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AUCTION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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Standing Committee of the National People’s Congress

Auction Law of the People’s Republic of China

(Adopted at the 20th session of the Standing Committee of the Eighth National People’s Congress on July 5th, 1996, promulgated by
Order No. 70 of the President of the People’s Republic of China on July 5th, 1996, and effective as of January 1st, 1997; Revised
at the 11th session of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on August
28th, 2004)

ContentsChapter I General Provisions

Chapter II Objects of Auction

Chapter III Parties to Auction

Section 1 Auctioneer

Section 2 Client

Section 3 Bidder

Section 4 Vendee

Chapter IV Auction Procedures

Section 1 Authorization of Auction

Section 2 Announcement of Auction and Display of Objects of Auction

Section 3 Execution of Auction

Section 4 Commission

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated with a view to standardizing acts of auction, maintaining order of auction and protecting the lawful rights
and interests of all the parties in activities of auction.

Article 2

This Law applies to auction activities conducted by auction enterprises within the territory of the People’s Republic of China.

Article 3

Auction refers to the means of selling and buying by which specific articles or goods or property rights are transferred through public
bidding to the bidder that offers the highest price.

Article 4

The parties in activities of auction shall observe the pertinent laws and administrative rules and regulations and adhere to the principles
of openness, fairness, justice and good faith.

Article 5

The department in charge of administration of the auction trade under the State Council shall conduct supervision over and administration
of the auction trade throughout the country.

The departments in charge of administration of the auction trade under the people’s governments of provinces, autonomous regions,
municipalities directly under the Central Government, or cities divided into districts shall conduct supervision over and administration
of the auction trade in their respective administrative regions.

Chapter II Objection of Auction

Article 6

Objects of auction shall be articles or goods or property rights which are owned by the client or which the client may dispose of
according to the law.

Article 7

Articles or goods or property rights banned for sale by laws or administrative rules and regulations shall not be made objects of
auction.

Article 8

As regards the articles or goods or property rights whose transference is subject to examination and approval as prescribed by laws
or regulations of the State Council, the parties concerned shall, before their auction, conduct the formalities for the examination
and approval according to the law.

As regards the cultural relics under authorization for auction, they shall, before their auction, be subject to appraisal and permission
given according to the law by the administrative department for cultural relics at the locality of the auctioneer’s residence.

Article 9

As regards articles or goods confiscated or used to offset tax money or fines by the administrative organs of the State in conformity
with law and other articles or goods, all of which should be auctioned through authorization as prescribed by regulations of the
State Council, the auction shall be conducted by auctioneers designated by the people’s governments of the provinces, autonomous
regions or municipalities directly under the Central Government or of the cities divided into districts, where such property is located.

Auction of articles or goods confiscated or used to offset tax money or fines by the People’s Courts according to the law and other
articles or goods that are retrieved but cannot be returned to their owners shall be governed by the provisions of the preceding
paragraph.

Chapter III Parties to Auction

Section 1 Auctioneer

Article 10

An auctioneer refers to an enterprise legal person that is established in conformity with this Law and the Company Law of the People’s
Republic of China and engaging in activities of auction.

Article 11

Auction enterprises may be established in cities divided into districts. Establishment of an auction enterprise shall be subject to
examination, verification and approval by the department in charge of the auction trade under the people’s government of the province,
autonomous region, or municipality directly under the Central Government in the place where the enterprise is to be established and
shall be registered with the administrative department for industry and commerce for obtaining a business license.

Article 12

To establish an auction enterprise, the following conditions shall be satisfied:

(1)

having a registered capital of RMB one million yuan or more;

(2)

having its own name, organizational structure, premises and Articles of Association;

(3)

having auction masters and other employees commensurate with the trade;

(4)

having rules for the auction trade that accord with the provisions of this Law and other relevant laws;

(5)

observing the regulations of the State Council relating to development of the auction trade; and

(6)

other conditions as prescribed by laws or administrative rules and regulations.

Article 13

An auction enterprise engaging in the auction of cultural relics shall have a registered capital of RMB 10 million yuan or more and
employees with the professional knowledge about auction of cultural relics.

Article 14

Auction activities shall be presided over by auction masters.

Article 15

An auction master shall fulfill the following requirements:

(1)

having acquired a 3-year college education or a higher education and professional knowledge about auction;

(2)

having worked two years at least in an auction enterprise; and

(3)

being a person of good conduct.

Anyone, who has been discharged from public employment or whose qualification certificate of auction master been revoked for less
than five years or who has been subject to criminal punishment for intentional offense, shall not be employed as an auction master.

Article 16

Examination for qualification of auction masters shall be arranged unifiedly by the Auction Trade Association. Persons who pass the
examination shall be issued qualification certificates for auction masters by the aforesaid association.

Article 17

The Auction Trade Association is a public organization legal person established in conformity with law and a self-disciplined organization
for the trade of auction. The Auction Trade Association shall, pursuant to this Law and its own Articles of Association, conduct
supervision over auction enterprises and masters.

Article 18

An auctioneer shall be enpost_titled to request his clients to make clear the origins and defects of the objects of auction.

An auctioneer shall make defects of the objects of auction known to bidders.

Article 19

An auctioneer shall have the duty of taking care of the articles or goods delivered by his clients to him for auction sale.

Article 20

After accepting entrust, the auctioneer may not entrust another auctioneer to perform the auction without prior consent of his client.

Article 21

An auctioneer shall keep the identity of his client or vendee confidential if so requested.

Article 22

An auctioneer and his employees may not get involved as bidders in the auction sale which is arranged by themselves and may not entrust
another to act as a bidder on their behalf.

Article 23

An auctioneer may not put his own articles or goods or property rights on an auction sale which is arranged by himself.

Article 24

When an auction transaction is concluded, the auctioneer shall deliver the money paid for the objects of auction to the clients as
agreed and transfer the objects of auction to the vendees as agreed.

Section 2 Client

Article 25

A client refers to a citizen, legal person or other organization that authorizes an auctioneer to auction his or its articles, goods
or property rights.

Article 26

A client may conduct the formalities for authorization of auction by himself or through his agent.

Article 27

A client shall make clear the origins and defects of the objects of auction to the auctioneer.

Article 28

A client shall be enpost_titled to determine the reservation price for the objects of auction and require the auctioneer to keep it confidential.

As regards auction of State assets, assessment of which is required pursuant to law or regulations of the State Council, assessment
shall be made by the appraisal institution established according to the law, and reservation prices for the objects of auction shall
be determined on the basis of the assessment made.

Article 29

A client may withdraw the objects of auction before the auction sale commences. In such a case, the client shall pay to the auctioneer
the expenses as agreed; in the absence of such an agreement, the client shall pay to the auctioneer a reasonable amount of expenses.

Article 30

A client may not participate in bidding and may not authorize others to bid on his behalf.

Article 31

Where it is agreed that the objects of auction shall be transferred by the client, after the auction transaction is concluded, the
client shall transfer the objects of auction to the vendees.

Section 3 Bidder

Article 32

A bidder refers to a citizen, legal person or other organization that participates in the bidding for objects of auction.

Article 33

Where requirements for selling and buying of objects of auction are provided for by law or administrative rules and regulations, a
bidder shall fulfill those requirements.

Article 34

A bidder may take part in bidding by himself or authorize his agent to participate in it.

Article 35

A bidder shall be enpost_titled to be informed of defects of the objects of auction and be enpost_titled to inspect them and to have access
to information relating to them.

Article 36

Once a bidder bids for a price, it shall be irrevocable, and it shall lose its binding force as soon as another bidder offers a higher
price.

Article 37

Bidders or bidders and auctioneers may not collude with each other out of ill intention to harm the interests of others.

Section 4 Vendee

Article 38

A vendee refers to a bidder who purchases an object of auction at the highest price offered by him.

Article 39

A vendee shall pay for the object of auction at the price agreed, in the case of failing that, he shall bear liabilities for default
or, with the consent of the client, the auctioneer may put the object of auction up at auction again.

In case the object of auction is auctioned again, the former vendee shall pay the commission that he himself and the client should
pay for the first auction sale. Where the price for the second auction sale is lower than that for the first one, the former vendee
shall make up the difference.

Article 40

In case a vendee fails to obtain the object of auction as agreed, he shall be enpost_titled to request the auctioneer or client to bear
liabilities for default.

Where a vendee fails to collect the object of auction as agreed, he shall pay the storage charge incurred thereby.

Chapter IV Auction Procedures

Section 1 Authorization Auction

Article 41

When a client authorizes auction of articles or goods or property rights, he shall provide his identity certificate and, as required
by the auctioneer, the ownership certificate for the objects of auction, or certificates and any other materials testifying that
he may dispose of the objects of auction according to the law.

Article 42

The auctioneer shall verify the pertinent certificates and materials offered by the client. When an auctioneer accepts authorization,
he shall enter into a contract for authorization of auction with the client.

Article 43

The auctioneer may have the objects of auction evaluated, if he deems it necessary.

In case the conclusion of the expert evaluation does not conform to the descriptions of the objects of auction as specified in the
contract for authorization of auction, the auctioneer shall be enpost_titled to demand modification or cancellation of the contract.

Article 44

In a contract for authorization of auction, the following particulars shall be specified:

(1)

the name or post_title and address of the client and auctioneer;

(2)

post_title, specifications, quantity and quality of the object of auction;

(3)

reservation price offered by the client;

(4)

time and place of the auction;

(5)

time and manner of delivery or transference of the object of auction;

(6)

commission, manner and time limit for its payment;

(7)

manner and time limit for payment of the purchase;

(8)

liabilities for breach of the contract; and

(9)

other matters as agreed upon between parties.

Section 2 Announcement of Auction and Display of Objectives of Auction

Article 45

The auctioneer shall announce the opening of an auction seven days before the date of auction.

Article 46

The following particulars shall be specified in the announcement of auction:

(1)

time and place of auction;

(2)

objects of auction;

(3)

time and place for display of the objects of auction;

(4)

formalities supposed to conduct for participating in bidding; and

(5)

other matters in need of announcement.

Article 47

Announcement of an auction shall be released through newspapers or other media.

Article 48

The auctioneer shall display the objects of auction before the auction sale and provide pertinent information and conditions for bidders
to check the objects of auction.

The duration of display shall be at least two days.

Section 3 Execution of Auction

Article 49

The auction master shall announce the auction rules and points for attention before the auction sale commences.

Article 50

Where there is no reservation price for an object of auction, the auction master shall make it clear prior to the auction sale.

Where there is a reservation price for an object of auction and the highest price offered by a bidder does not reach the reservation
price, the offer shall be non-binding force and the auction master shall cease the auction sale of the aforesaid object.

Article 51

When the highest offer is confirmed by the auction master by knocking the gavel or any other way of public confirmation, the auction
transaction is concluded.

Article 52

After a transaction is concluded, the vendee and the auctioneer shall affix a written confirmation.

Article 53

When an auction sale is under way, minutes of auction shall be made and signed by the auction master and the recorder, as well as
the vendee if a transaction is concluded.

Article 54

The auctioneer shall properly keep the complete set of account books pertaining to business operation, the auction minutes and any
other relevant materials.

The period for maintaining the account books, auction minutes and other relevant materials as specified in the preceding paragraph
shall beat least five years, counting as of the date of expiration of the contract for authorization of auction.

Article 55

Where there is necessity to make changes in certificates or licenses or to transfer ownership of property rights, pursuant to law,
with regard to the objects of auction, the client and vendee shall conduct the formalities to the relevant administrative organ by
producing the transaction certificate prepared by the auctioneer and relevant materials.

Section 4 Commission

Article 56

The client and vendee may enter into an agreement with the auctioneer on the proportion of commission.

