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Provisions on the Special Foreign Funded Business Promulgated Recently by the Related State Ministries and Commissions

Sectors Allowable Investing Scope Investor's Qualifications Allowable Investing Method Foreign Investor Shares Limitation Approval Organization
Civil Aviation Enterprises The civil air-transport(limited to the cooperation with the current Chinese airline) The foreign investor should not belong to authorities of overseas airport or overseas aviation manufacturing enterprises. The prsident and the general manager of the joint-venture company shall be pointed by the Chinese partner and the vice-general manager and junior staffs pointed by sino-foreign partners Joint-venture Below 35%(the vote right is below 25% in the board of director) CAAC, the State Planning Commission, the Ministry of Foreign Economy and Trade. CAAC has the right of approving the feasibility study report of the project with the investment below USD 30 million.
Flying area of civil airports (including run ways,sliding area and apron) Joint-venture
cooperation
Below 49%
Terminal building (except guest houses), freight storage, surface service, airplane repairing, food supply, hotel and restaurant, feul and airport supplementary project. Joint-venture
cooperation
Over 25% Zhuhai government has the right of approving the project with the investment below USD 30 million
Advertisement Enterprise Designing, making, showing and agenting of overseas and domestic advertisements The cooperation partner must be and enterprise engaged in the advertisement on the large scale, can introduce internationally advanced equipment for advertisement making, and has the capability of marketing investigation, advertisement designing and advertisement effectiveness testing, and can train the Chinese staffs in advertisement designing, making and management. The minimum registered capital is USD 300,000 Joint Venture
cooperation
Over 25% The State Industrial and Commercial Bureau¡¢the Ministry of Foreign Economy and Trade.
International Freight Transportation Agent Enterprises The international freight transport agent business of imported or exported trade or non-trade commodities by air, land or sea(including commodities collection, cabin booking, ship renting, chartering, international-multi-throuth transport, storaging, container re-arranging, document making, signing of bill of lading, clearance of goods, insurance and setting accounts) Sino and foreign partners must be the enterprises engaged in the international freight organizing, and should have three years of experience in the operation of the international freight transport, managing staffs and specialists in the line, the ready goods sources and the agency networks. The minimum registered capital are as follows:
    USD 1 million for sea transport
&n USD 800000 for air transport
    USD 600000 for land transport
Joint venture
cooperation
over 25% the Ministry of Foreign Economy and Trade
Investment Enterprises Directly investing in industry, agriculture, infrastructure and energy sources. Assisting or agenting for the invested enterprises in pur-chasing self-used equipments, office products, raw materials, components and assembly, selling the products in overseas and domestic market, offering the service after sold, seeking the loan and supplying the quarantee, blancing the foreign exchange, enrolling and training te staffs, developing the market, and supplying consultant services. Both of sino and foreign investors must have good credit and neccessary economic power. The total capital amount of the foreign partner should not be less than USD 400 million, the foreign partner has already funded enterprises in China with the actual investment more than USD 10 million and meanwhile has no less than 3 investment projects which have been already approved, or, the foreign partner has already funded more than 10 enterprises enaged in production and capital construction with the actual investment more than USD 30 million. The sino partner should have capitals no less than £¤100 million. Joint venture or sole foreign investment Joint venture, over 25% the Ministry of Foreign Economy and Trade
Construction Enterprises Civil construction engineering, pipe and equipment installation, and decoration engineering Sino partner should be a construction enterprise who has already acquired the certificate of above class 2, foreign partner should be a corporative construction enterprise who has high level technology, high standard management and good reputation, and is capalble of introducing internationally advanced construction technology and equipment, and training Chinese sfaffs in technology and management. The minimum registered capital for a construction enterprise: Class 1: USD 10 million; Class 2: USD 5 million; Class 3: USD 1.6 million. The minimum registered capital for a decoration enterprise: Classs 1: USD 2 million; Class 2: USD 1.5 million; Class 3: USD 600,000.00 Joint-venture or cooperation Over 25% The construction enterprise of Class 1 shall be examined by The State Construction Ministry and approved by the Ministry of Foreign Economy and Trade. The construction enterprise of Class 2 shall be examined by the provincial construction commission and approved by the provincial foreign economic and trade commission (Zhuhai municipal government may enjoy the same approval power as a provincial government)
Inspection and Appraisal Companies for Imports and Export Inspecting and appraisaling the quality, specifications, quantity, weight, packing, breakage, value and shipping specification of imported and exported goods The Chinese investor should be an enterprise which is approved to work on inspection and appraisal of imports and exports by related authorities. The Foreign investor should be an enterprise well known in the world which has at least 3 years of experience engaged in inspection and appraisal of imports and exports, and has enough managing staff, specialists, equipment and steady costomers. The joint-venture company should has a minimum registered capitals of USD 500,000, and has a fixed working site, good facilities and specialists. Joint-ventrue and cooperation Over 25% the Ministry of Foreign Economy and Trade
Sole Foreign Owned Shipping Company Developing business for its mother company, signing bill of lading on behalf of its mother company, and settling accounts. The investment should be met by the regulations stipulated in the agreements or memorandums signed by Chinese government and the government of investor's country. The investor should have more than 15 years of experience engaged in shipping service, and should have an office with 3 years operation experience in the city in which the sole foreign owned shipping company is to be established. The ship of the investor shall anchor at the port of the city one time per month in which the sole foreign owned shipping company is located. The minimum registered capitals should be no less than USD 1,000,000. Sole foreign owned 100% The project is to be approved by the State Economic and Trade Ministry after agreed by the State Communication and Transportation Ministry, the State Economic and Trade Ministry is responsible for issuing the approval certificate, and the State communication and Transportation Ministry for issuing the business certificate.