Special Administrative Measures for Foreign Investment Admission (Negative List) (2018 Edition)

I. The Special Administrative Measures for Foreign Investment Entry (Negative List) (hereinafter referred to as the Negative List for Foreign Investment Entry) uniformly lists the special administrative measures in respect of foreign investment entry, such as equity requirements and senior management requirements. Fields outside the Negative List for Foreign Investment Admission shall be managed in accordance with the principle of consistency between domestic and foreign investment. The Negative List for Foreign Investment Admission lists a transitional period for the removal or relaxation of access restrictions in some areas, after which access restrictions will be removed or relaxed in a timely manner. Foreign investors are not allowed to engage in investment and business activities as individual industrial and commercial enterprises, investors in wholly-owned individual enterprises, or members of farmers' professional cooperatives. Foreign investors are not allowed to invest in areas prohibited for foreign investment in the Negative List of Foreign Investment Entry; investment in non-prohibited investment areas within the Negative List of Foreign Investment Entry shall be subject to foreign investment access licenses; and investment in areas with equity requirements shall not be allowed to set up foreign-invested partnership enterprises. If a domestic company, enterprise or natural person legally establishes or controls a company outside China and acquires a domestic company with which it has a relationship, which involves foreign-invested projects and enterprise establishment and changes, it shall be handled in accordance with the current regulations. Measures related to administrative approval, qualification conditions, national security and other relevant measures in the fields of culture and finance not listed in the Negative List for Foreign Investment Entry shall be implemented in accordance with the existing regulations. VII. If the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and its successor agreements, the Mainland and Macao Closer Economic Partnership Arrangement (CEPA) and its successor agreements, the Cross-Straits Economic Cooperation Framework Agreement (CSECFA) and its successor agreements, the free trade area agreements and investment agreements signed between China and the countries concerned, and the international treaties to which China is a party, have more favorable liberalization measures for qualified investors They shall be implemented in accordance with the provisions of the relevant agreements or accords. Where more favorable liberalization measures are implemented for qualified investors in special economic zones such as pilot free trade zones, they shall be implemented in accordance with the relevant provisions. VIII. The Negative List for Foreign Investment Access shall be interpreted by the Development and Reform Commission and the Ministry of Commerce together with relevant departments.

Special Management Measures for Foreign Investment Access (Negative List) (2018 Edition)

Serial No. Fields Special Management Measures I. Agriculture, Forestry, Animal Husbandry and Fisheries

(I)

Breeding Industry

1. The breeding of new varieties of wheat and maize, as well as the production of seeds, shall be controlled by the Chinese side.

2. It is prohibited to invest in the research and development, breeding, cultivation and production of rare and endemic valuable and excellent varieties in China, as well as the production of related propagation materials

(including excellent genes for planting, animal husbandry and aquaculture).

3. It is prohibited to invest in the selection and breeding of genetically modified varieties of crops, breeding livestock and poultry, aquatic fry and their genetically modified seeds (fry)

production. (ii) Fisheries 4. It is prohibited to invest in fishing for aquatic products in waters under China's jurisdiction and inland waters. Second, the mining industry

(C)

oil and natural

natural gas mining

industry

5. Oil, natural gas (including coalbed methane, except oil shale, oil sands, shale gas, etc.) exploration, development is limited to

joint ventures, cooperation.

(d)

Non-ferrous metal

mines and non-metallic

metallic mining

and mining auxiliary

assisted activities

6. Prohibition of investment in tungsten, molybdenum, tin, antimony, fluorspar exploration, mining.

7. Prohibit investment in rare earth exploration, mining and beneficiation.

8. Prohibit investment in radioactive minerals exploration, mining and beneficiation.

3. Manufacturing (v) Printing 9. Printing of publications shall be controlled by the Chinese side.

(vi)

Nuclear Fuel and

Nuclear Radiation Processing

Industry

10. Investment in radioactive mineral smelting and processing, nuclear fuel production is prohibited.

(VII)

Chinese medicinal tablets

processing and Chinese

prepared medicine production

11. It is prohibited to invest in the application of steaming, frying, roasting, calcining and other concoctions of Chinese medicinal tablets and the production of proprietary Chinese medicines with confidential prescriptions products

.

(H)

Automobile Manufacturing

Industry

12. In addition to special-purpose vehicles, new-energy vehicles, automobile manufacturing of the Chinese side of the share ratio of not less than 50%, the same foreign

can be established in the country two and two or less production of the same type of vehicle products of joint ventures. (2020 to abolish the commercial

use car manufacturing foreign share ratio restrictions. 2022 to abolish the passenger car manufacturing foreign share ratio restrictions as well as the same foreign

can be established in the domestic production of two and two or fewer joint ventures to produce the same type of vehicle products)

(IX)

Communication equipment

Manufacturing

13. Satellite television broadcasting ground receiving facilities and the production of key components.

(J)

Other Manufacturing

Industry

14. Prohibit investment in rice paper, ink spindle production.

No. Field Special Management Measures IV. Electricity, heat, gas and water production and supply industry (xi) nuclear power generation 15. The construction and operation of nuclear power plants must be controlled by the Chinese side.

(xii)

Pipeline network facilities

16. The construction and operation of gas, heat and water supply and drainage networks in cities with a population of 500,000 or more shall be controlled by the Chinese party

. V. Wholesale and retail trade (xiii) Tobacco products 17. Investment in the wholesale and retail of tobacco, cigarettes, re-roasted tobacco and other tobacco products is prohibited. Sixth, transportation, storage and postal services

(xiv)

Water transportation

Industry 18. Domestic water transport companies must be controlled by the Chinese side.