Where a transaction is concluded in the absence of such an agreement, the auctioneer may charge a commission of not more than five
percent of the transaction price from the client and the vendee respectively. The proportion of commission to be charged shall be
determined according to the principle that it is in inverse proportion to the transaction price.

In case no transaction is concluded, the auctioneer may charge the client the expenses as agreed. In the absence of an agreement,
the auctioneer may charge the client a reasonable amount for the expenses of auction.

Article 57

With respect to the auction of articles or goods specified in Article 9 of this Law, where a transaction is concluded, the auctioneer
may charge the vendee a commission of not more than five percent of the transaction price. The proportion of commission to be charged
shall be determined according to the principle that it is in inverse proportion to the transaction price.

In case no transaction is concluded, the provisions of Paragraph 3, Article 56 of this Law shall apply.

Chapter V Legal Liability

Article 58

Where a client, in violation of the provisions of Article 6 of this Law, authorizes auction of articles or goods or property rights
that he does not own or he has no right to dispose of according to the law, he shall bear liability in jure. Where the auctioneer
knowingly auctions articles or goods or property rights that the client does not own or has no right to dispose of according to the
law, he shall bear joint and several liability.

Article 59

Where a State organ, in violation of the provisions of Article 9 of this Law and without permission, disposes of articles or goods
for the auction of which it should authorize the auctioneer designated by the people’s government of the province, autonomous region,
municipality directly under the Central Government or of the city divided into districts where such property is located, the persons
who are directly in charge and other persons who are directly responsible for the offense shall be given administrative sanctions
according to the law, where losses have been caused to the State, they shall be liable for compensation.

Article 60

Where anyone, in violation of the provisions of Article 11 of this Law, establishes an auction enterprise without permission and
registration, the enterprise shall be prohibited by the administrative department for industry and commerce, the illegal gains shall
be confiscated and he may also be fined at least once but not more than five times the amount of the illegal gains.

Article 61

Where an auctioneer or client, in violation of the provisions of Paragraph 2, Article 18 , or Article 27 of this Law, fails to make
clear defects of the objects of auction and thus causes losses to the vendee, the vendee shall be enpost_titled to claim compensation
from the auctioneer; where the client is responsible for the loss, the auctioneer shall have the right of recourse against the client.

Where an auctioneer and client declare, before the auction sale, that they cannot guarantee the genuineness or quality of an object
of auction, they shall not be liable for the warrant of the defects.

In the absence of such declaration, the period for limitation of action for claim of compensation shall be one year, counted as of
the day the party concerned came to know or should have known that his rights were infringed upon. The period for limitation of action
for claim of compensation for personal or property damage occasioned by defects in an object of auction shall be governed by the
pertinent provisions of the Law of the People’s Republic of China on Product Quality and other laws.

Article 62

Where an auctioneer or any of his employees, in violation of the provisions of Article 22 of this Law, participates in bidding or
authorizes another to bid on his behalf, the administrative department for industry and commerce shall give the auctioneer a disciplinary
warning, and may impose on him a fine of not less than once but not more than five times the commission for auction. If the violation
is gross, his business license shall be revoked.

Article 63

Where an auctioneer, in violation of the provisions of Article 23 of this Law, puts his own articles or goods or property rights
up at auction that is arranged by himself, the administrative department for industry and commerce shall confiscate his earnings
from the auction sale.

Article 64

Where a client, in violation of the provisions of Article 30 of this Law, participates in bidding or authorizes another to bid on
his behalf, the administrative department for industry and commerce may impose on him a fine of not more than 30% of the transaction
price.

Article 65

Where bidders or bidders and auctioneers, in violation of the provisions of Article 37 of this Law, collude with each other out of
ill intention and thus cause losses to another, the auction shall be invalid and they shall be liable for compensation according
to the law. The administrative department for industry and commerce shall impose on the bidders that participate in such collusion
a fine of not less than 10% and not more than 30% of the highest price offered; it shall impose on the auctioneers that participate
in such collusion a fine of not less than 10% and not more than 50% of the highest price offered.

Article 66

Where an auctioneer collects commission in violation of the provisions in Section 4 of Chapter IV of this Law pertaining to the proportion
of commission, he shall return the part that exceeds the stipulated proportion to the client and vendee. The price control authorities
may impose on the auctioneer a fine of not less than once and not more than five times the commission for auction.

Chapter VI Supplementary Provisions

Article 67

This Law shall apply to foreign nationals, foreign enterprises and organizations that authorize auction or participate in bidding
within the territory of the People’s Republic of China.

Article 68

Auction enterprises, established before the implementation of this Law, that do not satisfy the conditions prescribed in this Law
shall, within the prescribed time limit, satisfy such conditions; as regards those that fail to satisfy the aforesaid conditions
within the time limit, the administrative department for industry and commerce shall cancel their registration and revoke their business
licenses. Specific measures in this regard shall be formulated separately by the State Council.

Article 69

This Law shall be implemented as of January 1st, 1997.



 
Standing Committee of the National People’s Congress
2004-08-28

 







DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON ACCEDING TO THE CONVENTION ON THE SAFETY OF UNITED NATIONS AND ASSOCIATED PERSONNEL

Standing Committee of the National People’s Congress

Decision of the Standing Committee of the National People’s Congress on Acceding to the Convention on the Safety of United Nations
and Associated Personnel

Adopted on August 28th, 2004

The 11th Session of the Standing Committee of the Tenth National People’s Congress decides: the People’s Republic of China accedes
to the Convention on the Safety of United Nations and Associated Personnel, which was adopted at the 49th United Nations Assembly
on December 9th, 1994; and states simultaneously, that the People’ s Republic of China shall make reservation on paragraph 1 of Article
22 of the Convention on the Safety of United Nations and Associated Personnel, and shall not be subject to the restrictions of this
Clause.



 
Standing Committee of the National People’s Congress
2004-08-28

 







DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AMENDING THE LAND ADMINISTRATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.28

The Decision of the Standing Committee of the National People’s Congress on Amending the Land Administration Law of the People’s Republic
of China, which was adopted at the 11th session of the Standing Committee of the Tenth National People’s Congress of the People’s
Republic of China, is hereby promulgated, and shall be implemented as of the date of its promulgation.

President of the People’s Republic of China Hu Jintao

August 28, 2004

Decision of the Standing Committee of the National People’s Congress on Amending the Land Administration Law of the People’s Republic
of China

The 11th Session of the Standing Committee of the Tenth National People’s Congress decides to make the following revisions on the
Land Administration Law of the People’s Republic of China:

1.

Paragraph 4 of Article 2 shall be amended as: “The state may make expropriation or requisition on land according to law for public
interests, but shall give compensations accordingly.”

2.

The “Requisition” in paragraph 2 of Article 43 , Article 45 , 46, 47, 49, 51, 78, and 79 shall be amended as “Expropriation”

The present Decision shall be implemented as of the date of its promulgation.

The Land Administration Law of the People’s Republic of China shall be re-promulgated after being amended in accordance with the present
Decision.



 
Standing Committee of the National People’s Congress
2004-08-28

 







LAND ADMINISTRATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA (2004 REVISION)

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Standing Committee of the National People’s Congress

Land Administration Law of the People’s Republic of China (2004 Revision)

(Approved at the 16th Session of the Standing Committee of the Ninth National People’s Congress of the People’s Republic of China
on June 25th, 1986. Revised in accordance with the Decision on amending Land Administration Law of the People’s Republic of China.
Revised and adopted at the Fourth Session of the Standing Committee of the Ninth National People’s Congress of the People’s Republic
of China on August 29th, 1998, to be put into effective as of January 1st, 1999. Revised at the 11th Session of the Standing Committee
of the Tenth National People’s Congress on August 28th, 2004)

ContentsChapter I General Provisions

Chapter II Ownership and Right of Use of Land

Chapter III General Plans for the Utilization of Land

Chapter IV Protection of Cultivated Land

Chapter V Land for Construction Purposes

Chapter VI Supervision and Examination

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

The law is formulated in accordance with the Constitution with a view to strengthening the administration of land, safeguarding the
socialist public ownership of land, protecting and developing land resources, ensuring a rational use of and giving a real protection
to cultivated land to promote sustainable development of the socialist economy.

Article 2

The People’s Republic of China resorts to a socialist public ownership of land i.e. an ownership by the whole people and ownerships
by collectives.

In ownership by the whole people, the State Council is empowered to be on behalf of the State to administer the land owned by the
State.

No unit or individual is allowed to occupy, trade or illegally transfer land by other means. Land using right may be transferred by
laws.

The state may make expropriation or requisition on land according to law for public interests, but shall give compensations accordingly.

The State introduces the system of compensated use of land owned by the State except the land has been allocated for use by the State
according to laws.

Article 3

To cherish and give a rational use to the land as well as to give a real protection to the cultivated land are seen as a basic principle
of land use in the country. The people’s governments at all levels shall take measures to make an overall plan for the use of land
to strictly administer, protect and develop land resources and curb any illegal occupation of land.

Article 4

The State is to carry out control system on the usages of land.

The State shall draw up general plans to set usages of land including those of farm or construction use or unused. A strict control
is to place on the transformation of land for farm use to that for construction use in order to control the total amount of land
for construction use and exercise a special protection on cultivated land.

Land for farm use in the previous Article refers to land directly used for agricultural production, including cultivated land, wood
land, grassland, land for farmland water conservancy and water surfaces for breeding; land for construction use refers to land on
which buildings and structures are put up, including land for urban and rural housing and public facilities, land for industrial
and mining use, land for building communications and water conservancy facilities, land for tourism and land for building military
installations. The term land unused refers to land other than that for agricultural and construction uses.

Land shall be used strictly in line with the purposes of land use defined in the general plan for the utilization of the land whether
by units or individuals.

Article 5

The land administrative department of the State Council shall be unifiedly responsible for the administration and supervision of land
in the whole country.

The setup and functions of land administrative departments of people’s governments at and above the county level shall be decided
by the people’s governments of provinces, autonomous regions and municipalities under the direct jurisdiction of the central government
(hereinafter referred to as municipalities) according to the relevant provisions of the State Council.

Article 6

Units or individuals shall all be obliged to abide by the laws and regulations concerning land administration and have the right to
report or prosecute acts of violating land administration law and regulations.

Article 7

People’s governments shall award units or individuals who have made outstanding achievements in protecting and developing land resources,
rational utilization of land and in carrying out research in this regard.

Chapter II Ownership and Right of Use of Land

Article 8

Land in urban districts shall be owned by the State.

Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by farmers including
land for building houses, land and hills allowed to be retained by farmers.

Article 9

Land owned by the State and land collectively owned by farmers may be allocated to be used by units or individuals according to law.
Units or individuals using land shall be responsible for the protection, management and a rational use of the land.

Article 10

In lands collectively owned by farmers those have been allocated to villagers for collective ownership according to law shall be operated
and managed by village collective economic organizations or villagers’ committee and those have allocated to two or more farmers
collective economic organizations of a village, shall be operated and managed jointly by the collective economic organizations of
the village or villagers’ groups; and those have allocated to township (town) farmer collectives shall be operated and managed by
the rural collective economic organizations of the township (town).

Article 11

People’s government at the county level shall register and put on record lands collectively owned by farmers and issue certificates
to certify the ownership concerned.

People’s government at the county level shall register and put on record the use of land collectively owned by farmers for non-agricultural
construction and issue certificates to certify the right to use the land for construction purposes.

People’s government at the country level shall register and put on record uses of land owned by the State by units or individuals
and issue certificates to certify the right of use. The State Council shall designate specific units to register and put on record
State-owned land used by central government organs.

