinese citizen.
51. Foreign aircraft operator should not operate the transport between the two locations within Chinese territory.
52. Only the carrier assigned by Chinese party can operate the sided air transport market defined by the sided air transport agreement which is signed by China and other contracting parties.
53. It is allowed to invest in general aviation companies in the sectors of farming, forestry, and fishing industry by means of joint venture. For other general aviation companies, the equity should be controlled by Chinese party.
54.The legal representative of the general aviation company should be Chinese citizen.
55. It is prohibited that the foreign aircraft or foreigners to make general aviation flight in the important professional field such as aerial photography, remote sensing survey, mining resources exploration, etc.
Civil Airport and Air Traffic Control
56. It is prohibited to invest and operate the air traffic control system.
57. The construction and operation of civil airport (equity should be relatively controlled by Chinese party)
58. It is prohibited to invest in postal enterprises and operate postal services.
59. It is prohibited to operate the domestic mail delivery business.
7. Information Transmission, Software and Information Technology (IT) Service
Telecommunication Transmission Service
60. Telecommunication company is restricted to the telecommunication service committed to be opened up by China when entering WTO. The proportion of foreign capital in value-added telecommunication service (excluding E-commerce) does not exceed 50%. Basic telecommunication service operator should be the legally established company specialized in basic telecommunication service and equity or share of Chinese party in the company should not be less than 51%.
Internet and Related Service
61. It is prohibited to invest in the internet news service, online publishing service, online audio and visual programs, internet culture operation (except the music), internet access business place, and internet public information release service. (Among the above services, the open contents committed in China’s entry into WTO are not included. )
62. It is prohibited to do the activities of internet map compilation and publication. (among the above services, the open content committed in China’s entry into WTO are not included)
63. The cooperation between the internet news information service unit and foreign investors on internet news information services should be reported to Chinese government for safety assessment.
Requirements for Types of Banking Shareholders
64. The overseas investors investing banking financial institutions should be financial institutions or specific type of institutions. The specific requirements are as follows:
1. The shareholders of wholly foreign-funded banks and foreign shareholders should be financial institutions. The foreign sole shareholders and controlling/main shareholders should be commercial banks.
2. Investors investing in Chinese-funded commercial banks and trust companies should be financial institutions.
3. Investors investing in rural commercial banks, rural cooperative banks, rural credit cooperative banks, and village banks should be offshore banks.
4. Investors investing financial leasing companies should be financial institutions or lease finance companies.
5. The main contributors of consumer financial companies should be financial institutions.
6. Investors investing in money broking companies should be money broking companies.
7. Investors investing in financial asset management companies should be financial institutions and should not participate in or promote to establish financial asset management companies.
8. Investors not defined in the laws and regulations should be financial institutions.
Banking Qualification Requirements
65. To invest in banking financial institutions, the overseas investors should have certain amount of total assets. Below are the details:
1. The sole shareholders and controlling/main shareholder of foreign-funded bank, or the parent banks of foreign branch banks.
2. Overseas investors for Chinese-funded commercial banks, rural commercial banks, rural cooperative banks, rural credit cooperative banks, village banks, trust companies, financial leasing companies, finance corporations, and financial assets management companies.
3. Other overseas investors in banking financial institutions not defined as inapplicability in laws and regulations.
66. To invest in money broker companies, the overseas investors should meet the special requirements like the fixed number of years of the relevant business, global organization network and information communication net work.
Banking Stock Proportion Requirements
67. Overseas investor’s investment in banking financial institutions such as Chinese-funded commercial banks, rural commercial banks, rural cooperative banks, rural credit cooperative banks, and financial assets management companies is restricted on shareholding ratio of sole shareholder and total shareholding ratio.
68. In addition to the requirements on types and qualifications of shareholder institutions, the foreign banks should meet the following conditions:
1. Foreign branch banks are not allowed to operate the businesses in the Law of the People's Republic of China on Commercial Banks, such as “agency issuance, proxy payment, and consignment sales of government bond”, “agency issuance of financial bonds”, “bank card business”, etc. Foreign branch banks are not allowed to handle RMB transactions for Chinese citizen, except to take the fixed deposit of at least 1 million yuan with Chinese citizens in each deal.
2. Foreign branch banks should be freely allocated the working capital by the head office. Part of the working capital should be existed in specific form and meet relevant management requirements.
