The regulation clearly defines the range of projects which foreign-invested construction enterprises are allowed to engage in. Foreign-invested construction enterprises can only undertake the following projects within the scope permitted by their qualification and grade:

1. Projects wholly financed by foreign investment and/or grants.

2. Projects financed by loans from international financial institutes and awarded through international tendering according to the terms of the loan.

3. Chinese-foreign jointly constructed projects with foreign investment equal to or more than 50 percent; and projects with foreign investment less than 50 percent, but technically difficult for Chinese construction enterprises to implement alone can be jointly undertaken by Chinese-foreign construction enterprise with the approval of the construction administration departments of provinces, autonomous regions and municipalities

4. Chinese-invested construction projects that are technically difficult for Chinese construction enterprises to implement alone can be jointly undertaken by Chinese-foreign construction enterprises with the approval of the construction administrations of provinces, autonomous regions and municipalities.

The regulations will come into effect on December 1, 2002.

(China.org.cn by Wang Qian, November 13, 2002)