BUDGET LAW

Budget Law of the People’s Republic of China

(Adopted at the Second Session of the Eighth National People’s Congress on March 22, 1994 and promulgated by Order
No. 21 of the President of the People’s Republic of China on March 22, 1994)

Contents

Chapter I General Provisions

Chapter II Functions and Powers for Budget Management

Chapter III Scope of Budgetary Revenues and Expenditures

Chapter IV Budget Compilation

Chapter V Examination and Approval of Budgets

Chapter VI Budget Implementation

Chapter VII Budget Adjustment

Chapter VIII Final Accounts

Chapter IX Supervision

Chapter X Legal Responsibility

Chapter XI Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is formulated in accordance with the Constitution with a view to strengthening the distribution and supervisory
function of budget, improving the budget management of the State, intensifying the macroscopic regulation and control of the State,
and ensuring the sound development of economy and society.

Article 2 The State shall establish budget at each level of the government, namely, at the five levels: the Central Government;
the provinces, autonomous regions and municipalities directly under the Central Government; the cities divided into districts and
autonomous prefectures; the counties, autonomous counties, cities not divided into districts, and municipal districts; the townships,
nationality townships and towns.

Townships, nationality townships and towns where conditions do not permit the establishment of budget, subject to the determination
by the people’s governments of the respective provinces, autonomous regions or municipalities directly under the Central Government,
may temporarily not establish budget.

Article 3 Budget at various levels shall maintain a balance between revenues and expenditures.

Article 4 The budget of the Central Government (hereinafter simplified as the central budget) consists of the budgets of its
different departments (including the units directly under them, similarly hereinafter).

The central budget includes revenues turned over by the local governments to the Central Government and revenues refunded or subsidies
granted by the Central Government to the local governments.

Article 5 The local budget consists of the general budgets of the various provinces, autonomous regions and municipalities
directly under the Central Government.

A local general budget at any level consists of the budget of the government at the corresponding level (hereinafter simplified as
budget at the corresponding level) and the totalized general budget at the next lower level. Where the next lower level has only
the budget of the government at the corresponding level, the totalized general budget at the next lower level means the budget of
the government at the corresponding level. In the absence of the budget at the next lower level, the general budget means the budget
of the government at the corresponding level.

The budget of a local government at any level consists of the budgets of the various departments at the corresponding level (including
the units directly under them, similarly hereinafter)

The budget of a local government at any level includes revenues turned over by the governments at lower levels and revenues refunded
or subsidies granted by the governments at higher levels.

Article 6 The budget of a department consists of the budgets of the units subordinate to it.

Article 7 The budget of a unit refers to the budget for revenues and expenditures of a State organ, social organization or
any other unit which is listed in the budget of a department.

Article 8 The State practises a system of tax division between the Central and local governments.

Article 9 The budget approved by the people’s congress at the corresponding level shall not be altered without going through
the procedures prescribed by law.

Article 10 A budgetary year begins on January 1 and ends on December 31 according to the Gregorian calendar.

Article 11 The budgetary revenues and expenditures take Renminbi yuan as the calculating unit.

Chapter II

Functions and Powers for Budget Management

Article 12 The National People’s Congress examines the central and local draft budgets and the reports on the implementation
of the central and local budgets, approves the central budget and the report on the implementation of the central budget and
alters or annuls inappropriate resolutions made by the Standing Committee of the National People’s Congress on budget and final accounts.

The Standing Committee of the National People’s Congress supervises the implementation of the central and local budgets, examines
and approves the adjustment plan for the central budget, examines and approves the final accounts of the Central Government, annuls
administrative rules and regulations, decisions, or orders of the State Council on budget or final accounts, which contravene the
Constitution or laws, and annuls local regulations or resolutions made by the people’s congresses or their standing committees
of the provinces, autonomous regions or municipalities directly under the Central Government on budget or final accounts,
which contravene the Constitution, laws or administrative rules and regulations.

Article 13 A local people’s congress at or above the county level examines the draft general budget at the corresponding level
and the report on the implementation of the general budget, approves the budget and the report on its implementation at the corresponding
level, alters or annuls inappropriate resolutions made by the standing committee of the people’s congress at the corresponding
level on budget or final accounts and annuls inappropriate decisions and orders made by the government at the corresponding
level on budget or final accounts.

The standing committee of a local people’s congress at or above the county level supervises the implementation of the general budget
at the corresponding level, examines and approves the adjustment plan for the budget at the corresponding level, examines and approves
the final accounts of the government at the corresponding level (hereinafter simplified as the final accounts at the corresponding
level), and annuls inappropriate decisions, orders and resolutions made by the government at the corresponding level or by the people’s
congress at the next lower level and its standing committee on budget or final accounts.

The people’s congress of a township, nationality township or town which has established budget examines and approves the budget
at the corresponding level and the report on the implementation of the budget at the corresponding level, supervises the implementation
of the budget at the corresponding level, examines and approves the adjustment plan for the budget at the corresponding level, examines
and approves the final accounts at the corresponding level, and annuls inappropriate decisions and orders made by the
government at the corresponding level on budget or final accounts.

Article 14 The State Council compiles the drafts of the central budget and final accounts, makes report to the National People’s
Congress on the drafts of central and local budgets, submits for the record to the Standing Committee of the National People’s
Congress reports on the totaled budgets submitted for the record by the governments of provinces, autonomous regions and municipalities
directly under the Central Government, organizes the implementation of the central and local budgets, makes decisions to draw on
reserve funds of the central budget, works out the adjustment plan for the central budget, supervises the implementation of
the budgets of the departments of the Central Government and of the local governments, alters or annuls inappropriate decisions
and orders made by the departments of the Central Government or by the local governments on budgets or final accounts, and makes
report to the National People’s Congress or its Standing Committee on the implementation of the central and local budgets.

Article 15 A local government at or above the county level compiles the draft budget and draft final accounts at the corresponding
level, makes report on the draft general budget at the corresponding level to the people’s congress at the corresponding level, submits
for the record the totalized general budget submitted by the next lower level to the standing committee of the people’s congress
at the corresponding level for the record, organizes the implementation of the general budget at the corresponding level, makes decisions
to draw on reserve funds of the budget at the corresponding level, works out the adjustment plan for the budget at the corresponding
level, supervises the budget implementation by the departments at the corresponding level and by the government at the next lower
level, alters or annuls inappropriate decisions and orders made by the departments at the corresponding levels and the government
at the next lower level on budget or final accounts, and makes report to the people’s congress at the corresponding level
or its standing committee on the implementation of the general budget at the corresponding level.

The government of a township, nationality township or town compiles the draft budget and draft final accounts at the corresponding
levels, makes report to the people’s congress at the corresponding level on the draft budget, organizes the implementation of the
budget at the corresponding level, makes decisions to draw on reserve funds of the budget at the corresponding level, works out the
adjustment plan for the budget at the corresponding level, and makes report to the people’s congress at the corresponding level on
the implementation of the budget at the corresponding level.

Article 16 The financial department under the State Council compiles the specific draft of the central budget and draft
of the final accounts, practically organizes the implementation of the central and local budgets, puts forward proposals for drawing
on reserve funds of the central budget, works out the specific adjustment plan for the central budget, and regularly reports
to the State Council on the implementation of the central and local budgets.

The financial department of a local government at any level compiles the specific drafts of budget and final accounts at the corresponding
level, practically organizes the implementation of the general budget at the corresponding level, puts forward proposals for drawing
on reserve funds of the budget at the corresponding level, works out the specific adjustment plan for the budget at the corresponding
level, and regularly reports to the government at the corresponding level and the financial department of the government at the next
higher level on the implementation of the general budget at the corresponding level.

Article 17 The various departments compile the drafts of their own budgets and final accounts, organize and supervise the budget
implementation by their own departments, and regularly report to the financial departments of the governments at the corresponding
levels on their budget implementation.

Article 18 The various units compile the drafts of their own budgets and final accounts, turn over budgetary revenues
as prescribed by the State, manage the budgetary expenditures, and accept supervision of the relevant departments of
the State.

Chapter III

Scope of Budgetary Revenues and Expenditures

Article 19 A budget consists of budgetary revenues and budgetary expenditures.

The budgetary revenues include:

(1) tax receipts;

(2) receipts from the State-owned assets that should be turned over in accordance with relevant regulations;

(3) receipts from special items; and

(4) receipts from other sources.

The budgetary expenditures include:

(1) expenditure for economic construction;

(2) expenditure for the development of undertakings in education, science, culture, public health and physical culture;

(3) the administrative expenditure of the State;

(4) expenditure for national defence;

(5) expenditure for various subsidies; and

(6) other expenditures.

Article 20 The budgetary revenues are divided into the central budgetary revenues, the local budgetary revenues and the
budgetary revenues shared by the central and local governments.

The budgetary expenditures are divided into the central budgetary expenditures and the local budgetary expenditures.

Article 21 Specific measures for the division of items for revenue and expenditure between the central budget and
the local budget, the turning-over of revenues by the local governments to the Central Government and the refundment of revenues
or the grant of subsidies by the Central Government to the local governments shall be prescribed by the State Council and reported
to the Standing Committee of the National People’s Congress for the record.

Article 22 The budgetary revenues shall be used in a manner of overall consideration and arrangement. The establishment of
any fund for a specific purpose, where really necessary, shall be subject to the approval by the State Council.

Article 23 No government at a higher level may allocate, beyond its budget, any budgetary funds of the government at a lower
level. No government at a lower level may use or intercept budgetary funds belonging to the government at a higher level.

Chapter IV

Budget Compilation

Article 24 The governments, departments and units at various levels shall compile their respective draft budgets within the
period of time prescribed by the State Council.

Article 25 The central budget and the budgets of local governments at various levels shall be compiled with reference
to the actual implementation of the previous year’s budget and to the estimation of the current year’s revenues and expenditures.

Article 26 The central budget and the budgets of local governments at various levels shall be compiled according to the
dual budget system.

Measures for the compilation of the dual budget system and rules for the implementation thereof shall be formulated by the State
Council.

Article 27 The public budget of the Central Government shall not contain deficit.

Partial funds for construction investment indispensable to the central budget may be raised in form of domestic and foreign
loans, provided that loans shall be in a rational scale and structure.

The funds needed for the servicing of the debts already raised in the central budget shall be managed in accordance with the provisions
of the preceding paragraph.

Article 28 The local budgets at various levels shall be compiled according to the principles of keeping expenditures
within the limits of revenues and maintaining a balance between revenues and expenditures, and shall not contain deficit.

The local governments may not issue local government bonds, except as otherwise prescribed by laws or the State Council.

Article 29 The compilation of the budgetary revenues at various levels shall be in keeping with the growth rate of the gross
national product.

Revenues which must be listed in the budget in accordance with relevant regulations, may not be concealed or incompletely listed,
and the abnormal receipts in the previous year may not be taken as the basis for the compilation of the budgetary revenues.

