Catalogue of Industries for Guiding Foreign Investment 2011. Full text and commentary in English.

Catalogue of Encouraged Industries for Foreign Investment 2011.

I. Agriculture, Forestry, Animal Husbandry and Fishery
1. Planting, development and production of woody plants that contain edible oils or are used as seasonings or industrial raw materials.
2. Development of planting technologies for green food vegetables or organic vegetables (including edible fungi and melons), dried and fresh fruit, and tea, and relevant production.
3. Development of new planting technologies for crops, such as sugar crops, fruit trees and pasture, and relevant production.
4. Production of flowers and construction and operation of nurseries.
5. Planting of rubber trees, oil palm, sisal and coffee.
6. Planting or breeding of Chinese medicinal materials (limited to Chinese-foreign equity or contractual joint ventures).
7. Returning crop straw to farmland and the comprehensive utilization of crop straw; development and production of organic fertilizer resources.
8. Planting of trees (bamboos) and cultivation of improved varieties; cultivation of new varieties of polyploid trees.
9. Breeding of aquatic fingerlings (excluding China’s rare and endemic species).
10. Construction and operation of environment protection projects, such as the planting of trees and grass to combat desertification and soil erosion.
11. Aqua farming, open sea-cage aquaculture, industrial aquaculture, and ecological mariculture.

II. Mining Industry
1. Exploration and exploitation of coal-bed gas and utilization of mine gas (limited to Chinese-foreign equity or contractual joint ventures).
2. Risk exploration and exploitation of oil and natural gas (limited to Chinese-foreign equity or contractual joint ventures).
3. Exploitation of low permeability oil or gas reservoirs (fields) (limited to Chinese-foreign equity or contractual joint ventures).
4. Development and application of enhanced oil recovery and relevant new technologies (limited to Chinese-foreign equity or contractual joint ventures).
5. Development and application of new technologies for oil exploration and exploitation in areas such as geophysical prospecting, drilling, well logging, mud logging, and down-hole operation (limited to Chinese-foreign equity or contractual joint ventures).
6. Exploration and exploitation of unconventional oil resources, such as oil shale, oil sand, heavy crude oil, and extra-heavy crude oil (limited to Chinese-foreign equity or contractual joint ventures).
7. Exploration, exploitation and ore dressing of iron and manganese minerals.
8. Development and application of new technologies for enhancing utilization rate of mine tailings and the comprehensive application of ecological restoration technology in mining areas.
9. Exploration and exploitation of unconventional natural gas resources, such as shale gas and marine gas hydrate (limited to Chinese-foreign equity or contractual joint ventures).

