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CIRCULAR OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON PROMPT AND EFFICIENT COMPLETION OF BUSINESS REGISTRATION CANCELLATION PROCEDURES

The State Administration for Industry and Commerce

Circular of the State Administration for Industry and Commerce on Prompt and Efficient Completion of Business Registration Cancellation
Procedures

GongShangQiZi [2001] No.238

August 29,2001

Administrations for industry and commerce in various provinces, autonomous regions, municipalities directly under the Central Government:

In recent years, some local governments have closed and repealed some enterprises in succession. Some enterprises lacking in adequate
knowledge of related enterprise registration administration laws and regulations did not duly complete the registration cancellation
procedures with competent authorities upon completion of their liquidation work, resulting in delayed cancellation of some enterprises.
To prevent similar problems from reoccurring, this circular on issues of enterprise registration cancellation is given as follows:

I.

Each local administration of industry and commerce should conduct a special review of the enterprises which competent government authorities
have decided to close and repeal but whose registration still remains short of cancellation. As for enterprises that should have
cancelled their registration, related departments should be urged for prompt completion of the procedures. As for enterprises who
fail to complete the registration cancellation procedures due to unfinished settlement of their equity and liabilities, competent
departments of the enterprises and the liquidation group should be urged to speed up the settlement of equity and liabilities. Businesses
failing to effect the registration cancellation procedures on other grounds should actively coordinate with related departments to
find solutions to the impeding difficulties.

II.

Each local administration of industry and commerce should report this matter to the provincial, autonomous region or municipal government
for guidance on and support for its work in this regard and carefully implement the review of enterprises canceling their registration.



 
The State Administration for Industry and Commerce
2001-08-29

 







ORGANIC LAW OF THE STATE COUNCIL

Organic Law of the State Council of the PRC

    

   Article 1. This Organic Law is formulated in accordance with the provisions concerning the State Council in the Constitution of the People’s
Republic of China.

   Article 2. The State Council shall be composed of a Premier, Vice-Premiers, State Councillors, Ministers in charge of ministries, Ministers
in charge of commissions, an Auditor-General and a Secretary-General.

The Premier shall assume overall responsibility for the work of the State Council. The Premier shall direct the work of the State
Council. The Vice-Premiers and State Councillors shall assist the Premier in his work.

   Article 3. The State Council shall exercise the functions and powers prescribed in Article 89 of the Constitution.

   Article 4. Meetings of the State Council shall be divided into plenary meetings and executive meetings. The plenary meetings of the State Council
shall be composed of all members of the State Council. The executive meetings of the State Council shall be composed of the Premier,
the Vice-Premiers, the State Councillors and the Secretary-General. The Premier shall convene and preside over the plenary and executive
meetings of the State Council. Important issues in the work of the State Council must be discussed and decided by an executive or
plenary meeting of the State Council.

   Article 5. The Premier shall sign the decisions, orders, and administrative rules and regulations issued by the State Council, the proposals
submitted by the State Council to the National People’s Congress or its Standing Committee, and the appointments and removals of
personnel.

   Article 6. As entrusted by the Premier, the State Councillors shall take charge of work in certain fields or of certain special tasks and may
represent the State Council in foreign affairs.

   Article 7. Under the direction of the Premier, the Secretary-General of the State Council shall be responsible for the day-to-day work of the
State Council.

The State Council shall install a certain number of Deputy Secretaries-General, who shall assist the Secretary-General in his work.

The State Council shall establish a general office, which shall be under the direction of the Secretary-General.

   Article 8. The establishment, dissolution or merger of ministries and commissions of the State Council shall be proposed by the Premier and
decided by the National People’s Congress or, when the Congress is not in session, by its Standing Committee.

   Article 9. Each ministry shall have a Minister and two to four Vice-Ministers. Each commission shall have a Minister, two to four Vice-Ministers
and five to ten commission members.

