On December 12, 2006, the Ministry of Land and Resources and the National Development and Reform Commission jointly issued the 2006 Catalogs for Projects Subject to Land Use Restriction or Prohibition, with a view to support the implementation of the national industrial policies and macro control of economy. The 2006 Catalogs became effective as of the date of its issuance and superseded the 1999 Catalogs.

The 2006 Catalog of Projects Subject to Land Use Restriction (“2006 Restricted Catalog”) specifically lists fourteen categories of projects which are subject to the land use restriction. If a project meets the condition described under Categories 1-10, it may not be granted the land use; if a project falls under Categories 11-14, the land use right may only be granted if such project meets specific requirements. Furthermore, compared to the 1999 Catalog, the 2006 Restricted Catalog expressly provides that the land uses for certain projects are restricted from using any agriculture land, which include but not limited to, large-scale commercial facilities (such as automobile trading markets, furniture or construction material hyper market), large-scale entertainment facilities, theme parks, movie and television city, large space residential houses, and racing tracks.

The 2006 Catalog of Projects Subject to Land Use Prohibition (“2006 Prohibited Catalog”) specifically lists fifteen categories of projects which will not to be granted any land use. Furthermore, compared to the 1999 Catalog, the 2006 Prohibited Catalog expressly provides that the land uses for certain projects will not be permitted, which include but not limited to, villa developments, golf courses, horse racecourses, mineral resource surveys or explorations without an applicable license. The 2006 Catalogs apply to new construction, expansion, and rebuilding of the listed projects.