1. In order to implement the "Export Impetus" strategy, utilize the foreign investment actively, rationally and effectively, and to guide the foreign investment conforming to the national economy and social improvement, Anhui provincial government promulgated the Provisions. Based on the State laws, regulations and industrial policies related to the foreign investment, the provisions help promote the sustained, fast and health development of the national economy and social progress, and better protect the lawful rights and interests of the investors.

2. According to the "Temporary Provisions on Guiding the Foreign Investment Directions" issued jointly by the State Planning Commission, the State Economic & Trade Commission and the Ministry of Foreign Trade & Economic Cooperation, the projects funded by the foreign investors by way of joint-venture, cooperative, sole proprietorship or other forms are classified into four categories: the encouraged, the permitted, the restricted and the prohibited ones.

3. The Provisions are mainly applicable to the encouraged projects. The restricted and prohibited projects abide by the State "Temporary provisions on Guiding the Foreign Investment Directions"; those which don't belong to the categories of the encouraged, restricted and prohibited are projects of permitted category.

4. The foreign investment projects under each of the following conditions, not contrary to the state regulations related to the restricted and prohibited projects are listed as projects of the encouraged category.

Projects of new applicable technology for agriculture, development of Eco-agriculture, agriculture comprehensive development, farm products for export and agriculture development in poverty-stricken areas;

Projects of infrastructure such as energy, transportation, water conservancy and construction of important raw material industries;

Projects of new & high technology, advanced technology, improving product quality, saving energy and raw material, increasing the enterprise's economic benefits, producing new equipment and new material for the market demands;

Projects for the international market and expanding the products for export;

Projects of comprehensive utilizing and recycling the resources and adopting new equipment and new technology to prevent environment degradation;

Projects of bringing the local advantages of labor and resources into full play and conforming to the industrial policies as well as belonging to the key provincial development projects;

Projects of participating in the technical reform of the existing enterprises;

Other projects encouraged by the State laws and administrative regulations.

5. The encouraged projects can enjoy preferential treatment according to the relevant law and administrative regulations stipulated by the State and the Province. Those foreign-funded enterprises engaged in the construction and operation of the projects with large investment and long payback period, such as agriculture, energy and transportation facilities (i.e. coal, electric power, local railways, highways and ports), upon approval, can also expand the relevant operating scope.

6. Based on the Provisions and economic development situations of the province, Anhui Provincial Planning Commission along with the departments concerned will develop and revise timely "Index on Guidelines for Foreign Investment Industries Encouraged by Anhui Province". The Index will be made public after it is approved by the Provincial People's Government. It will be an important basis for encouraging and guiding the foreign businessmen investing in Anhui province, and also a basis for the governments at all levels examining and approving the foreign investment projects.

7. The foreign investment projects of encouraged and permitted categories will be examined and approved, and registered according to the existing stipulated procedure.

8. The projects invested by overseas Chinese, and the investors from Hong Kong, Macao and Taiwan consult the Provisions.

9. Anhui Provincial Planning Commission together with Anhui Provincial Economic & Trade Commission and Anhui Foreign Economic & Trade Commission will implement the Provisions. Anhui Provincial Leading Group Office for Utilizing Foreign Capital is responsible for the coordination and inspection work.

10. The Provisions come into force upon promulgation.