S/N

Special Administrative Measures

I. Agriculture, Forestry, Animal Husbandry, and Fishery

1

The Chinese investor shall hold no less than 34% of shared concerning the selection and breeding of new varieties and production of wheat and corn seeds.

2

Investment in the research and development, cultivation, and plantation of rare and unique precious and superior varieties in China, as well as the production of related propagative materials (including valuable genes in planting, animal husbandry, and   aquaculture), shall be prohibited.

3

Investment in selecting and breeding genetically modified varieties of crops, as well as livestocks, poultry, and aquatic breeds, in addition to the production of such genetically modified seeds (seedlings), shall be prohibited.

II. Mining

4

Investment in the exploration, mining, and beneficiation of rare earths, radioactive materials, and tungsten shall be prohibited. (No foreign investors shall be allowedto enter rare earth mining areas or obtain mine geological information, production processes and technology, and ore samples unless otherwise permitted.)

III. Production and SupplyofElectricity, Heat, Gas, and Water

5

The construction and operation of nuclear power plants must be controlled by Chinese investors.

IV. Wholesale and Retail

6

Investment in the wholesale and retail of tobacco, cigarettes, re-dried leaf tobacco, and other tobacco products shall be prohibited.

V. Transportation, Warehousing, and Post Services

7

Domestic water transport companies must be controlled by Chinese investors. (Foreign investors are forbidden from operating domestic waterway transport businesses or carrying   out indirect activities through the operation or chartering of Chinese vessels or shipping space. Waterway transport operators may not employ foreign vessels to carry out domestic waterway transport business operations. However, upon the approval of the Chinese government, in the absence of Chinese vessels on location capable of meeting transport requirements, and in the event the port or body of water in which the vessel is docked has been   opened to foreign vessels, the waterway transport business operator may, within the limits of the period or voyage specified by the Chinese government, temporarily employ foreign vessels to carry out marine transport or towing between Chinese ports.)

8

Public air transport companies must be controlled by Chinese investors, and the proportion of investment by a foreign investor and its affiliates must not exceed 25%. The legal representative must be a Chinese citizen. The legal representative of a general aviation company must be a Chinese citizen. General aviation companies serving the agriculture, forestry, and fishery industries shall be limited to joint ventures, and the controlling stake in other types of general aviation companies shall be held by Chinese investors. (Only Chinese   public air carriers may operate domestic air services and provide scheduled and unscheduled international air services as designated carriers in China.)

9

Chinese investors musthave arelatively controlling interestin the construction and operation of civil airports. Foreign investors may not participate in either the construction or operation of air traffic control towers.

10

Investment in postal companies(andoperation of postal services)and domestic express mail   delivery shall be prohibited.

VI. Information Transmission, Software, and Information Technology Services

11

Telecommunications companies: Foreign investors are limited to telecommunications services opened up pursuant to China's WTO commitments. The shareholdingratioforforeign investment in value-added telecommunications services (except for e-commerce, domestic   multi-party communications, store-and-forward, and call centers) shall not exceed 50%.Basic telecommunications business must be controlled by Chinese investors (the operator must also be a legally established company specializing in basic telecommunications services). The pilot policies covering the original area (28.8 square kilometers) of the China (Shanghai) Pilot Free Trade Zone shall beappliedto all pilot free trade zones.

12

Investment in Internet news and information services, Internet publishing services, Internet audio-visual program services, cyber culture operation (with the exception of music), and Internet public information services (with the exception of content which has been opened up pursuant to China's WTO commitments) shall be prohibited.

VII. Leasing and Business Services

13

Investment in Chinese legal services shall be prohibited (with the exception of providing information regarding the impact of Chinese legal environment). No foreign investor may become a partner in a Chinese law firm. (Foreign law firms may only enter China in the   form of representative offices and may not employ practicing lawyers who are Chinese citizens. The supporting staff employed by the representative office may not provide clients with legal services. Permission must be received from Chinese judicial authorities for the establishment of a representative office in China or the dispatch of representatives.)

14

Radio and television ratings surveys must be controlled by Chinese investors. The Chinese investorsmust hold no less than 67% of the shares regarding social survey businesses, and the legal representative must be a Chinese national.

