WORLD TRADE
ORGANIZATIONS/C/N/214
24 December 2002
(02-7091)
Council for Trade in Services Original:  English
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of the People's Republic of
China
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1. Member notifying:
The People's Republic of China
2. Notification under:
Article III, paragraph 3 of the General Agreement on Trade in Services
3. Date of entry into force/duration:
1995/9/18
4. Agency responsible for implementati on and enforcement of the measure:
Ministry of Construction
Ministry of Foreign Trade and Economic Co-operation
5. Complete description of the measure* indicating the modes of supply covered, the effect
on trade in services (e.g., restrictions/liberalization measures) and the impact of the
measure on commitments in the Member's schedule and Article II (MFN) exemption
list, if relevant:
Rules on the Establishment of Foreign-Invested Construction Enterprises
Full text English translation of the rules is attached.1  The English translation is for reference
only and the Chinese version shall be authentic.
6. Members specifically affected, if any:
All Members
                                                     
* Including international agreements, recognition measures or other types.
1 In English onlyS/C/N/214
Page 2
7. The texts are available from:
- Enquiry point /g254
- WTO Secretariat /g254
- Other sources (address, fax
and telephone of other body)  /g168
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Regulations on the Establishment of Forei gn Invested Construction Enterprises
(Promulgated on 18 September 1995 by the Ministry of Construction and the Ministry of Foreign
Trade and Economic Cooperation).
Article 1 These regulations are formulated to meet the needs of China’s opening up policy, to
improve administration of foreign invested construction enterprises and to maintain order in the
construction market.
Article 2 For the purposes of these Regulations, the term "foreign invested construction
enterprises" refer to Sino-foreign joint equity enterprises and Sino-foreign cooperative enterprises
which engage in civil engineering, installation of lines, pipes and equipment as well as construction,extension or renovation for architectural decoration and fitting projects.  For the time being, the
establishment of construction enterprises with sole foreign investment is prohibited.
Article 3 The establishment of foreign-invested cons truction enterprises shall comply with the
Law of the People’s Republic of China on Sino-foreign Joint Equity Enterprises, the Law of thePeople’s Republic of China on Sino foreign Contractual Joint Ventures, Regulations Concerning the
Management of the Construction Enterprise Qualifications and other relevant laws, rules and
regulations.
Article 4 Project proposals and feasibility study reports relating to the establishment of foreign-
invested construction enterprises will be examined and assessed by the authority responsible for
construction administration.  The scope of contract engineering work which a foreign-invested
construction enterprise can undertake will be determined in accordance with the Regulations
Concerning the Management of the Construction Ente rprise Qualifications and the Standards for the
Construction Enterprise Qualifications issued by the Ministry of Construction.  Contracts and articlesof association relating to the establishment of foreign-invested construction enterprises will be
examined and approved by the competent authority of foreign trade and economic cooperation.
Article 5 A system of graded administration at different levels of authorities will be
implemented for the examination and assessment and examination and approval of foreign-invested
construction enterprises.  An application to establish a Class 1 foreign-invested construction enterprise
will be subject to the examination and assessment by the Ministry of Construction and to theexamination and approval by MOFTEC.  An applica tion to establish a foreign-invested construction
enterprise of Class 2 or lower will be subject to examination and assessment by the authority
responsible for construction administration at provincial level and to examination and approval by the
provincial level authority of foreign trade and economic cooperation.
If the Chinese partner to a joint venture is an enterprise directly under a State Council department, the
application will be reviewed and assessed by the Ministry of Construction and reviewed and approved
by MOFTEC.
Article 6 When establishing a foreign-invested construction enterprise, matters must be
handled in accordance with the following procedures:
(1) The Chinese partner to a joint venture must submit the project proposal and feasibility
study report and other relevant documents relating to the establishment of the foreign-
invested construction enterprise to the authority of construction administration, which
will review and assess the submissions.  If all requirements are met, an "Opinion onExamination and Assessment of the Establishment of a Foreign-Invested
Construction Enterprise" shall be issued.
