Consistent with the practice in most other jurisdictions, the PRC construction and engineering market is heavily regulated. For example, foreign investment in this area is subject to dual approval by both the industry regulator, the PRC Ministry of Construction ("MOC") and by the general foreign investment regulator, the PRC Ministry of Commerce ("MOFCOM"). According to PRC laws and regulations, an entity is required to have an appropriate qualification to perform certain regulated construction-related activities. The grade of qualification obtained will determine the maximum size of project that can be undertaken by such entity.
