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PRODUCTION SAFETY LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.70

The Production Safety Law of the People’s Republic of China has been adopted at the 27th meeting of the Standing Committee of the
Ninth People’s Congress on June 29, 2002, and is hereby promulgated for implementation as of November 1, 2002.

Jiang Zemin, President of the People’s Republic of China

June 29, 2002

Production Safety Law of the People’s Republic of China ContentsChapter I General Principles

Chapter II Guarantee of Safety by Production and Business Operation Entities

Chapter III Rights and Obligations of Employees

Chapter IV Supervision and Administration of Production Safety

Chapter V Emergency Rescue, Investigation and Handling of Production Safety Accidents

Chapter VI Legal Liabilities

Chapter VII Supplementary Provisions

Chapter I General Principles

Article 1

The present law has been enacted for the purpose of strengthening the supervision and administration of production safety, preventing
and reducing safety accidents, defending the safety of life and property of the masses, and promoting the development of economy.

Article 2

The present law shall be applicable to the production safety of the entities that are engaged in to the production and business operation
activities within the territory of the People’s Republic of China (hereinafter referred to as the production and business operation
entities). Where there are different provisions in laws or administrative regulations concerning the safety of fire control, road
traffic and transportation, railway transportation, water transportation, civil air transportation, etc., such provisions shall be
applied.

Article 3

For the administration of production safety, the guidelines of “safety first, focus on prevention” shall be observed.

Article 4

The production and business operation entities shall observe the present law and other relevant laws, regulations concerning the production
safety, strengthen the administration of production safety, establish and perfect the system of responsibility for production safety,
perfect the conditions for safe production, and ensure the safety in production.

Article 5

The major person-in-charge of the production and business operation entities shall take charge of the overall work of the production
safety of the entity concerned.

Article 6

The employees of the production and business operation entities have the right to production safety according to law, and shall also
be obliged to perform their obligations regarding to production safety.

Article 7

The trade unions shall organizes the workers to participate in the democratic management and supervision of the production safety
of the entity where they work so as to safeguard the lawful rights and interests of the workers in production safety.

Article 8

The State Council and the people’s governments at all levels shall strengthen the leadership over the work of production safety, and
support and urge the relevant departments to perform their respective duties of supervision and administration of production safety.

The people’s governments on the county level and above shall coordinate and handle the serious problems that exist in the supervision
and administration of production safety in good time.

Article 9

The department of the State Council in charge of the supervision and administration of production safety implements comprehensive
supervision and administration of the work of production safety of the whole country. The people’s governments on the county level
and above in charge the supervision and administration of production safety shall implement comprehensive supervision and administration
of the work of production safety with their respective administrative jurisdictions according to the present law.

The relevant departments of the State Council shall, according to the provisions of the present law and other relevant laws and administrative
regulations, implement supervision and administration of the work of production safety within their respective functions and duties.
The relevant departments of the people’s governments on the county level and above shall, according to the provisions of the present
law and other relevant laws and regulations, implement supervision and administration of the work of production safety within their
respective functions and duties.

Article 10

The relevant departments of the State Council shall, according to the requirements of guaranteeing production safety, formulate relevant
national standards or industrial standards according to law and in good time, and shall make revisions according to the progress
of technology and development of economy in good time.

The production and business operation entities must enforce the national standards and industrial standards that have been lawfully
formulated for guaranteeing production safety.

Article 11

The people’s governments at all levels and the relevant departments thereof shall take various forms to strengthen the publicity of
laws and regulations concerning production safety and knowledge about production safety so as to enhance the consciousness of the
workers about production safety.

Article 12

The intermediary institutions that are lawfully established for providing technological services in production safety accepts the
entrustment of the production and business operation entities to provide technological services in production safety according to
the provisions of laws, administrative regulations and code of conduct.

Article 13

The system of affixing responsibilities to production safety accidents is implemented in our country and those who are held to be
responsible for production safety accidents shall be affixed legal liabilities according to the present law and other provisions
of the relevant laws and regulations.

Article 14

The state encourages and supports the research of production safety science and technology and the popularization and application
of advanced technologies of production safety so as to improve the level of production safety.

Article 15

The state rewards those entities and individuals that have made outstanding achievements in the improvement of conditions of production
safety, preventing production safety accidents, and rescue and relief in emergencies, etc.

