S/N

Special Administrative Measures

I. Agriculture, Forestry, Animal   Husbandry, and Fishery

1

The Chinese investor shall hold no less than 34% of shared concerning the selection and breeding of new varieties and production of wheat and corn seeds.

2

Investment in the research and   development, cultivation, and plantation of rare and unique precious and   superior varieties in China, as well as the production of related propagative   materials (including valuable genes in planting, animal husbandry, and   aquaculture), shall be prohibited.

3

Investment in selecting and breeding genetically modified   varieties of crops, as well as livestocks, poultry, and aquatic breeds, in addition to the production of such genetically modified seeds   (seedlings), shall be prohibited.

 II. Mining

4

Investment in the exploration,   mining, and beneficiation of rare earths, radioactive materials, and tungsten   shall be prohibited. (No foreign investors shall be allowed to enter rare earth mining areas or obtain mine   geological information, production processes and technology, and ore samples unless otherwise permitted.)

III. Production and Supply of Electricity, Heat, Gas, and Water  

5

The construction and operation of   nuclear power plants must be controlled by Chinese investors.

IV. Wholesale and Retail

6

 Investment in the wholesale and   retail of tobacco, cigarettes, re-dried leaf tobacco, and other tobacco   products shall be prohibited.

 V. Transportation, Warehousing,   and Post Services

7

 Domestic water transport   companies must be controlled by Chinese investors. (Foreign investors are   forbidden from operating domestic waterway transport businesses or carrying   out indirect activities through the operation or chartering of Chinese   vessels or shipping space. Waterway transport operators may not employ   foreign vessels to carry out domestic waterway transport business operations.   However, upon the approval of the Chinese government, in the absence of   Chinese vessels on location capable of meeting transport requirements, and in   the event the port or body of water in which the vessel is docked has been   opened to foreign vessels, the waterway transport business operator may,   within the limits of the period or voyage specified by the Chinese   government, temporarily employ foreign vessels to carry out marine transport   or towing between Chinese ports.)

8

 Public air transport companies   must be controlled by Chinese investors, and the proportion of investment by   a foreign investor and its affiliates must not exceed 25%. The legal   representative must be a Chinese citizen. The legal representative of a   general aviation company must be a Chinese citizen. General aviation   companies serving the agriculture, forestry, and fishery industries shall be   limited to joint ventures, and the controlling stake in other types of   general aviation companies shall be held by Chinese investors. (Only Chinese   public air carriers may operate domestic air services and provide scheduled   and unscheduled international air services as designated carriers in China.)

9

Chinese investors must have a relatively controlling interest in the construction and operation   of civil airports. Foreign investors may not participate in either the   construction or operation of air traffic control towers.

10

 Investment in postal companies (and operation of postal services) and domestic express mail   delivery shall be prohibited.

 VI. Information Transmission,   Software, and Information Technology Services

11

 Telecommunications companies:   Foreign investors are limited to telecommunications services opened up   pursuant to China's WTO commitments. The shareholding ratio for foreign investment in   value-added telecommunications services (except for e-commerce, domestic   multi-party communications, store-and-forward, and call centers) shall not   exceed 50%. Basic telecommunications business   must be controlled by Chinese investors (the operator must also be a legally   established company specializing in basic telecommunications services). The   pilot policies covering the original area (28.8 square kilometers) of the   China (Shanghai) Pilot Free Trade Zone shall be applied to all pilot free trade zones.

12

 Investment in Internet news and   information services, Internet publishing services, Internet audio-visual   program services, cyber culture operation (with the exception of music), and   Internet public information services (with the exception of content which has   been opened up pursuant to China's WTO commitments) shall be prohibited.

VII. Leasing and Business   Services

13

 Investment in Chinese legal   services shall be prohibited (with the exception of providing information   regarding the impact of Chinese legal environment). No foreign investor may become a   partner in a Chinese law firm. (Foreign law firms may only enter China in the   form of representative offices and may not employ practicing lawyers who are   Chinese citizens. The supporting staff employed by the representative office   may not provide clients with legal services. Permission must be received from   Chinese judicial authorities for the establishment of a representative office   in China or the dispatch of representatives.)

14

 Radio and television ratings   surveys must be controlled by Chinese investors. The Chinese investors must hold no less than 67% of the shares regarding social survey   businesses, and the legal representative must   be a Chinese national.