The Ministers in charge of the ministries or commissions shall assume overall responsibility for the work of the ministries and commissions.
The Ministers in charge of the ministries or commissions shall direct the work of their respective departments; convene and preside
over ministerial meetings or the general and executive meetings of the commissions; sign important requests for instructions and
reports to be submitted to the State Council; and sign orders and instructions to be issued to their subordinate units. The Vice-Ministers
shall assist the Ministers in their work.

   Article 10. The ministries and commissions shall request instructions from and submit reports to the State Council concerning principles, policies,
plans and important administrative measures in their work, and the State Council shall make decisions on such matters. The competent
ministries or commissions may, within the limits of their authority and in accordance with the law and decisions of the State Council,
issue orders, instructions and regulations.

   Article 11. The State Council may, according to work requirements and the principle of simplified and efficient administration, set up a certain
number of directly subordinate agencies to take charge of various specialized work and a certain number of administrative offices
to assist the Premier in handling specialized affairs. Each agency or office shall have two to five persons responsible.

    






OFFICIAL REPLY OF THE STATE ADMINISTRATION TAXATION ON THE ISSUE CONCERNING THE REFUND OF TAX UPON GOODS EXPORTED BY COMMERCIAL ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Official Reply of the State Administration Taxation on the Issue Concerning the Refund of Tax Upon Goods Exported by Commercial Enterprises
with Foreign Investment

GuoShuiHan [2002] No.373

April 30,2002

The State Taxation Bureau of Shanghai:

The Request for Instruction on the Issue concerning the Refund of Tax upon Goods Exported by Commercial Enterprises with Foreign Investment
(HuShuiJin [2001] No.38) has been received. As for the question whether the tax upon the exported domestic goods purchased by commercial
enterprises with foreign investment can be refunded, the State Taxation Administration hereby decides to refund (exempt), from January
1, 2002, the tax upon the domestic goods subject to self-supported export and purchased by the commercial enterprises with foreign
investment, which were approved to be established and to have the right to import and export according to the Interim Measures for
Commercial Enterprises with foreign investment (Order No.12 of the State Economic and Trade Commission and the Ministry of Foreign
Trade and Economic Cooperation of the People’s Republic of China) and other relevant regulations. And the above decision is made
in accordance with the relevant provisions in the Notice of the Ministry of Finance and the State Taxation Administration on the
Issue concerning Refund of Tax upon the Goods Exported by Chinese-Foreign Joint Venture Commercial Enterprises (CaiShuiZi [1998]
No.119 ).



 
The State Administration of Taxation
2002-04-30

 







POPULARIZATION OF SCIENCE AND TECHNOLOGY LAW

Law of the People’s Republic of China on Popularization of Science and Technology

(Adopted at the 28th Meeting of the Ninth National People’s Congress of the People’s Republic of China on June 29,
2002 and promulgated by Order No. 71 of the President of the People’s Republic of China on June 29, 2002) 

Contents 

Chapter I    General Provisions 

Chapter II   Organization and Administration 

Chapter III  Responsibility of the Society 

Chapter IV   Safeguards 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provision 

Chapter I 

General Provisions 

Article 1  This Law is enacted in accordance with the Constitution and other related laws for the purposes of implementing the
strategy of invigorating the country through science and education and the strategy of sustainable development, redoubling the efforts
to popularize science and technology, raising the citizens’ scientific and cultural level and promoting economic and social progress. 
 

Article 2  This Law shall apply to activities conducted by the State and the community to popularize scientific and technological
knowledge, promote scientific approaches, disseminate scientific ideas and carry forward scientific spirit. 

For popularization of science and technology (hereinafter referred to as PST), such ways as may make it easy for the general public
to understand, accept and participate in shall be adopted.  

Article 3  State organs, armed forces, public organizations, enterprises and institutions, rural grassroots organizations and
other organizations shall work for PST. 

Citizens have the right to participate in PST activities. 

Article 4  PST is a public welfare undertaking and an essential component of the socialist material and spiritual civilization.
It is a long-term task of the State to develop the PST undertaking. 