Article 30 The guiding principle of practising strict economy and building up the country through thrift and hard work shall
be followed in compiling the budgetary expenditures at various levels.

The budgetary expenditures at various levels shall be compiled by making overall plans and taking all factors into consideration
while securing priorities; and budgetary expenditures for various purposes shall be properly arranged under the precondition that
the reasonable requirements of government public expenditures be secured.

Article 31 Necessary funds shall be arranged in the central and relevant local budgets to assist the developing areas such
as areas of regional national autonomy, old revolutionary bases and outlying and poverty-stricken areas, in developing undertakings
of economy and culture.

Article 32 Reserve funds in government budgets at various levels shall be established at a ratio of 1% to 3% of the budgetary
expenditures at the corresponding level for coping with the relief for natural calamities and other unexpected expenditures
in the implementation of the current year’s budgets.

Article 33 Budgetary circulating funds shall be established in government budgets at various levels as prescribed
by the State Council.

Article 34 The balance of the previous year’s government budget at any level may be used in the next year for the expenditure
of the previous year’s carry-over projects; any surplus thereof may be used as a supplement to the budgetary circulating funds; any
further surplus may be used as budgetary expenditures essential to the next year.

Article 35 The State Council shall give timely instructions regarding the compilation of the next year’s draft budgets.

The concrete matters relating to the compilation of draft budgets shall be arranged by the financial department
under the State Council.

Article 36 The governments of the provinces, autonomous regions and municipalities directly under the Central Government
shall, within the period of time defined by the State Council, submit the general draft budgets at the corresponding levels
to the State Council for examination, verification and totalization.

Article 37 The financial department under the State Council shall, one month before the annual session of the National People’s
Congress, submit the main contents of the draft central budget to the Financial and Economic Committee of the National People’s Congress
for preliminary examination.

The financial departments under the governments of the provinces, autonomous regions, municipalities directly under the Central Government,
cities divided into districts or autonomous prefectures shall, one month before the sessions of the people’ congresses at the corresponding
levels, submit the main contents of the draft budgets at the corresponding levels for preliminary examination to the relevant special
committees of the people’s congresses at the corresponding levels, or to the relevant working committees of the standing committees
of the people’s congresses at the corresponding levels in accordance with the decisions made by the councils of chairmen of the standing
committees of the people’s congresses at the corresponding levels.

The financial departments under the governments of the counties, autonomous counties, and cities not divided into districts or municipal
districts shall, one month before the sessions of the people’s congresses at the corresponding levels, submit the main contents of
the draft budgets at the corresponding levels for preliminary examination to the standing committees of the people’s congresses at
the corresponding levels.

Chapter V

Examination and Approval of Budgets

Article 38 The State Council shall, when the National People’s Congress is in session, make a report to the Congress on the
draft central and local budgets.

The local governments at various levels shall, when the people’s congresses at the corresponding levels are in session, make reports
to the congresses on their respective draft total budgets.

Article 39 The central budget shall be examined and approved by the National People’s Congress.

The budgets of the local governments at various levels shall be examined and approved by the people’s congresses at the corresponding
levels.

Article 40 The government of a township, nationality township or town shall report without delay its budget approved
by the people’s congress at the corresponding level to the government at the next higher level for the record. A local government
at or above the county level shall report without delay its budget approved by the people’s congress at the corresponding level and
the totalized budget submitted for the record by the government at the next lower level to the government at the next higher
level for the record.

A local government at or above the county level shall, after totalizing the budgets submitted for the record by the governments at
the next lower level in accordance with the provisions of the preceding paragraph, report the totalized budgets to the standing committee
of the people’s congress at the corresponding level for the record. The State Council shall, after totalizing the budgets submitted
for the record by the governments of the provinces, autonomous regions and municipalities directly under the Central Government in
accordance with the provisions of the preceding paragraph, submit the totalized budgets to the Standing Committee of the National
People’s Congress for the record.

Article 41 In case the State Council or a local government at or above the county level judges that the budget submitted for
the record by the government at the next lower level in accordance with the provisions of Article 40 of this Law, contravenes laws
or administrative rules and regulations, or contains other inappropriatenesses, and that the resolution approving the budget
has to be cancelled, the said government shall submit the matter to the standing committee of the people’s congress at the
corresponding level for deliberation and decision.

Article 42 After the approval of the budgets of the governments at various levels by the people’s congresses at the corresponding
levels, the financial departments of the governments at the corresponding levels shall without delay give an official written reply
regarding their budgets to the departments at the corresponding levels. The departments at various levels shall without delay give
an official written reply regarding their budgets to their subordinate units.

Chapter VI

Budget Implementation

Article 43 The implementation of the budgets of governments at various levels shall be organized by the governments at the
corresponding levels, and the financial departments of the governments at the corresponding levels shall be in charge of the concrete
work.

Article 44 After the beginning of a budgetary year and before the approval of the draft budgets of the governments
at various levels by the people’s congresses at the corresponding levels, the governments at the corresponding levels may first arrange
their expenditures according to the amount of the budgetary expenditures in the corresponding period of the previous year. Upon the
approval of the respective budgets by the people’s congresses at the corresponding levels, the approved budgets shall be implemented.

Article 45 The departments responsible for collecting budgetary revenues must, in accordance with the provisions of the laws
or administrative rules and regulations, collect in time and in full amount the budgetary revenues that ought to be collected, and
may not, in violation of the provisions of the laws or administrative rules and regulations, carry out unauthorized reduction of,
or exemption from collection of budgetary revenues that ought to be collected or postpone the collection thereof,
and may not intercept, detain or misappropriate the budgetary revenues.

Article 46 The departments or units which have the obligation to turn over budgetary revenues must, in accordance with
the laws, administrative rules and regulations and the provisions of the financial department under the State Council, turn over
in time and in full amount the budgetary funds that ought to be turned over to the State Treasury (hereinafter simplified as the
Treasury), and may not intercept, detain, misappropriate or default the turnover .

Article 47 The financial departments of the governments at various levels must, in accordance with the laws, administrative
rules and regulations and the provisions of the financial department under the State Council, allocate in time and in
full amount the funds for budgetary expenditures and strengthen the management of and supervision over the budgetary expenditures.

The expenditures of the governments, departments and units at various levels must comply with their respective budgets.

Article 48 The Treasury must be established in any budget at or above the county level; it shall also be established for any
township, nationality township or town where conditions permit.

The business of the Central Treasury shall be managed by the People’s Bank of China and the business of the local Treasuries shall
be managed in accordance with the relevant provisions of the State Council.

The Treasuries at various levels must, in accordance with the relevant provisions of the State, manage promptly and accurately the
collection, allocation, retainment and turnover of the budgetary revenues, and the appropriation of the budgetary expenditures.

The power to dispose of the funds of the Treasuries at various levels is vested in the financial departments of the governments at
the corresponding levels. Except as otherwise provided by the laws or administrative rules and regulations, no departments, units
or individuals shall, without the authorization of the financial departments of the governments at the corresponding levels, have
the right to draw on any funds from the Treasuries or dispose in any other forms of the funds already put in the Treasuries.

The governments at various levels shall strengthen the management of and supervision over the Treasuries at the corresponding levels.

Article 49 The governments at various levels shall strengthen the leadership over the budget implementation, support the budgetary-revenue
collecting departments such as the financial departments, taxation and customs authorities to arrange budgetary revenues
according to law and support the financial departments to strictly manage budgetary expenditures.

The financial departments, taxation and customs authorities shall in the course of budget implementation strengthen the analysis
of the budget implementation and shall, whenever discovering any problems, promptly suggest that the governments at the corresponding
levels adopt measures to settle them.

Article 50 Departments or units shall strengthen the management of the budgetary revenues and expenditures, and may not intercept
or draw on the budgetary revenues which ought to be turned over, nor treat any non-budgetary expenditures as budgetary expenditures.

Article 51 The plan to draw on the budget reserve funds of a government at any level shall be made by the financial department
of the government at the corresponding level and be submitted to the government at the corresponding level for a decision.

Article 52 The budgetary circulating funds of the governments at various levels shall be managed by the financial departments
of the governments at the corresponding levels, and shall be used for the fund-circulating purpose in budget implementation, and
may not be diverted to any other use.

Chapter VII

Budget Adjustment

Article 53 Budget adjustment refers to any partial alteration of the central budget already approved by the National People’s
Congress or of the local budgets at the various levels already approved by the local people’s congresses at the corresponding levels,
which is made due to expenditure increase or revenue reduction necessitated by special circumstances in the implementation
of the respective budget, thus making total expenditures exceed total revenues in the original approved balanced budget
or making an increase of the debts to be borrowed as compared with the original approved budgets.

Article 54 The governments at various levels shall, with regard to indispensable budget adjustments, work out plans for budget
adjustments. The adjustment plan of the central budget must be submitted to the Standing Committee of the National People’s Congress
for examination and approval. The budget adjustment plans of the local governments at or above the county level must be submitted
to the standing committees of the people’s congresses at the corresponding levels for examination and approval. The budget adjustment
plans of the governments of townships, nationality townships or towns must be submitted to the people’s congresses at the corresponding
levels for examination and approval. No budget adjustment shall be made without due approval.

Article 55 In case budget adjustments are not approved, the governments at various levels shall not make any decisions
making total expenditures exceed total revenues in the original approved balanced budgets or making an increase of the debts to be
borrowed as compared with the original approved budget.

In case a decision is made in violation of the provisions of the preceding paragraph, the people’s congress or the standing committee
of the people’s congress at the corresponding level or the governments at higher levels shall order a change or annulment of the
decision.

Article 56 Changes in budgetary revenues and expenditures caused by funds returned or subsidies granted by governments
at higher levels in the course of budget implementation shall not be regarded as budget adjustments. The local governments at or
above the county level shall, on receipt of returned funds or subsidies, report the relevant situations to the standing committees
of the people’s congresse

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON QUESTIONS CONCERNING THE HANDLING OF THE TAX ALREADY LEVIED RELATED TO STOCK IN THE EARLY PERIOD AFTER CHANGE-OVER TO THE COLLECTION OF VALUE-ADDED TAX AND CONSUMPTION TAX ON ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on Questions Concerning the Handling of the Tax Already Levied Related to Stock in
the Early Period after Change-over to the Collection of Value-added Tax and Consumption Tax on Enterprises with Foreign Investment

GuoShuiFa [1994] No.205

September 15,1994

The tax bureaus of various provinces, autonomous regions and municipalities directly under the Central Government, the tax bureaus
of various municipalities separately listed on the State plan:

After studying the question concerning the handling of the already levied tax in stock in the early period related to enterprise with
foreign investment, we hereby notify you of the following:

The already collected tax (hereinafter referred to as “already levied tax”) contained in the 1994 initial stock involved in the export
products produced by enterprises with foreign investment cannot be deducted but rather should be included in and handled as the product
cost.