III. Manufacturing Industries
(I) Agricultural and Sideline Food Processing
1. Development and production of bio-feedstuff, stalk feed and aquatic feed.
2. Aquatic product processing, shellfish purification and processing, and development of algal health food.
3. Processing of vegetables, dried and fresh fruit, and livestock and poultry products.
(II) Food Manufacturing
1. Development and production of baby food, food for the elderly, and health food.
2. Development and production of forest foods.
3. Production of natural food additives and food ingredients.
(III) Beverage Manufacturing
1. Development and production of fruit and vegetable drinks, protein drinks, tea drinks, coffee drinks, and botanical drinks.
(IV) Tobacco Industry
1. Processing of cellulose diacetate and tow (limited to Chinese-foreign equity or contractual joint ventures).
(V) Textile Industry
1. Production of multifunctional industrial textiles that are lightweight, high/low-temperature resistant and chemical-resistant, with high-performance and good light fastness, using non-woven, weaving, knitting or their composite techniques.
2. Weaving, dyeing, finishing and processing of high-end textiles, using advanced energy conservation and emission reduction technologies and equipment.
3. Processing of special natural fibers (including but not limited to cashmere and other special animal fibers, bast and leaf fibers, silk, and colored cotton) that satisfy the ecological, comprehensive resource utilization and environmental protection requirements.
4. Clothing production, using the computer integrated manufacturing system.
5. Production of functional, ecological, or special-purpose clothing.
6. Production of high-end carpets, embroidery and drawnwork products.
(VI) Leathers, Furs, Feathers (Down) and Related Products
1. Cleaning and processing of hides and furs.
2. Finishing of leather with new techniques.
3. Processing of high-grade leather.
4. Multipurpose use of leather wastes.
(VII) Wood Processing and Wood, Bamboo, Rattan, Palm fiber and Straw Products
1. Development of new technologies for the comprehensive utilization of three forest residues (logging residue, bucking residual and processing residual), “inferior quality lumbers, small-sized lumbers and firewood,” and bamboo, and the development and production of relevant new products.
(VIII) Papermaking and Paper Products
1. Single production line for chemical wood pulp with an annual production capacity of 300,000 tons or more or single production line for chemi-mechanical wood pulp with an annual production capacity of 100,000 tons or more, mainly using overseas timber resources, and the production lines for high-grade paper or paperboard built simultaneously (limited to Chinese-foreign equity or contractual joint ventures).
(IX) Petroleum Processing, Coking and Nuclear Fuel Processing
1. Deep processing of needle coke and coal tar.
(X) Manufacturing of Chemical Raw Materials and Chemical Products
1. Development and production of new downstream products of calcium hypochlorite (sodium process), polyvinyl chloride (PVC) and organosilicon.
2. Auxiliary raw materials for the production of synthetic materials: production of hydrogen peroxide-based propylene oxide, epoxy chloropropane using glycerol method, naphthalene dicarboxylate (NDC), 1,4-Cyclohexanedimethanol (CHDM).
3. Raw materials for the production of synthetic fibers: production of caprolactam, nylon 66 salt, melt-spinning spandex resins, and 1,3-propylene glycol.
4. Synthetic rubber: production of solution styrene-butadiene rubber (excluding thermoplastic styrene-butadiene rubber), high cis butadiene rubber, butyl rubber, isoamyl rubber, polyurethane rubber, acrylate rubber, epichlorohydrin rubber, ethylene propylene rubber (EPR), fluorine rubber, silicon rubber, and other special rubbers.
5. Engineering plastics and plastic alloys: production of non-phosgene polycarbonate (PC), polyoxymethylene (POM), polyamides (nylon 6, nylon 66, nylon 11 and nylon 12), polyethylene vinyl acetate (EVA), polyphenyl thioether, poly(ether-ether-ketone) (PEEK), polyimide, polysulfone, polyether sulfone, polyarylate (PAR), liquid crystal polymer (LCP), etc. with an annual production capacity of 60,000 tons or more.
6. Fine chemicals: new catalyst products and technologies, processing technologies for the commercialization of dyes (pigments), electronic chemicals and papermaking chemicals, food and feed additives, leather chemicals (excluding N,N-Dimethylformamide), oilfield chemicals, surfactants, water treatment chemicals, adhesives, production of inorganic fibers and nanomaterials, and deep processing of pigment encapsulation.
7. Production of environment-friendly printing inks and aromatic oils.
8. Production of natural spices, synthetic spices and single ion spices.
9. Production of high-performance coatings, water-based automotive coatings, and auxiliary water-based resins.
10. Production of substitutes for chlorofluorocarbons.
11. Production of high-performance fluororesin and fluorine coating materials, medical intermediates containing fluorine, and environment-friendly refrigerant and detergent.
12. Recovery of fluoride resources from the phosphorus chemical industry and aluminum smelters.
13. Development of new technologies for forestry chemical products and development and production of relevant new products.
14. Development and production of inorganic, organic and biological membranes for environmental protection purposes.
15. Development and production of new types of fertilizers: bio-fertilizers, high potassium fertilizers, compound fertilizers, slow/controlled release fertilizers, compound microbial inoculants, compound microbial fertilizers, decomposition agents for straws and refuse, and other microbial formulations with special functions.
16. Development and production of new varieties, new formulations, special-purpose intermediates, or auxiliary agents of highly efficient, safe and environment-friendly agricultural chemicals and development and application of relevant clean production process (process of ethylene-based acetochlor, paraquat (ammoniacal-cyanide process) or aqueous phase chlorpyrifos, process of recovery of methyl chloride with glyphosate, production of chiral and stereospecific pesticides by oriented synthesis, and synthetic technique of diethyl thiophosphoryl chloride).
17. Development and production of biological agricultural chemicals and biological control products: microbial pesticides, microbial fungicides, agricultural antibiotics, insect pheromones, natural enemies, and microbial herbicides.
18. Comprehensive utilization, treatment and disposal of waste gas, liquid waste, and waste residue.
19. Production of organic polymer materials: aircraft skin coating, rare earth cerium sulphide red dyes, lead-free electronic packaging materials, lithographic slurry specifically for color plasma screens, microfibers with a small diameter and a large specific surface area, high-precision fuel filter paper, and lithium-ion battery diaphragms.
(XI) Pharmaceutical Industry
1. Production of new compound drugs or drugs with active ingredients (including drug substance and formulations).
2. Amino acids: production of tryptophan, histidine, methionine used in feed, etc. using the zymotechnics process.
3. Production of new types of anticarcinogenic drugs, cardiovascular and cerebrovascular drugs, and nervous system drugs.
4. Production of new types of drugs employing bioengineering and biotechnology.
5. Production of HIV/AIDS vaccines, Hepatitis C vaccines, contraceptive vaccines, and new types of vaccines for cervical carcinoma, malaria, “hand, foot and mouth” disease, etc.
6. Production of biovaccines.
7. Development and production of marine drugs.
8. Pharmaceutical formulations: production of new formulations and new products employing new technologies, such as slow release, controlled release, targeting, and percutaneous absorption.
9. Development and production of new excipients.
10. Production of special antibacterial drug substance for animals (including antibiotics and chemical synthesis API).
11. Production of new products and new formulations of antibacterial drugs, anthelmintics, insecticides and anti-coccidiosis drugs for veterinary use.
12. Production of new types of diagnostic reagents.
(XII) Chemical Fiber Manufacturing
1. Production of high-tech chemical fibers (excluding viscose fibers), including but not limited to differential chemical fibers, aramid fibers, carbon fibers, high-performance/high modulus polyethylene fibers, and polyphenylene sulfide (PPS) fibers.
2. Production of new types of polyester for fiber or non-fiber use: polytrimethylene terephthalate (PPT), polyethylene naphthalate (PEN), polycyclohexylene dimethylene terephthalate (PCT), and glycol-modified polyethylene terephthalate (PETG).
3. Production of biomass fibers by utilizing new types of renewable resources and environment-friendly process, including but not limited to new solvent spun cellulose fibers (Lyocell), regenerated cellulose fibers using bamboo, hemp, etc., poly lactic acid (PLA) fibers, chitin fiber, polyhydroxyalkanoates (PHA) fibers, and animal and plant protein fibers.
4. Production of polyamide with a single-line daily production capacity of 150 tons or more.
5. Production of aramid fibers and cords for radial tires.
(XIII) Plastic Products
1. Development and production of new photoecological, multifunctional and wide-width agricultural films.
2. Decomposition and reutilization of plastic waste.
3. Development of new soft plastic packaging technologies and development and production of new varieties of soft plastic packaging products (including high-barrier and multifunctional films and relevant raw materials).
(XIV) Nonmetallic Mineral Products
1. Development and production of building materials featuring energy conservation, environmental protection, waste recycling, light-weight, high-strength, high performance, and multiple functions.
2. Production of energy-saving and high-efficiency chemical building materials using plastic to replace steel or wood.
3. Production of SBS/APP modified bitumen waterproof rolls with an annual output of 10 million square meters or more; wide (two meters or more) ethylene propylene diene monomer (EPDM) rubber waterproof rolls and relevant auxiliary materials; wide (two meters or more) polyvinyl chloride (PVC) waterproof rolls; and thermoplastic polyolefin (TPO) waterproof rolls.
4. Development and production of functional glass using new technologies: electromagnetic wave shielding glass; glass substrate for microelectronic use; infrared transmitting lead-free glass; electronic-grade large-scale quartz glass products (such as pipe, plate, copple, instruments, and utensils); multiple-functional windshield glass with excellent optical performance; extreme materials and products for use in information technologies (including quartz glass bushing and ceramic wafer for waveguide-grade, high-precise optical fiber preform rod); purification processing of raw materials for high pure (≥99.998%) or ultrapure (≥99.999%) crystal.
5. Production of conductive glass for thin film batteries and glass for solar illuminator.
6. Production of glass fiber products and special glass fibers: low dielectric glass fibers, quartz glass fibers, high silica glass fibers, high strength and high elastic glass fibers, ceramic fiber, etc. and their products.
7. Production of optical fibers and their products: optical fiber bundles for image transmission and laser optical fibers for medical treatment; super second-generation and third-generation microchannel plates; optical fiber panels; image inverters; and glass fiber cones.
8. Standardized refinement of ceramics raw materials and production of high-grade decorative materials used in ceramics.
9. Production of environment-friendly (non-chromizing) refractory materials used in furnaces, including but not limited to cement, electronic glass, ceramics, and microporous carbon bricks.
10. Production of aluminum nitride (AIN) ceramic substrates and porous ceramics.
11. Production of new inorganic and nonmetallic materials and products: composite materials, special ceramics, special sealing materials (including high-speed oil-seal materials), special friction materials (including high-speed friction brake products), special binding materials, special latex materials, underwater acoustic rubber products, and nano phase materials.
12. Production of organic-inorganic composite cellular insulation materials.
13. Production of high-tech composite materials: continuous fiber reinforced thermoplastic composite materials and prepregs, auxiliary materials for molding of resin-based composite materials with thermal resistance of more than 300°C or above, resin-based composite material (including high-end sports products and light-weight high-strength parts of vehicle), special-function composite materials and their products (including composite material products used in deep water or for diving and composite materials products for medical treatment and recuperation), carbon or carbon composite materials, high-performance ceramic-based composite materials and their products, metal or glass-based composite materials and their products, metal-layered composite materials and their products, ultra high pressure composite rubber hoses (pressure ≥ 320MPa), and large passenger aircraft tires.
14. Production of raw materials for precision and high-performance ceramics: ultra-fine silicon carbide (SiC) powder (purity > 99%, average particle size < 1μm), ultra-fine silicon nitride powder (Si3N4) (purity > 99%, average particle size < 1μm), high-purity ultra-fine alumina powder (purity > 99%, average particle size < 0.5μm), low-temperature sintered zirconia (ZrO2) powder (sintering temperature < 1350 °C), high-purity aluminium nitride (AlN) powder (purity > 99%, average particle size < 1μm), rutile titanium dioxide (TiO2) powder (purity > 98.5%), white carbon black (particle size < 100nm), and barium titanate (purity > 99%, average particle size < 1μm).
15. Development and production of high-quality artificial crystals and thin-film transistor products: artificially synthesized crystal (piezoelectric crystal and ultraviolet ray transmitting crystal); super-hard crystal (cubic boron nitride crystal); high-temperature resistant and highly-insulated artificially synthesized crystal (artificially synthesized mica); new electro-optic crystal; high-power laser crystal and large-scale scintillation crystal; diamond-film tool; ultrathin synthetic diamond saw blade with a thickness of not more than 0.3mm.
16. Fine processing of nonmetallic minerals (ultra-fine grinding, high purifying, refining, and modified performance).
17. Production of ultra-high-power graphite electrodes.
18. Production of pearl mica (particle size of 3-150μm).
19. Production of multi-dimensional and multi-directional integral fabrics and shape fabrics.
20. Safe disposal of solid wastes using new dry process cement kilns.
21. Recycling of building waste.
22. Comprehensive utilization of industrial by-product gypsum.
23. Development and application of new technologies for the comprehensive utilization of nonmetal mine tailings; ecological restoration of mines.
(XV) Nonferrous Metal Smelting and Rolling Industries
1. Production of silicon single crystals and polished wafers with a diameter of 200mm or more.
2. Production of high-tech nonferrous materials: compound semiconductor materials (gallium arsenide, gallium phosphide, indium phosphide, and gallium nitride); high-temperature superconducting materials; memory alloy materials (titanium nickel and copper- and iron-based memory alloy materials); ultra-fine (nano) calcium carbide and ultra-fine (nano) crystal hard alloy; ultra-hard composite materials; precious metal composite materials; aluminum foils for radiators; medium- and high-voltage cathode capacitor aluminum foils; special large aluminum alloy sections; aluminum alloy precision forging dies; overhead conductors for electrified railway lines; ultra-thin copper strips; copper alloy materials for corrosion-resistant heat exchangers; high-performance copper-nickel and copper-iron alloy strips; materials for processing beryllium copper strips, lines, pipes and rods; high-temperature resistant and anti-senescence tungsten filaments; magnesium alloy castings; lead-free solder; magnesium alloys and their products; foamed aluminum; titanium alloy strips and titanium welded pipes; sponge zirconium at atomic energy level; and deeply processed tungsten and molybdenum products.
(XVI) Metal Products
1. Research, development and manufacturing of new types of light-weight and environment-friendly materials for aviation, aerospace, automobiles and motorcycles (including but not limited to special-purpose aluminum sheets, aluminum-magnesium alloy materials, and aluminum alloy motorcycle frames).
2. Development and production of construction hardware and hot-water heating equipment and hardware.
3. Manufacturing and processing (including painting and processing inner and outer surface of products) of metal packing products (thickness < 0.3mm) used for packing various kinds of grain, oil, food, vegetables, fruits, beverages, and household chemicals
4. Manufacturing of nickel-saving stainless steel products.
(XVII) General Equipment Manufacturing
1. Manufacturing of high-end computerized numerical controlled (CNC) machine tools and key spare parts: five-axis alignment CNC machine tools, CNC coordinate boring and milling processing center, CNC coordinate grinding machines, five-axis alignment CNC system and servomechanism installations, and high-speed ultra-hard cutting tools used for precision CNC processing.
2. Manufacturing of multi-station forging forming machines of 1,000 tons or above.
3. Manufacturing of equipment for dismantling, crushing, and post-processing and sorting of retired automobiles.
4. Manufacturing of flexible transfer lines (FTL).
5. Manufacturing of vertical multi-joint industrial robots and welding robots and relevant welding devices and equipment.
6. Manufacturing of special processing machines: complete sets of equipment for laser cutting and welding, laser precision processing equipment, CNC low-speed wire-cut electrical discharge machines (LS-WEDMs), and sub-micron and ultra-fine grinders.
7. Manufacturing of wheeled or crawler cranes of 400 tons or above (limited to Chinese-foreign equity or contractual joint ventures).
8. Design and manufacturing of high-pressure plunger pumps and engines with working pressure ≥ 35MPa and low-speed large-torque engines with working pressure ≥ 35MPa.
9. Manufacturing of integrated hydraulic-pressure multiple unit valve with working pressure ≥ 25MPa and electro-hydraulic proportional servo elements.
10. Design and manufacturing of valve terminal, pneumatic solenoid valve of less than 0.35W, and high-frequency electrically-controlled gas valves of 200Hz or more.
11. Design and manufacturing of hydrostatic drive devices.
12. Development and manufacturing of non-contact gas film seals with pressure >10MPa and dry gas seals with pressure > 10MPa (including experimental devices).
13. Development and manufacturing of equipment for automobile polymer materials (friction plates, remodeled phenolic pistons, nonmetallic hydraulic master/sub-pumps, etc.).