3. Foreign branch banks should meet the requirements of RMB working capital adequacy (8%).
4. To get the license to handle RMB transaction, the foreign banks should meet the minimum duration of stating business.
69. Future companies are restricted and equity should be controlled by Chinese party.
70. Securities companies are restricted and foreign capital proportion should not be more than 49%.
71. A single overseas investor should not (directly or indirectly) hold more than 20% of the shares of the domestic-funded listed securities company. The proportion of the total overseas investors should not (directly or indirectly) hold more than 25% of the shares of the domestic-funded listed securities company.
Securities Investment Fund Management company
72. Securities investment fund management company is restricted and proportion of foreign capital should not be more than 49%.
Securities and Futures Transaction
73. It is prohibited to be the general member of securities exchange and member of futures exchange.
74. It is prohibited to open securities account and futures account in A share market.
Establishment of Insurance Institutions
75. Insurance company is restricted (proportion of foreign capital in life insurance corporation should not exceed 50%) and total amount of shares held by domestic insurance company in insurance assets management company should not be less than 75%.
76. Foreign insurance company applying for the establishment of foreign insurance company, and overseas financial institutions investing in insurance company (except the companies purchasing the shares of listed insurance companies in securities exchange) should meet the requirements of China’s insurance supervision department on operation period and total assets.
77. Foreign insurance company should not conduct the inward and outward reinsurance businesses with its affiliated enterprises without the authorization of China’s insurance supervision department.
9. Leasing and Business Services
78. Chief partner (or other senior executive) in special and ordinary partnership accounting firms should have Chinese nationality.
79. Foreign law office is only allowed to enter into China by means of establishing representative office. Its establishment of representative office or accreditation of representatives should be approved by China’s judicature and administration department.
80. It is prohibited to practice Chinese legal affairs and act as the partner of the domestic law office.
81. The representative office of foreign law office in China should not employ Chinese practicing lawyer and its employed supporting staffs should not provide legal services for the parties involved.
82. Implement the qualification authentication system for foreign-related investigation agencies and examination and approval system for foreign-related social investigation programs.
83. It is prohibited to invest in social investigation.
84. Market investigation is restricted to joint venture and cooperation, in which radio/TV broadcasting and investigation of ratings should be controlled by Chinese party.
85. Rating services are restricted.
Other Business Services
86. Legal representatives of entry and exit service associations should be Chinese citizens who have domestic permanent residence and full capacity for civil conduct.
10. Scientific Research and Technology Services
Professional Technical Services
87. It is prohibited to invest in geodetic surveying, marine charting, aerial photography for surveying and mapping, compilation of topographic map, world administrative map, China administrative map, provincial and lower-level administrative map, national school map, local school map and true 3-D map, compilation of the electronic map, regional geological mapping, and investigations on mineral geology, geophysics, geochemistry, hydrogeology, environmental geology, geological disaster, remote sensing geology, etc.
88. Surveying and mapping company is restricted and equity should be controlled by Chinese party.
89. It is prohibited to invest in the development and application of human stem cells, gene diagnosis and treatment technologies.
90. It is prohibited to set up and operate the research institute of humanities and social sciences.
11. Management of Water Conservancy, Environment, and Public Facilities
Conservation of Animals and Plants
91. It is prohibited to invest in the exploitation of national protected wild animals and plants originated in China.
92. It is prohibited to collect or purchase the national key protected wild animals and plants.
93. Foreign educational institutions, other organization or individuals are not allowed to individually establish the schools or other educational institutions which mainly recruit Chinese citizens (excluding non-school system vocational training)
94. Foreign educational institutions are allowed to cooperate with educational institutions in China to establish the educational institutions by taking Chinese citizens as the enrollment target. Chinese and foreign cooperators in running schools may cooperate to establish educational institutions of various types at various levels.
1. However, they shall not establish institutions offering compulsory education service or special education services as military, police, politics and party school.
2. No foreign religious organization, religious institution, religious college an university or religious worker may engage in cooperative activities of running schools within the territory of China. Sino-foreign cooperative schools shall not offer religious education, nor conduct religious activities.
3. General high school educational institution, higher learning institution and preschool education institution are restricted and shall be controlled by Chinese party. (The headmaster or the main executives should have Chinese nationality and settle down in China. Chinese personnel in the council, board of directors, or joint management committee should not be less than 1/2. Education and teaching activities and curriculum materials should meet the requirements of China’s relevant laws and regulations and relevant provisions )
13. Health and Social Works
95. Medical institution is restricted to joint venture and cooperation.
14. Culture, Sports and Entertainment
Raido/TV Broadcasting, Transmission, Production and Operation
96. It is prohibited to invest to establish and operate radio broadcasting station, TV station, radio and TV frequency channels and programs, radio and TV transmission network (radio and TV transmitting station, rebroadcasting station (including transposer station and reception station), radio and TV satellite, satellite uplinking station, satellite reception station, microwave station, monitoring station, cable broadcasting and TV program network, etc. ) It is prohibited to operate the radio and TV videos on-demand services and installation of satellite broadcasting and TV program receiving facilities.