VIII. Scientific Research and Technical Services

15

Investment in the development and application of human stem cells, as well as genetic diagnosis and treatment technology, shall be prohibited.

16

Investment in humanities and social sciences research institutes shall be prohibited.

17

Investment in the following areas shall be prohibited: Geodetic surveying, ocean mapping, aerial imaging and mapping, ground motion measurement, administrative boundary mapping, compilation of topographic maps, maps of world administrative regions, maps of Chinese administrative regions, administrative maps at the provincial level and below, nationwide teaching maps, local teaching maps, real 3-D   maps, electronic navigational charts, and regional geological mapping, mineral geological surveys, geophysical and geochemical surveys, and studies of hydrogeology, environmental geology, geological disasters, and remote   sensing geology (those holding mining rights shall not be subject to this special administrative measure and shall be free to work within the scope of their mining rights).

IX. Education

18

Pre-school education institutions, regular upper secondary schools, and higher education   institutions shall be limited in form to Chinese-foreign cooperative schools, which must be dominated by Chinese investors (the principal or main administrative head should be ofChinese nationality, and reside in China. No less than half of the Council, board of directors, or joint administrative committeeshall be Chinese members). (Foreign educational institutions and other organizations or individuals shall not solely establish schools or any other educational institutions whose enrollment targets are primarily Chinese citizens, excluding non-academic vocational training institutions, and academic vocational education institutions. However, foreign educational institutions may cooperate with a Chinese educational institution to jointly establish educational institutions mainly targeting Chinese citizens.)

19

Investment in compulsory education institutions and religious education institutions shall be prohibited.

X. Health and Social Work

20

Investment in medical institutions shall be limited to the form of joint ventures.

XI. Culture, Sports, and Entertainment

21

Investment in news organizations (including but not limited to news agencies) shall be prohibited. (The establishment of resident news outlets in China and the dispatch of resident   correspondents to China by foreign news organizations shall be subject to approval by the Chinese government. Provision of news services by foreign news agencies in China shall be subject to review and approval by the Chinese government. Business cooperation between Chinese and foreign news organizations must be dominated by the Chinese side and approved by the Chinese government.)

22

Investment in the editing, publication, and production of books, newspapers, periodicals, audio-video   products, and electronic publications shall be prohibited. (However, subject   to the approval of the Chinese government, and provided that the cooperating Chinese side dominates the operation and has the right to the final review of  content, and that the parties also satisfy all other conditions as approved   by the Chinese government, the Chinese and foreign publishers may engage in news publishing projects jointly. The provision of financial information services in China without the approval of the Chinese government shall be prohibited.)

23

Investment in the establishment and operation of all levels of radio stations, television stations, radio and television channels (frequencies), and radio and television transmission coverage networks (including transmitters, relay stations, radio and television satellites, satellite up-link stations, satellite transmission stations, microwave relay stations, monitoring stations, as well as cable   radio and television transmission coverage networks) shall be prohibited. The provision of on-demand radio and television video services and the installation of satellite television broadcast ground receiving facilities shall be prohibited. (The landing of overseas satellite channels shall be subject to examination and approval.)

24

Investment in radio and television program production and operation (including importation) enterprises shall be prohibited. (The importation of overseas movies, television dramas, and of other overseas television programs via satellite transmission shall be applied by   organizations designated by the National Radio and Television Administration. A licensing system shall be applied to television series (includingTV animations) produced as a result of Chinese-foreign cooperation.)

25

Investment in movie production   companies, distribution companies, cinema operators, and movie importation business, shall be prohibited. (However, upon   approval, foreign enterprises may be allowed to produce movies jointly with Chinese enterprises.)

26

Investment in auction companies engaged in cultural relic auctions, cultural artifact stores, and state-owned museums that house cultural relics shall be prohibited. (Immovable cultural relics and cultural relics that may not be removed from the country shall not be transferred, mortgaged or leased to foreigners. The establishment and operation of organizations involved in the investigation of intangible cultural heritage shall be prohibited. Research into intangible cultural heritage, as well as archaeological investigation, exploration, and excavation carried out in   China by overseas organizations or individuals may only occur by means of cooperation with Chinese organizations and shall be subject to special examination, approval, and licensing.)

27

Performing arts groups must be controlled by Chinese investors.