14. Manufacturing of the third- and fourth-generation car wheel hub bearings (functional components of wheel hub bearings with flanges and sensors inside or outside); bearings for high- or medium-grade CNC machine tools or processing centers (provided that the processing centers have more than three axis alignment function and 3-4μm repeated positioning precision); high-speed wire rod or plate rolling mill bearings (support bearings and work roll bearings for single-line wire rod mills with a speed of 120m/s or more or for thin-plate rolling mill processing plates with a thickness of 2mm or more); high-speed railway bearings (with a speed of more than 200km/h); low-noise bearings with vibration below Z4 (noise level: Z4, Z4P, V4, or V4P); P4 or P2 level bearings of various bearings; bearings of wind turbine generator set (mainshaft bearing, speed increaser bearing, dynamo bearing, etc. of a wind turbine generator set of 2 megawatts or more); aircraft bearings (mainshaft bearing of aircraft engine, landing chassis bearing, transmission agent bearing, control loop bearing, etc.).
15. Manufacturing of high-density, high-precision and complex-shaped powder metallugical parts and chains used for automobile, engineering machinery, etc.
16. Manufacturing of gear transmission used for wind power or high speed rail, gear transmission agent with adjustable blades used for vessels, and large-sized and heavy-load gear boxes.
17. Manufacturing of high-temperature resistant insulation materials (F and H insulation classes) and moulded insulation products.
18. Development and manufacturing of accumulator bladders and rubber and plastic seals for hydropneumatic use.
19. Manufacturing of high-precision, high-strength (level 12.9 or above), special-shaped and assembly fasteners.
20. Manufacturing of miniature precision transmission junction pieces (clutches).
21. Manufacturing of coupling shaft for heavy rolling mills.
22. Remanufacturing of machinery such as machine tools, engineering machinery and railroad engine equipment and remanufacturing of automobile parts and components.
(XVIII) Special-Purpose Equipment Manufacturing
1. Manufacturing of trackless equipment for excavation, loading and transport in mines, including but not limited to: mechanically-driven tippers for mining with a capacity of 200 tons or more; mobile crushers; bucket wheel excavators with a capacity of 5,000 cubic meters or more per hour; loaders for mining with a capacity of 8 cubic meters or more; and electrically-dragged coal mining machines of 2,500 kilowatt or more.
2. Manufacturing of equipment for geophysical exploration and well logging: MEME seismometers; digital telemetric seismographs; digital imaging systems and digitally controlled well logging systems; devices and apparatus for horizontal wells, directional wells and drilling rigs; and measurement-while-drilling (MWD) tools.
3. Manufacturing of equipment for oil exploration, drilling, collection and transportation: floating drilling systems and floating production systems with an operating water depth of more than 1,500 meters and the supporting subsea oil extraction, collection and transportation equipment.
4. Manufacturing of large-caliber rotary drilling rigs with a caliber of 2 meters or more and depth of 30 meters or more, push benches with a diameter of 1.2 meters or more, complete sets of large equipment with a pull-back force of 300 tons or more for laying underground pipes and lines without digging, and underground diaphragm wall construction drilling rigs.
5. Design and manufacturing of large bulldozers of 520 horsepower or more.
6. Design and manufacturing of silt removers with a capacity of 100 cubic meters or more per hour and dredging devices for dredgers with a capacity of 1,000 tons or more.
7. Design and manufacturing of equipment for the construction of concrete cut-off walls used for flood prevention dikes.
8. Manufacturing of underwater earthwork construction machinery: bulldozers, loaders, excavators, etc. operating nine meters underwater or deeper.
9. Manufacturing of equipment for maintenance and automatic testing of highways and bridges.
10. Manufacturing of equipment for operational monitoring, ventilation, disaster prevention and rescue systems of highway tunnels.
11. Design and manufacturing of maintenance machinery and inspection and monitoring equipment for large-scale railway construction, railway tracks, bridges and tunnels and their key parts and components.
12. Manufacturing of equipment for (asphaltic) linoleum tiles and equipment for producing galvanized steel sheets and other metal roofs.
13. Manufacturing of equipment for environment-friendly and energy-saving on-site polyurethane spraying waterproof and thermal insulation systems; technology of preparing polyurethane sealants and manufacturing of relevant equipment; and technology of preparing improved silicone sealants and manufacturing of relevant production equipment.
14. Design and manufacturing of high-precision strip mills (thickness precision of 10 microns).
15. Manufacturing of ore dressing equipment for multi-element, fine-particle and refractory metal minerals.
16. Manufacturing of the key equipment of complete sets of ethylene equipment with an annual capacity of 1 million tons or more: mixing granulators with an annual processing capacity of 400,000 tons or more, helical-conveyer centrifuges with a diameter of 1,000 mm or more, and low-flow high-head centrifugal pump.
17. Manufacturing of complete sets of large coal chemical equipment (limited to Chinese-foreign equity or contractual joint ventures).
18. Design and manufacturing of metal product molds (extrusion dies for pipes, rods and section bars made of copper, aluminum, titanium and zirconium).
19. Design and manufacturing of punching dies for automobile body covers, large-sized injection molds for automobile dashboard, bumper, etc., and clamps and gauges for automobiles and motorcycles.
20. Design and manufacturing of production equipment for power batteries for automobiles.
21. Design and manufacturing of precise die molds (punching dies with a precision higher than 0.02 millimeter and cavity molds with a precision higher than 0.05 millimeter).
22. Design and manufacturing of nonmetal product molds.
23. Manufacturing of beer bottling equipment with a capacity of 60,000 bottles or more per hour, hot- and medium-temperature beverage bottling equipment with a capacity of 50,000 bottles or more per hour, and aseptic filling equipment with a capacity of 36,000 bottles or more per hour.
24. Production technologies of amino acids, enzyme preparations, food additives, etc. and the manufacturing of key equipment.
25. Manufacturing of complete sets of equipment for animal feed processing with a capacity of 10 tons or more per hour and the key parts of such equipment.
26. Manufacturing of equipment for lightweight corrugated boards and cartons with corrugation height of 0.75 millimeter or less.
27. Manufacturing of sheet-fed and multi-color offset presses (width ≥ 750 millimeters; printing speed: single side and multiple color ≥ 16,000 sheets per hour, and both sides and multiple color ≥ 13,000 sheets per hour).
28. Manufacturing of single-width single-paper path web-fed lithographic printing presses with a printing speed of more than 75,000 bisect sheets per hour (787 × 880 millimeters), double-width single-paper path web-fed lithographic printing presses with a printing speed of more than 170,000 bisect sheets per hour (787 × 880 millimeters), and commercial web-fed lithographic printing presses with a printing speed of more than 50,000 bisect sheets per hour (787 × 880 millimeters).
29. Manufacturing of multi-color wide flexographic presses (printing width ≥ 1,300 millimeters and printing speed ≥ 350 meters per second), inkjet digital printing presses (used for publication: printing speed ≥ 150 meters per minute and resolution ≥ 600dpi; used for packaging: printing speed ≥ 30 meters per minute and resolution ≥ 1,000dpi; used for variable data: printing speed ≥ 100 meters per minute and resolution ≥ 300dpi).
30. Manufacturing of systems for ink color computer pre-setting, remote ink color control, water-ink speed tracking, automatic printing quality inspection and tracking, and shaftless driving technology; manufacturing of high-speed automatic pasters and feeders with a speed of 75,000 sheets per hour, remotely adjustable high-speed folding machines, automatic overprinting systems, cooling devices, silicon-adding systems, and deviation adjustment devices.
31. Manufacturing of electron-gun automatic coating machines.
32. Deep processing technology for sheet glass and manufacturing of relevant equipment.
33. Manufacturing of complete sets of equipment such as new types of paper (including pulp) making machines.
34. Manufacturing of equipment using new leather post ornament and processing technology.
35. Development and manufacturing of new agricultural product processing and storage equipment: new equipment for the processing, storage, preservation, grading, packaging, and drying of grains, oil plants, vegetables, dried and fresh fruit products, meat products, aquatic products, and other products; agricultural product quality inspection instruments and equipment; damage-free quality inspection instruments and equipment for agricultural products; rheometers; farinographs; ultramicro crushing equipment; high-efficiency dewatering equipment; high-efficiency fruit juice condensation equipment achieving five or more effects; sterilization equipment for powder food materials; solid and semi-solid food aseptically packaging equipment; and disk-type centrifugal separators.
36. Manufacturing of agricultural machinery: agricultural equipment (automatic irrigation equipment for greenhouses, equipment for automatic disposition of nutrient solutions and fertilization, high-efficiency vegetable seedling equipment, and soil nutrient analysis equipment); tractors with an engine power of 120 kilowatts or more and the auxiliary farm implements; diesel engines with low fuel consumption, low noise and low emission; sprayers auxiliary to large tractors and equipped with residual droplets retrieval devices; high-performance rice transplanters; cotton picking machines and cotton picking platforms; self-propelled (hydraulically or mechanically-driven) corn combine harvesters adaptable to various row spacings; rapeseed harvesters; cane harvesters; and beet harvesters.
37. Manufacturing of forestry machinery and instruments using new technology.
38. Manufacturing of equipment for the collection, bundling and comprehensive utilization of crop straws.
39. Manufacturing of equipment for the resource utilization of agricultural waste and waste from livestock and poultry breeding meeting a certain scale.
40. Manufacturing of agricultural equipment using fertilizer-saving, pesticide- saving or water-saving technology.
41. Manufacturing of equipment for cleaning electromechanical wells and equipment for producing cleaning agents.
42. Manufacturing of electronic endoscopes.
43. Manufacturing of funds cameras.
44. Manufacturing of key components of medical imaging equipment (including but not limited to high-field-strength superconducting magnetic resonance imaging equipment, X-ray computed tomography imaging equipment, and digital color diagnostic ultrasound equipment).
45. Manufacturing of (3D) ultrasonic transducers for medical use.
46. Manufacturing of equipment for boron neutron capture therapy (BNCT).
47. Manufacturing of image-guided intensity modulated radiation therapy systems.
48. Manufacturing of haemodialysis machines and hemofiltration machines.
49. Manufacturing of equipment for fully automated enzyme immunoassay (EIA) systems (including some functions such as sample loading, enzyme labeling, ELISA plate washing, incubation, and data post-processing).
50. New technology for drug quality control and manufacturing of new equipment for drug quality control.
51. Development of new analysis technology and new extracting process for active substance in natural drugs; development and manufacturing of new extracting equipment.
52. Manufacturing of multi-layer co-extrusion water-cooled blown film equipment for non-PVC medical infusion bags.
53. Development and manufacturing of new textile machinery, key parts and components, and textile testing and experimental apparatus.
54. Manufacturing of computer-aided jacquard artificial fur machines.
55. Manufacturing of equipment specially for producing solar cells.
56. Manufacturing of air pollution prevention and control equipment: high-temperature resistant and corrosion-resistant filtering materials, low-NOx combustion devices, catalyst for flue gas denitrogenation and complete sets of denitrogenation equipment, industrial organic exhaust purification equipment, diesel vehicle exhaust purification equipment, and heavy metal exhaust air treatment equipment.
57. Manufacturing of water pollution prevention and control equipment: horizontal spiral centrifugal dehydrators, membrane and membrane materials, ozone generators with a capacity of more than 50kg/h, chlorine dioxide generators with a capacity of more than 10 kg/h, ultraviolet disinfection devices, small domestic sewage treatment equipment used in rural areas, and heavy metal wastewater treatment equipment.
58. Manufacturing of solid waste treatment and disposal equipment: sewage plant sludge disposal and resource recycling equipment, complete sets of refuse incineration equipment with a daily treatment capacity of 500 tons or more, landfill leachate treatment technology equipment, anti-seepage geo-membranes in landfills, building waste treatment and resource recovery utilization equipment, devices for disposal of hazardous waste, devices for power generation with biogas in landfills, treatment equipment for ferrous wastes, and soil remediation equipment.
59. Development and manufacturing of equipment for the comprehensive utilization of red mud from aluminum industry.
60. Manufacturing of equipment for the comprehensive utilization of mine tailings.
61. Manufacturing of equipment for the collection, treatment and recycling of used and waste plastics, electrical appliances, rubbers, and batteries.
62. Manufacturing of reclamation equipment for used and waste textiles.
63. Manufacturing of equipment for the remanufacturing of used and waste mechanical and electrical products.
64. Manufacturing of devices for the comprehensive utilization of used and waste tires.
65. Environmental protection technology for aquatic ecosystems and the manufacturing of relevant equipment.
66. Manufacturing of portable assembling water purification equipment.
67. Unconventional water treatment or recycling equipment and water quality monitoring instruments.
68. Leak test equipment and instruments for industrial water pipeline networks and equipment (appliances).
69. Development of technologies for seawater desalination and circulating cooling with a daily capacity of 100,000 cubic meters or more and manufacturing of relevant complete sets of equipment.
70. Manufacturing of special meteorological observation and analysis equipment.
71. Technology system development for seismic stations, networks and mobile seismologic observation and manufacturing of relevant apparatus and equipment.
72. Manufacturing of radial tire building machine with three or more drums.
73. Manufacturing of rolling resistance testers and establishment of tire noise laboratories.
74. Manufacturing of equipment using new technology for heat supply metering and temperature control devices.
75. Manufacturing of equipment for hydrogen energy preparation, storage and transportation and inspection systems.
76. Manufacturing of new heavy residual oil gasification and atomizing nozzles, high-efficiency steam trap valves with a leakage rate of 0.5% or below, and high-temperature ceramic heat exchanger with temperature of 1,000 °C or above.
77. Manufacturing of devices for recovery of marine oil spilling.
78. Manufacturing of equipment for utilization of low concentration coal-mine gas and ventilation air methane.
(XIX) Transportation Equipment Manufacturing
1. Manufacturing of automobile engines and establishment of engine research and development institutions: gasoline engines with power of not less than 70 kilowatts per liter, diesel engines with power of not less than 50 kilowatts per liter and displacement of less than 3 liters, diesel engines with power of not less than 40 kilowatts per liter and displacement of more than 3 liters, and engines using new energy resources such as fuel cells and mixed fuels.
2. Manufacturing of key automobile parts and components and research and development of key technologies: dual-clutch transmission (DCT), automated mechanical transmission (AMT), gasoline engine turbocharger, viscous coupling (for four-wheel drive), actuator for automatic transmission (electromagnetic valve), hydraulic retarder, eddy current retarder, gas generators for automobile safety air-bags, common rail fuel injection technology (with maximum injection pressure of more than 2,000 pa), variable geometry turbocharging (VGT) technology, variable nozzle turbocharging (VNT) technology, engine emission control devices meeting China’s Phase V pollutant emission standards, intelligent torque management (ITM) systems and coupler assembly, steer-by-wire systems, diesel particulate trap devices, special-purpose axles for low-floor large buses, energy-absorbing steering system, variable frequency air-conditioning system for large and medium buses, special rubber automobile accessories, and key parts and components of the above parts and components.
3. Manufacturing and research and development of automobile electronic devices: electronic control systems and key parts and components of engine and chassis; vehicle electronic technologies (automobile information system and navigation system); automobile electronic bus network technologies (limited to Chinese-foreign equity joint ventures); input (sensor and sampling system) and output (actuator) components of electronic control system; electronic controllers for electric power steering system (limited to Chinese-foreign equity joint ventures); embedded electronic integrated systems (limited to Chinese-foreign equity or contractual joint ventures); electronically-controlled air springs; electronically-controlled suspension systems; electronic valve system devices; electronic combination instrument; ABS/TCS/ESP systems; Brake-By-Wire (BBW) system; gearbox transmission control unit (TCU); tire-pressure monitoring system (TPMS); on-board diagnostics (OBD); engine anti-theft system; automatic bump-shielded system; and testing systems for automobile and motorcycle testing and maintenance.
4. Manufacturing of key parts and components of new energy automobiles: high energy power batteries (energy density ≥ 110Wh/kg, cycle life ≥ 2,000 times, and the proportion of foreign investment not exceeding 50%), anode materials of batteries (specific capacity ≥ 150mAh/g, and cycle life of 2000 times with not less than 80% of initial discharge capacity), battery separators (thickness of 15-40μm, porosity of 40%-60%); battery management systems, motor management systems, and electronic control integration of electric vehicles; driving motors of electric vehicles (peak power density ≥ 2.5kW/kg, high-efficiency area: 65%, efficiency in working area ≥ 80%), vehicle DC/DC (input voltage of 100V-400V), high-power electronic devices (IGBT, voltage class ≥ 600V, current ≥ 300A); and plug-in hybrid electromechanical coupling drive systems.