97. It is prohibited to invest in the radio broadcasting and TV program production company.
98. Implement examination and approval system for the overseas satellite channels landing. Introduction of overseas movie and television play and other overseas TV programs by means of satellite transmission should be declared by designated unit of State Administration of Press, Publication, Radio, Film and Television of The People’s Republic of China.
99. Implement licensing system for sino-foreign jointly produced teleplay (including TV catoon programs).
News publishing, radio, film and television, and financial information
100. It is prohibited to invest in the establishment of news agency, newsstand, publishing house and news organization.
101. The establishing of permanent news agencies and dispatching of resident reporters within the boundary of China by foreign news agency should be approved by Chinese government.
102. The news services of foreign news agencies within the boundary of China should be approved by Chinese government.
103. It is prohibited to invest in the publication and production of books, newspapers, periodicals, audio and visual products and E-journal. It is prohibited to operate the newspapers and periodicals layout.
104. Business cooperation of China and foreign news agencies and Sino-foreign cooperative news publishing project should be dominated by Chinese party and approved by Chinese government. (Chinese government approves the domestic technical periodicals to establish the copyright cooperation relation with overseas periodicals. The term of cooperation is not more than 5 years. After the expiry date of cooperation, if it is to be extended, it should apply for approval again). Chinese party has the final power of adjudication of contents and foreigners are not allowed to participate in the editing and publishing activities of Chinese party’s journals).
105. It is prohibited to operate the cultural product import business such as movie, broadcasting and TV programs, arts and crafts, and digital documentation database and publications. (among the above services, the open content committed in China’s entry into WTO are not included)
106. Publication printing is restricted and equity should be controlled by Chinese party.
107. It is prohibited to provide financial information services within the boundary of China without the permission of Chinese government.
108. Foreign media groups (including the newspaper office, periodical press, book publishing house, audio and visual publishing house, E-journal publishing company, and mass media like broadcast, movie, TV, etc in foreign and Hong Kong-Macau-Taiwan) are not allowed to set up agencies or editorial department within the boundary of China. If necessary, the establishment of administrative office should be examined and approved.
Movie Production, Distribution, and Projection
109. It is prohibited to invest in movie production company, distribution company, cinema line corporation.
110. Chinese government implements licensing system for Sino-foreign cooperative produced movies.
111. Construction and operation of cinema should be controlled by Chinese party. Movie projection should conform to the time scale of projecting Chinese movie and imported movie specified by Chinese government. Annual projection time of projection unit on Chinese movie should not be less than 2/3 of the total annual movie projection time.
Intangible Cultural Heritage, cultural relics and archaeology
112. It is prohibited to invest in and operate the auction enterprises dedicated in heritage auctions and cultural relics buying and selling enterprises.
113. It is prohibited to invest and operate the state-owned cultural relics museum.
114. It is prohibited to transfer, pledge, and rent the immovable cultural relics and cultural relics prohibited by China from exporting to foreigners.
115. It is prohibited to establish and operate the investigation institution of intangible cultural heritage.
116. The investigation, archaeological survey, exploration, and excavation of intangible cultural heritage made by overseas organizations or individuals within the boundary of China should cooperate with China and gain license through examination and approval.
117. It is prohibited to set up the artistic and cultural performance group.
119. Construction and operation of large theme park are restricted.
15. All Industries
120. Foreign investors are not allowed to conduct operation activities as individually-owned business, investor of sole proprietorship enterprise, member of specialized farmers cooperatives, etc.
121. The prohibited items in Catalogue of Industries for Guiding Foreign Investment , items marked with “joint venture only”, “cooperation only”, “joint venture and cooperation only”, “equity controlled by Chinese party”, and “equity relatively controlled by Chinese party”, and items with requirements of foreign capital proportion it is not allowed to establish the foreign-funded partnership enterprise.
122. Foreign investor’s acquisitions of domestic enterprises, strategic investment in listed company, and contribution by the equity in its domestic enterprise which is related to foreign investment projects and establishment and changing of enterprises should be processed by current regulations.