Chapter II Guarantee of Safety by Production and Business Operation Entities

Article 16

The production and business operation entities shall be equipped with the conditions for safe production as provided in the present
law and other relevant laws, administrative regulations, national standards and industrial standards. Any entity that is not equipped
with the conditions for safe production may not engage in production and business operation activities.

Article 17

The major persons-in-charge of the production and business operation entities shall have the following duties and responsibilities
regarding the production safety of their own entity:

a.

Establishing and perfecting the system of responsibility relating to production safety;

b.

Organizing the formulation of rules of safe production and operational rules of the entity;

c.

Ensuring the effective execution of input in production safety;

d.

Overseeing and inspecting the work of production safety of the entity and eliminating in good time the potential production safety
accidents;

e.

Organizing the formulation and execution of plans for emergency rescue and relief of production safety accidents of the entity

f.

Reporting production safety accidents truthfully and in good time.

Article 18

The capital investment necessary for the conditions for the safe production of the production and business operation entities shall
guaranteed by the decision-making organ and major persons-in-charge of the production and business operation entities or the investors
of the private enterprises who shall be responsible for the aftermaths of insufficient capital investment necessary for safe production.

Article 19

The mines and construction entities as well as those engaged in the production, selling and storage of hazardous substances shall
establish an administrative organ for production safety or have full-time personnel for the administration of production safety.

The production and business operation entities not mentioned in the preceding paragraph but have more than 300 employees shall establish
an administrative organ for production safety or have full-time personnel for the administration of production safety; if they have
fewer than 300 employees, they shall have full-time or part-time personnel for the administration of production safety or entrust
the engineering technicians who are equipped with the relevant professional technical qualifications as provided by the state to
provide services in the administration of production safety.

Where any production and business operation entity that entrusts engineering technicians to provide services in the administration
of production safety as provided in the preceding paragraph, the responsibility for ensuring safe production shall also remain with
the entity itself.

Article 20

The major persons-in-charge and the personnel for the administration of production safety of the production and business operation
entities shall have the knowledge and management capacity that match the production and business operation activities of the entities
concerned.

The persons-in-charge and the personnel for the administration of production safety of the entities that are engaged in the production,
selling and storage of hazardous substances and the mines and construction entities shall not take their positions until they have
passed the examinations of the administrative departments concerning the knowledge and management capacity of production safety.
No fees may be charged for such examinations.

Article 21

The production and business operation entities shall offer education and training programs to the employees thereof regarding production
safety so as to ensure that the employees have the necessary knowledge of production safety, know the relevant regulations and rules
for safe production and the rules for safe operation, and master the skills for safe operation for their own positions. No employee
who has not passed the education and training programs regarding production safety may start to work at his position.

Article 22

Where any production and business operation entities employs any new technique, new technology, new material or new equipment, it
must know and have good understanding of the safety and technical feature thereof, take effective measures for safety production
and give special education and training programs to the employees concerned about production safety.

Article 23

The special operation staff members of the production and business operation entities may not start to work at their positions until
they have passed the special training regarding safe operations and obtained qualification certificates for special operations according
to the relevant provisions of the state.

The scope of special operation staff shall be determined by the department State Council in charge of the supervision and administration
of production safety in collaboration with the other relevant departments of the State Council.

Article 24

The safety facilities of the newly built or rebuilt or expanded engineering projects of the production and business operation entities
(hereinafter referred to as construction projects as a general term) shall be designed, built and put into production and use at
the same time of the principal part of the projects. The investment in safety facilities shall be incorporated in the budgetary estimates
of the construction projects concerned.

Article 25

Safety conditions argumentations and safety appraisals shall be made according to the relevant provisions of the state to the mining
construction projects and the construction projects for the production and storage of hazardous substances respectively.

Article 26

The designers or designing entities for the safety facilities of construction projects shall take responsibility for their designs
of safety facilities.

The safety facility designs of the mining construction projects and the construction projects for the production and storage of hazardous
substances shall be subject to the examination and approval of relevant departments according to the relevant provisions of the state,
and the examination and approval departments and the persons thereof in charge of examinations and approval shall be responsible
for the result of examination and approval.