5. Manufacturing of key parts and components for high-emission (>250ml) motorcycles: electronically-controlled fuel injection technology for motorcycles (limited to Chinese-foreign equity or contractual joint ventures), and engine emission control devices meeting China’s Phase III emission standards for motorcycles.
6. Track transportation equipment (limited to Chinese-foreign equity or contractual joint ventures): research and development, design, and manufacturing of vehicles and key parts and components (traction drive system, control system, and brake system) of transportation equipment for high-speed railway, special lines for railway passenger transportation, intercity railway, trunk railway, and urban track transportation; research and development, design, and manufacturing of service facilities and equipment for high-speed railway, special lines for railway passenger transportation, intercity railway, and urban track transportation; design and research and development of relevant information systems during information technology development; research and development, design, and manufacturing of track and bridge facilities for high-speed railway, special lines for railway passenger transportation and intercity railway; research and development, design, and manufacturing of track transportation signal systems; manufacturing of electrified railway equipment and apparatus, research and development of railway noise and vibration control technology, manufacturing of waste discharge equipment for railway passenger trains, and manufacturing of railway transportation safety monitoring equipment.
7. Design, manufacturing and maintenance of civil aircrafts: aircrafts for trunk lines and regional aircrafts (Chinese parties as controlling shareholders); and utility aircrafts (limited to Chinese-foreign equity or contractual joint ventures).
8. Manufacturing and maintenance of civil aircraft parts and components.
9. Design and manufacturing of civil helicopters: three tons or more (Chinese parties as controlling shareholders) and less than three tons (limited to Chinese-foreign equity or contractual joint ventures).
10. Manufacturing of civil helicopter parts and components.
11. Manufacturing of ground-effect and water-effect aircrafts (Chinese parties as controlling shareholders).
12. Design and manufacturing of unmanned aircrafts and aerostats (Chinese parties as controlling shareholders).
13. Design, manufacturing and maintenance of aircraft engines, engine parts and components and aircraft auxiliary power systems (limited to Chinese-foreign equity or contractual joint ventures).
14. Design and manufacturing of airborne equipment for civil aviation (limited to Chinese-foreign equity or contractual joint ventures).
15. Manufacturing of aviation ground equipment: civil airport facilities, civil airport operation guarantee facilities, ground facilities for flight tests, flight simulation and training equipment, aviation test and measurement equipment, equipment for aviation ground tests, integrated test equipment for airborne equipment, special equipment for aeronautical manufacturing, special equipment for trial manufacturing of aeronautical materials, civil aircraft ground reception and application equipment, carrier rocket ground testing equipment, and equipment for carrier rocket mechanics and environmental experiments.
16. Manufacturing of photoelectric and electromechanical products for spacecrafts, temperature control products for spacecrafts, inspection equipment for satellite-borne products, and spacecraft structure and mechanism products.
17. Manufacturing of light gas turbines.
18. Design of cruise ship and deepwater (3,000 meters or more) marine engineering equipment (limited to Chinese-foreign equity or contractual joint ventures).
19. Manufacturing and repair of marine engineering equipment (including modules) (Chinese parties as controlling shareholders)
20. Design of low- and medium-speed diesel engines of vessels and their parts and components (limited to Chinese-foreign equity or contractual joint ventures).
21. Manufacturing of low and medium-speed diesel engines of vessels and bent axle (Chinese parties as controlling shareholders).
22. Design and manufacturing of cabin machinery of vessels (Chinese parties as relatively controlling shareholders).
23. Design and manufacturing of vessel communication and navigation equipment: vessel communication system equipment, vessel electronic navigation equipment, radars for vessel use, electric gyrocompass automatic pilot, and internal broadcasting system of vessels, etc.
24. Design and manufacturing of yachts (limited to Chinese-foreign equity or contractual joint ventures).
(XX) Electric Machinery and Equipment Manufacturing
1. Manufacturing of key auxiliary equipment used for one million-kilowatt ultra-supercritical thermal power units (limited to Chinese-foreign equity or contractual joint ventures): safety valves and control valves.
2. Manufacturing of denitration equipment of sintering machines in coal-fired power plants and steel industry.
3. Design and manufacturing of seals of thermal power equipment.
4. Manufacturing of large castings and forgings for coal-fired power station and hydropower station equipment.
5. Manufacturing of key auxiliary equipment for hydropower generating units.
6. Manufacturing of power transmission and transformation equipment (limited to Chinese-foreign equity or contractual joint ventures): amorphous alloy transformers, operating gears for high-voltage switches of 500 kilowatts or more, arc-control devices, large disc insulators (1,000 KV, 50 KA or more), outlet devices and sleeves used for 500 KV or more transformers (500, 750 and 1,000 KV AC and all specifications for DC), voltage regulating switches (on-load or no-load voltage regulating switches of 500, 750 and 1,000 KV AC), dry-type smoothing reactors for direct current transmission, converter valves for ±800 KV direct current transmission (water coolers and DC field equipment), contact materials for electrical appliances in conformity with EU RoHS Directive, and Pb-free and Cd-free solders.
7. Manufacturing of complete sets of equipment or key equipment for new energy power generation: equipment for photovoltaic power generation, geothermal power generation, tidal power generation, wave power generation, garbage power generation, biogas power generation, and wind power generation with a capacity of 2.5 megawatts or more.
8. Manufacturing of large pumped power storage units with rated power of 350MW or more (limited to Chinese-foreign equity or contractual joint ventures): pump-turbines and speed controllers, large variable speed reversible pump-turbine units, generator-motors, and excitation, starters and other ancillary equipment.
9. Manufacturing of Stirling generator sets.
10. Development and manufacturing of linear motors, plane motors, and their drive systems.
11. Manufacturing of high-tech green batteries: nickel-metal hydride (Ni-MH) batteries, nickel-zinc batteries, silver-zinc batteries, lithium-ion batteries, solar batteries, fuel batteries, etc. (excluding energy type of new energy vehicle batteries).
12. Manufacturing of refrigeration compressors for air conditioning with motor adopting DC speed control technology, refrigeration compressors for air conditioning adopting CO2 natural refrigerants, and refrigeration equipment for air conditioning applying renewable energy (air source, water source or ground source).
13. Manufacturing of solar air conditioning and heating systems and solar drying devices.
14. Manufacturing of biomass drying pyrolysis systems and biomass gasification devices.
15. Manufacturing of alternating current (AC) variable voltage variable frequency (VVVF) drive devices.
(XXI) Communication Equipment, Computer and Other Electronic Equipment Manufacturing
1. Manufacturing of HD digital cameras and digital sound playing equipment.
2. Manufacturing of TFT-LCD, PDP, OLED and other panel displays and materials of displays (excluding TFT-LCD glass substrate for the 6th generation and below).
3. Manufacturing of key parts for large-screen color projection displays, including but not limited to optical engines, light sources, projection screens, high-resolution projection tubes, and micro-display projection modules.
4. Manufacturing of digital audio and video coding and decoding equipment; equipment for digital broadcasting and television studios; equipment for digital cable television systems; digital audio broadcasting transmission equipment; digital television up-and-down converters; digital television ground broadcasting single frequency network (SFN) equipment; equipment for satellite digital TV uplink stations; and front-end equipment for satellite master antenna television (SMATV).
5. Design of integrated circuits; manufacturing of large-scale digital integrated circuits with a line width of 0.18 microns or less; manufacturing of analog or digital-analog integrated circuits with a line width of 0.8 micron or less, MEMS and compound semiconductor integrated circuits; and BGA, PGA, CSP, MCM, and other advanced encapsulation and testing.
6. Manufacturing of large- and medium-sized electronic computers, high-performance computers with a computing capacity of 100 trillion calculations per second, portable minicomputers, high-class servers with a computing capacity of one trillion calculations or more per second, large analog simulation systems, and large industrial controlling machines and controllers.
7. Manufacturing of computer digital signal processing system and boards.
8. Manufacturing of graphic and image recognition and processing system.
9. Development and manufacturing of high-capacity optical and disk drives and their components.
10. Manufacturing of high-speed memory system and intelligent memory device with a capacity of 100TB or more.
11. Manufacturing of computer-aided design (three-dimensional CAD) systems, computer-aided testing (CAT) systems, computer-aided manufacturing (CAM) systems, computer-aided engineering (CAE) systems, and other computer application systems.
12. Development and production of software products.
13. Development and manufacturing of materials exclusively for electronic purposes (excluding development and manufacturing of optical fiber performs).
14. Manufacturing of equipment, testing instruments, tools, and molds exclusively for electronic purposes.
15. Manufacturing of new electronic parts and components: chip components, sensitive components and sensors, frequency control and selection components, hybrid integrated circuits, power electronic devices, optoelectronic devices, new electromechanical components, polymer solid capacitors, super-capacitors, passive integrated components, high-density interconnect (HDI) boards, flex printed circuit (FPC) boards, rigid-flex printed circuit (R-FPC) boards, and packaging boards.
16. Manufacturing of touch control system (touch control screens, touch components, etc.).
17. Manufacturing of high-brightness light-emitting diodes (LEDs) with luminous efficiency of more than 1,001 m/W, LED epitaxial wafers (blue light) with luminous efficiency of more than 1,001 m/W, and white luminous tubes with luminous efficiency of more than 1001m/W and power of more than 200mW.
18. Development and production of key parts of high-density digital disk drives.
19. Production of read-only disks and recordable disks.
20. Design and manufacturing of civil satellites (Chinese parties as controlling shareholders).
21. Manufacturing of civil satellite payloads (Chinese parties as controlling shareholders).
22. Manufacturing of parts and components of civil satellites.
23. Manufacturing of equipment for satellite communication systems.
24. Manufacturing of satellite navigation and positioning receiving equipment and its key components.
25. Manufacturing of optical communication measuring instruments and optical transceivers with a speed of 10 Gb/s or more.
26. Manufacturing of ultra-wideband (UWB) communication equipment.
27. Manufacturing of equipment for wireless local area networks (including WAPI support) and wide area networks.
28. Manufacturing of time division multiplex equipment (TDM) with rate of 40Gbps or more, dense wavelength division multiplexing equipment (DWDM), broadband passive network equipment (including EPON, GPON, WDM-PON, etc.), next-generation DSL silicon and equipment, optical cross connect (OXC) equipment, automatically switched optical network (ASON) equipment, and transmission equipment for optical fiber communication at more than 40G/sSDH.
29. Development and manufacturing of IPv6-based next generation Internet system equipment, terminal equipment, testing equipment, software, and chips.
30. Development and manufacturing of the third generation and subsequent mobile communication cell phones, base stations, core network equipment, and network testing equipment.
31. Development and manufacturing of high-end routers and network switches of one gigabit or more.
32. Manufacturing of equipment for air traffic control systems (limited to Chinese-foreign equity or contractual joint ventures).
(XXII) Manufacturing of Instruments and Meters and Cultural and Office Machinery
1. Manufacturing of industrial process automatic control system and devices: fieldbus control systems, large-scale programmable logic controller (PLC), two-phase flow meters, solid flow meters, and new-type sensors and field measuring meters.
2. Development and manufacturing of large precision instruments: electron microscopes, laser scanning microscopes, scanning tunneling microscopes, electron probes, large metallographical microscopes, photoelectric direct-reading spectrometers, Raman spectrometers, mass spectrometers, chromatograph-mass spectrometers, nuclear magnetic resonance (NMR) spectrometers, energy spectrometers, X-ray fluorescence spectrometers, diffractometers, industrial computed tomography (CT) scanners, 450KV industrial X-ray diagnostic machines, large dynamic balancing testing machines, online mechanical quantity automatic testing systems, three-coordinate measuring machines, laser comparators, electrical prospecting instruments, airborne electrical and gamma spectrometers at more than 500 meters, borehole gravity and three-component magnetometers, high-precision microgal gravity and airborne gravity gradiometers, grating rulers, and encoders.
3. Manufacturing of high-precision digital voltmeters and ammeters (with a span of seven and a half bits or more).
4. Manufacturing of reactive power auto-compensation devices.
5. Manufacturing of new instruments and equipment for production safety.
6. Manufacturing of VXI bus automatic testing systems (meeting IEEE1155 international standards).
7. Development and manufacturing of coal mine underground monitoring and hazard forecasting systems and coal safety testing and management systems.
8. Manufacturing of engineering surveying and geophysical observation equipment: digital triangulation systems, numerically controlled three-dimensional terrain model molding systems (area > 1,000 × 1,000mm, horizontal error < 1mm, and vertical error < 0.5mm), ultra-wide frequency band seismometers (Φ < 5cm, frequency band of 0.01- 50Hz, and equivalent quaking speed noise < 10-9m/s), seismic data integrated processing systems, integrated well seismic and precursor observation systems, precision controlled seismic source systems, engineering acceleration measurement systems, high-precision GPS receivers (precision of 1mm + 1ppm), INSAR image receiving and processing systems, absolute gravimeters with the precision of less than one microgal, satellite gravimeters, Doppler weather radars using coherent or dual-polarization technology, visibility meters, meteorological sensors (temperature, air pressure, humidity, wind, precipitation, cloud, visibility, radiation, frozen soil, and snow depth), lightning strike protection systems, multi-level floating dust samplers, 3-D ultrasonic anemoscopes, high-precision intelligent total station instruments, three-dimensional laser scanners, high-performance diamond drilling bits, non-cooperative target laser rangefinders, wind profile radars (with RASS), GPS electronic sonde systems, CO2/H2O flux observation systems, boundary-layer Doppler laser radars, particle spectrometer for particulate substance (3nm-20μm), high-performance data collectors, and underwater gliders.
9. Manufacturing of environmental monitoring instruments: automatic SO2 samplers and testers, automatic NOX and NO2 samplers and testers, automatic O3 monitors, automatic CO monitors, flue gas and Pm2.5 dust samplers and sample cutters, portable toxic and harmful gas testers, automatic analyzers of organic pollutants in the air, automatic online COD monitors, automatic online BOD monitors, online turbidity monitors, online DO monitors, online TOC monitors, online ammonia nitrogen monitors, radiation dose detectors, ray analysis testers, heavy metal online monitoring equipment, and on-line water quality early warning and monitoring equipment in biotoxicity method.
10. Manufacturing of instruments and equipment for hydrological data collection, processing, and transmission and for flood control early warning.
11. Manufacturing of instruments and equipment for marine exploration monitoring: middle and deep sea underwater video and photo cameras, multi-beam detectors, middle and superficial stratum profile detectors, vessel-mounted conductivity-temperature-depth (CTD) probes, fluxgate compasses, hydraulic winches, underwater airtight electronic connectors, energy recovery devices for seawater reverse osmosis desalination (efficiency > 90%), marine ecosystem monitoring buoys, profile detecting buoys, disposable conductivity-temperature-depth (XCTD) probes, on-site water quality measurement instruments, intelligent chemical sensors for seawater quality monitoring and measurement (working for 3 to 6 consecutive months), electromagnetic ocean current meters, acoustic Doppler ocean current profilers (self-contained, direct-reading, and vessel-mounted), conductivity-temperature-depth (CTD) profilers, acoustic release transponders, and deep-sea oceanic tide measurement systems (laid on the seabed).
12. Manufacturing of 10 million pixels or more digital cameras.
13. Manufacturing of office machinery: all-in-one multifunctional office equipment (printer, copier, fax machine, and scanner), color printing devices, heads of high-resolution color printers with precision of 2400dpi or more, and OPC drums.
14. Manufacturing of film machinery: 2K, 4K digital cinema projectors, digital cinema cameras, and digital video production and editing equipment.
(XXIII) Crafts and Other Manufacturing Industries
1. Development and utilization of clean coal technology products and manufacturing of relevant equipment (coal gasification, liquefaction, coal water slurry, and industrial coal).
2. Coal dressing and comprehensive utilization of coal ash (including desulfurized gypsum), coal gangue, etc.
3. Production of completely biodegradable materials.
4. Recycling and treatment of waste and used electrical and electronic products, automobiles, mechanical and electrical equipment, rubbers, metals, and batteries.