When the products produced by an enterprise with foreign investment include both for internal sales and for export; the already levied
tax on the export products shall be calculated separately; products that cannot be calculated separately or cannot be clearly divided,
they shall be divided and determined in accordance with the proportion of sales volume between products for internal sales and products
for export.

II.

When the extra tax paid by an enterprise with foreign investment due to the change-over to the levy of value-added tax and consumption
tax needs to be refunded, the amount of the extra tax payment should be deducted first from the already levied tax, after the already
levied tax is all deducted, the extra tax payment shall be returned in accordance with the related stipulations of Circular of the
State Administration of Taxation on Some Specific Questions Concerning the Extra Tax Paid by Enterprise with Foreign Investment After
the Change-over to the Collection of Value-Added Tax and Consumption Tax (GuoShuiFa [1994] No.115).

III.

After the switch-over to the collection of value-added tax and consumption tax, if an enterprise with foreign investment which had
not paid extra tax, then before new regulations are published, the already levied tax on its initial stocks shall still be handled
in accordance with the stipulations of the Supplementary Circular on the Question Concerning the Calculation and Handling of the
Already Levied Tax on the Initial Stock in 1994 for Ordinary Payer of Value-Added Tax, a document of the Ministry of Finance and
the State Administration of Taxation (CaiShuiZi [1994] No.019).

IV.

The competent tax authorities at various levels should conduct conscientious examination and verification of the already levied tax
on the initial stock of 1994 declared by an enterprise with foreign investment, and establish an examination and approval system.
The already levied tax declared by the tax payer that has not been examined and verified by the competent tax authorities shall not
be handled without exception. Those who practice fraud, expand or submit false report on already levied tax which result in paying
no or less payable tax shall be disqualified for the deduction of already collected tax, and their case shall be dealt with in accordance
with the stipulations concerning tax evasion as set in the Law of the People’s Republic of China on Administration of Tax Collection.

The concrete operational methods shall be formulated in accordance with the above-mentioned principle by the state tax bureaus of
various provinces, autonomous regions and municipalities directly under the Central Government and the state tax bureaus of various
municipalities separately listed on the State plan, and reported to the State Administration of Taxation for the record.

The State Administration of Taxation
1994-09-15

ADMINISTRATIVE REGULATIONS GOVERNING THE REGISTRATION OF COMPANIES

Category	ADMINISTRATION FOR INDUSTRY AND COMMERCE	Organ of Promulgation	The State Council	Status of Effect	In force
Date of Promulgation	1994-06-24	Effective Date	1994-07-01

Administrative Regulations of the People’s Republic of China Governing the Registration of Companies

Chapter I  General Principles
Chapter II  Jurisdiction of Registration
Chapter III  Items for Registration
Chapter IV  Registration of Establishment
Chapter V  Registration of Alteration
Chapter VI  Registration of Cancellation
Chapter VII  Registration of Branch Companies
Chapter VIII  Procedures for Registration
Chapter IX  Annual Reviews
Chapter X  Administration of Licences and Archives
Chapter XI  Legal Liability
Chapter XII  Annex

(Promulgated by Decree No.156 of the State Council of the People’s

Republic of China on June 24, 1994 and effective as of July 1, 1994)
Chapter I  General Principles

Article 1 The Regulations are formulated in accordance with the Company
Law of the People’s Republic of China (hereinafter referred to as the Company
Law) in order to affirm the legal person status of company and to normalize
the procedure of the registration of company.

Article 2 Establishment, alteration and termination of limited liability
company and company limited by shares (hereinafter referred to as company)
shall make the company registration in accordance with the provisions of these
Regulations.

Article 3 A company shall be granted legal person status only after it
has been registered and approved to receive a “Corporate Business Licence”
after the approval of registration by the company registration authority in
accordance with the law.

After the effective date of these Regulations, any newly-established
company shall not be allowed to conduct business activities in the name of a
company, should the company have not been approved to be registered by the
company registration authority.

Article 4 The administrations for industry and commerce shall be the
company registration authorities.

The lower-level company registration authority shall function the
registration of company under the supervision of higher level company
registration authority.

Company registration authority shall perform duties in accordance with the
law and free from unlawfull interference.

Article 5 The State Administration for Industry and Commerce shall be in
charge of the work of registration of company in China.
Chapter II Jurisdiction of Registration

Article 6 The State Administration for Industry and Commerce shall be
responsible for the registration of the following categories of company:

(1) a company limited by shares whose establishment was approved by a
department authorized by the State Council;

(2) a company invested under authorization by the State Council;

(3) a limited liability company invested and established by the State
Council’s authorized investment organ(s) or department(s) jointly or solely;

(4) a foreign investment limited liability company established; or

(5) other companies subject to registration by the State Adminstration of
Industry and Commerce in accordance with laws of the State or regulations of
the State Council.

Article 7 The administrations for industry and commerce of the provinces,
autonomous regions and municipalities directly under the Central Government
shall be responsible for the registration of the following categories of
company within their jurisdiction areas:

(1) a company limited by shares whose establishment was approved by the
people’s government of the province, autonomous region or municipality
directly under the Central Government;

(2) a company invested under authorization by the people’s government of
the province, autonomous region or municipality directly under the Central
Government;

(3) a limited liability company invested and established by the State
Council’s authorized investment organ(s) or department(s) jointly with other
investor(s);

(4) a limited liability company invested and established solely or jointly
by authorized investment organ(s) or department(s) of the people’s government
of the province, autonomous region or municipality directly under the Central
Government; or

(5) a company entrusted registering by the State Administration for
Industry and Commerce.

Article 8 The administrations for industry and commerce of the city and
county shall be responsible for the registration of company other than those
listed in Article 6 and 7 of these Regulations. Specific jurisdiction of
registration shall be regulated by the administration for industry and
commerce of the province, autonomous region or municipality directly under the
Central Government.
Chapter III Items for Registration

Article 9 The items for registration of company shall include its post_title,
domicile, legal representative, registered capital, enterprise type, scope of
business, duration of operations and names or post_titles of the shareholders of a
limited liability company, or the promoters of a company limited by shares.

Article 10 The items for registration of a company shall be in compliance
with the provisions of laws and administrative regulations. Items which are
not in compliance with the provisions of laws and administrative regulations
shall not be accepted for registration by the company registration authority.

Article 11 A company post_title shall be in compliance with the relevant
stipulations of the State. A company shall be permitted to use only one post_title.
A company post_title which has been approved and registered by company registration
authority shall be protected by the law.

Article 12 A company’s domicile shall be at the place of its head office.
A company registered by company registration authority shall have only one
domicile. A company’s domicile shall be situated within the jurisdiction area
of the company registration authority.

Article 13 Except for other provisions stipulated by laws and
administrative regulations, a company’s registered capital shall be shown in
renminbi.
Chapter IV Registration of Establishment

Article 14 In order to establish a company, an application for
registering the post_title of the company shall be submitted for preapproval.

In case that the establishment of a company, or the projects of a
company’s business scope shall be reported for examination and approval as
stipulated in laws and regulations, the company shall complete its post_title
preapproval procedure before the aforesaid examination and approval. The post_title
approved by company registration authority shall be adopted for the aforesaid
examination and approval.

Article 15 The application for preapproval of a post_title of the limited
liability company shall be submitted by a designated representative or an
agent entrusted by the shareholders to the company registration authority. The
application for priapproval of a post_title of the company limited by shares shall
be submitted by a designated representative or an agent entrusted by the
promoters to the company registration authority.

To apply for preapproval of a company post_title, the following documents shall
be submitted:

(1) a written application for preapproval of the company post_title signed by
the shareholders of the limited liability company or the promoters of the
company limited by shares;

(2) qualification certificates of the legal person status of the
shareholders or promoters; or the identification of a natural person;

(3) other documents required for submission by the company registration
authority.

Company registration authority shall, within 10 days after receiving the
documents listed in the preceding paragraph of this Article, make a decision
on the approval or rejection of the application. If an application for
registering the post_title of a company is approved by company registration
authority, a “Notice of Preapproval of Enterprise post_title” shall be issued.

Article 16 The reservation period of the preapproved company post_title shall
be 6 months. Within the reservation period, the preapproved company post_title
shall not be used for business, neither transferred.

Article 17 In order to establish a limited liability company, an
application for registering the establishment of the company shall be
submitted to company registration authority by a designated representative or
an agent entrusted by shareholders. In order to establish a solely State
company, the State authorised investment organ or the State authorised
department shall be the applicant for registration of the establishment of the
company. In case that the establishment of a limited liability company shall
be reported for examination and approval as stipulated by laws and
regulations, an application for registering the establishment of the company
shall, within 90 days after the aforesaid approval of the report, be submitted
to company registration authority. In case that the establishment application
exceeds the prescribed time limit, the applicant shall report to the examining
and approving authority again for confirming the validity of the original
document of approval, or shall re-report for approval of the establishment of
the company.

To apply for the establishment of a limited liability company, the
following documents shall be submitted to company registration authority:

(1) a written application for registering the establishment of the company
signed by the chairman of the board of directors of the company;

(2) certificates of the representative or agent designated or entrusted by
all of the shareholders;

(3) the company’s articles of association;

(4) capital verification certificate issued by a legally qualified capital
verification organization;

(5) qualification certificates of the legal person status of the
shareholders or the identification of a natural person;

(6) a document specifying the names and addresses of the company’s
directors, supervisors and managers, and the certifications of their
corresponding appointment, election or employment;

(7) appointment documents and identification certificates of the company’s
legal representative;

(8) a “Notice of Preapproval of the Enterprise post_title”;

(9) certification of the company’s domicile.

In case that the establishment of a limited liability company shall be
reported for examination and approval as stipulated by laws and regulations, a
document of the aforesaid approval shall also be submitted.

Article 18 In order to establish a company limited by shares, an
application for registering the establishment of the company shall be
submitted to company registration authority by the board of the directors
within 30 days after the end of the founding meeting.

To establish a company limited by shares, the following documents shall be
submitted to company registration authority:

(1) a written application for registering the establishment of the company
signed by the chairman of the directors board of the company;

(2) a document of approval issued by the State Council’s authorised
department or by the people’s government of the province, autonomous region or
municipality directly under the Central Government. A document of approval
issued by the securities management department of the State Council shall also
be submitted if a company limited by shares is established by share floating;

(3) minutes of the founding meeting;

(4) the company’s articles of association;

(5) financial audit report for the preparation of the company;

(6) capital verification certificate issued by a legally qualified
verification organization;

(7) qualification certificates of legal person status of the promoters or
the identification of a natural person;

(8) a document specifying the names and addresses of the company’s
directors, supervisors and managers, and certificates of their corresponding
appointment, election or employment;

(9) appointment documents and identification certificates of the company’s
legal representative;

(10) a “Notice of Preapproval of the Enterprise post_title”;

(11) certification of the company’s domicile.

