The civil aviation sector mainly refers to airports, air transportation enterprises, general aviation and etc.

I. Airports:
　　In the Sectoral Guidance Catalogue for Foreign Investment, the construction and operation of civil aviation airports is listed as projects in which foreign investment is encouraged.
　　(I)Conditions for examination and approval:
　　1.The proportion of investment contribution of the Chinese side shall be greater than 51%;
2.The Chinese side shall hold the posts of the chairman of the board and the managing director.

　　(II) Scope of permitted investment:
　　1.Investment in the construction and operation of the flight area of an airport for civilian use ( with the exception of airports for both military and civilian use);
　　2.With approval, engagement in the operation of projects in support of an airport, like the terminal building ( excepting the construction and management of the VIP rooms ), the cargo transportation warehouses, ground services, aircraft'repairs, air-bome food, hotels, restaurants and aircraft fuel.
　　3.The air traffic control system shall be invested in and managed by the State; foreign investment or participation in the management shall not be permitted.

II. Air transportation enterprises:
in the Sectoral Guidance Catalogue for Foreign Investment, foreign investment in the air transportation sector is listed as Restricted Category B projects.

　　(I) Principles of examination and approval:
　　1. Foreign air transportation enterprises are permitted to establish equity and contractual joint venture air transportation enterprises together with Chinese air transportation enterprises. At present, the approach is to launch one or two such enterprises on an experimental basis; upon gaining experience, such enterprises would gradually spread;
2. Foreign-invested air transportation enterprises shall enjoy the same treatment as their domestic counterparts in terms of all taxation categories.

　　(II)Conditions for examination and approval:
　　1. The proportion of investment contribution of the foreign side 'shall not exceed 35% and the right to vote of the foreign side represented at the board of directors shall not exceed 25%;
　　2. Foreign port authorities and aircraft manufacturers shall not be permitted to participate in investment.

III . General aviation:
　　In the Sectoral Guidance Catalogue for Foreign Investment, foreign investment in general aviation is listed as Restricted Category B projects. General aviation includes industrial aviation and agricultural and forestry aviation; wholly foreign-owned general aviation projects shall not be allowed to be established. In industrial aviation projects, State-owned assets shall take a controlling stake or occupy a predominant position.

IV. Procedures of examination and approval:
　　To establish a foreign-invested civil aviation enterprise, the consent of the CAAC shall be obtained in the first place. For a project above the ceiling, the State Development Planning Commission examines and approves the initiation of the project and the feasibility study report; and the Ministry of Foreign Trade and Economic Cooperation examines and approves the contract and the articles of association. For a project below the ceiling, the CAAC examines and approves the initiation of the project and the feasibility study report; and the MOFTEC examines and approves the contract and the articles of association.

V. Major legal basis;
　　1.Interim Provisions Guiding the Direction of Foreign Investment;
　　2. Circular Regarding Several Policies on Foreign Investment in the Civil Aviation Sector released by the CAAC and MOFTEC on May 6, 1994;
　　3. Circular on the Explanation of Several Questions Relating to the Circular Regarding Several Policies on Foreign Investment in the Civil Aviation Sector released by the CAAC and MOFTEC on October 25, 1994.