IV. Power, Gas and Water Production and Supply Industries
1. Construction and operation of clean combustion technology power stations using integrated gasification combined cycle (IGCC), circulating fluidized bed of 300,000-kilowatt or more, or pressurized fluidized bed combination (PFBC) of 100,000-kilowatt or more.
2. Construction and operation of back-pressure combined heat and power stations.
3. Construction and operation of hydropower stations for the primary purpose of power generation.
4. Construction and operation of nuclear power stations (Chinese parties as controlling shareholders).
5. Construction and operation of new energy power stations (including but not limited to solar energy, wind energy, geothermal energy, tidal energy, wave energy, and biomass energy).
6. Seawater utilization (direct utilization of seawater or seawater desalination).
7. Construction and operation of water supply plants.
8. Construction and operation of renewable water plants.
9. Construction and operation of vehicle charging stations and battery replacement stations.

V. Transportation, Warehousing and Postal Service Industries
1. Construction and operation of network of trunk railway lines (Chinese parties as controlling shareholders).
2. Construction and operation of branch railway lines, local railway lines, and related bridges, tunnels, ferries and station facilities (limited to Chinese-foreign equity or contractual joint ventures).
3. Comprehensive maintenance of infrastructures of high-speed railway lines, passenger railway lines and intercity railways (Chinese parties as controlling shareholders).
4. Construction and operation of highways, independent bridges and tunnels.
5. Road freight companies.
6. Construction and operation of public dock facilities in ports.
7. Construction and operation of civil airports (Chinese parties as relatively controlling shareholders).
8. Air transportation companies (Chinese parties as controlling shareholders).
9. General airline companies for agriculture, forestry, and fishery (limited to Chinese-foreign equity or contractual joint ventures).
10. Scheduled or non-scheduled international marine transportation services (Chinese parties as controlling shareholders).
11. International container multimodal transportation services.
12. Construction and operation of oil (gas) pipelines and oil (gas) depots.
13. Construction and operation of coal pipeline transportation facilities.
14. Construction and operation of elevated three-dimensional automatic warehousing facilities and warehousing facilities related to transportation services.