Article 19 In case that there are projects within the scope of business
operations of a company which shall be reported for examination and approval
as stipulated by laws and regulations, such projects shall be submitted to the
relevant State department for examination and approval before applying for
registering the establishment of the company. And the document of approval
issued by the relevant State department shall be submitted to company
registration authority.

Article 20 Should a company’s articles of association contain provisions
in violation of laws and regulations, the company registration authority shall
have the power to demand the company to make corresponding corrections.

Article 21 A certification of a company’s domicile means a document which
is capable to prove the company enjoying the right of use the domicile.

Article 22 A company is established in condition that the establishment
registration approval is made and a Corporate Business Licence is issued by
company registration authority. A company may open a bank account, engrave
company seal and apply for tax registration based upon the Corporate Business
Licence issued by company registration authority.
Chapter V Registration of Alteration

Article 23 In the event of altering registered items, the company shall
apply to the original company registration authority for the registration of
alteration.

A company shall not be permitted to alter registered items without the
approval of the registration of alteration.

Article 24 To apply for alteration of registration, the company shall
submit the following documents to the company registration authority:

(1) a written application for registration of alteration signed by the
legal representative of the company;

(2) the resolution or decision on the alteration made in accordance with
the provisions of the Company Law;

(3) other documents required for submission by the company registration
authority.

In case that the alteration of registered items of a company invovles
amending the articles of association, the amended version of its articles of
association or the amendment of its articles of association shall also be
submitted.

Article 25 In the event of altering post_title, the company shall, within 30
days after the resolution or decision on alteration being made, apply for
registration of alteration.

Article 26 In the event of altering domicile, the company shall apply for
registration of alteration before moving to new domicile and shall submit a
certificate for use of the new domicile.

In case that the alteration of a company’s domicile invovles
trans-regional jurisdiction of the company registration authorities, the
company shall apply to the company registration authority at the place of the
new domicile for the alteration of registration before moving to the new
domicile; in case that the application is accepted by the company registration
authority at the place of the new domicile, the original company registration
authority shall transfer registration files of the company to the new company
registration authority.

Article 27 In the event of changing legal representative, the company
shall, within 30 days after the resolution or decision on the change being
made, apply for registration of the change.

Article 28 In the event of altering registered capital, the company shall
submit the capital verification certificate issued by a legally qualified
capital verification organization.

In case that the company adds its registered capital, an application for
registration of alteration shall be submitted within 30 days after the full
payment of the share capital. In case that the company limited by shares adds
its registered capital, an approval document issued by a State Council
authorised department or by a people’s government of the province, autonomous
region or municipality directly under the Central Government shall be
submitted. In case that the registered capital is added by floating share, an
approval document issued by the securities management department of the State
Council shall also be submitted.

In case that the company reduces its registered capital, an application
for registering the alteration shall be submitted within 90 days after the
resolution or decision on the reduction of registered capital being made,
together with the document to certify that a public announcement on the
reduction of registered capital has been published at least three times in the
newspaper, and an illustration report on the company’s debt clearance or debt
repayment guarantee.

Article 29 In the event of changing the scope of business operations, the
company shall, within 30 days after the resolution or decision on the change
being made, apply for registation of alteration; in case that the change
invovles projects which shall be reported for examination and approval as
stipulated by laws and regulations, an application for registration of
alteration shall be submitted within 30 days after the date of approval of the
report by the relevant State department.

Article 30 In the event of changing company’s type, the company shall, in
accordance with the requirements for establishing the intended type of
company, apply to the company registration authority for registration of
alteration within the prescribed time limit and submit relevant documents.

Article 31 In the event of changing shareholders of a limited liability
company, the company shall apply for registration of alteration within 30 days
after the date of the change of the shareholders occuring, and shall provide
qualification certificates of legal person status of the new shareholders or
the idertification of a natural person.

In case that the shareholder of a limited liability company or the
promoters of a company limited by shares changes name(s) or post_title(s), an
application for registering such change(s) shall be submitted within 30 days
after the date of the change of the name or post_title.

Article 32 In case that the amended articles of association of a company
does not invovle the registered items, the company shall submit the amended
articles of association or the amendment to the original company registration
authority for the record.

Article 33 In case that a company changes its directors, supervisors or
managers, the changes shall be reported to the original company registration
authority for the record.

Article 34 In case that an existing company arise registered iterms
changes due to mergering or dividing, the company shall apply for registration
of alteration; a company, dissolved due to mergering or dividing, shall apply
for registration of cancellation; a company, newly established due to
mergering or dividing, shall apply for registration of establishment.

In case that the merging or dividing of a company occurs, the company
shall apply for registration within 90 days after the resolution or decision
on the mergering or dividing being made, submit the merger agreement or the
resolution or decision on the mergering or dividing, together with
ceritification of public announcement in the newspaper at least three times
concerning the mergering or dividing of the company, and an illustration
report of its debt clearance or debt repayment guarantee. In case that the
merging or dividing of a company limited by shares occurs, a document of
approval issued by the State Council authorised department or the people’s
government of province, autonomous region or municipality directly under the
Central Government shall also be submitted.

Article 35 In case that the alteration of the registered items invovles
in the items specified in a Corporate Business Licence, the original Corporate
Business Licence shall be replaced with a new one by the company registration
authority.
Chapter VI Registration of Cancellation

Article 36 The liquidation organization of a company shall apply to the
original company registration authority for registration of cancellation
within 30 days after the conclusion of liquidation in any of the following
circumstances:

(1) a company is declared bankrupt in accordance with the law;

(2) the expiry of a company’s term of operation in accordance with the
articles of association, or the occurrence of other reason(s) for dissolution
of the company as stipulated in articles of association;

(3) shareholders meeting decides to dissolve the company;

(4) a company is dissolved as a result of mergering or dividing;

(5) a company is ordered to close down in accordance with the law.

Article 37 In case that a company applies for registration of
cancellation, the following documents shall be submitted:

(1) a written application for registration of cancellation signed by the
person in charge of the company liquidation organization;

(2) a ruling of a court on the bankruptcy, a resolution or decision made
by the company in accordance with the provisions of the Company Law or a
document issued by an administrative organ ordering the company to close down;

(3) a liquidation report confirmed by the shareholders’ meeting or
relevant body;

(4) the Corporate Business Licence;

(5) other documents as required for submission by laws and regulations.

Article 38 Company terminates in consequence of the approval of the
registration of cancellation by the company registration authority.
Chapter VII Registration of Branch Companies

Article 39 A branch company means an organization established by a
company to engage in business operations outside its domicile. A branch
company shall not have legal person status.

Article 40 In the event of establishing a branch, the company shall apply
for registration to the city or county company registration authority in the
place where the branch is located. A “Business Licence” shall be issued in
case the application for registration is approved.

Article 41 Registration items of a branch company shall include its
post_title, business domicile, manager in charge and scope of business operations.

The post_title of a branch company shall be in compliance with relevant State
regulations.

The scope of business operations of a branch company shall not exceed the
scope of business operations of its company.

Article 42 In the event of establishing a branch, the company shall apply
for registration to the company registration authority within 30 days after
the decision being made; should laws and regulations stipulate that the
establishment of a branch company shall be reported for approval to the
relevant department, the registration application shall be submitted to the
company registration authority within 30 days after the date of approval of
the aforesaid report.

To establish a branch company, the following documents shall be submitted
to the company registration authority:

(1) a written application for registration of establishment of a branch
signed by the legal representative of the company;

(2) the articles of association and a copy of the company’s Corporate
Business Licence affixed with the seal of the company registration authority;

(3) a certificate for use of business domicile;

(4) other documents as required for submission by the company registration
authority.

Article 43 In the event of altering the branch company’s registered
items, the company shall apply for registration of alteration to the company
registration authority.

To apply for registration of alteration, a written application for
registration of alteration signed by the legal representative of the company
shall be submitted. In case that the post_title of a branch is changed due to the
change of post_title of the company, a copy of the Corporate Business Licence of
the company shall be submitted. In case that a change of scope of business
operations invovles projects which shall be reported for approval as
stipulated by laws and regulations, a document of the approval of aforesaid
report issued by the relevant department shall also be submitted. In case that
the business domicile is changed, a certification for use of the new business
domicile shall be submitted.

The original “Business Licence” shall be replaced with a new one if the
application for registration of alteration is approved by the company
registration authority.

Article 44 In the event of closing down a branch, the company shall apply
for registration of cancellation of that branch to the company registration
authority which is in charge of that branch within 30 days of the decision
being made. In applying for the registration of cancellation of a branch, a
written application for registration of cancellation signed by the legal
represnetative of the company and the “Business Licence” of the branch shall
be submitted. The “Business Licence” of a branch shall be taken over by the
company registration authority after the application for registration of
cancellation being approved.
Chapter VIII Procedures for Registration

Article 45 A “Notice of Acceptance of Company Registration” shall be
issued by company registration authority after receiving all of the documents
stipulated in these Regulations from the applicant.

Company registration authority shall, within 30 days after issuing a
“Notice of Acceptance of Company Registration”, make a decision on approval or
rejection of registration.

If an application for registration is approved by company registration
authority, the applicant shall be notified within 15 days after the approval
decision being made, and a “Corporate Business Licence” or “Business Licence”
shall be issued, replaced or taken over.

If an application for registration is rejected by company registration
authority, the applicant shall be notified within 15 days after the decision
being made and a “Notice of Rejection of Company Registration” shall be issued.

Article 46 For registering the establishment or alteration, the company
shall pay registration fees to the company registration authority pursuant to
stipulations.

To apply for a Corporate Business Licence, the registrat

REGULATIONS ON ADMINISTRATION OF FOREIGN-CAPITAL FINANCIAL INSTITUTIONS

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1994-02-25	Effective Date	1994-04-01

Regulations of the People’s Republic of China on Administration of Foreign-capital Financial Institutions

Chapter I  General Provisions
Chapter II  Establishment and Registration
Chapter III  Business Scope
Chapter IV  Supervision and Administration
Chapter V  Dissolution and Liquidation
Chapter VI  Provisions of Penalties
Chapter VII  Supplementary Provisions

(Adopted at the 14th Executive Meeting of the State Council on

January 7, 1994, promulgated by Decree No.148 of the State Council of
the People’s Republic of China on February 25, 1994, and effective as of
April 1, 1994)
Chapter I  General Provisions

Article 1 These Regulations are formulated in order to meet the needs
of opening to the outside world and the economic development, strengthen
and perfect the administration of foreign-capital financial institutions.

