Supplementary Provisions of the Provisions on the Administration of Foreign-funded Construction Enterprises - 2004

Order of the Ministry of Construction and the Ministry of Commerce
(No. 121)

The Supplementary Provisions of the Provisions on the Administration of Foreign-funded Construction Enterprises were adopted on December 9, 2003 at the 24th executive meeting of the Ministry of Construction and the Ministry of Commerce, which are hereby promulgated and shall be implemented as of January 1, 2004.

Wang Guangtao Minister of the Ministry of Construction
Lu Fuyuan Minister of the Ministry of Commerce

December 19, 2003

Supplementary Provisions of the Provisions on the Administration of Foreign-funded Construction Enterprises

In order to promote the development of the economic & trade relations between the Mainland and Hong Kong / Macao, to encourage Hong Kong service providers and Macao service providers to establish urban planning enterprises, the following supplementary provisions are formulated in accordance with the Mainland-Hong Kong Closer Economic Partnership Arrangement, the Mainland-Macao Closer Economic Partnership Arrangement approved by the State Council, and the Provisions on the Administration of the Foreign-funded Construction Enterprises (Order No. 113 of the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation):

1. When a Hong Kong service provider or Macao service provider applies for establishing a construction enterprise, its performance records in Hong Kong, Macao and the Mainland shall all be taken into consideration for the purpose of assessing its qualifications for establishing a construction enterprise in the Mainland. The number of its managerial and technical personnel shall be based on the actual number of personnel in the construction enterprise established in the Mainland for the purpose of assessing its qualifications.

2. A Hong Kong service provider or Macao service provider is permitted to purchase a Mainland construction enterprise wholly.

3. Where a construction enterprise established by a Hong Kong service provider or Macao service provider in the Mainland undertakes sino-foreign construction projects, it shall not be subject to the restrictions on Chinese and foreign investment percentages.

4. Where a construction enterprise invested in the Mainland by a Hong Kong provider or Macao service provider applies for a qualification certificate, the relevant regulations of the Mainland shall be followed. If it has acquired the qualifications of a construction enterprise, it may participate in the nationwide project tenders in pursuance of law.

5. Where a Hong Kong service provider or Macao service provider invests to establish a construction enterprise in the Mainland and applies for the corresponding qualifications, the Provisions on the Administration of Foreign-funded Enterprises and the relevant provisions on the administration of the qualifications of construction enterprises shall be followed.

6. The terms of "Hong Kong service providers" and "Macao service providers" as mentioned in the present Supplementary Provisions shall be in conformity with the definitions and meet the relevant requirements as respectively provided in the Mainland-Hong Kong Closer Economic Partnership Arrangement and the Mainland-Macao Closer Economic Partnership Arrangement.

7. The power to interpret the present Supplementary Provisions shall remain with the Ministry of Construction and the Ministry of Commerce according to their respective functions.

8. The present Supplementary Provisions shall be implemented as of January 1, 2004.

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