Catalogue for the Guidance of Foreign Investment Industries - Appendix

I. Notes for Catalogue of Encouraged Industries

1. Prospecting and exploitation of oil and natural gas: In cooperation with Chinese partner only
2. Exploitation of oil deposits (fields) with low osmosis: In cooperation with Chinese partner only.
3. Development and application of new technologies that can increase recovery factor of crude oil: In cooperation with Chinese partner only.
4. Development and application of new technologies for prospecting and exploitation of petroleum, such as geophysical prospecting, well-drilling, well-logging and downhole operation, etc.: In cooperation with Chinese partner only.
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 Dec.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 Appendix.
10 Accounting and auditing: In cooperation with Chinese partner and in the form of partnership only.

II. Notes for Catalogue of Restricted Industries

1. Cross-bolder 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 be permitted no later than Dec.11, 2004. Wholly foreign owned enterprises will be permitted no later than Dec.11, 2007.
4. Telecommunication Companies
4.1 Value-added services and paging services in basic telecommunication services: Foreign no later than Dec. 11, 2001 with the proportion of foreign investment not exceeding 30%. The proportion of foreign investment in joint venture shall not exceed 49% no later than Dec.11, 2002. and shall be allowed to reach 50%, no later than Dec.11, 2003.
4.2 Mobile voice and data services in basic telecommunication services: Foreign investments are permitted no later than Dec. 11, 2001 with the proportion of foreign investment not exceeding 25%. The proportion of foreign investment in joint venture shall not exceed 35% no later than Dec.11, 2002, and shall be allowed to reach 49% no later than Dec. 11, 2004.
4.3 Domestic and international services in basic telecommunication services: Foreign investments will be permitted no later than Dec.11, 2004 with the proportion of foreign investment not exceeding 25%. The proportion of foreign investment in joint venture shall not exceed 35% no later than Dec.11, 2006 and shall be allowed to reach 49% no later than Dec.11, 2007.