Certifications of ownership or use right of wooded land and grassland and the uses or of water surface and beach land for breeding
purpose shall be administrated according to relevant provisions of the Forest Law of the People’s Republic of China, the Grassland
Law of the People’s Republic of China and the Fisheries Law of the People’s Republic of China.

Article 12

Changes of owners and usages of land, shall go through the land alteration registration procedures.

Article 13

The ownership and use right of land registered according to law shall be protected by law and no unit or individual is eligible to
infringe upon it.

Article 14

Land collectively owned by farmers shall be contracted out to run by members of the collective economic organizations for use in crop
farming, forestry, animal husbandry and fisheries production under a term of 30 years. The contractees shall sign a contract with
the correspondents’ contractor to define each other’s rights and obligations. Farmers who have contracted land for operation are
obliged to use the land rationally according to the purposes agreed upon in the contracts. The right of land contractual operation
by farmers shall be protected by law.

Within the validity term of a contract, the adjustment of land contracted by individual contractors shall get the consent from over
two-thirds majority vote of the villagers’ congress or over two-thirds of villagers’ representatives and then be submitted to land
administrative departments of the township (town) people’s government and county level people’s government for approval.

Article 15

Land owned by the State may be contracted out to run by units or individuals for farming, forestry, animal husbandry and fisheries.
Land collectively owned by farmers may be contracted out to units or individuals who are not belonging to the corresponding collectives
for farming, forestry, animal husbandry and fisheries operations. The contractees and contractors shall sign land use contracts to
define each other’s rights and obligations. The contracted term for operation is to be agreed upon in the land use contracts. Contractors
for the land operation are obliged to protect and use the land rationally according to the usages stipulated in the contracts.

Whereas a land collectively owned by farmers is contracted out for operation to those not belonging to the corresponding collective
organizations, a consent shall be got from the over two-thirds majority vote of the villagers’ congress or over two-thirds of the
villagers’ representatives with the resulted contract being submitted to the township (town) people’s government for approval.

Article 16

Disputes arising from the ownership or use right of land shall be settled through negotiation among parties concerned; If negotiation
fails, the disputes shall be handled by people’s governments.

Disputes among units shall be handled by the people’s government above the county level; disputes among individuals or between individuals
and units shall be handled by township level people’s government or people’s governments at the county level or above.

Whereas parties concerned refuse to accept the decisions by relevant people’s government, the dispute may be brought before the people’s
court within 30 days after the notification on the decision is received.

No party shall change the status quo of the land before the disputes over ownership and use right are settled.

Chapter III General Plans for the Utilization of Land

Article 17

People’s governments at all levels shall manage to draw up general plans for land uses in accordance with the national economic and
social development program, requirements of national land consolidation and resources and environmental protection, land supply capacity
and the requirements of various construction projects.

The validity term of the general plans for land use shall be determined by the State Council.

Article 18

General plans for land use at a lower level shall be compiled according to the general plans for the utilization of land at the next
higher level.

The total amount of land for construction uses in the general plans of land use compiled by local people’s governments at all levels
shall not exceed the controlled targets set in the general plans for land use at the next higher level and the total amount of cultivated
land shall not be lower than the controlled targets set in the general plans for land use at the next higher level.

In mapping out the general plans for land use, the provinces, autonomous regions and municipalities shall ensure that the total amount
of cultivated land under their jurisdiction shall not be reduced.

Article 19

General plans for land use shall be mapped out according to the following principles:

1.

Strictly protect the basic farmland and control the occupation of agricultural land for nonagricultural purposes.

2.

Raise the utilization rate of land.

3.

Make an overall plan and arrangements about the use of land in various kinds and various areas.

4.

Protect and improve the ecological environment to ensure a sustainable use of land.

5.

Keep a balance between the occupied area of cultivated land and the developed and reclaimed area of cultivated land.

Article 20

General plans for land use at the county level shall define the areas and purposes of land use.

General plans for the land use at the township (town) level shall define the areas for the utilization of land and define the purpose
of each tract of land according to the actual conditions for the use of land and make an announcement.

Article 21

General plans for land use shall implement graded examination and approval.

General plans for land use of provinces, autonomous regions and municipalities shall be approved by the State Council.

General plans for land of cities where the people’s governments of province and autonomous regions and municipalities are seated and
cities with a population of over one million and cities designated by the State Council shall be examined by the People’s governments
of relevant provinces and autonomous regions and municipalities and submit them to the State Council for approval.

General plans for land use other than those provided for in the second and third paragraphs of this article shall be submitted for
approval step by step to the people’s governments of provinces, autonomous regions and municipalities. General plans for land uses
of townships (towns) may be approved by the people’s governments of cities or autonomous prefectures authorized by the provincial
level people’s governments.

Once approved, the general plans for the land use shall be implemented strictly.

Article 22

The amount of land used for urban construction shall conform to the standards prescribed by the State so as to make full use of the
existing land for construction purposes, not to occupy or occupy as less agricultural land as possible.

Urban general planning and the planning of villages and market towns shall be in line with the general plans for land use. The amount
of land for construction use in the urban general planning and the planning of villages and market towns shall not exceed the amount
of land used for construction purposes in cities, villages and market towns fixed in the general plans for the utilization of land.

The land for construction purposes in cities, villages and market towns within the planned areas of cities, villages and market towns
shall conform to the city planning and the planning of villages and market towns.

Article 23

The plans for the comprehensive treatment, development and utilization of rivers and lakes shall be applied in accordance with the
general plans for land use. Land uses within the areas of management and protection of rivers, lakes and reservoirs and flood storage
and detention areas shall be in line with plans for the comprehensive control, development and utilization of rivers and lakes and
to the requirements of river channels, flood flows of rivers and lakes, flood storage and water transmission.

Article 24

People’s governments at all levels shall strengthen the administration of plans for land use and exercise control of the aggregate
land for construction purposes.

The annual plan for the land use shall be compiled in line with the national economic and social development program, the State industrial
policies, general plans for land and the actual situation about the land for construction uses and the land utilization. The examination
and approval procedures for the compilation of annual land use plans shall be the same as that for the general plans for land use.
Once approved, they shall be implemented strictly.

Article 25

The people’s governments of provinces, autonomous regions and municipalities shall report the implementations of their annual plans
for the use of land to the people’s congresses at the same level as part of the implementation of their economic and social development
plans.

Article 26

Revision of the general plans for land use shall be approved by the original organ of approval. Without approval, the usages of land
defined in the general plans for the utilization of land shall not be changed.

Whereas the purpose of land use defined in the general plans for the utilization of land needs to be changed due to the construction
of large-scale energy, communications, water conservancy and other infrastructure projects approved by the State Council, it shall
be changed according to the document of approval issued by the State Council.

If the purpose of land defined in the general plans for the utilization of land needs to be changed due to the construction of large-scale
energy, communications, water conservancy and other infrastructure projects approved by provinces, autonomous regions and municipalities,
it shall be changed according to the document of approval issued by the provincial level people’s governments if it falls into their
terms of reference.

Article 27

The State fosters land survey system.

The land administrative departments of the people’s governments at and above the county level shall carry out land surveys together
with relevant departments at the same level. Land owners or users shall provide good cooperation and necessary data and materials
required.

Article 28

Land administrative departments of the people’s government at and above the county level shall, together with relevant departments
at the same level, grade the land according to the results of the surveys, their planned uses and the unified standards formulated
by the State.

Article 29

The State establishes the land statistical system.

Land administrative departments of the people’s governments at and above the county level shall, together with the statistical departments
at the same level shall, formulate plans for statistical surveys and compile statistics about land according to law and regularly
issue statistical data about the land. Land owners and users shall provide relevant materials and it is strictly forbidden to provide
false and concealed materials or refuse to provide or delay the delivery of materials.

The statistical materials about the land areas issued by land administrative departments and statistical departments serve as the
basis for people’s governments at all levels in compiling the general plans for the utilization of land.

Article 30

The State shall establish the national land management information system to conduct dynamic monitoring of the utilization of land.

Chapter IV Protection of Cultivated Land

Article 31

The State protects the cultivated land and strictly controls the conversion of cultivated land into non-cultivated land.

The State fosters the system of compensations to cultivated land to be occupied. In the case of occupying cultivated land for non-agricultural
construction, the units occupying the cultivated land shall be responsible for reclaiming the same amount of land in the same quality
as occupied one according to the principle of reclaiming the same amount of land occupied. Whereas units, which occupy the cultivated
land, are not available with conditions of reclamation of land or the land reclaimed is not up to requirements, the units concerned
shall pay land reclamation fees prescribed by provinces, autonomous regions and municipalities for reclaiming land for cultivation
the land reclaimed.

The people’s governments of all provinces, autonomous regions and municipalities shall formulate plans for reclamation of cultivated
land, see to it that units which occupy cultivated land shall reclaim land as planned or organize the land reclamation according
to plan and examine and accept the land reclaimed.

Article 32

The local people’s governments at and above the county level may demand units which occupy cultivated land to use the topsoil of the
land occupied for use in the newly reclaimed land, poor land or other cultivated land for soil amelioration.

Article 33

People’s governments of all provinces, autonomous regions and municipalities shall strictly implement the general plans for the utilization
of land and annual plan for the use of land, adopt measures to ensure not to reduce the total amount of cultivated land within their
jurisdictions. Whereas reductions occur, the State Council shall order it to organize land reclamation within the prescribed time
limit to make up for the reduced land in the same quantity and quality and the land administrative department of the State Council
shall, together with agricultural administrative department, examine and accept it. Whereas individual provinces and municipalities
find it difficult to reclaim enough land to make up for the land occupied due to scarce reserve resources, the total amount of land
due to be reclaimed in their own regions may be reduced with the approval of the State Council but the rest of land for reclamation
shall be made up for elsewhere.

Article 34

The State fosters the basic farmland protection system. The following cultivated land shall be demarcated as basic farmland protection
areas and subject to stringent control according to the general plans for the utilization of land:

1.

Cultivated land in the grain, cotton and oil-bearing crops production bases approved by the land administrative department of the
State Council or the local people’s governments at and above the county level;

2.

Cultivated land with good water conservancy and water and soil conservation facilities and medium-and low-yielding land where the
execution of amelioration plan is in progress or medium-and low-yielding land that is transformable.

3.

Vegetable production bases;

4.

Experimental plots for research and teaching;

5.

Other cultivated land that shall be designated as basic farmland protection areas as provided for by the State Council.

Areas of basic farmland demarcated by various provinces, autonomous regions and municipalities shall make up over 80% of the cultivated
land within their administrative areas.

Basic farmland protection areas shall be demarcated with township (town) as the unit and the protection of which shall be carried
out by the land administrative departments of the county level people’s governments together with agricultural administrative departments
of the same level.

Article 35

People’s governments at all levels shall take measures to maintain and protect irrigation and drainage facilities, ameliorate the
soil to raise fertility and prevent desertification, salinization, water loss and soil erosion and pollution.

Article 36

Land shall be used sparingly for non-agricultural construction purposes. Whereas wasteland can be used, no cultivated land shall be
occupied; whereas poor land can be used, no good land shall be occupied.

It is forbidden to build kilns, graves or houses on cultivated land or to dig sand, collect stones, do mining and carry soil away
from cultivated land.

It is forbidden to occupy basic farmland to develop horticulture or dig ponds to breed fish.

Article 37

No unit or individual is allowed to let the land idle or go wasted. Whereas a cultivated land which has been occupied for non-agricultural
construction upon approval and can sure start construction within one year is found cultivable and yieldable, it shall be cultivated
by the unit or individual that originally cultivates the land or cultivated by units occupying the land. Whereas construction work
fails to start for over one year, land idling fees shall be paid according to the provisions by various provinces, autonomous region
and municipalities. Whereas construction work fails to start for two successive years, the people’s governments at and above the
county level shall revoke the use right of the land with the approval of the original organ of approval. Whereas the land used to
be owned by farmer collectives, it shall be turned over to original rural collective economic organizations for recultivation.