 VIII. Scientific Research and   Technical Services

15

Investment in the development and   application of human stem cells, as well as genetic diagnosis and treatment   technology, shall be prohibited.

16

 Investment in humanities and   social sciences research institutes shall be prohibited.

17

 Investment in the following areas   shall be prohibited: Geodetic surveying, ocean mapping, aerial imaging and   mapping, ground motion measurement, administrative boundary mapping,   compilation of topographic maps, maps of world administrative regions, maps   of Chinese administrative regions, administrative maps at the provincial   level and below, nationwide teaching maps, local teaching maps, real 3-D   maps, electronic navigational charts, and regional geological mapping,   mineral geological surveys, geophysical and geochemical surveys, and studies   of hydrogeology, environmental geology, geological disasters, and remote   sensing geology (those holding mining rights shall not be subject to this   special administrative measure and shall be free to work within the scope of   their mining rights).

  IX. Education

18

 Pre-school education   institutions, regular upper secondary schools, and higher education   institutions shall be limited in form to Chinese-foreign cooperative schools, which must be   dominated by Chinese investors (the principal or main administrative head   should be of Chinese nationality, and reside in China. No less than half of the Council,   board of directors, or joint administrative committee shall be Chinese members). (Foreign educational institutions and other organizations or   individuals shall not solely establish schools or any other educational   institutions whose enrollment targets are primarily Chinese citizens, excluding non-academic vocational   training institutions, and academic vocational education institutions.   However, foreign educational institutions may cooperate with a Chinese   educational institution to jointly establish educational institutions mainly   targeting Chinese citizens.)

19

 Investment in compulsory   education institutions and religious education institutions shall be   prohibited.

 X. Health and Social Work

20

 Investment in medical   institutions shall be limited to the form of joint ventures.

 XI. Culture, Sports, and   Entertainment

21

 Investment in news organizations   (including but not limited to news agencies) shall be prohibited. (The   establishment of resident news outlets in China and the dispatch of resident   correspondents to China by foreign news organizations shall be subject to   approval by the Chinese government. Provision of news   services by foreign news agencies in China shall be subject to review and   approval by the Chinese government. Business cooperation between Chinese and   foreign news organizations must be dominated by   the Chinese side and approved by the Chinese   government.)

22

Investment in the editing,   publication, and production of books, newspapers, periodicals, audio-video   products, and electronic publications shall be prohibited. (However, subject   to the approval of the Chinese government, and provided that the cooperating Chinese side dominates the operation and has the right to the final review of   content, and that the parties also satisfy all other conditions as approved   by the Chinese government, the Chinese and foreign publishers may engage in   news publishing projects jointly. The provision of financial information   services in China without the approval of the Chinese government shall be   prohibited.)

23

 Investment in the establishment   and operation of all levels of radio stations, television stations, radio and   television channels (frequencies), and radio and television transmission   coverage networks (including transmitters, relay stations, radio and   television satellites, satellite up-link stations, satellite transmission   stations, microwave relay stations, monitoring stations, as well as cable   radio and television transmission coverage networks) shall be prohibited. The   provision of on-demand radio and television video services and the installation   of satellite television broadcast ground receiving facilities shall be   prohibited. (The landing of overseas satellite channels shall   be subject to examination and approval.)

24

 Investment in radio and   television program production and operation (including importation) enterprises shall be prohibited. (The importation of overseas movies, television dramas, and of other   overseas television programs via satellite transmission shall be applied by   organizations designated by the National Radio and Television Administration.   A licensing system shall be applied to television series (including TV animations) produced as a result of   Chinese-foreign cooperation.)

25

 Investment in movie production   companies, distribution companies, cinema operators, and movie importation business, shall be prohibited. (However, upon   approval, foreign enterprises may be allowed to produce movies jointly with   Chinese enterprises.)

26

 Investment in auction companies   engaged in cultural relic auctions, cultural artifact stores, and state-owned   museums that house cultural relics shall be prohibited. (Immovable cultural   relics and cultural relics that may not be removed from the country shall not be transferred, mortgaged or   leased to foreigners. The establishment and operation of organizations   involved in the investigation of intangible cultural heritage shall be   prohibited. Research into intangible cultural heritage, as well as   archaeological investigation, exploration, and excavation carried out in   China by overseas organizations or individuals may only occur by means of   cooperation with Chinese organizations and shall be subject to special   examination, approval, and licensing.)

27

Performing arts groups must be   controlled by Chinese investors.