Policy: investment projects for foreign investors in China

1. Projects that China encourages foreign investors to invest in

In accordance with the provision of "Guiding Directions for Foreign Investors to Invest", the projects China encourages foreign investors to invest in are:

1. Those categorized as advanced new technology for agriculture, agriculture integrated development, power, traffic transportation, and important raw materials;

2. Those categorized as advanced new technology and appropriate technology, which could improve performance of products and enterprise's economic and technological performance, or produce new equipment and new materials that domestic production capacity cannot meet;

3. Those upgrading the product's quality level and explore new markets, or enhance competence of the product for the international market, pursuant to marketing;

4. Those categorized as advanced new technology and new equipment, which can save power and raw materials, make comprehensive use of resources and renewable resources, bring environmental pollution under control;

5. Those giving full play to advantages of human resources and natural resources of the China’s western region, and in accord with the state's industrial policies;

6. Those prescribed by other laws, administrative regulations, and measures.

2. Projects that foreign investors are restricted to invest in China

In accordance with the "Provisions on Guiding Foreign Investment Direction", all of the following projects are restricted:

1) Those that lag behind in technology;

2) Those that do not favor frugality of power and improvements of ecological environment;

3) Those that are concerned with special explorations and mining protected by the state and in accordance with state provision;

4) Those industries that are gradually opened by the State;

5) Other cases stated in the laws and relevant administrative regulations

3. Projects that foreign investors are prohibited to invest in China

In accordance with the "Provisions on Guiding Foreign Investment Direction", all of the following projects are prohibited:

1) Those harming national security and social public interests;

2) Those causing environmental pollution, or damaging natural resources and wealth or people's health;

3) Those occupying much farmland; do not favor agricultural protections and developments of land resources;

4) Those harming the security of military infrastructures and its efficiency of applications;

5) Those making use of unique technique or technology that the P. R. China possesses in purpose of production of products;

6) Other cases stated in laws and relevant administrative regulations.