Idle land that is laying within the urban plan areas and whose use right has been leased for real estate development shall be handled
according to the Urban Property Administration Law of the People’s Republic of China.

Whereas a unit or individual that has contracted for land operation has given up cultivation and allowed the land to go wasted for
two successive years, the original constracting-out party shall terminate the contract and recover the land contracted out for cultivation.

Article 38

The State encourages development of unused land by units or individuals according to the general plans for the utilization of land
and under the precondition of protecting and improving the ecological environment, preventing water loss, soil erosion and desertification.

Land suitable for agricultural use shall have the priority of developing into land for agricultural use.

The State protects the legitimate rights and interests of developers.

Article 39

Reclaiming unused land shall go through scientific argumentation and evaluation and can proceed according to law after approval within
the reclaimable areas demarcated in the general plans for the utilization of land. It is forbidden to destroy forests and grassland
in the process of land reclamation. It is forbidden to carry out landfill of lakes and occupy beachland of rivers.

Whereas reclaimation of a land or rounding up of a land for reclaimation would give harm to ecological environment the land concerned
shall be restored as forerts, pasture fields or lakes step by step and in a planned manner according to the general plans for the
utilization of land.

Article 40

For developing waste hills, land or beachland whose use rights have not been ascertained for crop cultivation, forestry, animal husbandry
or fisheries, the use rights may be given to developers or individuals for long-term use with the approval of the people’s government
at and above the county level according to law.

Article 41

The State encourages land consolidation. People’s governments of counties and townships (towns) shall organize rural collective economic
organizations to carry out comprehensive consolidation of fields, water surface, roads, woods and villages according to the.

general plans for the utilization of land to raise the quality of cultivated land and increase areas for effective cultivation and
improve the agricultural production conditions and ecological environment.

Local people’s governments at all levels shall adopt measures to ameliorate medium-and low-yielding land and consolidate idle and
scattered and abandoned land.

Article 42

Whereas land is damaged due to digging, cave-in and occupation, the units or individuals occupying the land shall be responsible for
reclamation according to the relevant provisions of the State; for lack of ability of reclamation or for failure to meet the required
reclamation, land reclamation fees shall be paid, for use in land reclamation. Land reclaimed shall be first used for agricultural
purposes.

Chapter V Land for Construction Purposes

Article 43

Any unit or individual that need land for construction purposes shall apply for the use of land owned by the State according to law,
except land owned by farmer collectives used by collective economic organizations for building township enterprises or building houses
for villagers or land owned by farmer collectives approved according to law for use in building public facilities or public welfare
facilities of townships (towns).

The term apply for the use of land owned by the State according to law used in the preceding paragraph refers to land owned by the
State and also land originally owned by farmer collectives but having been expropriated by the State.

Article 44

Whereas occupation of land for construction purposes involves the conversion of agricultural land into land for construction purposes,
the examination and approval procedures in this regard shall be required.

For projects of roads, pipelines and large infrastructure approved by the people’s governments of provinces, autonomous regions and
municipalities, land for construction has to be approved by the State Council whereas conversion of agricultural land is involved.

Whereas agricultural land is converted into construction purposes as part of the efforts to implement the general plans for the utilization
of land within the amount of land used for construction purposes as defined in the general plans for cities, villages and market
towns, it shall be approved batch by batch according to the annual plan for the use of land by the organs that approved the original
general plans for the utilization of land. The specific projects within the scope of land approved for conversion shall be approved
by the people’s governments of cities or counties.

Land to be occupied for construction purposes other than those provided for in the second and third paragraphs of this article shall
be approved by the people’s governments of provinces, autonomous region and municipalities whereas conversion of agricultural land
into construction land is involved.

Article 45

The expropriation of the following land shall be approved by the State Council:

1.

Basic farmland;

2.

Land exceeding 35 hectares outside the basic farmland;

3.

Other land exceeding 70 hectares.

Expropriation of land other than prescribed in the preceding paragraph shall be approved by the people’s governments of provinces,
autonomous regions and municipalities and submitted to the State Council for the record.

Expropriation of agricultural land shall first of all go through the examination and approval procedure for converting agricultural
land into land for construction purposes according to the provisions of Article 44 of this law. Whereas conversion of land is approved
by the State Council, the land expropriation examination and approval procedures shall be completed concurrently with the procedures
for converting agricultural land to construction uses and no separate procedures are required. Whereas the conversion of land is
approved by people’s governments of provinces, autonomous regions and municipalities within their terms of reference, land expropriation
examination and approval procedures shall be completed at the same time and no separate procedures are required. Whereas the terms
of reference has been exceeded, separate land expropriation examination and approval procedures shall be completed according to the
provisions of the first paragraph of this article.

Article 46

For expropriation of land by the State the local people’s governments at and above the county level shall make an announcement and
organize the implementation after the approval according to the legal procedures.

Owners or users of the land expropriated shall, within the time limit specified in the announcement, go through the compensation registration
for expropriated land with the land administrative departments of the local people’s governments on the strength of the land certificate.

Article 47

In expropriating land, compensation shall be made according to the original purposes of the land expropriated.

Compensation fees for land expropriated include land compensation fees, resettlement fees and compensation for attachments to or green
crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the expropriation
of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled.
The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land expropriated
by the per capital land occupied of the unit whose land is expropriated. The resettlement fees for each agricultural person to be
resettled shall be 4-6 times the average annual output value of the three years preceding the expropriation of the cultivated land.
But the maximum resettlement fee per hectare of land expropriated shall not exceed 15 ti

NEGOTIABLE INSTRUMENTS LAW OF THE PEOPLE’S REPUBLIC OF CHINA (2004 REVISION)






e00239

Standing Committee of the National People’s Congress

Negotiable Instruments Law of the People’s Republic of China (2004 Revision)

(Adopted at the 13th Session of the Standing Committee of the Eighth National People’s Congress on May 10th, 1995; Revised at the
11th Session of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on August 28th, 2004)

ContentsChapter I General Provisions

Chapter II Drafts

Section 1 Drawing of Drafts

Section 2 Endorsement

Section 3 Acceptance

Section 4 Guarantee

Section 5 Payment

Section 6 Right of Recourse

Chapter III Promissory Notes

Chapter IV Checks

Chapter V Application of Law on Foreign-related Negotiable Instruments

Chapter VI Legal Responsibilities

Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1

The law has been drawn up with a view to standardizing the behavior in the transaction of negotiable instruments, protecting the legitimate
rights and interests of parties involved in the negotiable instruments transaction activities, safeguarding the social and economic
order and promoting the development of the socialist market economy.

Article 2

The law applies to all transaction activities in negotiable instruments within the territory of the People’s Republic of China.

The negotiable instruments as referred in this law include bills of exchange, promissory notes and checks.

Article 3

Activities of negotiable instruments transaction shall abide by law, administrative regulations and decrees￿￿ and shall not in any
way infringe upon the public interests.

Article 4

In drafting negotiable instruments, a drawer shall put his/her signature or seal to the instruments according to the legal conditions
and bear the liabilities for the negotiable instruments in compliance with the items recorded on them.

In exercising the rights associated with the negotiable instruments, a holder shall put his/her signature or seal to the negotiable
instruments according to the legal procedures and present the instruments.

Other debtors who have put their signatures or seals on the negotiable instruments shall assume the obligations in compliance with
the items recorded on them.

The term “rights associated with the negotiable instruments” used in this law refers to the rights of the holder to claim payment
according to the amount specified in the negotiable instruments, including the right of claim and the right of recourse.

The term “obligations associated with the negotiable instruments” used in this law refers to the obligations of the debtor to pay
the amount specified in the negotiable instruments to the holder.

Article 5

Parties to a negotiable instrument may entrust their agents to put their signatures or seals to the instruments and clearly indicate
their agency relationship.

If a negotiable instrument bears the signature or seal in the name of an agent without the power of attorney, the obligations associated
with the negotiable instrument shall be performed by the person or persons who have put the signatures or seals to the negotiable
instrument. If an agent has gone beyond his/her attorneyship, he/she shall perform the obligations associated with the negotiable
instrument on the part that exceeds his/her term of reference.

Article 6

If a negotiable instrument bears the signature or seal of a person who is incapable of civil acts or by a person whose civil acts
have been restricted, the signature or the seal is invalid, but that shall not affect the validity of other signatures and seals
on the same instrument.

Article 7

The signature/seal on a negotiable instrument mean signature or seal, or signature plus seal.

The signature/seal of a legal person and other unit using negotiable instruments shall be the seal of the legal person or unit plus
the signature or seal of their legal representative or their authorized agent.

The signature on a negotiable instrument shall be the true name of the person who signs it.

Article 8

The amount of a negotiable instrument shall be written in both Chinese characters and in numerals and the two shall tally with each
other. The negotiable instruments shall be invalid if the words and figures do not tally.

Article 9

The items recorded in a negotiable instrument shall conform to the provisions of this law. The amount, date and name of the receiver
shall not be altered. If they are altered, the negotiable instrument shall become invalid.

Other matters recorded in a negotiable instrument may be altered by the original recorder and the alteration shall be certified by
a signature or seal put on it by the original recorder.

Article 10

The draft, acquisition and transfer of a negotiable instrument shall follow the principle of authenticity and creditability and be
treated as a real act of trading or debt payment.

A negotiable instrument shall be acquired against a corresponding price, that is, the price acknowledged by both parties to a negotiable
instrument.

Article 11

If a negotiable instrument is obtained free of charge according to law due to taxation, inheritance and donation, it is not restricted
by the corresponding price rule. But the rights to the instrument enjoyed shall not be superior than those enjoyed by the prior holder.

The prior holder refers to a debtor who puts his/her signature or seal to the negotiable instruments before acquired by the present
signer or holder.

Article 12

In the case of obtaining a negotiable instrument by deception, theft or coercion or obtaining a negotiable instrument which has been
knowingly obtained by deception, theft or coercion out of malicious motives, the holder shall not enjoy the rights associated with
the negotiable instruments.

A holder who has obtained the negotiable instruments not conformable to the provisions of this law due to major errors shall not enjoy
the rights associated with the negotiable instruments either,

Article 13

The debtor for a negotiable instrument shall not protest against the holder on the ground of protesting against the drawer or the
prior holder, except when the holder has obtained the negotiable instrument with the clear knowledge of the ground for protest.

The debtor for a negotiable instrument may protest against the holder having direct debtor-creditor relationship with him/her but
refusing to perform his/her agreed obligations.

The term “protest” used in this law refers to the act of the debtor for a negotiable instrument s to refuse to perform obligations
to the creditors according to the provisions of this law.

Article 14

Matters recorded on the negotiable instruments shall be true to the facts. Forging or alteration is not allowed. Those who forge or
alter the signatures or seals or other items recorded on the negotiable instruments shall bear legal responsibilities.

The forged or altered signatures or seals do not affect the validity of the true signatures or seals on the same negotiable instruments.

If any item recorded on the negotiable instruments has been altered, the person who signs the instrument before the alteration shall
be responsible for the matters originally recorded. The person who signs the instruments after the alteration shall be responsible
for the matters recorded after the alterations. If it is impossible to tell whether the signatures or seals are made before or after
the alteration, they are regarded as being made before the alterations.

Article 15

In the case of loss of a negotiable instrument, the person who loses it may timely notify the payer of the negotiable instrument to
refuse payment on the lost instrument, except in the cases in which the payer is not recorded or it is impossible to determine the
payee and the agency payer.