VI. Wholesale and Retail Industries
1. Common distribution of common commodities, low-temperature distribution of live and fresh agricultural products, and other modern logistical services, and relevant technological services.
2. Rural chain distribution.
3. Construction and operation of pallet and container unit sharing system.

VII. Leasing and Commercial Service Industries
1. Accounting and auditing (limited to Chinese-foreign contractual joint ventures and partnerships).
2. International economic, science and technology, environmental protection, and logistical information consulting services.
3. By contracting outsourced services, engaging in system application management and maintenance, information technology support management, bank back-office services, financial settlement, human resources services, software development, off-shore call centers, data processing, and other outsourced information technology and business process services.
4. Venture capital enterprises.
5. Intellectual property right services.
6. Home service.

VIII. Scientific Research, Technical Service and Geological Exploration Industries
1. Bioengineering and biomedical engineering technologies and biomass energy development technology.
2. Isotope, radiation and laser technology.
3. Marine development and marine energy exploitation technology, technology for comprehensive utilization of marine chemical resources, development and refinement or deep processing of related products, and marine medicine and biochemical product development technology.
4. Ocean monitoring technology (ocean tidal waves, weather, environmental monitoring) and seabed detection and oceanic resources exploration and assessment technologies.
5. Technologies for high value-added utilization of seawater chemical resources, including but not limited to production of salt and extraction and deep processing of potassium, bromine, magnesium and lithium by comprehensively utilizing desalinated dense seawater.
6. Offshore oil pollution cleaning and ecology recovery technology and relevant product development, technology for prevention and treatment of sea water eutrophication, technology for prevention and treatment of marine life explosive growth disaster, and coastal zone ecological environment recovery technology.
7. Energy saving technology development and services.
8. Development and application of technologies for recycling and comprehensive utilization of resources and for recycling of emissions and discharges from enterprise productions.
9. Environmental pollution treatment and monitoring technologies.
10. New technologies for energy efficiency in chemical fiber production and printing and dying processing and for the treatment of exhaust gas, waste liquid and waste residue.
11. Desertification prevention and desert treatment technologies.
12. Comprehensive management technology for grassland-livestock balance.
13. Civil satellite application technology.
14. Research and development centers.
15. High and new technology, new product development, and enterprise incubation centers.