Article 2 The term “foreign-capital financial institutions”, referred
to in these Regulations, means the following financial institutions which
are established and engaged in business operations on approval within
Chinese territory in accordance with the relevant laws and regulations of
the People’s Republic of China:

(1) foreign-capital banks with their head offices established within
Chinese territory (hereinafter referred to as “foreign bank”);

(2) branches of foreign banks established within Chinese territory
(hereinafter referred to as “foreign branch bank”);

(3) banks established within Chinese territory with joint capital and
operation by foreign financial institutions and Chinese financial
institutions (hereinafter referred to as “joint bank”);

(4) financial companies with their head offices established within
Chinese territory (hereinafter referred to as “foreign financial company”);
or

(5) financial company established within Chinese territory with joint
capital and operation by foreign financial institutions and Chinese
financial institutions (hereinafter referred to as “joint financial
company”).

The regions where foreign-capital financial institutions are established
shall be determined by the State Council.

Article 3 Foreign-capital financial institutions shall abide by the
laws and regulations of the People’s Republic of China and shall do nothing
detrimental to the social and public interests of the People’s Republic of
China.

The legitimate management activities and lawful rights and interests
of foreign-capital financial institutions shall be protected by the laws
of the People’s Republic of China.

Article 4 The People’s Bank of China is the competent authority in
charge of administering and supervising foreign-capital financial
institutions; the branch institutions of the People’s Bank of China in the
regions, where foreign-capital financial institutions are established,
shall exercise day-to-day administration and supervision of foreign-capital
financial institutions in their own regions.
Chapter II Establishment and Registration

Article 5 The minimum amount of the registered capital of a foreign
bank or a joint bank shall be freely convertible currencies equivalent to
300 million Renminbi yuan; the minimum amount of the registered capital of
a foreign financial company or a joint financial company shall be freely
convertible currencies equivalent to 200 million Renminbi yuan; their
respective paid-in capital shall be no less than 50% of their respective
registered capital.

A foreign branch bank shall be allocated as its operating funds by
its head office a free sum of freely convertible currencies equivalent to
not less than 100 million Renminbi yuan.

Article 6 An applicant applying for the approval to set up a foreign
bank or a foreign financial company shall satisfy the following
requirements:

(1) the applicant is a financial institution;

(2) the applicant has a representative office of more than two years’
standing within Chinese territory;

(3) the applicant possesses total assets of not less than US$ 10 billion
at the end of the year prior to the submission of such an application; and

(4) in the home country or region of the applicant, there is a complete
system for financial administration and supervision.

Article 7 An applicant applying for the approval to establish a
foreign branch bank shall satisfy the following requirements:

(1) the applicant has a representative office of more than two years’
standing within Chinese territory;

(2) the applicant possesses total assets of not less than US$ 20
billion at the end of the year prior to the submission of such an
application; and

(3) in the home country or region of the applicant, there is a complete
system for financial administration and supervision.

Article 8 Applicants applying for the approval to set up a joint
bank or a joint financial company shall satisfy the following requirements:

(1) each party to the venture of a joint bank or a joint financial
company is a financial institution;

(2) the foreign party to the venture has a representative office within
Chinese territory;

(3) the foreign party to the venture possesses total assets of not less
than US$ 10 billion at the end of the year prior to the submission of such
an application; and

(4) in the home country or region of the foreign party to the venture,
there is a complete system for financial administration and supervision.

Article 9 For a foreign bank or a foreign financial company to be
established, the applicant shall submit to the People’s Bank of China an
application in writing and provide the following documents:

(1) an application report for the establishment thereof, which shall
include the name of the intended foreign bank or foreign financial
company, the registered capital and the mount of the paid-in capital, and
the types of business operations the bank or company intends to engage in,
etc;

(2) a feasibility study report;

(3) the articles of association of the intended foreign bank or foreign
financial company;

(4) the business licence copy approved and issued by the competent
authority concerned in the home country or region of the applicant;

(5) the annual reports of the applicant for the three successive years
prior to the submission of such an application; and

(6) other documents as required by the People’s Bank of China.

Article 10 For a foreign branch bank to be established, the head
office of the foreign bank concerned shall submit to the People’s Bank of
China an application in writing and the following documents:

(1) an application report duly signed by the legal representative, which
shall include the name of the intended foreign branch bank, the free
amount of operating funds allocated by the head office, and the types of
business operations the foreign branch bank intends to engage in, etc;

(2) the business licence copy approved and issued by the competent
authority concerned in the home country or region of the applicant;

(3) the annual reports of the applicant for the three successive years
prior to the submission of such an application; and

(4) other documents as required by the People’s Bank of China.

Article 11 For a joint bank or a joint financial company to be
established, all the parties thereof shall jointly submit to the People’s
Bank of China an application in writing and provide the following
documents:

(1) an application report for the establishment thereof, which shall
include the name of the intended joint bank or joint financial company,
the name of each investing party thereto, the amount of the registered
capital and paid-in capital, the respective percentage of contributions by
the parties, and the types of business operations the joint bank or the
joint financial company intends to engage in, etc;

(2) a feasibility study report;

(3) the contract of joint capital and operation, and the articles of
association of the intended joint bank or the joint financial company;

(4) the respective business licences copies of all the parties hereto
approved and issued by the competent authorities concerned in the home
country or region of each of the applicants;

(5) annual reports of each of the parties for the successive years prior
to the submission of such an application; and

(6) other documents as required by the People’s Bank of China.

Article 12 Any of the documents prescribed in Article 9, 10 and 11 of
these Regulations, with the exception of the annual reports, if written in
foreign language, shall be submitted together with a Chinese translation
thereof.

Article 13 After the People’s Bank of China has preliminarily
examined and approved the application for establishing the foreign-capital
financial institution, an official application form shall be issued to the
applicant(s). If the applicant(s) don’t receive the official application
form within 90 days of the submission of its application, the application
thereof shall be deemed to have been rejected.

Article 14 The applicant(s) shall, within 60 days of receipt of the
official application form, submit to the People’s Bank of China for
examination and approval, the application having been filled in together
with the following documents:

(1) a list of the principal persons in charge of the intended
foreign-capital financial institution and their respective curriculum
vitae;

(2) powers of attorney for the intended principal persons in charge of
the foreign-capital financial institution;

(3) where a foreign branch bank is to be established, letters of
undertaking issued by the head office assuming for its branch bank the
obligations for tax payment and debt repayment; and

(4) other documents as required by the People’s Bank of China.

Article 15 A foreign-capital financial institution shall, within 30
days of receipt of the certificate of approval issued by the People’s Bank
of China, raise in full paid-in capital or operating funds, which shall be
transferred into Chinese territory and verified by the Chinese registered
accountant(s), then shall go through the procedures of registration with
the administrative department for industry and commerce in accordance with
the law and shall, within 30 days of commencement of business operations,
go through the procedures for tax registration with the tax authority in
accordance with the law.

Article 16 A foreign-capital financial institution shall, within 30
days following the day on which the establishment is examined and approved,
apply to the State Administration of Foreign Exchange Control for the
approval and issuance of a Licence to Engage in Foreign Exchange Business
Operations.
Chapter III Business Scope

Article 17 A foreign bank, a foreign branch bank or a joint bank may,
in accordance with the business scope approved by the People’s Bank of
China, engage in part or all of the following business operations:

(1) deposits in foreign exchange;

(2) loans in foreign exchange;

(3) discounts of negotiable instruments in foreign exchange;

(4) investments approved in foreign exchange;

(5) remittances in foreign exchange;

(6) guarantees in foreign exchange;

(7) import and export settlement;

(8) buying and selling of foreign exchange on its own account or on
customer’s account;

(9) acting as an agent for the exchange of foreign currencies and for
the cashing of negotiable instruments in foreign exchange;

(10) acting as an agent for payments against credit cards in foreign
currencies;

(11) custody and safe deposit box services;

(12) credit and financial standing investigation and consultancy
services; or

(13) the services approved in domestic currency and other services
approved in foreign currencies.

Article 18 A foreign financial company or a joint financial company
may, in accordance with the business scope approved by the People’s Bank
of China, engage in part or all of the following business operations:

(1) deposits in foreign exchange with each deposit amounting to not
less than US$ 100,000 for period of not less than three months;

(2) loans in foreign exchange;

(3) discounts of negotiable instruments in foreign exchange;

(4) investments approved in foreign exchange;

(5) guarantees of foreign exchange;

(6) buying and selling of foreign exchange on its own account or on
customer’s account;

(7) credit and financial standing investigation and consultancy services;

(8) trust in foreign exchange; or

(9) services approved in domestic currency and other services approved
in foreign currencies.

Article 19 The term “deposits in foreign exchange” referred to in
this Chapter, means the following deposits denominated in foreign
currencies:

(1) interbank deposits inside and outside China;

(2) non-interbank deposits outside China;

(3) deposits by foreigners inside China;

(4) deposits by overseas Chinese and by Hong Kong, Macao and Taiwan
compatriots;

(5) deposits by enterprises with foreign investment;

(6) deposits of loans granted by foreign-capital financial institutions
to enterprises other than those with foreign investment; or

(7) other kinds of deposits approved in foreign exchange.

Article 20 The term “remittances in foreign exchange” referred to in
this Chapter, means the inward remittances from abroad and outward
remittances from China by enterprises with foreign investment, foreigners,
overseas Chinese and Hong Kong, Macao and Taiwan compatriots.

Article 21 The term “import and export settlement” referred to in
this Chapter, means the import and export settlement, which is handled by
foreign banks, foreign branch banks or joint banks, by enterprises with
foreign investment, and the export settlement approved by enterprises
other than those with foreign investment and the import settlement under
the heading of loans.
Chapter IV Supervision and Administration

Article 22 The interest rates of deposits and loans and various
service charges of a foreign-capital financial institution shall be
determined by itself in accordance with the relevant provisions of the
People’s Bank of China.

Article 23 A foreign-capital financial institution which engages in
deposit business operations shall place deposit reserves with the local
branch institution of the People’s Bank of China. The ratios of the
reserves shall be determined by the People’s Bank of China and shall be
adjusted in accordance with the actual needs. Such deposit reserves shall
be interest-free.

Article 24 30% of the operating funds of a foreign branch bank shall
be put in the form of interest-bearing assets as prescribed by the People’s
Bank of China, which shall include the afore said funds deposited in a bank
or banks designated by the People’s Bank of China.

Article 25 The total assets of a foreign bank, a joint bank, a foreign
financial company or a joint financial company shall not exceed 20 times
the sum total of its paid-in capital and its total reserves.

Article 26 The total amount of loans which a foreign bank, a joint
bank, a foreign financial company or a joint financial company grants to
one of any one enterprise and its associated enterprises shall not exceed
30% of the sum total of its paid-in capital and its total reserves, with
the exception of loans specially approved by the People’s Bank of China.

Article 27 The total amount of investment by a foreign bank, a joint
bank, a foreign financial company or a joint financial company shall not
exceed 30% of the sum total of its paid-in capital and its total reserves,
with the exception of investment in financial institutions approved by the
People’s Bank of China.