(2) The Chinese partner must present the "Opinion on Examination and Assessment of
the Establishment of a Foreign-Invested Construction Enterprise", and submit theS/C/N/214
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contract, articles of association and other documents relating to the establishment of a
foreign-invested construction enterprise, to the responsible authority of foreign trade
and economic cooperation, which will examine the submission for approval.  If all the
requirements are met, an "Approval Certificate for a Foreign-Invested Enterprise"
shall be issued.
(3) The Chinese partner must present the "Opinion on Examination and Assessment of
the Establishment of a Foreign-Invested Construction Enterprise", the "Approval
Certificate for a Foreign-Invested Enterprise" and other relevant documents to the
administration of industry and commerce to carry out procedures for corporate status
registration.
(4) After the foreign-invested construction enterprise has obtained an enterprise corporate
business license, it must return to the authority responsible for constructionadministration to handle procedures for examining an approving the enterprise’s
business qualifications.
Article 7 In addition to complying with the provisions of relevant laws and statutory
regulations, the establishment of a foreign-invested construction enterprise must also meet thefollowing requirements:
(1) The Chinese partner applying to establish a foreign-invested construction enterprise
must be a construction enterprise with business classification certificate of Class 2 or
above. The foreign partner must be a construction enterprise with legal person status,
with relatively high technical and management standards and a sound reputation.
(2) The proposed enterprise must be able to introduce into China or utilize internationally
advanced construction technology and equipment, as well as train personnel from the
Chinese party in such areas as engineering construction and business management.
(3) Registered capital must comply with the following requirements: The minimum
registered capital for a Class 1 construction enterprise is US$ 10,000,000, that for aClass 2 construction enterprise is US$ 5,000,000, and that for a Class 3 construction
enterprise is US$ 1,600,000. The registered capital shall not be less than
US$ 2,000,000 for Class 1 construction decoration and fitting enterprises;
US$ 1,500,000 for Class 2 decoration and fitting enterprises, and US$ 600,000 for
Class 3 decoration and fittings enterprises.
Article 8 In applying for establishing a foreign-invested construction enterprise, the Chinese
partner shall submit the following documents to auth ority in charge of construction according to the
procedures prescribed in Article 5 of these Regulations:
(1) an application for the establishment of a foreign-invested construction enterprise;
(2) the Chinese partner’s qualifications certificate;
(3) an opinion of the authority in charge of the Chinese partner on its examination and
verification of the application, except where there is no administrative authority in
charge of the Chinese partner;
(4) project proposal for the establishment of a foreign-invested construction enterprise;
(5) feasibility study report jointly compiled by all parties to the venture;
(6) certificates of industrial and commercial registration of all parties to the venture;(7) certificates of credit standing of all parties to the venture; and
(8) other relevant documents.
Article 9 When application is made for establishing a foreign-invested construction enterprise,
the following documents must be provided to th e competent authority of foreign trade and economic
cooperation in accordance with the procedures prescribed in Article 5 of these Regulations:
(1) the "Opinion on Examination and Assessment of the Establishment of a Foreign
Invested Construction Enterprise" issued by the authority responsible for construction
administration;S/C/N/214
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(2) the contract and articles of association of the proposed foreign-invested construction
enterprise;
(3) project proposal and feasibility study report;
(4) certificates of industrial and commercial registration of all parties to the venture;
(5) certificates of credit standing of all parties to the venture;(6) document of ratification of the enterprise name issued by the administrative authority
for industry and commerce; and
(7) list of members of the board of directors of the enterprise and their letters of
appointment issued by all parties to the venture.
Article 10 Investors from the regions of Taiwan, H ong Kong and Macao who invest in the
establishment of construction enterprises in Ch ina’s mainland shall refer to these Regulations.
Article 11 These Regulations shall take effect as of the date of promulgation.
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