Order of the State Development and Reform Commission, the Ministry of Commerce of the People's Republic of China
No.24 

The Catalogue for the Guidance of Foreign Investment Industries and its Attachment have been amended and are promulgated now for the purpose of meeting the need of economy and social development and adjustment of industrial structure, and shall come into force on January 1st, 2005. The Catalogue for the Guidance of Foreign Investment Industries which was promulgated by the former State Development Planning Commission, the former State Economy and Trade Commission and the former Ministry of Foreign Trade and Economic Cooperation on March 11, 2002 shall be annulled at the same time. 

Ma Kai, Director of the State Development and Reform Commission 
Bo Xilai, Minister of the Ministry of Commerce 
November 30, 2004

Catalogue for the Guidance of Foreign Investment Industries (Amended in 2004)
（Related to Logistics)

Catalogue of Encouraged Foreign Investment Industries 

III. Manufacturing Industries

17. Special Equipment
(19) Design and manufacturing of new type of mechanical equipment for highways and ports (20) Manufacturing of equipment for highways and bridges maintenance, automatic detection (21) Manufacturing of equipment for operation supervisory control, ventilation, disaster prevention and rescue system of highway and tunnels 
(22) Design and manufacturing of large equipment for railway construction and maintenance
(25) Manufacturing of machines for road milling and overhauling 
(26) Manufacturing of tunneling diggers, equipment of covered digging for city metro

18. Communication and Transportation Equipment Industries
 *(1) Manufacture of complete automobiles (including R&D activities) 
(2) Manufacture of engines for automobiles (including R&D activities) 
(3) Manufacture of key spare parts for automobiles: complete disc brakes, complete driving rods, automatic gearboxes, fuel pumps of diesel engine, inhalant supercharger of engines, electromotion steering system, adhesive axial organ(used for four-wheel drive), gas filling vibration abosorber,air spring, hydraulic tappet, cluster gauge 
(4) Production of automobile electronic devices(including engine control system, underchassis control system, autocar body electric control system) 
(5) Manufacture of vehicles for special-purpose in petroleum industry: vehicles for deserts, etc. 
(6) Technology and equipment for railway transportation: design and production of locomotives and main parts, design and production of equipment for railways and bridges, related technology and equipment production for rapid transit railway, production of equipment for communicational signals and transportation safety monitoring, production of electric railway equipment and instrument 
(7) Equipment for urban rapid transit track transportation: design and manufacture of sc( of powered car and main parts for metro, city light rail 
(8) Design and manufacture of civil planes (Chinese partner shall hold the majority of shares) 
(9) Production of spares parts for civil planes 
(10) Design and manufacture of civil helicopters (Chinese partner shall hold the majority of shares) 
(11) Design and manufacture of aeroplane engines (Chinese partner shall hold the majority of shares) 
(12) Design and manufacture of civil air-borne equipment (Chinese partner shall hold the majority of shares) 
(13) Manufacture of light gas-turbine engine 
(14) Design and manufacture of crankshafts of low-speed diesel engine for vessel 
(15) Repairing, design and manufacture of special vessels, high-performance vessels (the Chinese party shall hold the relative majority of shares)
(16) Design and manufacture of the equipment and accessories of high-speed diesel engines, auxiliary engines, radio communication and navigation for vessels (the Chinese party should hold relative majority shares) 
(17) Manufacture of fishing boats and yachts made of glass fibre reinforced plastic

VI. Communication and Transportation, Storage, Post and Telecommunication Services 
1. Construction and management of grid of national trunk railways (Chinese partner shall hold the majority of shares)
2. Construction and management of feeder railways, local railways and related bridges, tunnels and ferry facilities (equity joint ventures or contractual joint ventures only) 
3. Construction and management of highways, independent bridges and tunnels 
4. Construction and management of public dock facilities of ports 
5. Construction and management of civil airports (the Chinese party shall hold the relative majority of shares) 
6. Air transportation companies (Chinese partner shall hold the majority of shares) 
7. General aviation companies for agriculture, forest and fishery (equity joint ventures or contractual joint ventures only) 
*8. International liner and tramp maritime transportation business 
*9. International containers inter-model transportation 
*10. Road freight transportation companies 
11. Construction and management of oil (gas) pipelines, oil (gas) depots and petroleum wharf 
12. Construction and management of the facilities of coal delivery pipelines 
13. Construction and management of storage facilities relating to transportation services 

VII. Wholesale and Retail Trade Industry 
*1. Wholesale, retail and logistic distribution of general goods

IX. Social Service Industry 
1. Public Facility Service Industries 
(1) Construction and management of urban access-controlled roads 
(2) Construction and management of metro and city light rail (Chinese partner shall hold the majority of shares)

XIII. Permitted foreign invested projects whose products are to be wholly exported directly

Catalogue of Restricted Foreign Investment Industries

III. Manufacturing Industries
11. Ordinary Machinery Manufacturing Industry 
(1) Manufacture of containers

V. Communication and Transportation, Storage, Post and Telecommunication Services 
*2. Cross-border automobile transportation companies 
*3. Water Transportation companies 
*4. Railway freight transportation companies