The payer shall suspend payment after receiving the notice for suspending payment due to lost instrument.

Owner of the lost negotiable instrument shall, within three days of issuing the notice for suspending payment due to lost instrument,
or immediately after the negotiable instrument is lost, apply for public summons with the People’s Court or indict with the People’s
Court.

Article 16

The exercising of the rights associated with the negotiable instruments on instrument debtors or the right for the protection of the
negotiable instrument shall be conducted at the business sites and during the business hours of the parties to the negotiable instruments
and, if the parties to the negotiable instruments have no business sites, it shall be conducted in their residences.

Article 17

The rights to the negotiable instruments shall expire if not exercised within the following time limits:

1.

Within two years from the time of the maturity of the negotiable instruments for the right of the holder to the drawer and acceptor,
or, within two years from the date of draft for bills and notes payable at sight;

2.

Within six months from the date of draft for the right of the holder to the drawer;

3.

Within six months from the date of non-acceptance or dishonor for the right of recourse of the holder to the prior holder;

4.

Within three months from the date of liquidation or the date of indictment for the right of re-recourse.

The date of draft and the due date shall be fixed by parties to the negotiable instruments according to law.

Article 18

Holders who have lost the right to the negotiable instruments due to the expiry of the validity period for the exercise of the rights
to the negotiable instruments or due to the inadequacy of the recordings on the negotiable instruments still enjoy the civil rights
and may request the drawers or acceptors to return the interests in equal amount specified in the negotiable instruments unpaid.

Chapter II Drafts

Section 1 Drawing of Drafts

Article 19

A draft is a bill signed by the drawer, requiring the entrusted payer to make unconditional payment in a fixed amount at the sight
of the bill or on a fixed date to the payee or the holder.

Drafts include bank drafts and commercial drafts.

Article 20

The drawing of a draft refers to the act of a drawer to sign and deliver the draft to the payee.

Article 21

The drawer of a draft shall have real authorized payment relations with the payees and have reliable sources of fund to pay the draft
amount.

It is forbidden to sign drafts without corresponding prices for the purpose of acquiring funds from banks or other parties to the
negotiable instrument by deception.

Article 22

A draft shall bear the following items:

1.

Chinese characters denoting “draft”;

2.

Commission on unconditional payment;

3.

The amount of money fixed;

4.

Name of the payer;

5.

Name of the payee;

6.

Date of draft;

7.

Signature of the drawer.

A draft lacking one of the items listed above is invalid.

Article 23

The date of payment, place of payment and place of draft recorded on the draft shall be clear and definite.

If a draft does not bear the date of payment, it is a draft payable at sight.

If a draft does not bear the place of payment, the place of payment shall be the business site or the residence of the payer or the
place where the payer often lives.

If a draft does not bear the place of draft, the place of draft shall be taken as the business site or residence of the drawer or
the place where the drawer often lives.

Article 24

Items other than those provided for by this law may be recorded on a draft, but such items do not have the draft effect.

Article 25

The date of payment may be recorded in one of the following forms:

1.

Payable at sight;

2.

Dated payment;

3.

Payable on a fixed date after draft;

4.

Payable on a fixed date after sight.

The date of payment provided for in the preceding paragraph is the due date of the draft.

Article 26

After signing the draft, the drawer shall bear the responsibility of ensuring the acceptance and payment of the draft. If a drawer
has failed to get the draft accepted or paid, the drawer shall undertake to pay the amount and expenses provided for in Article 70
and Article 71 of this law.

Section 2 Endorsement

Article 27

The holder of a draft may transfer the rights associated with the draft or authorize others to exercise some of the rights.

If the drawer writes the Chinese characters meaning “Not Transferable” on a draft, the draft shall not be transferred.

In exercising the rights provided for in the first paragraph, the holder shall endorse it and deliver the draft.

“Endorsement” refers to the recording of items concerned on the backside of a draft or on the allonge to the draft with a signature
or seal put to the record.

Article 28

If the draft instrument has not enough space to satisfy the needs of writing, an allonge may be attached.

The first person who writes on the allonge shall put his/her signature or seal to the sticking line of the allonge.

Article 29

An endorsement shall be signed by the endorser, with the date of endorsement.

An endorsement without date shall be regarded as an endorsement before the due date.

Article 30

If a draft is endorsed over to another person entirely or in part, the draft shall bear the name of the endorser.

Article 31

In endorsing over a draft to others, the endorsement shall be in uninterrupted series. The holder shall prove the rights associated
with the draft by an uninterrupted series of endorsement. If a draft is not endorsed over to another person, the holder shall put
to the proof the right on the draft according to law.

The term “uninterrupted series” used in the preceding paragraph refers to the sequential consistency in the signatures or seals by
the endorser and the endorsee in the transfer of negotiable instruments.

Article 32

In endorsing a draft to others, the subsequent endorser shall be responsible for the authenticity of the endorsement by the immediate
prior endorser.

The subsequent endorser refers to the other debtors involved in the draft signed after the signer of the draft.

Article 33

An endorsement shall not have conditions attached, If an endorsement has conditions attached, the conditions do not have the effect
on the draft.

The endorsement which transfers part or the entire amount on the draft to two or more persons is invalid.

Article 34

If an endorser writes the words “Not Transferable” on a draft and the draft is transferred by the subsequent endorser, the original
endorser shall not bear the liability of guarantee to the subsequent endorsee.

Article 35

If an endorsement bears the word “Collection”, the endorsee has the right to exercise the rights to the draft commissioned on behalf
of the endorser. But the endorsee shall not re-endorse over a draft to others.

A draft may be mortgaged. In mortgaging a draft, the word “Hypothecation” shall be written in the form of endorsement. When having
acquired the hypothecation according to law, the endorsee may exercise the rights to the draft.

Article 36

A draft shall not be endorsed over to others when it has been refused to pay or accepted or the time of payment as indicated is overdue.
If such a draft is endorsed over to others, the endorser shall bear the liability of the draft.

Article 37

After an endorser has endorsed over a draft to others, the endorser shall be liable to ensure the draft in the hands of the subsequent
holder are accepted or paid. If an endorser cannot get the draft accepted or paid, the endorser shall undertake to claim payment
in the amount of the draft plus expenses from the holder as provided in Article 70 and Article 71 of this law.

Section 3 Acceptance

Article 38

Acceptance refers to a promise of a draft payer to pay the actual amount of draft when the draft is due.

Article 39

For a draft payable on a fixed date or on a fixed date set after the date of draft, the holder shall make presentation for acceptance
to the payer before the due date of draft.

Presentation for acceptance refers to the act of the holder to present the draft and demand for the pledge of the payer to pay.

Article 40

For a draft payable on a fixed date after sight, the holder shall present it for acceptance to the payer within one month starting
from the date of draft.

If a holder has failed to make presentation for acceptance according to the prescribed time limit, that holder shall lose the right
of recourse against the prior holder.

No presentation for acceptance is necessary for a draft payable at sight.

Article 41

A payer shall accept or refuse to accept a draft for which the presentation for acceptance has been made within three days after receiving
the draft for which presentation for acceptance is made.

After receiving the draft for which presentation for acceptance is made, the payer shall sign an acknowledgment for receiving the
draft. The acknowledgment shall specify the date of the presentation for acceptance and shall be signed.

Article 42

In accepting a draft, the payer shall write “Accepted” across the face of the draft and the date of acceptance and fix the seal. For
a draft payable on a fixed date after sight, the date of payment shall be recorded in acceptance.

If no date of acceptance is recorded on a draft, the last day of the time limit prescribed in the first paragraph of the preceding
article shall be taken as the date of acceptance.

Article 43

There shall be no conditions attached in accepting a draft. If there are conditions attached in acceptance, it shall be regarded as
refusal of acceptance.

Article 44

After accepting a draft, the payer shall be liable to pay when the draft is due.

Section 4 Guarantee

Article 45

A guarantor shall undertake the liabilities of guaranty for the debt involved in the draft. A guarantor shall be some person other
than the debtor of the draft.

Article 46

A guarantor shall record the following items on the draft or allonge:

1.

The word “Guarantee”;

2.

Name and residence of the guarantor;

3.

Name of the guaranteed party;

4.

Signature or seal of the guarantor.

Article 47

If a guarantor has failed to record item 3 of the preceding article on the draft or allonge, the acceptor shall be the guaranteed
party of the accepted draft; and the drawer shall be the guaranteed party for the draft not accepted.

If the guarantor has failed to record item 4 of the preceding article, the date of draft shall be the date of guaranty.

Article 48

A guarantor shall guarantee that there are no conditions attached. If conditions have been attached, they shall not affect the liability
of guaranty for the draft.

Article 49

A guarantor shall undertake the liability of guaranty for the right to the draft enjoyed by the holder who has acquired the draft
according to law, except cases when the debt guaranteed has become invalid due to inadequate recording in the draft.

Article 50

A guarantor shall undertake several liability together with the guaranteed for the draft under guarantee. If the draft is not paid
when due, the holder has the right to demand the guarantor for payment and the guarantor shall pay the full amount.

Article 51

If there are two or more guarantors, the guarantors shall undertake a joint and several liability.

Article 52

After the draft debt is cleared, the guarantor may exercise the right of recourse of the holder against the guaranteed and the prior
holder.

Section 5 Payment

Article 53

A holder of a draft shall make presentation for payment according to the following time limits:

1.

Presentation for payment shall be made to the payer within one month starting from the date of draft for a draft payable at sight;

2.

Presentation for payment shall be made to the acceptor within 10 days starting from the due date for a draft payable on a fixed date
or on a fixed date after the date of draft or on a fixed date after sight.

When the holder has failed to make presentation for payment within the time limited prescribed in the preceding paragraph and some
explanations are made, the acceptor or payer shall continue to undertake the liability of payment to the holder.

If the presentation for payment is made through banks entrusted with collection or through negotiable instruments exchange system,
it shall be regarded as presentation for payment made by the holder.

Article 54

If a holder presents for payment according to the provisions of the preceding article, the payer shall pay in the full amount of the
draft on the same day.

Article 55

If a holder has got the payment, the holder shall sign the draft and hand the draft to the payer. If a holder has entrusted a bank
for the collection, the bank entrusted shall enter into the account of the holder the amount of the draft collected and that shall
be regarded as signed and accepted.

Article 56

The liabilities of a bank entrusted with collection by the holder are confined to transferring of the amount of the draft into the
account of the holder according to the recordings on the draft.

Article 57

In making out payments, the payer or its entrusted payer shall examine the consistency of the endorsement and check the legal identification
or valid documents of the person who makes presentation for payment.

If a payer or its entrusted payer makes the payment out of malicious motives or out of major blunder, the payer or its entrusted payer
shall bear the liabilities on their own.

Article 58

If a payer makes the payment before the due date for draft payable on a fixed date or on a fixed date after the date of draft or on
a fixed date after sight, the payer shall bear the responsibilities arising there from on his own.

Article 59

If the draft amount is specified in foreign currency, the payment shall be made in Renminbi according to the market exchange rate
quoted on the day of payment.

If the parties to a draft have agreements concerning the currencies for payment, the provisions of the agreement shall apply.

Article 60

After the payer has paid the draft amount in full, the liabilities of all debts shall be relieved.

Section 6 Right of Recourse

Article 61

Upon a refusal of payment to a draft, the holder may exercise the right of recourse against the endorser, drawer or other debtors
of the draft.

The holder may also exercise the right of recourse before the due day of a draft in one of the following cases:

1.

The acceptance of a draft is refused;

2.

The acceptor or payer has died or fled, or is living in hiding;

3.

The acceptor or payer has been declared bankrupt according to law or whose business operations have been suspended due to violations
of the law.