The State supports efforts for PST made by people in minority ethnic areas and in outlying and poverty-stricken areas. 

Article 5  The State protects the lawful rights and interests of the PST organizations and workers, encourage them to carry
out PST activities independently, and initiate PST undertakings according to law. 

Article 6  The State supports all quarters of society to initiate PST undertakings. Such undertakings may be operated under
market mechanism. 

Article 7 Work for PST shall be characterized by mass participation, socialization and regularity and shall be integrated with practice
and carried out in light of local conditions, and take various forms.   

Article 8  In PST, the scientific spirit shall be upheld and pseudo shall be opposed and resisted. No unit or individual may,
in the name of PST, engage in activities at the expense of public interests. 

Article 9  The State supports and promotes cooperation and exchange with foreign countries in the field of PST. 

Chapter II 

Organization and Administration 

Article 10  To exercise leadership over PST, people’s governments at various levels shall incorporate it into their plans for
national economic and social development, in order to create a good environment and favorable conditions for PST. 

People’s governments at or above the county level shall establish a coordination system for PST.   

Article 11  The administrative department for science and technology under the State Council shall be in charge of formulating
national plans for PST, provide policy-related orientation and exercise supervision and inspection, in order to advance work in this
field. 

Other administrative departments under the State Council shall, within the limits of their functions and duties, be in charge of
work related to PST.  

The administrative departments for science and technology of the local people’s governments at or above the county level and other
administrative departments shall, under the leadership of the people’s governments at the same level and within the limits of their
respective functions and duties, be in charge of work related to PST in their own regions.  

Article 12  The science and technology associations constitute the main quarters of the society working for PST. The associations
shall carry out activities for PST which are characterized by mass participation, socialization and regularity, support related public
organizations, enterprises and institutions in their efforts to carry out activities for PST, assist the government in formulating
PST plans, and put forward suggestions to the governments when the latter makes policy-decisions on PST. 

Chapter III 

Responsibility of the Society 

Article 13  PST is a common task of the society as a whole. People form all circles of the society shall get organized to participate
in different kinds of PST activities.   

Article 14  Various kinds of schools and other institutions of education shall make education in popular science and technology
an essential component of quality-oriented education and make arrangements for students to carry out varied forms of activities for
PST.    

Science and technology halls (stations), science and technology centers and other education bases for PST shall arrange extracurricular
activities for education in science and technology among teen-agers. 

Article 15  Institutions of scientific research and technological development, institutions of higher education and public organizations
in the fields of natural and social sciences shall get science and technology workers and teachers organized and support them in
carrying out activities for PST and shall encourage them to publicize the importance of PST in combination with their own jobs. Where
conditions permit, laboratories, exhibition rooms and other places and facilities shall be open to the general public, for holding
lectures and providing consultancy there.     

Science and technology workers and teachers shall give full play to their advantages and expertise and take and active part in and
support activities for PST. 

Article 16  Institutions and organizations of the press, publishing radio, film and television, and culture shall give full
play to their own advantages to make a success of PST. 

In comprehensive newspapers and periodicals there shall be a special column or page for PST; radio and TV broadcasting stations shall
have a PST program or relay such programs; film and television program production, distribution and showing institutions shall redouble
their efforts in the production, distribution and showing of films and TV programs on PST; Institutions for publishing and distributing
books and periodicals shall support the publication and distribution of books and periodicals on PST; comprehensive internet websites
shall have PST pages; science and technology halls (stations), libraries, museums, culture centers and other places for cultural
activities shall play role of education in popular science and technology. 

Article 17  State organs and institutions in charge of medical service and health care, family planning, environmental protection,
land resources, sports, meteorology, earthquake, cultural relics, tourism, etc. shall conduct activities for PST in combination with
their own functions.  

Article 18  Trade unions, Communist Youth League organizations, women’s federations and other public organizations shall arrange
activities for PST in combination with the characteristics of the different groups of people they work among.  

