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  • CHINA INTERCONTINENTAL PRESS

    BUSINESSChinaCompiled by Ma Ke, Li Jun, etc.

    Translated by Song Peiming and Zhu Youruo

  • CIP

    /.

    2004. 1

    ISBN 7-5085-0413-5

    I. ... . ... ... ... . -

    -- . F72

    CIP2004000064

    www.photocome.com

    31

    100088

    (010)82008396 82008228

    www.cicc.org.cn

    2004111

    188.00

  • City Time Differences

    BeijingE 8 Time Zone

    New York-13

    Brasilia-11

    London-8

    Berlin-7

    Paris-7

    Cairo-6

    Moscow-5

    Singapore0

    Seoul+1

    Tokyo+1

    Sidney+2

    Location of China in the World

    Antarctica

    Europe

    Asia

    Africa

    North America

    South AmericaOceania

    North America

    Beijing

    The Pacic Ocean

    The Indian Ocean

    The Arctic

    The Atlantic Ocean

    The

    Atla

    ntic

    Oce

    an

  • Foreword 8

    Business Background 12

    Geography 12

    Population 17

    Politics 20

    Society 29

    Finance 42

    Communications 50

    Telecom 55

    Energy 58

    Industries and Markets 62

    Economy in General 62

    Industrial Policies 65

    Agriculture and Farm Produce Market 71

    Industry and The Market For Industrial Products 77

    Service Sector and Policy For Its Development 117

    Market for Consumer Goods 138

    List of Industries, Products and Technologies Currently

    Encouraged by the State for Development 154

    Foreign Trade 176

    An overview 176

    Right of Import-Export Management 180

    Administration of Imported and Exported Commodities 184

    Policies on Customs Duty 188

    Policies on Processing Trade 189

    Foreign Investment 194

    Current Situation of Foreign Investment 194

    Forms of Foreign Investment 196

    Basic Policy on Foreign Investment 203

    CONTENTS

  • Special Economic Zone and Development Zone .............................................................. 212

    Establishment of Foreign-Invested Enterprises ................................................................ 224

    Taxation Policies Governing Foreign-Invested Enterprises ............................................. 230

    Land, Labor and Foreign Exchange Management ............................................................ 232

    Provisions on Guiding the Orientation of Foreign Investment ........................................ 241

    Catalogue for the Guidance of Foreign Investment Industries ......................................... 246

    Intellectual Property Rights .............................................................................................. 272

    Laws and Statutes Concerning Intellectual Property Rights ............................................. 272

    Application for Trademark and Patent Rights .................................................................. 276

    Commitment for the Protection of Intellectual Property Rights ........................................ 278

    Around China ................................................................................................................... 284

    A Survey ........................................................................................................................... 284

    Urban Development .......................................................................................................... 353

    The Western Development ................................................................................................ 356

    Catalogue of Priority Industries for Foreign Investment in the Central-Western Region

    (Amended in 2004) 2004 Revision .................................................................. 373

    Commercial Activities ..................................................................................................... 386

    Acquisition of Commercial Information .......................................................................... 386

    Work and Life ................................................................................................................... 390

    Appendix: Organs and Websites ....................................................................................... 396

    Central Organs .................................................................................................................. 396

    Local Information ............................................................................................................. 404

    Sector Information ............................................................................................................ 410

    Trade and Investment ........................................................................................................ 413

    Society, Media and Tourism ............................................................................................. 423

    Embassies in China ........................................................................................................... 427

    Long Distance Call Area Codes of Main Cities and Regions in China ............................ 444

  • 8A certain day in the year of 2001, the president of a foreign company paid a

    visit to China intending to sell some technical know-how related to insurance to the

    Chinese. However, what made him surprised was that instead of selling something to

    China he bought from China a set of computer software related to insurance business

    management.

    If you know nothing about what is happening in China, it means you are ignorant

    about it. Many foreign businessmen who have been to China say so. Then what is

    really happening in China?

    At least in the latest twenty years or so, China has seen the most rapid development

    of economy in the world. Just take a look ahead of you, what meets your eyes is high-

    rises, modern plants, a metropolis suddenly emerging on the horizon, and freeways

    extending thousands of kilometers. But all this is only the front cover of the Story of

    China. What attracts you most will be the overall economic transformationfrom

    planned economy to market-oriented economyand the construction of an open and

    democratic society ruled by laws.

    Twenty years ago, almost none could forecast the China of today. In those days,

    everything should be arranged by the state, from enterprise production to the peoples

    life. The then China was almost short of everything except human beings and coupons

    were a must to buy anything. It was also during those days, the door of China was open

    to the outside world and groups of businessmen and entrepreneurs entered. The story

    that follows sounds quite logical. China becomes a big nation for foreign trade and a

    piece of hot land for foreign businessmens investment as well. It seems that China is

    to be the manufacturing center of the world.

    The fact that China uses a period of twenty years to cover a distance that takes

    other countries to do so for 100 years or so is a great achievement itself. If you have not

    gone through the process, what you can see is only the exciting results or disheartening

    FOREWORD

  • 9FOREWORD

    The night China gained WTO membership

  • 10

    p r o b l e m s t h e

    problems a developing

    country is sure to

    face with. The key

    issue is that the time

    spent for China to

    solve these problems

    is much shorter than

    many other countries.

    Some transnational

    corporations say that

    they have plants all

    over the world but the

    efciencies of the plant in China are the best.

    Once China was eulogized as a country with the ground paved with gold just

    like a myth but China was also suspected that its economy is going to collapse. No

    matter what th