General
1. Restrictive measures on foreign investment are listed in the Special Administrative Measures for the Access of Foreign Investments (Negative List), hereby referred to the List, including requirements on stock rights and senior leadership, excluding restrictive measures which are coherent for domestic and foreign investment, and not within the ambit of access administration.
2. Foreign investors are not allowed to operate as privately-owned business, sole proprietorship or member of farmer specialized cooperative societies.
3. Foreign investors are not allowed to engage in Prohibited Industries listed in the List; partnership firms with foreign investment are not allowed to engage in Restricted Industries listed in the List.
4. Existing regulations shall be followed for foreign firms which are set up or controlled legally by domestic firms, enterprises or natural persons to merge domestic firms which they have connections, in case that establishment and modification of foreign investment projects or enterprises are involved.
5. In case industries for which foreign investment is encouraged overlap with the List, encouraging policies shall be enjoyed, and relevant access administrative regulations followed.
6. In case there are other provisions in the Mainland-Hong Kong Closer Economic Partnership Arrangement, and its supplementary agreements and service trade agreements; the Mainland-Macao Closer Economic Partnership Arrangement, and its supplementary agreements and service trade agreements; the Mainland-Taiwan Economic Cooperation Framework Agreement and follow-up agreements; FTA and investment agreements signed by China with other countries; international treaties which China is a member; China’s laws and regulations, the provisions shall apply.
7. Existing and relevant regulations shall be followed by foreign service providers which are providing news and cultural services in China, including services related with Internet, to go through relevant examination and safety evaluation, and meet senior leadership requirements.
Part One
Catalogue of Restricted Industries for Foreign Investment
1. Selection and cultivation of new varieties of crops and production of seeds (With Chinese party as the controlling shareholder).
2. Exploration and exploitation of petroleum and natural gas, including coalbed gas, excluding oil shale, oil sand and shale gas (limited to joint venture and cooperation).
3. Exploration and exploitation of special and rare kinds of coal (with Chinese party as the controlling shareholder).
4. Exploration and exploitation of graphite.
5. Printing of publications (with Chinese party as the controlling shareholder). Smelting and separating of rare earths (limited to joint venture and cooperation); smelting of wolfram.
7. Manufacturing of complete automobiles and special purpose motor vehicles: the proportion of Chinese shares shall not be less than 50%. A foreign investor may set up at most two joint ventures to manufacture compete products of the same kind, including passenger vehicles and commercial vehicles, but such limitation can be ignored if the foreign investor, jointly with its Chinese equity partner, acquires other Chinese automobile manufacturers.
8. Design, manufacturing and repair of ships (including subsections) (with the Chinese Party as the controlling shareholder).
9. Design, manufacturing and repair of mainline and branch line planes; design and manufacturing of helicopters 3 tons and above; manufacturing of ground and water surface effect vehicles; design and manufacturing of UAVs and aerostatics (with the Chinese Party as the controlling shareholder).
10. Design, manufacturing and repairing of general planes (limited to joint venture and cooperation).
11. Manufacturing of satellite telecasting ground receiving facilities and key components.
12. Construction and operation of nuclear plants (with the Chinese Party as the controlling shareholder).
13. Construction and operation of power networks (with the Chinese Party as the controlling shareholder).
14. Construction and operation of pipeline networks for gas, heat, and water supply and sewage in cities with a population of more than 500,000 (with Chinese party as the controlling shareholder).
15. Construction and operation of railway mainline networks (with Chinese party as the controlling shareholder).
16. Railway passenger transport companies (with Chinese party as the controlling shareholder).
17. Domestic water transport companies (with Chinese party as the controlling shareholder), and international water transport companies (limited to joint venture and cooperation).
18. Construction and operation of civil airports (with Chinese party as the relatively controlling shareholder).
19. Public air transportation companies (with Chinese party as the controlling shareholder, the investment ratio of one foreign investor and its affiliated enterprises shall not be more than 25%, and the statutory representative of the company should have Chinese nationality).
20. General airline companies (the statutory representative should have Chinese nationality; for general airline companies of agriculture, forest and fishery, limited to joint venture, and for other ones, with Chinese party as the controlling shareholder).
21. Telecommunication companies: limited to services WTO pledged to open, value-added telecom services (ratio of foreign investment not more than 50%, excluding E-commerce), basic telecom services (with Chinese party as the controlling shareholder).
22. Purchasing and wholesale of paddy, wheat and corn.
23. Vessel agencies (with Chinese party as the controlling shareholder).
24. Wholesale of product oil and construction and operation of gas stations (in the case of the same foreign investors selling product oil of different varieties and brands from multiple suppliers through more than 30 chain gas stations, the Chinese parties shall be the controlling shareholders).
