Under the new rules, which are effective from the end of January, overseas enterprises, including those from Hong Kong, Taiwan and Macau, can only set up wholly-owned businesses for packaging materials printing.

Other activities, such as printing publications, must be done through joint ventures with local partners, where the mainland side holds a majority stake and appoints the chairman of the board.

Joint ventures will be allowed to have a lifespan of up to 30 years.

Overseas companies wanting to set up operations to print publications or packaging materials must invest at least 10 million yuan (US$1.2 million) for the venture's registered capital.

But the total combined investment by overseas enterprises in any province, autonomous region or municipality must not exceed US$30 million.

Companies must obtain approval from local authorities, the State Press and Publishing Bureau and MOFTEC.

(eastday.com February 22, 2002)