Article 27

The mining construction projects and the construction entities of the construction projects for the production and storage of hazardous
substances shall execute the constructions according to the approved designs of safety facilities, and shall be responsible for the
quality of the construction of safety facilities.

After a mining construction project or a construction project for the production and storage of hazardous substances is completed
and before it is put into production or put into use, the safety facilities thereof shall be subject to check and approval according
to the relevant provisions of laws and administrative regulations. They may be put into production or use only after they have passed
the check and approval. The department in charge of the check and approval shall be responsible for the results of check and approval.

Article 28

The production and business operation entities shall set up eye-catching safety warning marks at the production or business operation
sites that have substantial dangerous elements or on the relevant facilities or equipments.

Article 29

The designing, manufacturing, installation, using, checking, maintenance, reforming and claiming as useless of safety equipments shall
be in conformity with the national standards or industrial standards.

The production and business operation entities shall service, maintain the safety facilities often and check them regularly so as
to ensure the normal operation thereof. Records shall be made for the services, to which the signature of relevant persons shall
be affixed.

Article 30

The special equipment that concerns the safety of life or is rather dangers, the container of hazardous substances or the transportation
tool that any production and business operation entity uses shall, according to the relevant provisions of the state, be manufactured
by the specialized production entities, and only after it has passed the detections and tests of the detecting and testing institutions
that are equipped with the professional qualifications for which a certificate for safe use or a mark of safety has been obtained
could it be put into use. The detecting and testing institutions shall be responsible for the results of their detections and tests.

The list of special equipments that concern the safety of life or that are rather dangerous shall be formulated by the department
of the State Council in charge of the supervision and administration of such special equipments, and shall be executed after the
approval of the State Council has been obtained.

Article 31

The techniques and equipments that seriously endangers the safety of production shall be eliminated by the state.

No production and business operation entity may use any technique or equipment that endangers production safety and that has been
explicitly announced for elimination or prevent from use.

Article 32

The production, business operation, transportation, storage and use of any hazardous substances or dispose of or abandon hazardous
substances shall be subject to the examination and approval as well as the supervision and administration of relevant administrative
departments according to the provisions of relevant laws and regulations, national standards or industrial standards.

For the production, business operation, transportation, storage and use of any hazardous substance or disposal or abandoning of any
hazardous substance by any production and business operation entity, the entity shall execute the provisions of relevant laws and
regulations as well as the national standards or industrial standards, and establish specialized safety administration rules, take
reliable safety measures, and accept the supervision and administration lawfully carried out by relevant administrative departments.

Article 33

Production and business operation entities shall have archivist files for substantial hazardous sources, make regular checks, appraisals,
supervisions and controls, make emergency plans, and inform the employees and other relevant people of the emergency measures that
should be taken under emergent circumstances.

The production and business operation entities shall report, according to the relevant provisions of the state, the substantial hazardous
sources and the corresponding safety measures and emergency measures to the administrative department and other relevant departments
of the local people’s government in charge of the supervision and administration of production safety for archivist purposes.

Article 34

The workshops, stores, warehouses that produce, manage, store or use hazardous substances may not be located in the same building
as the dormitories of the employees, and there should be a safe distance between them and the dormitories.

For the sites of production and business operation and the dormitories of the employees, there shall be exits that meet the requirements
for emergent dispersal of people, have eye-catching marks and be clear of obstructions. It shall be prohibited to close or obstruct
the exits of the sites of production and business operation and the dormitories of the employees.

Article 35

To carry out the operations of explosions and hoistings, the production and business operation entities shall arrange for special
persons to take charge of the on-spot safety so as to ensure that the operational rules be observed and the safety measures be carried
out.

Article 36

The production and business operation entities shall educate and urge the employees thereof to observe strictly the regulations and
rules thereof for safe production and the rules for safe operations, and shall inform truthfully the employees of the dangerous elements
that exist in the site of operations and work positions, of the prevention measures and corresponding emergency measures for dealing
with accidents.

Article 37

The production and business operation entities shall provide labor protection articles that meet the national standards or industrial
standards to the employees thereof, supervise and educate them to wear or use these articles according to the prescribed rules.

Article 38

The persons in charge of the production safety of the production and business operation entities shall conduct regular inspections
over the production safety of the entities concerned by taking the peculiarities of business operation of the entities into consideration.
The safety problems that are found out in the inspections shall be dealt with immediately; if they cannot deal with the problems,
they shall report to the relevant persons-in-charge of the entities in good time. Records shall be taken for the inspections and
the handling of the problems.