Article 62

In exercising the right of recourse, the holder shall provide the certificates relating to the refusal of acceptance or dishonor.

In refusing the presentation for acceptance or for payment by the holder, the acceptor or payer shall produce certificates of dishonor
or the statement on the ground for protest. If the acceptor or payer has failed to produce the certificate of dishonor or the statement
on the ground for protest, the acceptor or payer shall bear all the civil responsibilities arising therefrom.

Article 63

If no certificate of dishonor can be obtained due to the death, flee or hiding of the acceptor or payer or other reasons, other related
certificates may be obtained according to law.

Article 64

If an acceptor or a payer has been declared bankrupt by the people’s court according to law, the related judicial documents of the
people’s court have the effect of certifying the dishonor.

If an acceptor or a payer whose business operations have been suspended due to law violations, the related decisions on punishment
by related administrative department in charge have the effect of certifying the dishonor.

Article 65

If a holder is unable to present certificates of dishonor, the statement on the ground for protest or provide other legal certificates
within the prescribed time limit, the holder shall lose the right of recourse against the prior holder. But the acceptor or payer
shall continue to undertake the liabilities to the holder.

Article 66

A holder shall, within three days starting from the date of receiving the certificates relating to refusal of acceptance or dishonor,
notify in writing the prior holder of the dishonor. The prior holder shall, within three days of receiving the notice, notify in
writing the still preceding prior holder of the dishonor. The holder may also issue written notices to all the debtors of the draft
all the same time.

The holder may continue to exercise the right of recourse even if notification is not made within the time limit prescribed in the
preceding paragraph. If the holder has delayed the notification to the prior holder or drawer and caused losses thereby, the parties
that have failed to make the notification within the prescribed time limit shall be liable to compensate for the losses, with the
amount of compensation being the draft amount.

If the notice has been sent out according to the legal address or the addresses agreed upon within the prescribed time limit, the
notification is regarded as having been issued.

Article 67

The written notice served according to the provisions of the first paragraph of the preceding article shall contain the main recordings
of the draft and clearly indicates that the draft has been dishonored.

Article 68

The drawer, endorser, acceptor and guarantor shall bear a joint and several liability with regard to the holder.

A holder may exercise the right of recourse against one person or several persons or all the draft debtors in disregard of the sequential
order of the debtors.

After a holder has exercised the right of recourse against one person or several persons involving in the draft, the holder may also
exercise the right of recourse over others involved in the draft. The person against whom the right of recourse has been exercised
will enjoy the same right as the holder after the debt has been cleared.

Article 69

In the case in which the holder is the drawer, the holder has no right of recourse to the prior holder. In the case in which the holder
is the endorser, the holder has no right of recourse against the subsequent holders.

Article 70

In exercising the right of recourse, the holder may request the person subject to recourse to pay the following money and expenses:

1.

The amount of the draft dishonored;

2.

The interests calculated according to the rate fixed by the People’s Bank of China on the draft amount from the due date or the date
of presentation for payment to the date of liquidation.

3.

The expenses incurred in obtaining the related certificates of dishonor and the issuing of notification.

When the person subject to recourse is clearing his debt, the holder shall deliver the draft and related certificates of dishonor
and produce the receipts for the interests and expenses received.

Article 71

After debt clearance according to the provisions of the preceding article, the person against whom the right of recourse has been
exercised may exercise the right of re-recourse against other draft debtors and request other debtors to pay the following amount
and expenses:

1.

The complete amount cleared;

2.

The interests on the amount cleared, calculated according to the rate fixed by the People’s Bank of China from the date of liquidation
to the date of liquidation for re-recourse.

3.

Expenses on issuing notifications.

When the person who exercises the right of re-recourse is getting paid, that person shall deliver the draft and related certificates
of dishonor and produce the receipts for the interests and expenses received.

Article 72

The liabilities of the person against whom the right of recourse shall be relieved after the debt has been liquidated according to
the provisions of the preceding two articles.

Chapter III Promissory Notes

Article 73

A promissory note is an instrument written and issued by a drawer, promising to pay unconditionally a fixed amount of money to a payee
or holder at the sight of the instrument.

The term “promissory note” used in this law refers to the bank note.

Article 74

The drawer of a promissory note shall have a reliable source of funds for paying the amount of the promissory note and ensure payment.

Article 75

A promissory note shall record the following items:

1.

The characters indicating “Promissory Note”,

2.

Unconditional promise to pay;

3.

Amount of money fixed;

4.

Name of the payee;

5.

Date of issue;

6.

Signature of the drawer.

A promissory note is invalid if one of the above items is missing.

Article 76

The place of payment, the place of issue and other items recorded on the promissory note shall be clear and definite.

If the instrument does not bear the place of payment, the business site of the issuer shall be taken as the place of payment.

If the instrument does not bear the place of issue, the business site of the issuer shall be taken as the place of issue.

Article 77

When the holder of a promissory note presents the instrument, the drawer shall be liable to pay.

Article 78

The maximum time limit of payment shall not exceed two months starting from the date of draft.

Article 79

If a holder has failed to present the instrument according to the prescribed time limit, the holder shall lose the right of recourse
against the prior holders other than the drawer.

Article 80

The provisions on related draft in Chapter Two of this law shall apply with regard to the acts of endorsement, guaranty and payment
and the exercise of the right of recourse, except otherwise provided for in this chapter.

The provisions on related draft in Article 24 of this law shall apply with regard to the act of draft, except otherwise provided
for in this chapter.

Chapter IV Checks

Article 81

A check is an instrument issued by a drawer, at the sight of which the check deposit bank or other financial institutions unconditionally
pay the fixed amount to the payee or holder.

Article 82

In opening a check deposit account, an applicant shall use the true name and present the legal document that certifies his/her identification.

In opening a check deposit account and using checks, there must be a reliable creditability and a certain amount of money deposited
in the bank.

In opening a check deposit account, an applicant shall leave samples of the signature or seal in the true name of the applicant.

Article 83

A check can be cashed or transferred into other accounts. For account transfer, a clear indication shall be made across the fac

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON ACADEMIC DEGREE

Standing Committee of the National People’s Congress

Regulations of the People’s Republic of China on Academic Degrees(2004)

(Adopted at the 13th Meeting of the Standing Committee of the Fifth National People’s Congress and promulgated by Order No. 5 of the
Standing Committee of the National People’s Congress on February 12th, 1980, and effective as of January 1st, 1981. Amended at the
11th Session of the Standing Committee of the Tenth National People’s Congress on August 28th, 2004)

Article 1

The present Regulations are formulated with a view to promoting the growth of specialized personnel, helping to raise the academic
level of various branches of learning and promoting the development of education and science of China, so as to meet the needs of
the socialist modernization.

Article 2

Any citizen who supports the leadership of the Communist Party of China and the socialist system and has attained certain academic
standards may apply for an appropriate academic degree in conformity with the provisions of the present Regulations.

Article 3

Academic degrees shall be of three grades: the bachelor’s degree, the master’s degree and the doctor’s degree.

Article 4

The bachelor’s degree shall be conferred on graduates from institutions of higher learning who have good academic records and have
attained the following academic standards:

(1)

having a relatively good grasp of basic theories, specialized knowledge and basic skills in the discipline concerned; and

(2)

having initially acquired the ability to undertake scientific research or to engage in a special technical work.

Article 5

The master’s degree shall be conferred on postgraduates in institutions of higher learning or scientific research institutes or persons
with qualifications equivalent to postgraduates on graduation, who have passed examinations in the required courses for the master’s
degree and successfully defended their dissertations and have attained the following academic standards:

(1)

having a firm grasp of basic theories and systematic, specialized knowledge in the discipline concerned; and

(2)

having the ability to undertake scientific research or independently to engage in a special technical work.

Article 6

The doctor’s degree shall be conferred on postgraduates in institutions of higher learning or scientific research institutes or persons
with qualifications equivalent to postgraduates on graduation, who have passed examinations in the required courses for the doctor’s
degree and successfully defended their dissertations and have attained the following academic standards:

(1)

having a firm and comprehensive grasp of basic theories and profound and systematic specialized knowledge in the discipline concerned;

(2)

having the ability to undertake independent scientific research; and

(3)

having made creative achievements in science or in a special technology.

Article 7

The State Council shall establish an Academic Degrees Committee to direct the work of conferring academic degrees throughout the country.
The Academic Degrees Committee shall consist of a chairman, vice-chairmen and other members. The chairman, vice-chairmen and other
members shall be appointed and removed by the State Council.

Article 8

The bachelor’s degree shall be conferred by those institutions of higher learning authorized by the State Council. The master’s and
doctor’s degrees shall be conferred by those institutions of higher learning and scientific research institutes authorized by the
State Council.

A list of institutions of higher learning and scientific research institutes that may confer academic degrees (hereinafter referred
to as ” degree-conferring entities ” ) and the disciplines in which academic degrees may be conferred shall be submitted to the State
Council by its Academic Degrees Committee for approval and promulgation.

Article 9

Each degree-conferring entity shall establish an academic degree evaluation committee and form dissertation defence committees for
the disciplines concerned.

A dissertation defense committee must include relevant experts from other entities, and the committee members shall be selected and
determined by the degree-conferring entity concerned. The name list of the members of the academic degree evaluation committee shall
be determined by the degree-conferring entity, and shall be reported to and put on records at the relevant departments of the State
Council and the Academic Degrees Committee of the State Council.

Article 10

The dissertation defence committee shall be responsible for examining the dissertations for master’s or doctor’s degrees, organizing
their oral defence and adopting resolutions whether or not to confer the master’s or doctor’s degrees. Each resolution shall be adopted
by secret ballot and with a two-thirds majority of the committee members supporting and then submitted to the academic degree evaluation
committee.

The academic degree evaluation committee shall be responsible for examining and approving the list of holders of the bachelor’s degree
and for making a decision whether or not to approve each resolution on the conferment of a master’s or doctor’s degree submitted
by the dissertation defence committee. Each decision shall be adopted by secret ballot and with a simple majority of the committee
members supporting. The list of persons to be conferred a master’s or doctor’s degree shall be submitted to the Academic Degrees
Committee of the State Council for the record.

Article 11

After a resolution to confer an academic degree has been adopted by the academic degree evaluation committee, the degree-conferring
entity shall issue an appropriate diploma to the holder of the academic degree.

Article 12

Postgraduates who have completed their studies in entities that are not authorized to confer academic degrees may, upon the recommendation
of their respective entities, apply to nearby degree-conferring entities for academic degrees. They shall be conferred appropriate
degrees after their applications have been examined and approved by the degree-conferring entities and they have successfully defended
their dissertations and attained the academic standards prescribed in the present Regulations.

Article 13

Upon the recommendation of relevant specialists and with the approval of the degree-conferring entities, those who have written important
works or made inventions, discoveries or other contributions to the development of science or special technologies may be exempt
from examinations in the required courses for the doctor’s degree and may directly take the oral examinations on their doctoral dissertations.
Those who have successfully defended their dissertations shall be conferred the doctor’s degree.

Article 14

Distinguished scholars and well-known public figures, both Chinese and foreign, may be conferred an honorary doctor’s degree, upon
the nomination of a degree-conferring entity and with the approval of the Academic Degrees Committee of the State Council.

Article 15

Foreign students studying in China and foreign scholars engaged in research work in China may apply to a degree-conferring entity
for academic degrees. Those who have attained the academic standards prescribed in the present Regulations shall be conferred appropriate
degrees.

Article 16

In case an academic body or an entity not authorized to confer academic degrees does not concur with a resolution or decision on the
conferment of an academic degree, it may address its objection to the degree-conferring entity or the Academic Degrees Committee
of the State Council, which shall study and deal with the objection thus addressed.

