(Approved and promulgated by the State
Council on Feb. 21, 2002.)
Article 1 These provisions are formulated according to the related legal
provisions on foreign investment and requirements of industrial policies of the
State in order to guide the direction of foreign investment, to make foreign
investment in accordance with the plan of the national economy and social
development of our country, and to serve the purpose of protecting legitimate
rights and interests of investors.
Article 2 These provisions shall apply to the projects of Sino-foreign equity
joint ventures, Sino-foreign contractual joint ventures, wholly foreign owned
enterprises(hereafter referred to as "foreign investment enterprises"), as well
as to other forms of foreign investment (hereafter referred to as "foreign
investment projects") within the territory of the People's Republic of
China.
Article 3 The State Development Planning Commission (SDPC), the State Economy
and Trade Commission (SETC) and the Ministry of Foreign Trade and Economic
Cooperation (MOFTEC), in conjunction with the concerned ministries of the State
Council, shall formulate Catalogue for the Guidance of Foreign Investment
Industries and Catalogue of Advantaged Industries for Foreign Investment in
Mid-west China, and promulgate these Catalogues after approval of the State
Council. According to practical circumstance that partial adjustment need to be
made to these Catalogues, SETC, SDPC and MOFTEC, in conjunction with the
concerned ministries of the State Council shall make revision and promulgation
in time.
Catalogue for the Guidance of Foreign Investment Industries and Catalogue of
Advantaged Industries for Foreign Investment in Mid-west China shall be the
basis for the guidance of examination and approval of foreign investment
projects and for the policy application of foreign investment enterprises.
Article 4 Foreign investment projects shall be classified into four
categories: encouraged, permitted, restricted and prohibited projects.
Foreign investment projects belonging to encouraged, restricted and
prohibited categories are listed in Catalogue for the Guidance of Foreign
Investment Industries. Those permitted foreign investment projects which do not
belong to the above three categories are not to be listed in Catalogue for the
Guidance of Foreign Investment Industries.
Article 5 Those foreign investment projects under one of the following
circumstances shall be listed as encouraged foreign investment projects:
1. Projects for new agricultural technology, comprehensive agricultural
development and for energy, transportation and key raw materials industries;
2. Projects for new and high technology, advanced applicable technology
which can improve performance of products and increase tech-economic efficiency
of enterprises or produce new equipment and new material that domestic capacity
is deficient.
3. Projects that meet market demands, and can promote the quality of
products, enter into new markets or strengthen the competing capability of
products in intentional markets.
4. Projects adopting new technology and new equipment for saving energy and
raw materials, for comprehensive utilization of resources and renewable
resources, and for prevention environment pollution;
5. Projects that can make full use of man power and resource advantage in
mid-west region and are in accordance with the State's industrial policies;
6. Other cases that are regulated by laws and administrative regulations of
the State.
Article 6 Those foreign investment projects under one of the following
circumstances shall be listed as restricted foreign investment projects:
1. Projects adopting out-of-date technologies;
2. Projects unfavorable to resource-saving and ecological environment
improvement;
3. Projects for resources protected by laws and regulations of the State;
4. Projects in those industries that shall be opened gradually;
5. Other cases that are regulated by laws and administrative regulations of
the State.
Article 7 Those foreign investment projects under one of the following
circumstances shall be listed as prohibited foreign investment projects:
1. Projects that endanger the safety of the State or damage social and public
interests;
2. Projects that pollute environment, destroy natural resources or impair the
health of human beings;
3. Projects that occupy large amounts of arable land, unfavorable to
protection and development of land resources;
4. Projects that endanger the safety of military facility and its
performance;
5. Projects that adopt the unique craftsmanship or technology of our country
to make products;
6. Other cases that are regulated by laws and administrative regulations of
the State.
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