CATALOGUE FOR THE GUIDANCE OF PRIORITY FOREIGN INVESTMENT INDUSTRIES IN SHANGHAI

(AMENDED IN 2005)

Shanghai Development and Reform Commission

Shanghai Foreign Investment Commission

Shanghai Economic Commission

May 23,2005

I.Manufacturing Industries

1.Equipment Manufacturing Industries

(1)Precision processing equipment manufacturing

(2)Digital and intelligentized control measure system and servomechanism installations

(3)Matching equipment of modern transportation

(4)Equipment for urban transit track transportation

(5)Equipment of modern logistic

(6)Power station and power transmitting and transforming equipment

(7)New type of environment protection equipment and comprehensive utilization of resource

(8)Civil air-borne equipment(Chinese partner shall hold the majority of shares)

(9)Digital control medical appliance and pharmatheutical equipment

(10)Apparatus,instrument and special tools

(11)Special equipment and manufacturing and processing of complete set of equipment

(12)Development,design and manufacturing of precision mould

2.Electronic and Telecommunications Industries

(1)Design,sealing&packaging,testing of integrated circuit and production of large scale integrated circuit with a line width of 0.35 micron or smaller, production of key technical equipment,spare parts,raw material,components and parts

(2)Development and manufacture of software,Manufacture of 3-dimension CAD,CAT,CAM,CAE and other computer application system

(3)Manufacture of medium and large-sized computers,portable microcomputers,high-grade server,drivers of high capacity compact disk and disk and related parts

(4)Manufacture of mobile communication systems(GSM,CDMA,DCS1800, DECT,IMT2000)mobile telephone,base station,switching equipment and digital colonization system equipment,industrialization of mobile communication special chips,design of mobile telephone and development of application software,manufacture of telecommunication system equipment for satellites and receiving equipment of satellite navigation and key components

(5)Manufacture of optical communication-linking,exchanging and transmission equipment

(6)Technique of new type plate displays,as well as the R&D and manufacture of its related products,manufacture of digital television,digital video camera, digital record player,digital sound-playing equipment digital audio and visual coding or decoding equipment,digital broadcasting TV studio equipment, digital cable TV system equipment,digital audio broadcast transmission equipment

(7)R&D and production of luminescent materials for semi-conductor,special optical fibre,and optical electronic components,manufacture of optical fibre preformrod

(8)Key material,components and parts for micro-electronics

3.Automobile Manufacturing Industries

(1)Manufacture of complete automobiles(including R&D activities),high- performance special-purpose vehicle,hybrid vehicle(including R&D activities)

(2)R&D and manufacture of new-energy vehicle,including fuel battery,gas and solar battery

(3)Manufacture of engines for automobiles(including R&D activities)

(4)Manufacture of automobile electronic devices,including new-energy automobile electronic products,vehicle information system,basic components and parts like automobile electronic chips,sensors and body accessory electronics,engine control system,underchassis control system,autocar body electric control system)

(5)Manufacture of key spare parts for automobiles

(6)Technology of key material for lightweight automobile

4.Modern Bio-technology&Medicine Manufacturing Industries

(1)Manufacture of bio-technology and its products:mono-clone antibody medicine,new variety of vaccines,gene engineering technology medicine, gene treatment and immunity treatment,diagnostic reagent for fatal disease

(2) New variety of chemical synthesis medicines,semi-synthesis medicines against fatal diseases like AIDS,type-B hepatitis,tumour,neural system, tuberculosis,diabetes etc.,innovative medicine with its own IPR on the basis of new target and new structure

(3)Manufacture of new variety of medicines and pharmaceutics:new products and new dosage forms adopting new techniques such as slow release,control release,target preparation and absorbed through skins,development and applications of new variety of adjuvant medicines

(4)Modern technology of traditional Chinese herb medicines:development and application of effective parts of traditional Chinese herb medicines or mono traditional Chinese herb medicines,as well as the re-development of traditional combination Chinese herb medicines

(5)New variety of medical biologic materials:development and application of disposable biologic materials,in vivo implant and organic engineering biologic active repair,replaceable materials,man-made viscera,cardiovascular medical materials,components and parts

(6)Medicines used for animals:new variety of vaccines used for animal, chemical medicines

(7)New variety of coating materials adjuvant medicines

5.New material

(1)Non-ferrous metallurgical material,mainly including automobile plate and alloy steel,high-performance light alloy material,high-intension heat resistant alloy steel and new type of carbonic configurable steel etc.

(2)Chemical new material,mainly including new variety of environment- amicable catalytic agent,fine steel chemistry and special chemical products

(3)Other nonmetal material:mainly including new varieties of effective and energy saving construction materials,chemical fibre,carbon fibre and lanthanon functional materials etc.used for industry

(4)New variety of complex materials:maining including thermoplastic complex materials,functional engineering plastic alloy

6.Ship Building Industries

(1)Design,manufacture and repairing of super vessels,special vessels,high- performance vessels

(2)Large-scale vessels(high-performance and high-technology vessels like large-scale container vessels with the capacity over 10,000 TEU,large-scale FPSO vessels,VLCC vessels,large-scale LNG vessels etc.)