Article 19  Enterprises shall conduct activities for PST in combination with technical up-dating and training in workers’ skills
and may have, where conditions permit, halls and facilities open to the general public for PST.  

Article 20  The State strengthens work for PST in rural areas. Rural grassroots organizations shall, in light of the local need
for economic and social development and centering on scientific production and a cultured life, play the role of town or township
PST organizations or rural schools in the efforts for PST.   

The various forms of rural economic organizations, institutions for the spread of agricultural technology and professional technology
associations in rural areas shall, while spreading the use of advanced and applicable technologies, disseminate scientific and technological
knowledge among the farmers.  

Article 21  Urban grassroots organizations and communities shall, by making use of the local resources in science and technology,
education, culture, public health, tourism, etc., conduct activities for PST in combination with the needs of the residents in their
daily lives, study, health care, recreation, etc.   

Article 22  Units in charge of the operation and management of parks, department stores, airports, railway stations, ports and
other public places shall, within the limits of their jurisdiction, increase publicity of the need for PST.  

Chapter IV 

Safeguards 

Article 23  People’s governments at various levels shall incorporate the expense for PST into their budget at the same level
and gradually increase the input in PST, in order to guarantee that work in this field will go smoothly.  

Related departments of people’s governments at various levels shall arrange a certain amount of funds for PST. 

Article 24  People’s governments of provinces, autonomous regions and municipalities directly under the Central Government and
other local people’s governments where conditions permit shall incorporate the construction of halls and facilities for PST into
their plans for urban and rural construction and plannings for capital construction; they shall make better use of, maintain or refurbish
the existing halls and facilities for PST.   

The halls for PST built with government investment shall be manned with the necessary full-time staff and be open to the general
public all the year round, teen-agers shall enjoy preferences, and the halls may not be used for other purposes. Where they are short
of funds, the government at the same level shall provide them with subsidies to enable them to operate normally.   

Where conditions are lacking for building halls for PST activities, the existing facilities for science and technology, education,
culture, etc. may be used for such activities and galleries and show windows for PST may be set up.    

Article 25  The State supports work for PST and, in accordance with law, applies preferential taxation policies for undertakings
in this field.   

For conducting PST activities and initiating PST undertakings, PST organizations may, in accordance with law, obtain subsidies and
donation.  

Article 26  The State encourages public organizations and individuals at home and abroad to establish PST funds in support of
support PST undertakings. 

Article 27  The State encourages public organizations and individuals at home and abroad to donate property in support of PST
undertakings. Where such property is used for PST undertakings or is invested in the construction of PST halls or facilities, preferences
shall be given in accordance with law.   

Article 28  Funds earmarked for PST and property donated by public organizations and individuals for PST undertakings shall
be used for such undertakings, and no unit or individual may pocket, withhold or misappropriate them.   

Article 29  People’s governments and science and technology associations at various levels and related units shall support PST
workers in their work and shall commend and award the organizations and individuals that have made important contributions to PST. 
 

Chapter V 

Legal Responsibility 

Article 30  Whoever, in the name of PST, engages in activities at the expense of public interests, disturbs social order or
obtains money or things of value by cheating shall be criticized and educated by a competent department and be stopped; if he violates
provisions on security administration, the public security organ shall impose a security administration punishment on him according
to law; if a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. 

Article 31  Whoever, in violation of the provisions of this Law, pockets, withholds or misappropriates government funds earmarked
for PST, or embezzles or misappropriates money or articles donated shall be ordered by a competent department to return them within
a time limit; the persons who are directly in charge and the other persons who are directly responsible shall be given administrative
sanctions in accordance with law; if a crime is constituted, he and the persons shall be investigated for criminal responsibility. 

Article 32  Whoever, without authorization, puts to other uses the PST halls constructed with government investment shall be
ordered by a competent department to set it right within a time limit. Where the circumstances are serious, the persons who are directly
in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law. 

Whoever disturbs order in PST halls or damages PST halls or facilities shall ordered to desist from the wrongdoing, put the halls
or facilities back to their former state or compensate for the damages. If a crime is constituted, he shall be investigated for criminal
responsibility in accordance with law. 

