SUPPLEMENTARY PROVISIONS II ON THE MEASURES FOR THE ADMINISTRATION OF FOREIGN INVESTMENT IN COMMERCIAL FIELDS

No. 22

The Supplementary Provisions II on the Measures for the Administration of Foreign Investment in Commercial Fields, which were deliberated
and adopted at the 8th executive meeting of the Ministry of Commerce on August 21, 2006, are hereby promulgated and shall come into
force as of December 1, 2006.
Bo Xilai, Minister of the Ministry of Commerce

November 3, 2006

Supplementary Provisions II on the Measures for the Administration of Foreign Investment in Commercial Fields

For the purposes of promoting the establishment of a closer economic partnership between Hong Kong and Macao and encouraging Hong
Kong and Macao service providers to set up commercial enterprises in mainland China, pursuant to the Supplementary Agreement III
on Hong Kong/Mainland Closer Economic Partnership Arrangement and the Supplementary Agreement III on Macao/Mainland Closer Economic
Partnership Arrangement as approved by the State Council, the supplementary provisions on matters of Hong Kong and Macao service
providers’ investment in commercial fields in the Measures for the Administration of Foreign Investment in Commercial Fields (Decree
of the Ministry of Commerce [2004], No. 8 ) are hereby formulated as follows:

1.

Where the same Hong Kong, or Macao service provider has set up over thirty (30) shops accumulatively in mainland China, if the commodities
operated include books, newspapers, magazines, pharmaceutical, pesticide, agricultural film, chemical fertilizer, grain, plant oil,
sugar, cotton, etc., and the above commodities are with different brands, from different suppliers, the Hong Kong or Macao service
provider is allowed to hold the shop, but with a capital contribution less than 65%.

2.

The term “Hong Kong or Macao service provider” in the present Provisions shall be in line with the definition of “Service Provider”
and relevant provisions in Hong Kong/Mainland Closer Economic Partnership Arrangement and Macao/Mainland Closer Economic Partnership
Arrangement respectively.

3.

Other matters in respect of Hong Kong or Macao service providers’ investment in commercial fields in mainland China shall still be
executed in accordance with the Measures for the Administration of Foreign Investment in Commercial Fields.

4.

The present Provisions shall be implemented as of December 1, 2006.