Article 28 The fixed assets owned by a foreign bank, a joint bank, a
foreign financial company or a joint financial company shall not exceed 40%
of the sum total of its paid-in capital and its total reserves.

Article 29 A foreign-capital financial institution shall insure the
mobility of its assets. The specific measures thereof shall be formulated
by the People’s Bank of China separately.

Article 30 The total amount of deposits by domestic sources in a
foreign-capital financial institution shall not exceed 40% of its total
assets.

Article 31 A foreign-capital financial institution shall calculate and
maintain reserves for bad debt in accordance with the relevant provisions.

Article 32 A foreign bank, a joint bank, a foreign financial company
or a joint financial company shall, where its amount of paid-in capital is
less than the amount of the registered capital, allocate 25% of its after-
tax profit as supplementary capital until the sum total of its paid-in
capital and its total reserves is equal to its registered capital.

Article 33 A foreign-capital financial institution shall engage at
least one Chinese citizen as a member of its senior managerial body.

Article 34 A foreign-capital financial institution shall appoint
Chinese registered accountants and such an appointment shall be subject
to confirmation by the local branch bank of the People’s Bank of China.

Article 35 A foreign-capital financial institution shall, in respect
of any one of the following items, apply to the People’s Bank of China
for approval and go through the relevant procedures of registration to
the administrative department for industry and commerce in accordance
with the law:

(1) establishment of a branch office;

(2) adjustment and transfer of the registered capital or increase and
decrease of the operating funds;

(3) change of the name of the institution or the business site; or

(4) change of members of the senior managerial body.

Article 36 A foreign-capital financial institution shall submit its
financial statements and relevant documents to the People’s Bank of China
and its relevant branch office in accordance with the relevant provisions.

Article 37 The People’s Bank of China and its relevant branch office
shall have the right to examine and audit the management and financial
status of a foreign-capital financial institution.
Chapter V Dissolution and Liquidation

Article 38 If a foreign-capital financial institution is to terminate
voluntarily its business activities, it shall, 30 days prior to the date
of termination thereof, submit an application in writing to the People’s
Bank of China and shall, after such termination is approved by the
People’s Bank of China, effect its dissolution and liquidation.

Article 39 In the event that a foreign-capital financial institution
should become insolvent, the People’s Bank of China may order it to
suspend its business and to clear its liabilities within a prescribed
period of time. If such an institution wishes to resume its business after
recovering its solvency for clearing its liabilities within the prescribed
period of time, it shall apply to the People’s Bank of China for restarting
its business. If such an institution does not recover its solvency
exceeding the prescribed period of time, it shall effect its liquidation.

Article 40 Where a foreign-capital financial institution which is to
terminate because of dissolution, being disbanded in accordance with the
law or declaration of bankruptcy, its specific liquidation shall be
effected in accordance with the relevant provisions of laws and
regulations of the People’s Republic of China.

Article 41 Upon completion of liquidation, a foreign-capital financial
institution shall, within the legal period of time, go through the
procedures with the original registration authority to nullify its
registration.
Chapter VI Provisions of Penalties

Article 42 If, in violation of the provisions in Chapter II of these
Regulations, a foreign- capital financial institution is established
without authorization, the People’s Bank of China shall ban it and
confiscate its illegal earning, and may impose a fine in foreign exchange
equivalent to 50,000 to 100, 000 Renminbi yuan.

Article 43 If, in violation of the provisions in Chapter III of
these Regulations, a foreign-capital financial institution engaged in
business operations beyond the authorized scope, the People’s Bank of
China or its relevant branch office shall order it to suspend these
unauthorized business activities, confiscate the illegal earning derived
therefrom, and may impose a fine in foreign exchange equivalent to 10,000
to 50,000 Renminbi yuan.

Article 44 If, in violation of the relevant provisions in Chapter
IV of these Regulations, a foreign-capital financial institution engages
in business operations, the People’s Bank of China or its relevant branch
bank shall have right to order it to make corrections, adjustments or
make up the deficiency, and may impose a fine in foreign exchange
equivalent to 5,000 to 30,000 Renminbi yuan.

Article 45 If, in violation of the relevant provisions in Chapter IV
of these Regulations, a foreign-capital financial institution failed to
submit its financial statements and the relevant documents required
within the prescribed period of time, the People’s Bank of China or its
relevant branch office shall give a warning or circulate a notice of
reprimand, and order it make up for the submission thereof within a
prescribed period of time, and may impose a fine in foreign exchange
equivalent to 3,000 to 20,000 Renminbi yuan.

Article 46 Where a foreign-capital financial institution violates
the provisions of these Regulations with serious circumstances, in
addition to penalties under Article 43, 44 and 45 in this Chapter, the
People’s Bank of China may order it to suspend its business operations
and even revoke its business licence.

Article 47 If a foreign-capital financial institution violates other
laws or regulations of the People’s Republic of China, the relevant
competent authorities shall deal with such cases according to law.
Chapter VII Supplementary Provisions

Article 48 These Regulations shall apply mutatis mutandis to
financial business institutions which are established and operated within
the territory by Hong Kong, Macao and Taiwan financial institutions.

Article 49 Measures for the administration of the resident
representative offices of foreign financial institutions in China shall
be formulated separately by the People’s Bank of China.

Article 50 The People’s Bank of China shall be responsible for the
interpretation of these Regulations and shall formulate rules for the
implementation of these Regulations.

Article 51 These Regulations shall enter into force on April 1,
1994. Regulations of the People’s Republic of China for the Administration
of Foreign-Capital Banks and Chinese-Foreign Equity Joint Banks in the
Special Economic Zones promulgated by the State Council on April 2, 1985
and Measures for the Administration of Foreign-Capital Financial
Institutions and Chinese-Foreign Equity Joint Financial institutions in
Shanghai Municipality approved by the State Council on September 7, 1990
and promulgated by the People’s Bank of China on September 8, 1990 shall
be annulled simultaneously.

CIRCULAR OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THE INTERIM REGULATIONS ON THE APPLICATION OF VALUE-ADDED TAX, CONSUMPTION TAX, BUSINESS TAX, ETC., TO ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Council

Circular of the State Council on Several Issues Concerning the Interim Regulations on the Application of Value-added Tax, Consumption
Tax, Business Tax, Etc., to Enterprises with Foreign Investment and Foreign Enterprises

GuoFa [1994] No.10

February 22, 1994

According to the Decision of the Standing Committee of the National People’s Congress Concerning the Application of Interim Regulations
on Such Taxes As Value-added Tax, Consumption Tax and Business Tax to Foreign Investment Enterprises and Foreign Enterprises (hereinafter
referred to as “the Decision”) as examined and approved at the Fifth Meeting of the Standing Committee of the Eighth National People’s
Congress, several issues such as the categories of taxes applicable to enterprises with foreign investment and foreign enterprises
and so on are hereby notified as follows:

Problems Concerning the Categories of Taxes Applicable to Enterprises with Foreign Investment and Foreign Enterprises

According to provisions of “the Decision”, the following interim regulations, in addition to “Interim Regulations of the People’s
Republic of China on Value-added Tax”, “Interim Regulations of the People’s Republic of China on Consumption Tax”, “Interim Regulations
of the People’s Republic of China on Business Tax” and “Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises”, shall be applicable to enterprises with foreign investment and foreign enterprises:

(1)

“Interim Regulations of the People’s Republic of China on Land Value-added Tax”, promulgated on December 13, 1993 by the State Council;

(2)

“Interim Regulations of the People’s Republic of China on Resource Tax”, promulgated on December 25, 1993 by the State Council;

(3)

“Interim Regulations of the People’s Republic of China on Stamp Tax”, promulgated on August 6, 1988 by the State Council;

(4)

“Interim Regulations Concerning Tax on Slaughtering Animals”, promulgated on December 19, 1950 by the Government Administration Council
of the Central People’s Government;

(5)

“Interim Regulations Concerning Urban Real Estate Tax”, promulgated on August 8, 1951 by the Government Administration Council of
the Central People’s Government;

(6)

“Interim Regulations Concerning the Tax of License Plate Usage of Vehicle and Vessel”, promulgated on September 13, 1951 by the Government
Administration Council of the Central People’s Government; and

(7)

“Interim Regulations Concerning Deed Tax”, promulgated on April 3, 1950 by the Government Administration Council of the Central People’s
Government.

With the progress of taxation system reform, the State Council shall be revising and making other interim regulations on taxation,
and enterprises with foreign investment and foreign enterprises shall accordingly comply with the provisions of the relevant regulations.

Problems Concerning Handling of the Increased Tax Burden of Enterprises with Foreign Investment Due to the Imposition of Value-Added
Tax, Consumption Tax and Business Tax

(1)

As to an enterprise with foreign investment approved to be established before December 31, 1993, where its tax burden increases as
a result of the imposition of value-added tax, consumption tax and business tax, the enterprise may, upon application to and with
the approval of the tax authorities, have a refund on the excess tax payment due to the increased tax burden within the approved
operation period, with a maximum limit of not exceeding five years; if no operation period has been specified, the enterprise may,
upon application to and with the approval of the tax authorities, have a refund on the excess tax payment as mentioned above within
a period of not exceeding five years.

(2)

Where an enterprise with foreign investment pays both value-added tax and consumption tax, the payment exceeding the original tax
burden shall, according to the proportion of the paid value-added tax to the paid consumption tax, be refunded respectively.

(3)

Where the products manufactured by an enterprise with foreign investment are to be exported directly or through selling to an export
enterprise, that enterprise with foreign investment may, according to the provisions of “Interim Regulations of the People’s Republic
of China on Value-Added Tax”, handle the refundment affairs at one stop by producing the export declaration form and the tax payment
receipt.

(4)

The refundment of the excess tax payment applied for by an enterprise with foreign investment shall, in principle, be conducted at
one time after the end of the year; where the tax burden increases are comparatively higher, the enterprises concerned may apply
for the refund quarterly in advance, and the clearance shall be done after the end of the year.

(5)

The State Administration of Taxation and its affiliated establishments shall be responsible for dealing with the refundment affairs
relating to the value-added tax and the consumption tax, and the state treasuries at all levels shall conduct examination and verification
seriously and make strict checks. The computation of the refund, as well as the procedures of the application for refund and the
approval thereof, shall be prescribed by the State Administration of Taxation separately.

(6)

The refundment affairs relating to the business tax shall be prescribed by the people’s governments of the provinces, autonomous regions
or municipalities directly under the Central Government.

Problems Concerning Taxation on Chinese-Foreign Cooperative Exploitation of Petroleum Resources

Crude oil and natural gas exploited by a Chinese-foreign cooperative oil field shall be taxed of value-added tax in kind at a rate
of 5%, and the royalties shall be levied in accordance with the relevant provisions in effect, with temporary exemption from the
resource tax. The input tax shall not balance the value-added tax payable. Where crude oil or natural gas is exported, there shall
be no refund of tax.