IX. Water Conservancy, Environmental, and Public Facility Management Industries
1. Construction and operation of comprehensive water control projects (Chinese parties as controlling shareholders).
2. Construction and operation of urban enclosed roads.
3. Construction and operation of urban subway, light railway and other track transport (Chinese parties as controlling shareholders).
4. Construction and operation of sewage and garbage treatment plants, hazardous waste treatment and disposal plants (incineration plants and landfills), and environmental pollution treatment and control facilities.

X. Education
1. Higher educational institutions (limited to Chinese-foreign equity or contractual joint ventures).
2. Occupational skills training.

XI. Health, Social Security and Social Welfare Industries
1. Service institutions for seniors, the disabled and children.

XII. Cultural, Sports and Entertainment Industries
1. Operation of performance sites (Chinese parties as controlling shareholders).
2. Operation of sports grounds and body-building, contest performance and sports training and intermediate services.


Catalogue of Restricted Industries for Foreign Investment

I. Agriculture, Forestry, Animal Husbandry and Fishery
1. Selection and cultivation of new varieties of crops and production of seeds (Chinese parties as controlling shareholders).
2. Processing of the logs of precious varieties of trees (limited to Chinese-foreign equity or contractual joint ventures).
3. Processing of cotton (seed cotton).

II. Mining Industry
1. Exploration and exploitation of special and rare kinds of coal (Chinese parties as controlling shareholders).
2. Exploration and exploitation of barites (limited to Chinese-foreign equity or contractual joint ventures).
3. Exploration and exploitation of noble metals (gold, silver, and platinum group).
4. Exploration and exploitation of diamonds, high-aluminum fireclay, wollastonite, graphite, and other important nonmetallic metals.
5. Exploitation and ore dressing of phosphorus, lithium, and iron sulfur mines and extraction of brine resources from salt lake.
6. Exploitation of szaibelyite and ludwigite.
7. Exploitation of celestite.
8. Exploitation of marine manganese nodule and sea sand (Chinese parties as controlling shareholders).

III. Manufacturing Industries
(I) Agricultural and Sideline Food Processing.
1. Processing of edible oils and fats from soybean, rapeseed, peanut, cottonseed, camellia seed, sunflower seed, palm, etc. (Chinese parties as controlling shareholders), processing of rice and flour, and deep processing of corn.
2. Production of biological liquid fuels (fuel ethanol and biodiesel) (Chinese parties as controlling shareholders).
(II) Beverage Manufacturing
1. Production of rice wine and famous-brand spirits (Chinese parties as controlling shareholders).
(III) Tobacco Industry
1. Processing and production of threshed and redried tobacco leaves.
(IV) Printing Industry and Reproduction of Recording Media
1. Printing of publications (Chinese parties as controlling shareholders).
(V) Petroleum Processing, Coking and Nuclear Fuel Processing
1. Atmospheric and vacuum refinery production with an annual output below 10 million tons, catalytic cracking production with an annual output below 1.5 million tons, continuous reforming production (including aromatics extraction) with an annual output below 1 million tons, and hydrogen cracking production with an annual output below 1.5 million tons.
(VI) Manufacturing of Chemical Raw Materials and Chemical Products
1. Production of calcined soda and caustic soda and production of sulfuric acid, nitric acid and potassium carbonate of limited output or with obsolete process.
2. Production of photosensitive materials.
3. Production of benzidine.
4. Production of precursor chemicals (ephedrine, 3,4-methylenedioxyphenyl-2-propanone, phenylacetic acid, 1-phenyl-2-propanone, piperonal, safrole, iso-safrole, and acetic anhydride).
5. Production of hydrogen fluoride and other low-end chlorofluorocarbons or chlorofluoro-compounds.
6. Production of butadiene rubber (excluding high cis-butadiene rubber), emulsion polymerized styrene butadiene rubber (E-SBR), and thermoplastic styrene-butadiene-styrene (SBS) rubber.
7. Production of PVC in acetylene method, ethene of limited output, and post-processing products.
8. Production of dyes and paints using obsolete process, containing hazardous substances or of limited output.
9. Processing of ludwigite.
10. Production of inorganic salt occupying a large amount of resources, causing serious environment pollution or using obsolete process.
(VII) Pharmaceutical Industry
1. Production of chloramphenicol, penicillin G, jiemycin, gentamicin, dihydrostreptomycin, amikacin, totomycin, oxytetracycline, mydecamycin, kitasamycin, ciprofloxacin, norfloxacin and ofloxacin.
2. Production of analgin, paracetamol, vitamin B1, vitamin B2, vitamin C, vitamin E, multiplex vitamin preparations, and oral calcium preparations.
3. Production of varieties of vaccines included in the national immunity planning.
4. Production of active pharmaceutical ingredients (APIs) for anesthetics and Category I psychotropic drugs (Chinese parties as controlling shareholders).
5. Production of blood products.
(VIII) Chemical Fiber Manufacturing
1. Production of chemical fiber drawnwork of conventional copolyester (CoPET).
2. Production of viscose fibers.

(IX) Nonferrous Metal Smelting and Rolling Industries
1. Smelting of rare metals including but not limited to tungsten, molybdenum, tin (excluding tin compounds), and antimony (including antimony oxides and antimony sulfides).
2. Smelting of nonferrous metals including but not limited to electrolytic aluminum, copper, lead, and zinc.
3. Smelting and separation of rare earth elements (limited to Chinese-foreign equity or contractual joint ventures).
(X) General Equipment Manufacturing
1. Manufacturing of various types of P0-grade bearings and their components (steel balls and cages) and roughcasts.
2. Manufacturing of wheeled or caterpillar hoisting machinery with a lifting capacity of less than 400 tons (limited to Chinese-foreign equity or contractual joint ventures).
(XI) Special-Purpose Equipment Manufacturing
1. Manufacturing of equipment for ordinary dacron filament and short fiber.
2. Manufacturing of bulldozers of 320 horsepower or less, hydraulic excavators of 30 tons or less, wheeled loaders of 6 tons or less, graders, road rollers and forklifts of 220 horsepower or less, electrically driven off-highway dump trucks of 135 tons or less, hydro-mechanically driven off-highway dump trucks of 60 tons or less, asphalt concrete mixing and paving equipment, high-altitude operation machinery, garden machinery and tools, and ready-mixed concrete machinery (pilot pumps, agitating lorries, mixing stations, and pump trucks).
(XII) Transportation Equipment Manufacturing
1. Repair, design and manufacturing of vessels (including sections) (Chinese parties as controlling shareholders).
(XIII) Communication Equipment, Computer and Other Electronic Equipment Manufacturing
1. Manufacturing of satellite telecasting ground receiving facilities and key components.

IV. Power, Gas and Water Production and Supply Industries
1. Within small grids, construction and operation of power plants using coal-fired and steam condensation thermal generator sets with a single generator capacity of 300,000 kilowatts or less and thermoelectric power stations using coal-fired, steam condensation and extraction thermal generator sets with a single generator capacity of 100,000 kilowatts or less.
2. Construction and operation of grids (Chinese parties as controlling shareholders).
3. Construction and operation of pipeline networks for gas, heat, and water supply and sewage in cities with a population of more than 500,000 (Chinese parties as controlling shareholders).

V. Transportation, Warehousing and Postal Service Industries
1. Railway freight transport companies.
2. Railway passenger transport companies (Chinese parties as controlling shareholders).
3. Road passenger transport companies.
4. Cross-border automobile transport companies.
5. Water transport companies (Chinese parties as controlling shareholders).
6. General airline companies for photography, prospecting and industrial purposes (Chinese parties as controlling shareholders).
7. Telecommunication companies: value-added telecommunication services (with the proportion of foreign investment not exceeding 50%); basic telecommunication services (with the proportion of foreign investment not exceeding 49%).

VI. Wholesale and Retail Industries
1. Direct sales, mail orders, and online sales.
2. Purchase of grains; and wholesale, retail, and distribution of grains, cotton, vegetable oil, sugar, tobacco, crude oil, agricultural chemicals, agricultural plastic film, and fertilizers (in the case of selling products of different varieties and brands from multiple suppliers through more than 30 chain stores, the Chinese parties shall be the controlling shareholders).
3. Construction and operation of large-scale agricultural product wholesale markets.
4. Distribution of sound and video recordings (excluding movies) (limited to Chinese-foreign contractual joint ventures).
5. Vessel agencies (Chinese parties as controlling shareholders) and ocean shipping tally companies (limited to Chinese-foreign equity or contractual joint ventures).
6. 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).

VII. Financial Industry
1. Banks, finance companies, trust companies, and currency brokerage companies.
2. Insurance companies (in the case of life insurance companies, the proportion of foreign investment shall not exceed 50%).
3. Securities companies (limited to underwriting of A Shares and underwriting and trading of B Shares, H Shares, and government and corporate bonds, with the proportion of foreign investment not exceeding one third) and securities investment fund management companies (with the proportion of foreign investment not exceeding 49%).
4. Insurance brokerage companies.
5. Futures companies (Chinese parties as controlling shareholders).

VIII. Real Estate Industry
1. Development of tracts of land (limited to Chinese-foreign equity or contractual joint ventures).
2. Construction and operation of high-class hotels, high-class office buildings, and international exhibition centers.
3. Real estate secondary market transactions and real estate intermediary or brokerage companies.

IX. Leasing and Commercial Service Industries
1. Legal consulting.
2. Market investigations (limited to Chinese-foreign equity or contractual joint ventures).
3. Credit investigation and rating service companies.

