In collaboration with the Ministry of science and Technology and the Ministry of Information Technology, the MOFTEC (Ministry of Foreign Trade and Economic Cooperation), is drafting a development plan to further promote this sector.

Five keys industries were designated: information. bio-pharmaceutics, new materials, electronics and household electrical appliances.

Export priority has been given to 85 products made by 118 enterprises within the five key industrial sectors.

Projects in respect of foreign investment are classified into three categories formulated and published by the State Planning Commission, the State Economic and Trade Commission and the Ministry of Foreign Economics and trade under the authorization of the State Council.

It is a matter of:
● PROJECT FAVORABLE TO FOREIGN INVESTMENT
-- Projects concerning new farming techniques, exploitation of agricultural resources and industrial construction of energy, transportation, important new materials and the reclaiming of lower yielding farmland, the introduction of improved varieties and fine breeds and their development, comprehensive exploitation and utilization, engineering of new-typed energy, building highway, port and civil airport, construction of water conservancy facilities, development of new-typed building materials, non-ferrous metal composites, engineering plastics, plastic alloys, semi-conductors and special material of opto-electronics.

-- Projects concerning new equipment and new materials which require high-tech, advanced technology and capability to improve the function of products, save energy and raw material, increase economic effectiveness and cater for market demand though the domestic production capacity is found beyond competence. (Ex: high performance welding robot, highly efficient equipment of welding-assembling production line…)

-- Projects helpful to satisfy international market demand and capable to upgrade products, find new markets, increase external sales and raise exporting capacity. (Ex: development of new varieties and techniques of highly productive quality crops, print and dye of post-dressing, special textiles used in industry…)

-- Projects concerning new technology and equipment helpful to comprehensive utilization of resources and renewal resources, prevention and control environmental pollution. (Ex: urban sewerage treatment, monitoring and control of pollution)

-- Other projects encouraged by relevant administrative laws and regulations of the state as well as products, as confined in the category of permission, to be totally exported.

● PROJECTS PROHIBITED FROM FOREIGN INVESTMENT
-- Projects which are already developed domestically or concerned by already introduced technology and whose production capacity is in position to fulfill the demand of domestic markets. (Ex: washing machine, elevator, equipment of digital program control exchange for telephone office or subscribers, cotton textiles…)

-- Pilot projects the state launches to attract foreign investment or project in respect of some particular industries monopolized by the state. (Ex: production of table salt, industrial salt, yellow rice wine and brand name white spirit, process of cigarettes…)

-- Projects concerning exploration and exploitation of mineral resources of rare or noble metals. (Ex: exploitation of gold, silver, platinum, tungsten, tins…)

-- Other projects subject to overall planning of the state or to the restriction stipulated by the relevant laws of the state or administrative regulations.

-- Industrial projects restricted by the stipulation in the treaties that China concluded with other countries or in the international treaties with China as a signatory country.

-- Projects that will jeopardize the security of the nation or harm the public interests (Ex: air traffic control, war industry, and horse race, gambling…)

-- Projects that will pollute the environment, damage natural resources or harm the health of human body. (Ex: raw materials and their process that will cause cancer, exploitation, smell of radiate minerals…)

-- Projects that will take up large area of cultivated land and be unfavorable for protecting and exploiting resources land, or projects that will jeopardize the security of military facilities and utilization.

-- Projects that require, in their production, the utilization of some specific process or techniques that China owns and other projects prohibited by laws and administrative regulations of the state (Ex: ivory carve, tiger bone treatment, rice paper…)

● KEY SECTORS WHERE FOREIGN INVESTMENT ARE MOST ENCOURAGED
-- Agriculture
Foreign funds should be utilized to introduce from abroad new species, advanced planting skills, raising techniques and management of farming to increase production and raise quality of farm production and by-products expected to be intensively processed so that the industrialization of farming can be realized steadily.

-- Technological Transformation of State-owned Enterprises
Foreign funds should be largely used to remold the five important industries of chemical (pharmaceutics industry included), building materials (architecture included), metallurgy, machinery (automobile manufacturing included) and food industry. They are also used to remold the traditional textile and light industries and to foster and develop the pioneer industries of electronics, information, bio-engineering, new materials…

-- Major Projects
Foreign funds should be used to develop a number of selected large projects, especially those of high-tech with good added value, to spur on regional economies or even the whole province economy.

-- Tertiary Sector
Among other fields, tourism is expected to expand in order to create a route around Beijing and Tianjin.

-- High-tech Industry
Priority to superior projects in agricultural technology with high production, efficiency and quality.

Also priority to electro-information technology, modern biotechnology, new material technology, electromechanical integration and medical engineering.