Article 33  Any state functionary who abuses his power in PST, neglects his duties or engages in malpractices for personal gain
shall be given an administrative sanction in accordance with law. If a crime is constituted, he shall be investigated for criminal
responsibility in accordance with law.  

Chapter VI 

Supplementary Provision 

Article 34  This Law shall go into effect as of the date of promulgation.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







ADMINISTRATION OF THE USE OF SEA AREAS LAW

Law of the People’s Republic of China on the Administration of the Use of Sea Areas

(Adopted at the 24th Meeting of the Standing Committee of the Ninth National People’s Congress on October 27, 2001
and promulgated by Order No. 61 of the President of the People’s Republic of China on October 27, 2001) 

Contents 

Chapter I     General Provisions 

Chapter II    Marine Function Zoning 

Chapter III   Application for, and Examination and Approval of, the Use of Sea Areas 

Chapter IV    Right to the Use of Sea Areas  

Chapter V     Fees for the Use of Sea Areas  

Chapter VI    Supervision and Inspection 

Chapter VII   Legal Liabilities 

Chapter VIII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of strengthening the administration of the use of sea areas, safeguarding State
ownership of the sea areas and the legitimate rights and interests of the sea area users, promoting rational development and sustainable
utilization of the sea areas. 

Article 2  For the purpose of this Law, the sea areas refer to the sea surface, water volume, seabed and subsoil of the inland
waters and territorial seas of the People’s Republic of China. 

The inland waters in this Law refer to the sea areas extending from the landward side of the territorial seas of the People’s Republic
of China to the coastline. 

This Law shall be applicable to any exclusive activities relating to the continuous use of a specific sea area over three months
within the inland waters or territorial seas of the People’s Republic of China. 

Article 3  The sea areas are owned by the State, and the State Council exercises the right of ownership in the sea areas on
behalf of the State. No entity or individual may seize, buy or sell the sea areas or illegally transfer them in other ways. 

Any entity or individual that intends to use the sea areas is required to obtain the right to their use in accordance with law. 

Article 4  The State applies the system for marine function zoning. The sea areas shall be used in conformity with the marine
function zoning. 

The State exercises strict control over the activities relating to the use of the sea areas that may alter their natural attributes,
such as filling sea areas and reclaiming land from them. 

Article 5  The State establishes an information system for the administration of the use of sea areas in order to oversee and
monitor the use of the sea areas. 

Article 6  The State establishes a registration system for the right to the use of sea areas. Such right shall, once registered
in accordance with law, be protected by law. 

The State establishes a statistics system for the use of the sea areas and periodically issues the statistics of such. 

Article 7  The department in charge of marine administration under the State Council shall be responsible for supervision over
the use of the sea areas nationwide. The departments in charge of marine administration under the local people’s governments at or
above the county level shall, as authorized, be responsible for supervision over the use of the sea areas adjacent to their administrative
regions respectively. 

The department in charge of marine administration shall, in accordance with the Fisheries Law of the People’s Republic of China,
conduct supervision over marine fishery. 

The maritime administration authority shall exercise supervision over maritime traffic safety in accordance with the Maritime Traffic
Safety Law of the People’s Republic of China. 

Article 8  All entities and individuals are obligated to abide by the laws and regulations on the administration of the use
of the sea areas and have the right to report violations of such laws and regulations and bring complaints about them. 

Article 9  People’s governments shall reward the entities and individuals that have achieved outstanding successes in protecting
and rationally utilizing the sea areas and in scientific research in this field. 

Chapter II 

Marine Function Zoning 

Article 10  The department in charge of marine administration under the State Council shall, in conjunction with the departments
concerned and the people’s governments of coastal provinces, autonomous regions, and municipalities directly under the Central Government
work out marine function zoning plans. 