Self-operative offshore oil field of China Offshore Petroleum Company shall comply with the above provisions mutatis mutandis.

This Circular shall enter into force as of January 1, 1994.

The State Council
1994-02-22

THE BUSINESS REGULATIONS OF CHINA OCEAN SHIPPING AGENCY

METEOROLOGY LAW

Meteorology Law of the People’s Republic of China

(adopted at the 12th Meeting of the Standing Committee of the Ninth National People’s Congress of the People’s Republic of China on
October 31, 1999, is hereby promulgated and shall go into effect as of January 1, 2000.)

Chapter I General Provisions

Article 1 This Law is enacted for the purpose of developing meteorological service, standardizing meteorological activities, ensuring the accurate
and timely issue of meteorological forecast, preventing meteorological disasters, properly exploiting and effectively protecting
climatic resources, and providing meteorological services for economic development, national defense, social development and people’s
well-being.

Article 2 This Law shall be observed by units and individuals that engage in meteorological observation, forecasting, services, prevention
of meteorological disasters, exploitation of climatic resources and research in meteorological science and technology, which are
carried out in the territory of the People’s Republic of China and the sea areas under the jurisdiction of the People’s Republic
of China.

Article 3 Meteorological service is a basic public welfare service for economic development, national defense, social development and people’s
well being. Public welfare meteorological services shall be the first priority in meteorological work.

People’s governments at or above the county level shall strengthen their leadership over and coordination of meteorological activities,
and incorporate meteorological service into the national economic and social development plans and fiscal budgets of the central
and local governments in order to ensure their full function in the service of the general public, in government decision making
and in economic development. Local meteorological projects initiated by local people’s governments at or above the county level to
meet the needs of local social and economic development shall mainly be financed by the said governments themselves. On condition
that unpaid public welfare meteorological services are guaranteed, meteorological offices and stations may provide paid meteorological
services in accordance with law.

Article 4 Meteorological offices and stations subordinate to the competent meteorological departments of counties or cities shall chiefly serve
agricultural production, providing, on their own initiative and in a timely manner, public welfare meteorological information services
needed by local agricultural production.

Article 5 The competent meteorological department under the State Council is responsible for meteorological work nationwide. Local competent
meteorological departments at different levels are responsible for meteorological work in their own administrative regions under
the leadership of the competent meteorological departments at a higher level and the people’s governments at the corresponding level.

Meteorological offices and stations subordinate to the other relevant departments under the State Council or under the people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government shall be subject to guidance, supervision
and professional management by the competent meteorological departments at the same level.

Article 6 Units and individuals that engage in meteorological activities shall comply with the meteorological technical standards, rules and
regulations formulated by the State.

Article 7 The State encourages and supports research in and popularization of meteorological science and technology, trains meteorological
professionals, spreads the use of advanced meteorological science and technology, protects the achievements scored in meteorological
science and technology, strengthens international cooperation and exchange in the field of meteorology and develops the meteorological
information industry, all in order to improve meteorological work. People’s governments at various levels shall pay attention to
and support the construction and operation of the meteorological offices and stations in areas inhabited by ethnic peoples, in outlying
and poverty-stricken areas, in areas where life is hard, and on islands. Units and individuals that make outstanding contributions
in meteorological work shall be rewarded.

Article 8 Meteorological activities that organizations and individuals of other countries wish to conduct in the territory of the People’s
Republic of China and the sea areas under the jurisdiction of the People’s Republic of China shall be subject to approval by the
competent meteorological department under the State Council in conjunction with relevant departments.

Chapter II Construction and Management of Meteorological Facilities

Article 9 The competent meteorological department under the State Council shall make arrangements for relevant departments to work out plans
for the construction of key meteorological facilities including meteorological observation instrumentation, transmission devices
dedicated to meteorological information and specialized large meteorological equipment. These plans shall be submitted to the State
Council for approval before they are implemented. Any readjustment or modification of the plans shall be submitted to the State Council
for approval. Plans for the construction of meteorological facilities shall be drawn up in conformity with the principles of a reasonable
layout, efficient utilization, and full consideration of both immediate and future needs, so as to avoid duplicated construction.

Article 10 Before the proposals and feasibility reports for the construction of key meteorological facility projects are submitted for approval,
these projects shall, depending on the limits of authority for examination and approval of such projects, be subject to examination
and agreement by the competent meteorological department under the State Council, or by the competent meteorological departments
of provinces, autonomous regions, or municipalities directly under the Central Government.

Article 11 The State protects meteorological facilities in accordance with law. No organizations or individuals may seize, damage or destroy
meteorological facilities, or relocate them without authorization. In cases where meteorological facilities are damaged or destroyed
due to force majeure, the local people’s governments shall take emergency measures to have them repaired or replaced, in order to
ensure their normal operation.

Article 12 No organizations or individuals may relocate meteorological offices or stations without legal approval. Where it is definitely necessary
to relocate any national reference climatological stations or basic synoptic stations for the implementation of city planning or
the construction of key national projects, the matter shall be subject to approval by the competent meteorological department under
the State Council. Where it is necessary to relocate other meteorological offices or stations, the matter shall be subject to approval
by the competent meteorological department of a province, autonomous region or municipality directly under the Central Government.
The unit that needs such construction shall bear the expenses for the relocation and reconstruction.

Article 13 Specialized meteorological equipment shall meet the technical requirements specified by the competent meteorological department under
the State Council and shall be subject to examination by the said department and its acceptance as qualified. No equipment that is
not examined or accepted as qualified may be applied to meteorological operations.

Article 14 Instruments for meteorological measurement shall be subject to verification by the institutions for verification of such instruments
in accordance with the relevant provisions of the Metrology Law of the People’s Republic of China. No meteorological measurement
instruments that are not verified, that are disqualified, or whose terms of validity have expired may be used. The competent meteorological
department under the State Council and the competent meteorological departments of provinces, autonomous regions and municipalities
directly under the Central Government may, where necessary, introduce standard instruments for meteorological measuring. The highest
standard for each kind of measuring instruments shall be put into use only after it is tested and found to be qualified in accordance
with the provisions of the Metrology Law of the People’s Republic of China.

Chapter III Meteorological Observation

Article 15 Meteorological offices and stations subordinate to competent meteorological departments at various levels shall, in accordance with
the regulations set by the competent meteorological department under the State Council ? take meteorological observation and report
the collected data to the competent meteorological departments concerned. No meteorological observation may be discontinued without
approval by the competent meteorological department at a higher level. The competent meteorological department under the State Council
and the local competent meteorological departments concerned shall, in accordance with relevant State regulations, release the observed
basic meteorological data at appropriate intervals.

Article 16 Meteorological offices and stations subordinate to other relevant departments under the State Council or under the people’s governments
of provinces, autonomous regions or municipalities directly under the Central Government, as well as other organizations or individuals
that engage in meteorological observation shall, in accordance with relevant State regulations, report the observed meteorological
data to the competent meteorological department under the State Council or to the competent meteorological departments of provinces,
autonomous regions or municipalities directly under the Central Government. The competent meteorological departments at various levels
shall, under the principles of sharing and joint use of meteorological data and in accordance with relevant State regulations, exchange
relevant meteorological information with other units that engage in meteorological work.

Article17 All drilling platforms located in inland or territorial waters of the People’s Republic of China or in the sea areas under
the jurisdiction of the People’s Republic of China, and aircraft and ocean going vessels of Chinese nationality navigating international
lines shall, in accordance with relevant State regulations, take meteorological observation and report the observed data.

Article18 Where meteorological observation data other than the basic ones need to be kept secret, they shall be classified into different
categories. The categories shall be altered and the data shall be declassified and used in accordance with the provisions of the
Law of the People’s Republic of China on Guarding State Secrets.

Article19 The State protects the environs for meteorological observation in accordance with law. All organizations and individuals
shall have the obligation to protect such environs.

Article20 The following acts jeopardizing the environs for meteorological observation are prohibited placing obstacles or conducting
explosion or quarry operations within the protected environs for meteorological observation; installing, within the protected environs
for meteorological observation, high frequency electromagnetic radiation devices which impair the performance of the meteorological
measuring instruments; and other acts that impair meteorological observation within the protected environs for such observation.
The criteria for delimiting protected environs for meteorological observation shall be prescribed by the competent meteorological
department under the State Council. People’s governments at all levels shall, in accordance with the statutory criteria, delimit
protected environs for meteorological observation and incorporate them into city planning or into village or town planning.

Article 21 When building, expanding or renovating construction projects, the constructors shall avoid jeopardizing the environs for meteorological
observation. Where it is really impossible to avoid jeopardizing the observation environs of national reference climatological stations
or basic synoptic stations ? the constructors shall first ask for permission of the competent meteorological department under the
State Council, and where jeopardizing of such environs of other meteorological offices or stations cannot be avoided, the constructors
shall first ask for permission of the competent meteorological departments of provinces autonomous regions or municipalities directly
under the Central Government. No construction may be started until appropriate measures are taken.

Chapter IV Meteorological Forecast and Severe earlier Warning

Article 22 The State applies a unified system for the issue of public meteorological forecast and severe weather warning. Meteorological offices
and stations subordinate to the competent meteorological departments at different levels shall, in compliance with their functions
and duties, issue to the community public meteorological forecast and severe weather warning, with timely supplements or corrections
added as the weather changes. No other organizations or individuals may issue to the community such forecast or warning. Meteorological
offices and stations subordinate to other relevant departments under the State Council or under the people’s governments of provinces,
autonomous regions or municipalities directly under the Central Government may issue specialized meteorological forecast to be used
within the frame work of their departments. The competent meteorological departments at different levels and the meteorological offices
and stations subordinate to them shall issue public meteorological forecast and severe weather warning with improved accuracy, timeliness
and service.

Article 23 Where necessary, meteorological offices and stations subordinate to the competent meteorological departments at various levels shall
issue specialized meteorological forecasts for agriculture, urban environment, classified fire risks, etc. and shall provide meteorological
services in cooperation with the military meteorological department to meet the need of national defense.

Article 24 Radio and television stations at various levels and news papers designated by people’s governments at the provincial level shall
arrange particular timeslots or space every day for public meteorological forecast and/or severe weather warning. Meteorological
offices and stations subordinate to the competent meteorological departments at different levels shall guarantee the quality of the
meteorological forecast programs they have prepared. Before making any changes in the timeslots for broadcasting meteorological forecast,
the radio and television stations shall first seek consent of the meteorological offices or stations concerned. Any severe weather
warning or supplementary or corrected forecast that has a vital bearing on the national economy and people’s well being shall promptly
be added or inserted into other ongoing programs.