Article 17

Where irregularities, fraudulent practices or other situations in gross violation of the provisions of the present Regulations are
discovered, the degree-conferring entity concerned may revoke the degrees already conferred, after reconsideration by its academic
degree evaluation committee.

Article 18

In case it is definitely established that an entity authorized to confer academic degrees has not been able to maintain the academic
standards of the academic degrees conferred, the State Council may suspend or revoke its status as a degree-conferring entity.

Article 19

Measures for the implementation of the present Regulations shall be formulated by the Academic Degrees Committee of the State Council
and submitted to the State Council for approval.

Article 20

The present Regulations shall be implemented on January 1st, 1981.

 
Standing Committee of the National People’s Congress
2004-08-28

 




SEED LAW OF THE PEOPLE’S REPUBLIC OF CHINA (2004 REVISION)

e01613

Standing Committee of the National People’s Congress

Seed Law of the People’s Republic of China (2004 Revision)

(Adopted at the 16th Session of the Standing Committee of the Ninth National People’s Congress on July 8th, 2000; Revised at the 11th
Session of the Standing Committee of the Tenth National People’s Congress on August 28th, 2004)

ContentsChapter 1 General Provisions

Chapter 2 The Protection of Seed Resources

Chapter 3 The Selection, Cultivation, Examination and Approval of Seed

Chapter 4 The Production of Seed

Chapter 5 The Business Operation of Seed

Chapter 6 The Usage of Seed

Chapter 7 The Quality of Seed

Chapter 8 The Import, Export of and Foreign Cooperation on Seed

Chapter 9 The Administrative Management of Seed

Chapter 10 Legal Liabilities

Chapter 11 Supplementary Provisions

Chapter 1 General Provisions

Article 1

The present law is enacted with a view to making reasonable use of seed resources; controlling the selection, production, business
operation and use of seed; protect the legal rights of the producers, business operators and users of seed; promoting seed quality;
boosting the industrialization process of seed; and accelerating the development of the planting and forestry industries.

Article 2

This law shall apply to the breeding, selection, production, business operation, usage, management of seed and other activities in
China.

The term “seed” in this Law means the materials of crops and forest trees used for planting or propagation, including seed grains,
fruits, roots, stems, seedlings, buds and leaves, etc.

Article 3

The administrative departments in charge of agriculture and forestry under the State Council are respectively in charge of the work
of crop seed and forest tree seed in China. The local crop administrative departments and forestry administrative departments above
the county level should respectively take charge of the work of crop seed and forest tree seed within their respective administrative
region.

Article 4

The State supports the protection of seed resources, the breeding, production, rebirth and popularization of quality seeds. The state
encourages the combination of seed breeding and seed production, and both encourages and rewards persons and entities that have good
performance in the work of seed resource protection, quality seed selection, breeding, popularization, etc.

Article 5

The People’s government above the county level shall make development plans according to the guidelines of strengthening agriculture
through science and education and to the requirements for the development of the planting and forestry industries, and should adopt
some methods of finance, credit and revenue to ensure the implementation of the plans.

Article 6

Special funds shall be set up by the State Council and the People’s governments of the provinces, autonomous regions, municipalities
directly under the State Council to support the selection, breeding and popularization of quality seed. Specific measures shall be
formulated by the State Council.

Article 7

The State shall establish a seed reserve system to meet the demand of production in case of disasters and to ensure the safety of
agricultural production. The reserved seed shall be checked and replaced on a regular basis. Specific measures for seed reserves
shall be formulated by the State Council.

Chapter 2 The Protection of Seed Resources

Article 8

The State protects seed resources according to law. No individual or entity may usurp on or destroy the seed resources. Wild seed
resources are also subject to the special protection of the State and shall be prohibited from collection or felling. In special
cases such as scientific research where collection or felling is necessary, the collection or felling shall be subject to the approval
of the administrative departments of agriculture and forestry under the State Council or the People’s Governments of the provinces,
autonomous regions, municipalities directly under the State Council.

Article 9

The State shall collect, sort out, appraise, record, preserve, exchange and utilize seed resources in a planned way, and regularly
release the catalog of available seed resources. The administrative departments of agriculture and forestry under the State Council
shall provide detailed measures for the above listed activities.

The administrative departments of agriculture and forestry under the State Council should establish a state seed resources database,
and the administrative departments of agriculture and forestry under the People’s Governments of the provinces, municipalities and
cities directly under the State Council may, where necessary, establish seed resources databases and protection areas according to
actual needs.

Article 10

The State has sovereignty over the seed resources. The supplying by any individual or entity of seed resources to foreign countries
shall be subject to the approval of the administrative departments of agriculture and forestry under the State Council. The introduction
of foreign seed resources into China should be handled according to the relevant stipulations of the administrative departments of
agriculture and forestry under the State Council.

Chapter 3 The Selection, Cultivation, Examination and Approval of Seed

Article 11

The administrative departments of agriculture, forestry, science and technology, education, etc., under the State Council and the
People’s Governments of the provinces, autonomous regions, and municipalities directly under the Central Government, shall organize
relevant entities to carry out the research of seed selection and of the techniques and methods of seed selection.

The State encourages and supports entities and individuals to breed and develop quality seed.

Article 12

The State shall establish a new plant species protection system. The system will grant the rights of a new species to those cultured
or to those species discovered in the wilderness that have not yet been cultivated or developed and that are characterized by novelty,
uniqueness, consistency and stability. The new plant species protection system will protect the lawful rights and interests of the
holder. Specific measures shall be subject to the relevant provisions of the State. If the selected species has been widely disseminated,
the breeder shall be enpost_titled to obtain corresponding economic profits according to law.

Article 13

If an individual or an entity’s income has decreased because of the establishment of forests for test or experiment purposes, or the
establishment of areas for the collection of quality saplings, or the establishment of gene bases with the approval of the administrative
departments of forestry, the administrative departments that has given such approvals shall give economic compensation to the individual
or entity according to related stipulations.

Article 14

A safety assessment should be carried out for the selection, breeding, test, examination and popularization of trans-genetic plant
species, and safety measures shall be adopted strictly. The State Council shall determine the details.

Article 15

Main crop or tree species shall pass the safety examination and be approved at the national or provincial level before popularization.
An applicant can directly apply for the examination and approval of either level. Those main crop and tree species as determined
by the administrative departments of agriculture and forestry under the People’s Government of provinces, autonomous regions and
municipalities directly under the Central Government shall be examined and approved by the corresponding provincial department.

The methods for the examination and approval of main crop species and tree species shall embody the rule of equity, openness, science
and efficiency. Such measures shall be formulated by the administrative departments of agriculture and forestry under the State Council.

The administrative departments of agriculture and forestry under the State Council and the People’s Governments of provinces, autonomous
regions and municipalities directly under the Central Government shall respectively establish a committee for the examination and
approval of crop and tree Species to take on the examination and approval of main crop and forestry species. The committee shall
be comprised of professional experts in these fields.

In regions with an ecological diversity, the administrative departments of agriculture and forestry for provinces, autonomous regions
and municipalities directly under the Central Government may entrust a city or an autonomous prefecture with districts under them
to administer the examinations of and the approvals for the main crop and tree species suitable for popularization within specific
ecological regions.

Article 16

The lists of main quality crop varieties and tree seeds and saplings that have passed the national-level examination and have been
approved shall be distributed by the administrative departments of agriculture and forestry under the State Council, and the seeds
or saplings on the list may be popularized throughout the country. A list of those seeds and saplings that have passed provincial
examinations and have been approved may be distributed by the administrative departments under the People’s Government of a province,
an autonomous region or a municipality directly under the Central Government, and the seeds or saplings listed may be popularized
in the specified ecological region. Similar ecological regions in nearby provinces, autonomous regions or municipalities directly
under the Central Government may introduce seed approved in other regions into their own only after the approval of the administrative
departments of agriculture and forestry under the People’s Government of a province, an autonomous region or a municipality directly
under the Central Government.

Article 17

The crop species that do not pass the examination and approval cannot be released, transferred or popularized.

Tree species that fail to pass the examination or to obtain approval cannot be regarded as quality seeds to use and popularize, but
if there is necessity to use them for production, they shall be subject to the verification of the Tree Species Examination and Approval
Committee.

Article 18

If the applicant objects to the result of the examination and approval process for a particular crop variety, she/he can ask for the
original Examination and Approval Committee or the Committee of a higher level to re-examine that variety.

Article 19

Where foreign individuals, businesses or organizations with no regular abode or business place in China apply for the examination
and approval of seeds, they shall entrust the matter to Chinese institutions with legal qualifications engaged in scientific research,
production and operation in seeds.

Chapter 4 Seed Production

Article 20

A permission-based system shall be put into practice for commercial seed production of crop and tree varieties.

The licenses for the production of crossbreed seed and parent seed of main crops, original seed of conventional strains and the seed
of main improved tree varieties shall be issued by the People’s Government administrative departments of agriculture and forestry
of provinces, autonomous regions and municipalities directly under the Central Government. They shall be issued only after they have
been examined and approved by the administrative departments of agriculture and forestry under the local People’s Government at the
county level. The production licenses for other seeds shall be issued by the administrative departments of agriculture and forestry
under the local People’s Government at the county level or above.

Article 21

Entities applying for the seed-production license shall possess the following qualifications

(1)

Possessing the isolation and cultivation conditions required for seed propagation;

(2)

Possessing a site for seed-production free of quarantined plant diseases and insect pests or a seed-collection forest approved by
forestry administrative department under the People’s Government above the county level;

(3)

Possessing enough capital and facilities to produce and test the seed;

(4)

Possessing professional technicians for seed production and test;

(5)

Complying with other conditions stipulated by laws and regulations.

To apply for a license for the production of seeds with the rights of new plant variety, consent in written form must be sought from
the entity owning the seed rights.

Article 22

The seed-production license must indicate seed species, production place, and valid period, and other details regarding the seed variety
and production location.

It is forbidden to counterfeit, alter, buy or lease a seed-production license, and it is also forbidden for any entity or individual
to carry out seed production without a license or against the stipulations under the license.

Article 23

The production of commercial seeds shall follow the technical procedures for seed production and the procedures for seed test and
quarantine.

Article 24

The collection of seeds at the production site shall be organized by the operator of the site, and it shall be carried out according
to related national standards.

It is forbidden to pick immature seed, damage the parent trees, and to collect seeds from inferior quality forests or trees.

Article 25

The producer must record and file a record of the details of his/her commercial seed production. The record shall indicate the production
place, environmental conditions, original crop, parent seed resources, persons in charge of quality and technology, field-check record,
the weather record of production place, and seed distribution etc.

Chapter 5 Seed Operation

Article 26

A license system shall be carried out for seed operation. The seed operator must first obtain a seed-operation license before applying
for the transaction or modification of an operating license to the administrative office of industry and commerce.

A multi-level system of examination, approval and granting for the seed-operation license shall be put into practice at every level.
The administrative departments of agriculture and forestry under the local People’s Governments above the county level issue and
examine the seed-operation license. The administrative departments of agriculture and forestry of the local People’s Government of
the county level shall audit the seed-operation license of main crossbreed crop seeds, parent seeds, seeds of normal resources, and
the seeds of main improved tree species. The administrative departments of agriculture and forestry of the People’s Government of
provinces, autonomous regions and municipalities directly under the Central Government shall check and grant the license. The seed-operation
licenses for seed companies that combine seed selection, cultivation, production and operation and import/export companies, whose
registered capital meets the requirements stipulated by the administrative department of agriculture and forestry under the State
Council, shall be examined by the of agriculture and forestry under the People’s Governments of provinces, autonomous regions and
municipalities directly under the Central Government, and shall be granted by the administrative department of agriculture and forestry
under the State Council.