VI. Wholesale and Retail Trade Industries 
*l. Commercial companies of commodity trading, direct selling, mail order selling, Internet selling, franchising, commissioned operation, sales agent, commercial management companies, and wholesale, retail and logistic distribution of grain, cotton, vegetable oil, sugar, medicines, tobaccos, automobiles, crude oil, capital goods for agricultural production 
*6. Agencies (ship, freight forwarding, tally for foreign vessels, advertising) 
*7. Wholesaling product oil, and construction and operation of gasoline stations

XIII. Other industries restricted by the State or international treaties that China has concluded or taken part in

Catalogue of Prohibited Foreign Investment Industries

V. Communication and Transportation, Storage. Post and Telecommunication Services 
1. Companies of air traffic control 
2. Companies of postal services

X. Other industries restricted by the State or international treaties that China has concluded or taken part in 

Note: 

1. In the case that the Mainland/Hong Kong Closer Economic Partnership Arrangement and its supplement or the Mainland/Macao Closer Economic Partnership Arrangement and its supplement have prescribed specific rules, those regulations shall be observed. 
2. The items marked "*" are related to the commitment of China's accession to WTO. Please see the Attachment for details.

Catalogue for the Guidance of Foreign Investment Industries (Attachment)

I. Notes for Catalogue of Encouraged Industries: 
5. Manufacturing of automobile and motorcycle: The proportion of foreign investments shall not exceed 50%.
6. International liner and tramp maritime transportation business: The proportion of foreign investments shall not exceed 49%. 
7. International container multi-modal transportation: The proportion of foreign investments shall not exceed 50%. Foreign majority ownership will be permitted no later than Dee. 11, 2002. Wholly foreign ownership will be permitted no later than Dec. 11, 2005. 
8. Road freight transportation companies: Foreign majority ownership will be permitted no later than Dec. 11, 2002. Wholly foreign ownership will be permitted no later than Dec. 11, 2004. 
9. Wholesale, retail and logistic distribution of general goods: As described in No. 5 of Notes for Catalogue of Restricted Industries of the Attachment

II. Notes for Catalogue of Restricted Industries: 
1. Cross-border automobile transportation companies: Foreign majority ownership will be permitted no later than Dec. 11. 2002. Wholly foreign owned enterprises will be permitted no later than Dec. 11,2004. 
2. Water transportation companies: The proportion of foreign investment shall not exceed 49%.
3. Rail freight transportation companies: The proportion of foreign investment shall not exceed 49%. Foreign majority ownership will he permitted no later than Dec. 11. 2004. Wholly foreign owned enterprises will be permitted no later than Dec, 11. 2007.
5. Commodities trade, direct selling, mail-order selling. Internet selling, sales agent, franchising, commercial management; whole sale, retail and logistic distribution of grain, cotton, vegetable oil, sugar, pharmaceutical products, tobacco, automobile, crude oil, capital goods for agricultural production; whole sale and retail of books, newspapers, periodicals; whole sale of product nil, construction and operation of gasoline station 
(1) Commission agents' services and wholesale trade services (excluding salt, tobacco): Foreign invested enterprises are permitted no later than Dec. 11, 2002 with foreign investment not exceeding 50%, but can not engage in the distribution of books, newspapers, magazines, pharmaceutical products, pesticides, mulching films, chemical fertilizers, processed oil and crude oil. Foreign majority ownership will be permitted no later than Dec. 11, 2003. And wholly foreign-owned enterprises will be permitted no later than Dec. 11, 2004, and can engage in the distribution of books, newspapers, magazines, pharmaceutical products, pesticides, mulching films. The distribution of chemical fertilizers, processed oil and crude oil are permitted no later than Dec. 11,2006. 
(2) Retailing services (excluding tobacco): Foreign invested enterprises are permitted but can not engage in the distribution of books, newspapers, magazines, pharmaceutical products, pesticides, mulching films, chemical fertilizers, processed oil. The proportion of foreign investment can reach 50% no later than Dec. 11, 2002, and can engage in the distribution of books, newspapers and magazines. Foreign majority ownership will be permitted no later than Dee. 11, 2003. And wholly foreign-owned enterprises will be permitted no later than Dee. 11, 2004, and can engage in the distribution of pharmaceutical products, pesticides, mulching films, and processed oil. The distribution of chemical fertilizers are permitted no later than Dec. 11, 2006. Foreign investors can not take majority ownership of a Chain-store that has over 30 branch stores and engages in the distribution of automobiles (the limitation will be lift no later than Dec. 11, 2006), books, newspapers, magazines, pharmaceutical products, pesticides, mulching films, processed oil, chemical fertilizers, grain, vegetable oil, sugar, tobacco, cotton. 
(3) Franchising and wholesale or retail trade services away from a fixed location: Foreign invested enterprises are permitted no later than Dec. 11, 2004.
8. Agencies 
(1) Ship agencies: The proportion of foreign investment shall not exceed 49%. 
(2) Freight forwarding agencies (excluding those services specially reserved for Chinese postal authorities): The proportion of foreign investment shall not exceed 50% (not exceed 49% in the case of courier services). Foreign majority ownership shall be permitted no later than Dec. 11, 2002. Wholly foreign owned enterprises shall be permitted no later than Dec. 11, 2005. 
(3) Cargo handling for foreign vessels: In forms of equity joint ventures or contractual joint ventures only