Article 39

The production and business operation entities shall arrange funds buying labor protection articles and holding trainings in production
safety.

Article 40

Two or more production and business operations that conduct production and business operation activities within a same area and may
endanger the production safety of each other shall enter into agreements concerning the administration of production safety so as
to specify the duties and functions of each other in the administration of production safety as well as the safety measures to be
taken, and shall arrange for full-time persons in charge of the administration of production safety to conduction safety inspections
and coordinations.

Article 41

No production and business operation entity may contract or lease any project, site or equipment of production and business operation
to any entity or person that does not have the conditions for safe production or have the corresponding qualifications.

In case a production and business operation project or site is contracted or leased to more than one entity, the production and business
operation entity shall enter into special agreements with the contractor or leaseholder concerning the administration of production
safety, or stipulate in the contracting agreements or leasehold contracts the duties and functions of each party in the administration
of production safety. The production and business operation entity shall exercise unified coordination and administration over the
contractors and leaseholders concerning the work of production safety.

Article 42

Where any serious production safety accident occurs in any production and business operation entity, the major persons-in-charge of
the entity shall organize immediate rescues and may not leave their positions with out permission during the period for investigating
and handling the accident.

Article 43

The production and business operation entities must buy employment injury insurances according to law, and pay insurance premiums
for the employees thereof.

Chapter III Rights and Obligations of Employees

Article 44

In the employment contracts entered into between the production and business operations and the employees, it shall include stipulations
about the guarantee of the labor safety of the employees, the avoidance of vocational injuries, and the buying of employment injury
insurances for the employees thereof according to law.

No production and business operation entity may conclude any agreement with the employees thereof so as to exempt or mitigate the
liabilities which result from any production safety accident casualties occurred to the employees thereof and which it has to undertake.

Article 45

The employees of a production and business operation entity shall be enpost_titled to know the dangerous elements that exist in the site
or position of work as well as the corresponding prevention measures and emergency measures; they shall be enpost_titled to give suggestions
concerning the work of production safety of the entity where they work.

Article 46

The employees shall be enpost_titled to criticize, expose or institute legal proceedings on the ground of the problems that exist in the
production safety of the entity concerned.

The production and business operation entity may not lower the salaries or welfare or other treatment or dissolve the labor contracts
entered into with the employees simply because the employee concerned has criticized, exposed or filed lawsuits on the ground of
the problems existing in the production safety of the entity or because he has refused to give directions as against the operational
rules or to force people to work in risks.

Article 47

Where any employee finds any emergency that may directly endanger the personal safety of himself or any other person, he shall be
enpost_titled to stop work or leave the site of work after taking possible emergency measures.

No production and business operation entity may lower the salaries or welfare or other treatment of the employee concerned or dissolve
the labor contract entered into with the employee concerned simply because he has stopped work or left under emergent circumstances
as mentioned in the preceding paragraph.

Article 48

The employees that suffered injuries in production safety accidents shall be enpost_titled to claim compensations against the entity concerned
if, according to the civil laws, they have the right to do so apart from enjoying the employment injury insurances according to law.

Article 49

The employees shall, in work, rigidly observe the rules and regulations concerning production safety and the operational rules of
the entities concerned, obey their administration, and correctly wear and use labor protection articles.

Article 50

The employees shall accept education and training in production safety, be equipped with the knowledge of production safety necessary
for their work so as to improve their skills in production safety and enable themselves to prevent from accidents and handle emergencies.

Article 51

Any employee who finds out any potential accidents or other insecure elements shall report immediately to the person in charge of
the on-spot administration of production safety or the person-in-charge of the entity concerned. The person who receives the report
shall handle them in good time.

Article 52

The trade unions shall be enpost_titled to see to it that the safety facilities are designed, constructed and put into use at the same
time as the main part of the construction projects, and shall be enpost_titled to their comments.