X. Scientific Research, Technical Service and Geological Exploration Industries
1. Surveying and mapping companies (Chinese parties as controlling shareholders).
2. Imports and exports inspection, identification and certification companies.
3. Photography services (including aerial photography and other trick photography services but excluding aerial photography for survey and mapping purposes; limited to Chinese-foreign equity joint ventures).

XI. Education
1. Ordinary senior high schools (limited to Chinese-foreign contractual joint ventures).

XII. Cultural, Sports and Entertainment Industries
1. Production of radio and television programs and movies (limited to Chinese-foreign contractual joint ventures).
2. Construction and operation of movie theaters (Chinese parties as controlling shareholders).
3. Construction and operation of large theme parks.
4. Performance brokerage agencies (Chinese parties as controlling shareholders).
5. Operation of recreation places (limited to Chinese-foreign equity or contractual joint ventures).

XIII. Other Industries Restricted by the State or International Treaties that China Has Concluded or Acceded to


Catalogue of Prohibited Industries for Foreign Investment

I. Agriculture, Forestry, Animal Husbandry and Fishery
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. Research and development of genetically modified organisms and production of genetically modified crop seeds, breeding livestock and poultry, and aquatic fingerlings.
3. Fishing in the sea area and inland waters under China’s jurisdiction.

II. Mining Industry
1. Exploration and exploitation of tungsten, molybdenum, tin, stibonium and fluorite.
2. Exploration, exploitation and ore dressing of rare earth.
3. Exploration, exploitation and ore dressing of radioactive minerals.

III. Manufacturing Industries
(I) Beverage Manufacturing
1. Processing of green tea and special tea with Chinese traditional techniques (including but not limited to famous tea and dark tea).
(II) Pharmaceutical Industry
1. Processing of Chinese medicinal materials listed in the Regulation on the Protection of Wild Medicinal Resources and the Catalogue of China’s Protected Rare, Precious and Endangered Plants.
2. Application of processing techniques such as steaming, stir-frying, moxibustion, and calcination for making small pieces of ready-for-use traditional Chinese medicines; and production of traditional Chinese patent medicine of secret prescriptions.
(III) Nonferrous Metal Smelting and Rolling Industries
1. Smelting and processing of radioactive minerals.
(IV) Special-Purpose Equipment Manufacturing
1. Manufacturing of weapons and ammunitions.
(V) Electric Machinery and Equipment Manufacturing
1. Manufacturing of open (i.e., acid mist directly coming out) lead-acid batteries, mercury-contained silver oxide button batteries, mercury-contained alkaline zinc-manganese button batteries, pasted zinc-manganese batteries, and nickel-cadmium batteries.
(VI) Industrial Products and Other Manufacturing Industries
1. Ivory carving.
2. Tiger bone processing.
3. Production of bodiless lacquerware.
4. Production of enamel products.
5. Production of Xuan paper and Chinese ink ingot.
6. Production of carcinogenic, teratogenic and mutagenesis products and persistent organic pollutants.

IV. Power, Gas and Water Production and Supply Industries
1. Outside small grids, construction and operation of power plants using coal-fired and steam condensation thermal generator sets with a single generator capacity of 300,000 kilowatts or less and thermoelectric power stations using coal-fired, steam condensation and extraction thermal generator sets with a single generator capacity of 100,000 kilowatts or less.

V. Transportation, Warehousing and Postal Service Industries
1. Air traffic control companies.
2. Postal companies; domestic express delivery of letters.

VI. Leasing and Commercial Service Industries
1. Social investigations.

VII. Scientific Research, Technical Service and Geological Exploration Industries
1. Development and application of human stem cell and genetic diagnosis and treatment technologies.
2. Geodetic surveying, marine charting, aerial photography for surveying and mapping purposes, administrative boundary surveying and mapping, topographic map compilations and general map compilations, and compilations of electronic maps for navigation purposes.

VIII. Water Conservancy, Environmental, and Public Facility Management Industries
1. Construction and operation of natural reserves and internationally important wetlands.
2. Development of wild animal and plant resources originated in and protected by China.

IX. Education
1. Compulsory education institutions and military, police, politics, Party and other education institutions in special fields.

X. Cultural, Sports and Entertainment Industries
1. News agencies.
2. Publishing of books, newspapers, and periodicals.
3. Publishing and production of sound and video recordings and electronic publications.
4. 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)
5. Radio and television program production and operation companies.
6. Movie production companies, distribution companies, and theater companies.
7. Operation of news websites, online audio and video programs, business premises for Internet-access services, and Internet cultural business (excluding music).
8. Construction and operation of golf courses and villas.
9. Gambling and lottery industry (including horse race tracks for gambling purposes).
10. Pornography industry.

XI. Other Industries
1. Projects endangering the safety and performance of military facilities.

XII. Other Industries Prohibited by the State or International Treaties that China Has Concluded or Acceded to
Notes:
1. If the Mainland and Hong Kong Closer Economic Partnership Arrangement and its supplements, the Mainland and Macau Closer Economic Partnership Arrangement and its supplements, the Cross-strait Economic Cooperation Framework Agreement and its supplements, and the free trade zone agreements signed by and between China and other relevant countries provide otherwise, the relevant provisions thereof shall prevail.
2. If the special regulations or industry policies of the State Council provide otherwise, the relevant provisions thereof shall prevail.

***

COMMENTARY

At the end of December 2011,The National Development and Reform Commission of P.R.China(NDRC) and the Ministry of Commerce of P.R.China (MOC) jointly issued a new Catalog for Guidance for Foreign Investment,which is intended to encourage more foreign investment into energy-saving & environment-friendly technologies, new-generation information technology, biotechnology, high-end equipment manufacturing, alternative energy, advanced materials, andalternative-fuel cars.

The new Catalog will take effect on January 30, 2012, which is the fifth revision, replacing the 2007 Catalog (The first one was released in 1995). Foreign invested enterprises approved prior to the effective date will not be effected. However, any changes to existing foreign invested projects that take effect after the effective date must comply with the terms of the new Catalog.

In accordance with the new Catalog, China will cut down restrictions on foreign investment by allowing them to invest in more sectors while lifting caps on the proportion of foreign capital in some sectors.Meanwhile, China will continue to welcome foreign investors to high-end manufacturing and modern service industries. Ihe Guidance also encourages them to invest in recycling industries.

However, the government will withdraw support for foreign capital in auto manufacturing because of the need of the healthy development of domestic auto making.It will neither support foreign investment in the sectors of polycrystalline silicon and coal chemical due to concerns of industrial overcapacity and repeated construction, as per the Catalog.

In light of regional development gaps, China will roll out a fine-tuned policy for the central and western regions in the future.

As explained by the NDRC, the new Catalog reflects the following changes:
1. Continued openness. This continues the trend towards opening up of the economy, consistent with China’s WTO commitments and the need to make use of advanced foreign technology. In the new Catalog,three items were added to the encouraged category, while seven items were removed from the restricted category and one item was removed from the prohibited category. In addition, where joint ventures are required, the required Chinese share was reduced in eleven cases and was not increased in any case.

2. Modernization and technical advance in the manufacturing sector. Consistent with the 12th Five Year Plan, the Catalog focuses heavily on promotion of the traditional manufacturing sector. In particular, advanced technology in textiles, chemicals and equipment have been added to the encouraged category. The deletions from the encouraged category reflect the government’s desire to prevent excessive investment in conventional manufacturing technology, particularly where there is extensive current investment by foreign enterprises. This goal is reflected by the deletion of vehicle manufacturing from the encouraged category. The government also intends to prevent excessive investment in certain “trendy” sectors. This goal is reflected by deletion of mono crystalline silicon and chemical processing of coal from the encouraged category.

3. Promotion of strategic new industries. A central goal of the 12th Five Year Plan is to move China beyond reliance on traditional manufacturing and onto strategic new industries that will mark the manufacturing world of the next several decades. The following seven such strategic industries have been identified:
Alternative fuel cars:hybrid cars and electric cars as well as better fuel-cell batteries;
Biotechnology: biomedicines, new vaccines, and advanced medical equipment;
Environmental and energy-saving technologies: energy efficiency, pollution control, clean coal, waste-matter recycling and seawater usage;
Alternative energy: ext-generation nuclear power plants, solar power, wind power, smart grids and bioenergy;
Advanced materials: rare earths, special-usage glass, high-performance steel, high-performance fibres and composites, engineering plastic, nano and superconducting materials;
New-generation information technology: cloud computing technology, high-end software, virtual technology and new display systems; and
High-end equipment manufacturing: Aircraft, high-speed rail, satellites and offshore oil/gas equipment.

4. Modern service industry. Service businesses that have a direct, practical value to the Chinese people or to China industry will be encouraged. Among the new entries in the encouraged category are:
Electric car fueling stations
Enterprise start-up consulting
Intellectual property consulting
Marine oil spill cleanup technology
Vocational skill training
In addition, medical enterprises and financial leasing have been removed from the restricted category.

5. Adaptation to differences in regional development. The basic approach of the Catalog is actually concentrated on the development of the already advanced coastal region. The goal of pushing China to high technology modernization conflicts with the extremely low state of development in the Western, Central and Northeast Regions, where the vast majority of the Chinese people actually live. For development in these regions, the government will need to take a different approach to foreign investment. For example, low value added, high labor content manufacturing that is strongly discouraged for the East may be permitted or even encouraged in the less advanced Western and Central regions.

In the first 11 months of 2011, China attracted USD103.77 billion of foreign direct investment, up 13.15 percent from a year earlier.During the same period, the country approved the establishment of 25,086 foreign-invested companies, up 3.23 percent year on year.

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