Article 25 When the media, including radio, television, newspaper and telecommunication, issue to the community public meteorological forecast
or severe weather warning, they shall use the latest meteorological information provided by a meteorological office or station subordinate
to a competent meteorological department, while indicating the time of issue and the name of the office or station. Part of the revenues
from the distribution of meteorological information shall be drawn to support the development of meteorological service.

Article 26 Information industry departments shall work closely with the competent meteorological departments to ensure unblocked meteorological
telecommunication for the accurate and timely dissemination of meteorological information, forecast and severe weather warning. Wireless
frequencies and channels specified for meteorological use are protected by the State. No organizations or individuals may occupy
or interfere with them.

Chapter V Prevention of Meteorological Disasters

Article 27 People’s governments at or above the county level shall improve their monitoring and warning systems for meteorological disasters,
make arrangements for relevant departments to work out plans for prevention of meteorological disasters, and take effective measures
to increase the capability of preventing such disasters. Relevant organizations and individuals shall comply with the directions
given and arrangements made by the people’s governments, and shall make a success of prevention of meteorological disasters.

Article 28 Competent meteorological departments at all levels shall make arrangements for joint monitoring and forecast of significant weather
events among regions or departments, propose timely measures for preventing meteorological disasters and make assessment of severe
weather disasters, which shall serve as the decision making basis for the people’s governments at the corresponding levels to arrange
prevention of meteorological disasters. Meteorological offices and stations subordinate to the competent meteorological departments
at different levels shall improve their monitoring and forecast of severe weather which may adversely affect the local community,
and promptly report to the competent meteorological departments concerned. The meteorological offices and stations subordinate to
other departments and the units related to the monitoring and forecast of severe weather shall, without delay, provide the competent
meteorological departments with the observed meteorological information and the monitored information on hydrological conditions,
storm surge, etc. that are needed for the monitoring and forecast of severe weather.

Article 29 Local people’s governments at or above the county level shall, in light of the need for preventing meteorological disasters, work
out plans for the purpose and, on the basis of the meteorological information provided by the competent meteorological departments,
make arrangements for carrying out such plans, in order to avert or mitigate meteorological disasters.

Article 30 People’s governments at or above the county level shall enhance their leadership over weather modification and, in light of actual
conditions, carry out work in this field in an organized and planned way. The competent meteorological department under the State
Council shall more efficiently administer and guide weather modification throughout the country. Local competent meteorological departments
at all levels shall make plans for weather modification operations and, under the leadership and coordination of the people’s governments
at the corresponding levels, administer, guide and arrange for such operations. Relevant departments shall, in compliance with their
functions and duties and division of responsibilities, cooperate with the competent meteorological departments in weather modification.
Organizations engaging in weather modification operations shall meet the qualifications prescribed by the competent meteorological
departments of provinces, autonomous regions or municipalities directly under the Central Government, use the operational equipment
which meets the specifications set by the competent meteorological department under the State Council, and conform to the operational
rules.

Article 31 Competent meteorological departments at various levels shall strengthen the organization and management of preventive efforts against
disasters caused by thunderstorm and lightning and, together with other relevant authorities, inspect the lightning protection devices
installed on the buildings, structures and other facilities likely to be struck by lightning. The installed lightning protection
devices shall meet the operational specifications set by the competent meteorological department under the State Council.

Chapter VI Exploitation and Protection of Climatic Resources

Article 32 The competent meteorological department under the State Council is in charge of the overall survey and zoning of climatic resources
nationwide, coordinates efforts in climate monitoring, analysis and assessment and in the monitoring of the atmosphere composition
that may cause climate deterioration, and issues, at regular intervals, bulletins on climatic status.

Article 33 Local people’s governments at or above the county level shall, in light of the characteristics of the local climatic resources, draw
up plans for the fields of endeavor in which to exploit the climatic resources and for the key climatic resources to be protected.
Local competent meteorological departments shall, on the basis of the plans drawn up by the people’s governments at the corresponding
levels, make proposals to the said people’s governments and relevant departments at the corresponding levels regarding the exploitation
and protection of climatic resources and the extensive application of positive results yielded from the zoning of climatic resources.

Article 34 Competent meteorological departments at all levels shall arrange for climatic feasibility studies relating to city planning, key
national construction projects, major regional economic development projects and large projects for the exploitation of climatic
resources such as solar and wind energy. When assessing the impact of construction projects on atmospheric environment, the units
that are qualified for making such assessment shall use the meteorological data which are provided or examined by the competent meteorological
departments.

Chapter VII Legal Responsibility

Article 35 Any unit or individual that, in violation of the provision of this Law, commits one of the following acts shall be ordered by the
relevant competent meteorological department within the limits of its authority to discontinue the violation and put the facilities
and environs back to their former state or take other remedial measures within a time limit, and it/he may be fined not more than
50,000 yuan. If losses are caused, the violator shall bear the compensation responsibility in accordance with law. If the violation
constitutes a crime, criminal responsibility shall be investigated in accordance with law:

(1) seizing, damaging, destroying, or relocating without approval meteorological facilities;

(2) engaging in activities within the limits of the protected environs for meteorological observation, to the detriment of the environs.
Any unit or individual that illegally approves the occupation of land within the limits of the protected environs for meteorological
observation or that erects buildings or installations on illegally occupied land within the said limits shall be punished in accordance
with the relevant provisions of the City Planning Law of the People’s Republic of China or the Land Administration Law of the People’s
Republic of China.

Article 36 Any unit or individual that, in violation of the provisions of this Law, causes harm by employing specialized equipment which does
not meet the technical specifications shall be ordered by the relevant competent meteorological department within the limits of its
authority to make rectification and be given a disciplinary warning and may also be fined not more than 50 000 yuan.

Article 37 Any unit or individual that, in violation of the provisions of this Law, installs lightning protection devices which do not meet
the operational specifications shall be ordered by the relevant competent meteorological department to make rectification and be
given a disciplinary warning. If by using such devices it/he causes losses to others, it/he shall bear compensation responsibility
in accordance with law.

Article 38 Any unit or individual that, in violation of the provisions of this Law, commits one of the following acts shall be ordered by the
relevant competent meteorological department within the limits of its authority to make rectification and be given a disciplinary
warning and may also be fined not more than 50 000 yuan:

(1) a unit or individual that unlawfully issues to the community public meteorological forecast or severe weather warning

(2) when distributing to the community public meteorological forecast or severe weather warning, the media including radio, television,
newspaper and telecommunication fail to use the latest meteorological information provided by the meteorological offices or stations
subordinate to the competent meteorological departments; or

(3) when assessing the impact of construction projects on atmospheric environment, the unit that is in charge of making such assessment
fails to use the meteorological data which are provided or examined by the competent meteorological department.

Article 39 In violation of the provisions of this Law, when carrying out weather modification operations, the organization that does not meet
the qualifications prescribed by the competent meteorological department of a province, autonomous region or municipality directly
under the Central Government conducts weather modification operations or, when doing so, uses the equipment which does not meet the
technical specifications set by the competent meteorological department under the State Council shall be ordered by the relevant
competent meteorological department within the limits of its authority to make rectification and be given a disciplinary warning
and may also be fined not more than 100 000 yuan. If it causes losses to others, it shall bear compensation responsibility in accordance
with law. If the violation constitutes a crime, criminal responsibility shall be investigated in accordance with law.

Article 40 Staff members working in the competent meteorological departments at different levels or meteorological offices or stations subordinate
to the departments who neglect their duties and consequently fail to make important public meteorological forecast or to send out
severe weather warning, or make wrong forecast or send out wrong warning, or who lose or damage the raw meteorological observation
data or fabricate meteorological data shall be given administrative sanctions in accordance with law. If they cause heavy losses
to State interests or people’s lives or property, which is serious enough to constitute a crime, they shall be investigated for criminal
responsibility in accordance with law.

Chapter VIII Supplementary Provisions

Article 41 For the purpose of this Law, the definitions of the following terms are:

(1)Meteorological facilities include meteorological observation instrumentation, transmission devices dedicated to meteorological
information and specialized large meteorological equipment.

(2)Meteorological observation means systematic observation and measurement of the atmospheric physical processes, phenomena and chemical
properties in the atmosphere and surface layer by scientific and technological means.

(3)Environs for meteorological observation mean the minimum surrounding space away from any interference, a space that is essential
for ensured acquisition of accurate meteorological observation information by means of observation facilities.

(4)Meteorological disasters include disasters caused by typhoon, rainstorm (snowstorm), cold wave, strong wind (sandstorm and/or duststorm),
low temperature, high temperature, drought, thunderstorm and lightning, hail, frost and fog.

(5)Weather modification refers to efforts aimed at rain or snow enhancement, hail suppression, rain suppression, fog dispersal, frost
prevention by exerting, under appropriate conditions, artificial influence on local atmospheric physical and chemical processes through
scientific and technological means, in order to avert or mitigate meteorological disasters and rationally exploit climatic resources.

Article 42 Specific administrative measures governing the scope, items and charges for paid meteorological services provided by meteorological
offices or stations and other units shall be formulated by the State Council in accordance with the provisions of this Law.

Article 43 Administrative measures governing the meteorological work in the Chinese People’s Liberation Army shall be formulated by the Central
Military Commission.

Article 44 Where differences in provisions are found between an international treaty on meteorological activities concluded or acceded to by
the People’s Republic of China and this Law, the provisions contained in the international treaty shall prevail, with the exception
of the clauses on which the People’s Republic of China has expressed reservations.

Article 45 This Law shall go into effect as of January 1, 2000. The Regulations of the People’s Republic of China on Meteorological Services
promulgated by the State Council on August 18, 1994 shall be annulled as of the same date.

Source:China Internet Information Center

EDITOR:Victor

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PLAN FOR THE REORGANIZATION OF ARBITRATION ORGANS

COMMERCIAL BANKING LAW

NEGOTIABLE INSTRUMENTS LAW

BUDGET LAW

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON QUESTIONS CONCERNING THE HANDLING OF THE TAX ALREADY LEVIED RELATED TO STOCK IN THE EARLY PERIOD AFTER CHANGE-OVER TO THE COLLECTION OF VALUE-ADDED TAX AND CONSUMPTION TAX ON ENTERPRISES WITH FOREIGN INVESTMENT

ADMINISTRATIVE REGULATIONS GOVERNING THE REGISTRATION OF COMPANIES

REGULATIONS ON ADMINISTRATION OF FOREIGN-CAPITAL FINANCIAL INSTITUTIONS

CIRCULAR OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THE INTERIM REGULATIONS ON THE APPLICATION OF VALUE-ADDED TAX, CONSUMPTION TAX, BUSINESS TAX, ETC., TO ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

THE BUSINESS REGULATIONS OF CHINA OCEAN SHIPPING AGENCY

METEOROLOGY LAW

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7

Category	ARBITRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1995-07-28	Effective Date	1995-07-28