GongShangGuangZi [2001] No.104 April 17,2001

The administration for industry and commerce of Shanghai Municipality:

The Request of Instructions on Relevant Questions Concerning China-foreign Equity Joint Ventures Reinvesting to Set up Domestically Funded Advertising Enterprises (HuGongShangGuang [2001] No.134) of your administration has been received. After review, we hereby reply as follows:

1. According to the requirements of the Interim Provisions on the Investments Enterprises with Foreign Investment Within the Border of China (Order No.6 of 2000 of the Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce), China-foreign equity joint ventures must ask for administration opinions of the administrative departments of the state or of the same level if they want to invest in restrictive industries within the border of China, thereby China-foreign equity joint ventures shall go through the procedures of reporting the projects for approval according to relevant provisions of the Several Provisions on Setting up Advertising Enterprises with Foreign Investment (GongShangGuangZi [1994] No.304).

2. Generally the proportion of investment shall not be restricted when China-foreign equity joint ventures invest in the advertising industry within the border of China.

Promulgated by The State Administration for Industry and Commerce on 2001-4-17