(3)Design and manufacture of the equipment and accessories of high-speed diesel engines,auxiliary engines,radio communication and navigation for vessels(the Chinese party should hold relative majority shares)

(4)Manufacture of high-power and low-speed diesel engine and its control system,key matching equipment like crankshafts diesel engine for vessel (5)Manufacture of fishing boats and yachts made of glass fibre reinforced plastic

(6)Key material for special vessels

7.Petrochemicals and Fine Chemistry Manufacturing Industries

(1)Manufacture of deep processing of petrochemicals

(2)Processing of natural gas chemical series

(3)Processing of phosgene deriving series

(4)Processing of fine chemical series

(5)Processing of macromolecule material

(6)Manufacture of new variety of pigment,reagent,adjuvant medicines, catalytic agent,impregnant etc.

8.Fine Steel Manufacturing Industries

(1)Manufacturing of steels for cars and home electric appliance

(2)Manufacture of seamless steel tube especially for petroleum and high- pressure boiler

(3)Manufacture of special mid-thick plate like vessel plate,wearable plate, configurable plate etc.

(4)Manufacture of stainless steel and special steel with high technology and high added value

(5)Manufacture of electric steel and effective steel for construction

(6)Manufacture of special steel for ocean facilities

(7)Nearly finished conticasters and rolling mills like sheet workblanks strip workblanks etc.

(8)Manufacture of high-performance precision plate

9.Plane Building Industries

(1)Design and manufacture of civil planes(including helicopter)(Chinese partner shall hold the majority of shares)

(2)Design and manufacture of aeroplane engines (Chinese partner shall hold the majority of shares)

(3)Plane maintenance

10.Urban Industries

(11)R&D and manufacture of new variety of garments and its accessories,as well as fabric

(2)R&D and manufacture of crafts and tourist souvenirs like diamonds and jewelries

(3)R&D and manufacture of clock and watch,as well as cultural and physical products

(4)Industry design and mould manufacture

II.Service Industries

1.Financial service industries

(1)Banks,finance companies

(2)Insurance companies

(3)Security companies,security investment fund management companies

(4)Financial leasing companies

(5)Insurance broker companies

2.Logistics

(1)Third party logistic enterprises

(2)Distribution Center

(3)Development of logistic real estate

(4)International containers inter-model transportation

(5)Road freight transportation

(6)Development of logistic information system

3.Distribution Industries

(1)Wholesale and retail enterprises of normal merchandise

(2)Foreign Trade enterprises of normal merchandise

(3)International procurement center

4.Social Service

(1)Higher education institutes(contractual joint ventures only)

(2)Culture broker(equity joint ventures or contractual joint ventures only)

(3)Construction and operation of cinemas(Chinese partner shall hold the majority of shares)

(4)Production and publication of broadcasting and TV programs and film- making (Chinese partner shall hold the majority of shares)

(5)Medical and health care service(equity joint ventures or contractual joint ventures only),mainly including:world famous brand cardiovascular and cerebrovascular clinique,world famous brand tumour clinique,world famous brand plastic and beauty medical institution,healing medical institution, deathbed care and nurse institution(including high class nurse and medical institution for the elderly)

(6)Physical competition, performance; construction, reconstruction and operation management of physical facilities(golf court is excluded);physical club

(7)Service for the elderly(resthome,apartment for the elderly,residence for the elderly,service institution for the elderly at home,community center for the elderly,service management and consulting institution for the elderly,labor training institution of the service for the elderly,service institution of nursing and healing products for the elderly etc.)

5.Scientific Research and Poly-technical Services Industries

(1)Research and development institutions(centers)

(2)Mapping companies(Chinese partner shall hold the majority of shares)

(3)Attestation institutions

(4)Application technique of civil satellite

(5)Centers for hi-tech,new products developing,and incubation of enterprises

(6)Biological engineering technique and bio-medical engineering technique

(7)Isotope,irradiation and laser technique

(8)Seawater desalting and seawater utilization technology

(9)Development of energy-saving technology

(10)Technology for recycling and comprehensive utilization of resources

(11)Technology for environment pollution treatment and monitoring

6.Real Estate Industry

(1)Development and construction of ordinary residential houses

(2)Reconstruction of old residential houses

(3)Construction and operation of office buildings and high-ranking hotels

(4)Construction and operation of large scale theme park

(5)Construction design companies

(6)Construction decoration companies

7.Tourism

(1)Construction and operation of international exhibition facilities

(2)Travel agency

(3) Construction and operation of tourist sight

(4)Construction and operation of tourist routes and tourist distribution centers

8.Information.Consultation Service Industries

(1)Information consulting agencies of international economy，science and technology,environmental protection

(2)Accounting and auditing(cooperative joint venture only)

(3)Various kinds of broker and agency service

(4)Professional service

III.Urban Infrastructure and Public Facility Service Industries

1.Transit track transportation,road,bridge,tunnel,civil airport,ferry and public dock

2.Comprehensive development,construction and rebuild of social parking lots,bus parking lots,transportation distribution centers

3.Production and supply of gas and water

4.Treatment plants for sewage,garbage,the dangerous wastes(incineration and landfill),and the facilities of environment pollution treatment

5.Clean energy(including solar energy,wind energy,magnetic energy,tide energy and biological mass energy,etc.)

IV.Farming,Forestry,Animal Husbandry and Fishery Industries

1.Breeding and spread of quality varieties of breeder animals,breeder plant, seeding and fungus seeds(excluding precious quality varieties peculiar to China)

2.Breeding and cultivation of famous plants industry,husbandry and aquatic products industry)

3.Ocean fishery industries

4.Deep processing of farming products

5.Procurement and trading of large-scale farming products,logistic construction

6.Cultivation of modern agricultural facilities

7.Construction and protection of agricultural ecological environment