Article 27

The residual ordinary seeds that have been bred and used by farmers can be sold and exchanged on the market without any operating
license, and the People’s Government of provinces, autonomous regions and municipalities directly under the Central Government shall
formulate administrative measures.

Article 28

The State encourages and supports scientific research entities, schools and technicians to research on and legally develop, deal in
and popularize the new varieties of crops and improved forest varieties.

Article 29

The entity or individual applying for the seed-operation license shall possess the following qualifications

(1)

Having the capital consistent with the species and quantity of the seeds that they deal in, and can independently assume the civil
responsibilities;

(2)

Having the personnel that can correctly identify the seeds that they deal in, check the seed quality, and master the technologies
for the storage and protection of seeds;

(3)

Having the business place that is suitable for the variety and quantity of the seeds they deal in, the facilities for the processing,
packing and storage of the seeds, and the device to check the quality of the seeds, and

(4)

Other conditions stipulated by laws and regulations.

For the seeds operators who only deal in those seeds for which no further sub-package is needed, or for the distributors entrusted
in written form by those seeds operators who possess the seed-operation license, they need not transact a seed-operation license.

Article 30

The valid area for a seeds operation license shall be determined by the department that has granted it within its domination. The
seed operator can establish branches according to the valid area stipulated by the seed-operation license and need not obtain any
further licenses. But they shall file a record to the local administrative departments of agriculture and forestry and the original
license-granting office within 15 days after they have transacted or modified the operation license.

Article 31

The seed-operation license must indicate the business scope, operation method, valid area and valid period for the seed operation.

It is forbidden to counterfeit, change, buy or borrow the seed-operation license, and it is forbidden for any entity or individual
with no license or without complying with the stipulations of the license to deal in seeds.

Article 32

The seed operator shall comply with related stipulations of laws and regulations to provide the seed users with the characteristics,
the main instructions for the planting, the conditions for the usage of the seeds and related consultancy services, and shall be
responsible for the seed quality.

No entity or individual is allowed to interfere with the independent operation rights of the seed operator.

Article 33

No one is permitted purchase the seeds of rare trees and the forest seeds subject to restricted purchase by the People’s Government
of the corresponding level without the approval of the competent administrative department of forests of the People’s Governments
of the provinces, autonomous regions, and municipalities directly under the Central Government.

Article 34

The seeds to be sold shall be processed, classified and packed, except for those that cannot be processed or packed.

The big-package seeds or the imported seeds may be divided into smaller packages, but the entity to carry this task must be marked
clearly and it shall be fully responsible for the seed quality.

Article 35

The seeds to be sold shall be attached with a label indicating seed type, variety, name, production place, quality indicators, quarantine
certificate number, license number of seed production and operation, or document number for import examination and approval, etc.
The contents of the label shall be consistent with the seed to be sold.

For the sale of imported seeds, a Chinese label must be attached.

For the sale of trans-genetic plant seeds, it must be marked with obvious written language and provided with safety control measures
as well.

Article 36

The seed operator must establish files for seed operation, indicating brief content on the sources, processing, storage, transportation
and quality check of the seed, and the persons responsible and where the seed will be sold.

The operation documents of annual crop seeds shall be kept for two years after the sale, while the administrative departments of agriculture
and forestry under the State Council shall stipulate the archival period of the operation documents for perennial crop seeds and
tree seeds.

Article 37

The contents of seed advertisements shall be consistent with this law and other laws and regulations related to advertising, and the
description of the main characteristics shall be in line with the examined and approved bulletin.

Article 38

The seeds to be transferred or mailed out of a county shall be attached with a quarantine certificate.

Chapter 6 The Usage of Seed

Article 39

The seed user having the right to buy seeds fully of his/her own free will, and no entity or individual is allowed to interfere illegally.

Article 40

The forestation project mainly or fully invested by the State or the forestation project carried out by a state forestry entity shall
use the improved forest variety according to the plan formulated by the administrative department of forestry.

The State shall support the forestation of shelterbelt using improved forest variety and other forestation projects with special usage.

Article 41

If a seed user suffers loss because of the seed quality, the seed supplier shall compensate for it, and the compensation shall include
the money for the purchase of the seeds, related expenses and the loss of attainable profits.

After the operator compensates for the buyer’s loss, the operator has the right, if the seed user’s loss has been caused by the seed
producer or other operators, to claim for the compensation from the seed producer or other operators.

Article 42

If a civil dispute is caused by seed usage, the parties can come to agreement by negotiation or intermediation. If one of the parties
is reluctant to resolve the dispute by above methods or the dispute cannot come to agreement, the party can apply for arbitration
to the arbitration organizations. The party can also directly go to the People’s Court.

Chapter 7 Seed Quality

Article 43

The administrative departments of agriculture and forestry under the State Council shall stipulate the industry standards and quality
management methods of seed production, processing, package, check and storage.

The administrative department of agriculture and forestry shall be in charge of the supervision of the seed quality.

Article 44

The administrative department of agriculture and forestry can entrust a quality test unit to check the seed quality.

The seed quality test institution shall possess corresponding test conditions and abilities and pass the examination of related administrative
departments under the People’s Government above the provincial level.

Article 45

The institutions for the test of seed quality shall be equipped with qualified seed inspectors who shall have the following qualifications

(1)

Graduating from a technical secondary school, majoring in a related subject;

(2)

Having engaged in the work of seed quality test for more than three years;

(3)

Having passed the examination of the administrative departments of agriculture and forestry under the People’s Government above the
provincial level.

Article 46

It is forbidden to produce or deal in false or inferior quality seeds. False seed includes the following

(1)

Use non-seed to imitate seed or use a kind of seed to imitate another kind of seed; and

(2)

The seed variety, type and production place are not consistent with the contents of the label.

The following are inferior quality seeds

(1)

The seed whose quality is lower than that of the national standards;

(2)

The quality is lower than what is marked on the label;

(3)

The quality has changed and the seeds cannot be used as seeds;

(4)

The percentage of weed seeds is more than the stipulated value; and

(5)

With maleficent organisms quarantined by the State.

Article 47

In case that the crop seed must be used because of force majeure, and its quality is lower than that of the seed-usage standards of
the national or local government, the seed usage must be approved by the People’s Government above local county level, while the
forest seed must be approved by the People’s Government of local provinces, autonomous regions and municipalities directly under
the Central Government.

Article 48

The entity or individual engaged in the seed selection, cultivation, production, operation and management shall comply with stipulations
of related quarantine law and administrative regulations to avoid the spread of dangerous diseases, insect pests and weeds for plants.

It is forbidden for any entity or individual to carry out inoculation experiments on plant diseases and insect pests in a seed production
base.

Chapter 8 Import, Export and Foreign Cooperation for Seed

Article 49

The quarantine system must be put into practice for seed import and export to prevent plant dangerous diseases, insect pests and weeds
from coming into or going out of China. The detailed quarantine work shall be carried out according to the quarantine law of plant
import and export.

Article 50

The legal entities or other organizations engaged in the business of seed import and export must possess the seed-operation license;
in addition, they must get the permission to carry out import and export trade on seeds according to foreign trade law and administrative
regulations.

The State Council shall stipulate the limits of power to examine and approve the introduction of crop seeds or forest seeds from foreign
countries, stipulate the examination and approval measures to import and export crop seeds and forest seeds, and determine the administrative
measures to introduce trans-genetic plant species from foreign countries.

Article 51

The quality of imported and exported seed shall meet national standards or industry standards. If there is no national standards or
industry standards for the seed quality, the standard in the contract shall be carried out accordingly.

Article 52

Seed import to produce seed for foreign countries shall not be restricted by Paragraph1 of Article 50 , provided that there is a seed
production contract, the imported seed must only be used for seed production and its products cannot be sold in China.

The crop varieties imported from foreign countries for test must be cultivated in isolation, and the harvest cannot be sold as commercial
seed in China.

Article 53

It is forbidden to import and export false or inferior quality seeds, or the seeds that are not permitted to import and export by
national stipulations.

Article 54

For the foreign enterprises or other economic organizations to invest in seed production and operation in China, the administrative
measures and examination/approval procedures shall be formulated by related departments under the State Council pursuant to related
laws and administrative regulations.

Chapter 9 Administrative Management for Seed

Article 55

The administrative departments of agriculture and forestry are the law enforcement agencies on seeds. Seed law enforcers shall identify
themselves by showing their certificate of law execution when legally carrying out their line of duty.

To implement this law, the administrative departments of agriculture and forestry can check the locale.

Article 56

The administrative departments of agriculture and forestry and their personnel may not take part in or undertake activities of seed
production or operation. The organizations of seed production and/or operation may not take part in or undertake the administrative
management work of seeds. The administrative department and the organizations of seed production and/or operation shall be separated
from each other on personnel and financial affairs.

Article 57

The administrative departments of agriculture and forestry under the State Council and the People’s Governments of provinces, autonomous
regions and municipalities directly under the Central Government, in whose regions the seed is cultivated other than where the organizations
of seed production and/or operation are registered, shall strengthen the coordination and management on seed cultivation. The traffic
and transportation departments shall first guarantee the transportation of seeds.

Article 58

When granting related licenses, the administrative departments of agriculture and forestry shall not charge any expenses except the
production costs of certificates.

Chapter 10 Legal Responsibilities

Article 59

For any entity or individual who violates the stipulations of this law to produce or deal in false seeds or inferior quality seeds,
the administrative departments of agriculture and forestry or other administrative management organizations of industry and commerce
under the People’s Government of the county level or above shall order them to stop production or operation, confiscate the seeds
and illegal income, revoke the seed-production license, seed-operation license or business license, and impose a fine for the illegal
actions. If there is illegal income, a fine of 5 to 10 times the illegal income shall be imposed on them; if there is no illegal
income, a fine of RMB 2,000 Yuan to RMB 50,000 Yuan shall be imposed. If a crime is constituted, criminal responsibilities shall
be investigated and affixed according to related laws.

Article 60

For those who break the stipulations of this law and have done one of the following, the administrative departments of agriculture
and forestry under the People’s Government above the county level shall order them to correct, confiscate the seeds and illegal income,
impose a fine of 1 to 3 times the illegal income, and impose, if there is no illegal income, a fine of RMB 1,000 Yuan to RMB 30,000
Yuan on them, revoke the seed-production license or seed-operation license. If is crime is constituted, criminal responsibilities
shall be investigated and affixed according to related laws

(1)

Producing seeds without having obtained the seed-production license, or by counterfeiting, changing, buying or leasing the seed-production
license, or going against the stipulations of the seed-production license.

(2)

Dealing in seeds without having obtained the seed-operation license, or by counterfeiting, changing, buying or leasing the seed-operation
license, or going against the stipulations of the seed-production license.

Article 61

For those who break the stipulations of this law and have done one of the following, the administrative departments of agriculture
and forestry under the People’s Government above county level shall order them to correct, confiscate the seeds and the illegal income,
impose a fine of 1 to 3 times the illegal income, impose, if there is no illegal income, a fine of RMB1,000 Yuan to RMB20,000 Yuan
on them, revoke the seed-production license or seed-operation license. If a crime is constituted, criminal responsibilities shall
be investigated and affixed according to related laws

(1)

Selling seeds produced for foreign countries in China;

(2)

The harvest of the test-crop seeds introduce into China is sold as commercial seeds in China; and

(3)

Privately collecting or felling of natural variety resources protected by the State.

Article 62

For those who break the stipulations of this law and have done one of the following, the administrative departments of agriculture
and forestry under the People’s Government above the county level shall order

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...