The trade unions shall be enpost_titled to demand the production and business operation entity to mend up any act thereof that has violated
the provisions of any law or regulation regarding production safety and injured the lawful rights and interests of the employees.
When they find that the production and business operation entity gives directions as against the rules and regulations, force people
to work in risks or discover any potential accidents, they shall be enpost_titled to give their suggestions, and the production and business
operation entities shall take into consideration and give replies in good time. When they discover any circumstance endangering the
life of the employees, they shall be enpost_titled to suggest the production and business operation entity to organize the employees to
leave the dangerous site, and the production and business operation entity to react without delay.

The trade unions shall be enpost_titled to participate in the investigations of accidents, give their comments on the handling of accidents
and request relevant personnel to undertake responsibilities.

Chapter IV Supervision and Administration of Production Safety

Article 53

The local people’s governments on the county level and above shall, according to the situation of production safety within their respective
administrative jurisdictions, organize the relevant departments to inspect, according to their functions and duties, the production
and business operation entities within their respective administrative jurisdiction where serious production safety accidents are
apt to occur. In case any potential accident is discovered, it shall be handled without delay.

Article 54

If anything relating to production safety shall be subject to examination and approval according to the provisions of relevant laws
and regulations (including approval, verification, permission, registration, certification, granting licenses, etc.), the departments
that have the duty of supervising and administering production safety according to Article 9 of the present law (hereafter “the
departments responsible for the supervision and administration of production safety”) shall carry out the examination and approval
by strictly following the relevant laws and regulations as well as the conditions and procedures for safe production as required
by national or industrial standards. If it is not in conformity with the provisions of relevant laws or regulations or it does not
meet the conditions for safe production as required by national or industrial standards, it shall not be approved or shall not pass
the examinations for acceptance. In case the administrative department in charge of examination and approval discovers or receives
reports that any entity is unlawfully engaged in relevant activities without obtaining approval or without passing the examinations
for acceptance, it shall revoke the unlawful act without delay and handle the case according to law. If the entity has already obtained
approval according to law and the administrative department in charge of examination and approval finds that the entity no longer
meets the conditions for safe production, it shall cancel the original approval.

Article 55

The departments responsible for the supervision and administration of production safety may not collect any fee for the examinations
and approval for the matters relating to production safety, and may not demand the entities subject to examination and approval or
examination for acceptance to buy the brands designated thereby or to buy the safety equipments, facilities or other products produced
or sold by the entities designated thereby.

Article 56

A department responsible for the supervision and administration of production safety supervise and inspect according to law the executions
of the relevant laws and regulations concerning production safety and the national or industrial standards by the production and
business operation entities, and shall have the following duties and functions:

a.

To make inspections at the production and business operation entities, gather relevant materials, and inquire relevant entities and
persons;

b.

To correct the acts violating the statutory provisions of law and discovered in the inspections or demand for correction within a
prescribed time limit; to make decisions of administrative penalties according to the provisions of the present law and other relevant
laws and regulations to those acts that shall be subject to administrative penalties according to law;

c.

If it finds any potential accident in its inspections, it shall order them to be eliminated without delay. If safety cannot be guaranteed
before a serious potential accident is eliminated or in the process of elimination, it shall order the employees at work to leave
the dangerous areas, and order that the business operation or production or use be suspended or terminated. The production or business
operation or use may not be resumed until the serious potential accident has been eliminated and approval has been obtained upon
examination;

d.

Shall be enpost_titled to seal up or detain the facilities, equipments and apparatuses that are believed as not meeting the national or
industrial standards for guaranteeing production safety.

The supervision and inspection may not affect the normal production and business operation activities of the examinee entities.

Article 57

The production and business operation entities shall cooperate with and may not reject or obstruct the supervision and inspection
personnel of the departments responsible for the supervision and administration of production safety (hereafter “the supervision
and inspection personnel of production safety”) in their lawful supervision and inspection.

Article 58

The supervision and inspection personnel of production safety shall be devoted to their duties, adhere to the principles, and be impartial
in their enforcement activities.

The supervision and inspection personnel of production safety shall, when discharging their duties, show valid certificates of supervision
enforcement, and shall keep secret if any of the technological secret or business secret of the entity subject to inspection is involved.

Article 59

The supervision and inspection personnel of production safety shall make written records of the time and place of the inspection,
what is the inspection about, the problems discovered and how they are dealt with, and affix their signatures of the inspectors and
person-in-charge of the inspected entity. If the person-in-charge of the inspected entity refuses to affix his signature, the inspectors
may write the situation down in