Chinese projects on franchising operation or administrative ratification for foreign business

In accordance with regulations issued by the State Council on guiding foreign investment, the National Development and Reform Commission, Ministry of Commerce and other departments will issue the catalogue for the guidance to foreign investment industries irregularly, and regulate various sectors of the industries as well as specific projects in 4 categories that are encouraged, permitted, restricted and prohibited. For the first three types of foreign-funded projects, China is subject to administrative examination and approval for industry.