19. Domestic shipping agency shall be controlled by the Chinese side.

(xv)

Air passenger and cargo

transportation 20. Public **** air transport companies shall be controlled by the Chinese side, and a foreign and its affiliates shall not be more than

25% of the proportion of investment in the legal representative shall be citizens of Chinese nationality.

(xvi)

General Aviation

Service 21. The legal representative of a general aviation company shall be a citizen of Chinese nationality, of which general aviation

companies for agriculture, forestry and fisheries shall be limited to joint ventures, and other general aviation companies shall be limited to Chinese holdings.

(xvii)

Airports and air

Chinese traffic management

Management

22. Civil airports shall be constructed and operated by the Chinese side with relative control.

23. Investment in air traffic control is prohibited. (XVIII) postal industry 24. Prohibit investment in postal companies, letters of domestic express delivery business. VII, information transmission, software and information technology services

(XIX)

Telecommunications

25. Telecommunications companies: limited to China's WTO accession commitments to open up the telecom business, value-added telecom business, foreign investment in the ratio of shares does not exceed

more than 50% (except for e-commerce), basic telecom business shall be controlled by the Chinese side.

(xx)

Internet and

related services

26. Investment in Internet news and information services, Internet publishing services, Internet audiovisual program services, Internet cultural

chemical operations (except music), Internet public information services (in the above services, China's WTO accession commitments

in the open content except). (except for the contents of the above services, which have been liberalized under China's WTO accession commitments). VIII. Financial Sector

(XXI)

Capital Market

Services

27. No more than 51% of foreign shares in securities companies, and no more than

51% of foreign shares in securities investment fund management companies. (The restriction on the ratio of foreign shares will be abolished in 2021)

28. The ratio of foreign shares in futures companies shall not exceed 51%. (The restriction on the ratio of foreign shares will be abolished in 2021.) (xxii) Insurance 29. The ratio of foreign shares in life insurance companies shall not exceed 51%. (Restrictions on the ratio of foreign shares to be abolished in 2021.) (ix) Leasing and business services

(xxiii)

Legal services

30. Prohibited from investing in China's legal affairs (except for the provision of information on the impact of China's legal environment), and not to become a partner of a

domestic law firm.

(xxiv)

Consulting and surveying

31. Market surveys are limited to joint ventures and cooperation, of which radio and television listening and viewing surveys must be controlled by the Chinese side.

32. Prohibit investment in social research. X. Scientific research and technological services

No. Areas of special management measures

(xxv)

Research and testing

Testing and development 33. Prohibit investment in human stem cells, gene diagnosis and treatment technology development and application.

34. Investment in humanities and social science research organizations is prohibited.

(xxvi)

Professional and technical

services

35. It is prohibited to invest in geodetic surveying, oceanic surveying and mapping, surveying and mapping of aerial photography, ground mobile surveying and mapping of the boundaries of administrative areas

surveying and mapping, topographical maps, political maps of the world, maps of the country's political regions, maps of the provincial level and the following political regions, and national

teaching maps, local teaching maps, true three-dimensional maps and navigation electronic map compilation, regional geological

filling, mineral geology, geophysics, geochemistry, hydrogeology, environmental geology, geohazards, remote

sensory geology and other surveys. XI, water conservancy, environment and public **** facilities management industry

(XXVII)

Wild Fauna and Flora

protection

36. Investment in the development of wild fauna and flora resources under state protection and originating in China is prohibited.

XII. Education

(xxviii)

Education

37. Pre-schools, general high schools and higher education institutions are limited to Chinese-foreign cooperative education, which must be led by the Chinese side (the principal or

the main administrative person in charge shall be Chinese nationals, and the Chinese

members of the board of governors, board of trustees, or the joint management committee shall not be less than 1/2).

38. It is prohibited to invest in compulsory education institutions and religious education institutions. XIII, health and social work (29) health 39. Medical institutions are limited to joint ventures, cooperation. XIV. Culture, Sports and Entertainment

(XXX)

Press and Publication

40. Investment in news organizations (including but not limited to news agencies) is prohibited.

41. Investment in the editing, publishing and production of books, newspapers, periodicals, audio-visual products and electronic publications is prohibited

.

(31)

Radio and television

broadcasting, transmission

transmission, production

production, operation

42. It is prohibited to invest in all levels of broadcasting radio stations, television stations, broadcasting channels (rate), broadcasting and television

video transmission and coverage networks (transmitters, relay stations, broadcasting and television satellites, satellite uplink stations, satellite receiving and relay stations). uplink stations, satellite receiving and relay stations,

microwave stations, monitoring stations and cable radio and television transmission coverage networks, etc.), and it is prohibited to engage in broadcasting and television video-on-demand

businesses and satellite television broadcasting ground receiving facilities installation services.

43. It is prohibited to invest in radio and television program production and operation (including introduction of business) companies.

(xxxii)

Film production

production, distribution

distribution, screening

44. The construction and operation of movie theaters must be controlled by Chinese parties.

45. Investment in film production companies, distribution companies, theater companies and film introduction business is prohibited. (XXXIII) Protection of cultural relics 46. Prohibit investment in auction companies for the sale of cultural relics, cultural relics stores and state-owned museums of cultural relics.

(xxxiv)

Cultural entertainment

47. Performance brokers must be controlled by Chinese parties.

48. Investment in performing arts organizations is prohibited.