25. Banks (the proportion of investment in capital in a Chinese-funded commercial bank by a foreign financial institution and the affiliated party under common control as promoter or strategic investor shall not exceed 20%, while the proportion of investment in capital in a Chinese-funded commercial bank by more than one foreign financial institutions and the affiliated party under common control as promoter or strategic investor shall not exceed 25%, and the foreign financial institutions investing in China's small or middle-sized financial intuitions in rural areas must be banking financial institutions. Foreign investors, sole or controlling shareholders which set up branches of foreign banks, wholly foreign-funded banks, and China-foreign joint stock banks must be foreign commercial banks; non-controlling shareholders could be foreign financial institutions.
26. Insurance companies (in the case of life insurance companies, the proportion of foreign investment shall not exceed 50%).
27. Securities companies (limited in establishment to underwriting and sponsoring of A-shares, B-shares, government and corporate bonds, brokerage of B-shares, brokerage and proprietary trading of government and corporate bonds, qualified companies which have been established for two years or more may apply for expansion of business scope, and the Chinese parties shall be the controlling shareholders) and securities investment fund management companies (the Chinese parties shall be the controlling shareholders).
28. Futures companies (With Chinese party as the controlling shareholder).
29. Market survey (limited to Sino-foreign equity or contractual joint ventures, and radio and television ratings surveys shall be conducted by enterprises with the Chinese party as the controlling shareholder).
30. Surveying and mapping companies (With Chinese party as the controlling shareholder).
31. Pre-school, ordinary senior high schools and higher education institutions (limited to Sino-foreign contractual joint ventures, with Chinese party as the leader).
32. Medical institutions (limited to Sino-foreign equity or contractual joint ventures).
33. Production of radio and television programs and movies (limited to contractual joint ventures).
34. Construction and operation of movie theaters (With Chinese party as the controlling shareholder).
35. Performance brokerage agencies (With Chinese party as the controlling shareholder).
Part Two
Catalogue of Prohibited Industries for Foreign Investment
1. Research and development, breeding, and planting of China's rare and special varieties and production of relevant breeding materials (including quality genes in planting industry, animal husbandry, and aquaculture).
2. Breeding of genetically modified crops, livestock and poultry and aquatic fingerlings and production of genetically modified seeds.
3. Fishing in the sea area and inland waters under China's jurisdiction.
4. Exploration and exploitation of tungsten, molybdenum, tin, antimony and fluorite.
5. Exploration, exploitation and ore dressing of rare earth.
6. Exploration, exploitation and ore dressing of radioactive minerals.
7. Application of processing techniques such as steaming, stir-frying, roasting, moxibustion, and calcination for making small pieces of ready-for-use traditional Chinese medicines; and production of traditional Chinese patent medicine of secret prescriptions.
8. Smelting and processing of radioactive minerals, and production of nuclear fuels.
9. Manufacturing of weapons and ammunition.
10. Production of Xuan paper and Chinese ink ingot.
11. Air traffic control.
12. Postal companies; domestic express delivery of letters.
13. Wholesale and retail of tobacco, cigarette, redrying tobacco and other tobacco products.
14. Social survey.
15. Chinese legal affairs consulting (except to the providing of information relating to the influence of Chinese legal environment).
16. Development and application of human stem cell and genetic diagnosis and treatment technologies.
17. Geodetic surveying, marine charting, aerial photography for surveying and mapping purposes, administrative boundary surveying and mapping, compilation of topographic map, world administrative map, national administrative map, administrative map at provincial level or below, national school map, local school map, true three-dimensional map and navigating digital map, local geological mapping, and survey for mineral geology, physical geography, geochemistry, hydrogeology, environmental geology, geological disasters, remote sensing geology and so on.
18. Development of wild animal and plant resources originated in and protected by China.
19. Compulsory education institutions.
20. News institutions, including but not limited to news agencies.
21. Publishing and editing of books, newspapers, and periodicals.
22. Publishing, editing and production of sound and video recordings and electronic publications.
23. All radio stations, television stations, radio and television channels (frequencies), radio and television transmission and coverage networks (transmitting stations, relay stations, radio and television satellites, satellite uplink stations, satellite receiving and transmitting stations, microwave stations, monitoring stations, and cable radio and television transmission and coverage networks), on-demand services of broadcast, TV and video, and ground installation of receiving facilities of satellite TV and broadcast.
24. Radio and television program production and operation companies, including introduction services.
25. Movie production companies, distribution companies, and theater.
26. Internet news, online publish, and online audio and video services, business premises of Internet services, online cultural operation except music, and online public information services.
27. Auction enterprises and cultural relic stores to engage in auction of cultural relics.
28. Research institutions of humanities and social sciences.
