No. 4 Decree [2009] of the Ministry of Commerce of the People’s Republic of China

on Promulgation of the Supplementary Provisions to the Measures for Administration of Foreign Investment in the Commercial Sector (IV)

No. 4 Decree of the MOFCOM in 2009

The Supplementary Provisions to the Measures for Administration of Foreign Investment in the Commercial Sector (IV) has been deliberated and adopted by the Ministry of Commerce of the People’s Republic of China, which is hereby promulgated for implementation on the date of promulgation.

Minister Chen Deming

Feb. 5, 2009

Supplementary Provisions to the Measures for Administration of
Foreign Investment in the Commercial Sector (IV)

The departments, commissions and organizations directly under the State Council, and competent commercial departments, chambers of commerce, associations and societies of provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities and Xinjiang Production and Construction Corp.,

For the purpose of promoting a closer economic and trade relationship between the mainland of China and Hong Kong and Macau, and encouraging service providers from Hong Kong and Macao to establish commercial enterprises in the mainland, the supplementary provisions to the Measures for Administration of Foreign Investment in the Commercial Sector (Decree of the MOFCOM [2004] No. 8) are formulated as follows in accordance with the Supplementary Agreement to the Mainland and Hong Kong Closer Economic Partnership Arrangement V and the Supplementary Agreement to the Mainland and Macao Closer Economic Partnership Arrangement V approved by the State Council:

Article 1 For a service provider from Hong Kong or Macau which has accumulatively established over 30 shops in the mainland, if the goods it/he operate include such commodities as medicine, pesticides, agricultural films, fertilizers, vegetable oil, sugar and cotton and the aforesaid goods are under different brands and from different suppliers, the service provider will be allowed to conduct its/his operation in the form of wholly-owned foreign-invested companies.

Article 2 The service providers from Hong Kong or Macao shall meet the definition of "the service providers" and other relevant requirements in the Mainland and HK Closer Economic Partnership Arrangement or in the Mainland and Macao Closer Economic Partnership Arrangement respectively.

Article 3 Other issues concerning the investment of service providers from Hong Kong and Macau in the commercial sector in the mainland shall be subject to the Measures for Administration of Foreign Investment in the Commercial Sector.

Article 4 The Provisions herein shall enter into force on the date of promulgation.