Article 1 These Regulations hereof are formulated to further the opening up to the outside and standardise the administration of foreign-invested construction enterprises in accordance with such laws and regulations as the Construction Law of the People’s Republic of China， the Tendering and Bidding Law of the People’s Republic of China， the Law of the People’s Republic of China on Sino-foreign Equity Joint Ventures， the Law of the People’s Republic of China on Sino-Foreign Cooperative Joint Ventures， the Law of the People’s Republic of China on Wholly Foreign-Owned Enterprises and the Regulations on Administration of Construction and Engineering Quality.

Article 2 These regulations shall apply to the establishment of foreign–invested construction enterprises within the territory of the People’s Republic of China， the application for construction enterprise qualifications and the administration and supervision of foreign–invested construction enterprises.

The term ‘foreign-invested construction enterprise’ mentioned in these regulations refers to a wholly foreign-owned construction enterprise， or a Sino-foreign equity construction joint venture or a Sino-foreign cooperative construction enterprise established within the territory of the People’s Republic of China in accordance with Chinese laws and regulations.

Article 3 A foreign investor， which intends to establish a foreign-invested construction enterprise within the territory of the People’s Republic of China and conduct construction business， shall， in accordance with laws， obtain the approval certificate from the relevant foreign trade and economic cooperation administration department and register with the State Administration of Industry and Commerce or its authorised administration of industry and commerce at local levels， and the qualification certificate from the relevant construction administration department.

Article 4 Foreign-invested construction enterprises which engage in construction business within the territory of the People’s Republic of China shall abide by the laws， regulations and rules of the People’s Republic of China.

The lawful operation of foreign-invested construction enterprises and their legal rights and interests within the territory of the People’s Republic of China shall be protected by Chinese laws， regulations and rules.

Article 5 The foreign trade and economic cooperation administration department of the State Council shall be responsible for the administration of the establishment of foreign-invested construction enterprises. The construction administration department of the State Council shall be responsible for the administration of the qualifications of foreign–invested construction enterprises.

The foreign trade and economic cooperation administration departments of the people’s government of provinces， autonomous regions or directly administered municipalities shall be responsible for the administration of the establishment of foreign-invested construction enterprises within their authorised jurisdiction； the construction administration departments of the people’s government of the provinces， or autonomous regions or directly administered municipalities shall， in accordance with these Regulations， be responsible for the administration of qualifications of foreign–invested construction enterprises within their administrative regions.

Chapter 2 Application for and Examination and Approval of Establishment of Foreign–invested Construction Enterprises and their Qualifications

Article 6 The application for and the examination and approval of the establishment of foreign-invested construction enterprises and their qualifications shall be managed by a grading and categorization system.

Where an applicant is to apply to establish a contractor with Super Grade or Grade A qualifications or to establish a specialised contractor with Grade A qualifications， the establishment of the foreign-invested construction enterprise shall be examined and approved by the foreign trade and economic cooperation administration department of the State Council and its qualifications shall be examined and approved by the construction administration department of the State Council； where an applicant is to apply to establish a contractor or a specialised contractor with Grade B or lower qualifications or any of the subcontractor qualifications， the establishment of the foreign–invested construction enterprise shall be examined and approved by the foreign trade and economic cooperation administration department of the people’s government of the province， the autonomous region or the directly administered municipality and its qualifications shall be examined and approved by the construction administration department of the people’s government of the province， the autonomous region or the directly administered municipality.

Where the Chinese investor to a proposed Sino-foreign equity construction joint venture or a Sino-foreign cooperative construction enterprise is an enterprise administered by the central government， the establishment of the joint venture shall be examined and approved by the foreign trade and economic cooperation administration department of the State Council and its qualifications shall be examined and approved by the construction administration department of the State Council.

Article 7 The procedures for the establishment of a foreign–invested construction enterprise as a contractor with Super Grade or Grade A qualifications or a specialised contractor with Grade A qualifications are：