The departments in charge of marine administration under the coastal local people’s governments at or above the county level shall,
in conjunction with the departments concerned of the people’s governments at the same level, work out the local marine function zoning
plans on the basis of such plans worked out at the next higher level.  

Article 11  Marine function zoning plans shall be worked out on the following principles: 

(1) scientifically defining the functions of the sea areas in light of such natural attributes as their geographical location, natural
resources and natural environment; 

(2) making overall arrangements for the use of sea areas among various related sectors according to the needs of economic and social
development; 

(3) protecting and improving the ecological environment, ensuring the sustainable utilization of the sea areas and promoting the
development of the marine economy; 

(4) ensuring the maritime traffic safety; and 

(5) safeguarding the security of national defense and guaranteeing the needs in the military use of the sea areas. 

Article 12  Marine function zoning plans shall be subject to examination and approval by different levels. 

The national marine function zoning plan shall be submitted to the State Council for approval. 

The marine function zoning plan of a coastal province, autonomous region or municipality directly under the Central Government shall,
after examination and consent by the people’s government of the said province, autonomous region or municipality, be submitted to
the State Council for approval. 

The marine function zoning plan of a coastal city or county shall, after examination and consent by the people’s government of the
said city or county, be submitted for approval to the people’s government of the province, autonomous region or municipality directly
under the Central Government where the city or county is located, and reported to the department in charge of marine administration
under the State Council for the record.  

Article 13  With regard to alteration of a marine function zoning, a proposal for alteration shall be put forward by the department
that works out the plan for the zoning, in conjunction with the departments concerned at the same level, for approval by the original
approving department. In the absence of such approval, no functions of the sea areas defined by the marine function zoning may be
altered. 

Where marine function zoning that needs to be altered for public interests, security of national defense or construction of large-scale
energy, traffic or other infrastructures shall be subject to approval by the State Council, and the alteration shall be made according
to the documents of approval issued by the State Council. 

Article 14  A marine function zoning plan shall, upon approval, be made known to the public except for the parts relating to
State secrets. 

Article 15  Plans for acquaculture, the salt industry, communications, tourism and other industries that involve the use of
sea areas shall be made in conformity with the marine function zoning .  

The overall plan for the utilization of coastal land, urban planning and port planning that involve the use of sea areas shall be
dovetailed with the marine function zoning. 

Chapter III 

Application for, Examination and Approval of the Use of Sea Area 

Article 16  Any entity and individual may, for the use of sea areas, apply to the department in charge of marine administration
under the people’s government at or above the county level. 

To apply for the use of sea areas, the applicant shall submit the following written materials: 

(1) an application for the use of sea areas; 

(2) feasibility assessment of the use of the sea areas; 

(3) relevant credit certifying papers; and 

(4) other written materials specified by laws and regulations. 

Article 17  The department in charge of marine administration under the people’s government at or above the county level shall,
on the basis of the marine function zoning, examine applications for the use of sea areas, and shall, in accordance with the provisions
of this Law and the regulations of the people’s government of the province, autonomous region, or municipality directly under the
Central Government, submit the applications for approval to the people’s government invested with the approval authority. 

When examining applications for the use of sea areas, the department in charge of marine administration shall solicit opinions from
the departments concerned at the same level.  

Article 18  Use of sea areas for the following projects shall be subject to examination and approval by the State Council: 

(1) a project that involves filling of more than 50 ha. of a sea area; 

(2) a project that involves enclosure of more than 100 ha. of a sea area; 

(3) a project that involves the use of more than 700 ha. of a sea area without altering the natural attributes of the area; 

(4) major national construction projects; and 

(5) other projects specified by the State Council. 

The authority for examination and approval of the use of sea areas for projects other than the ones specified in the preceding paragraph
shall, with the authorization of the State Council, be defined by the people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government. 

Chapter IV 

Right to the Use of Sea Areas 

Article 19  Where the use of a sea area is approved by the State Council after the application for its use is approved in accordance
with law, it shall be registered with the department in charge of marine administration under the State Council, which shall issue
to the applicant the certificate of the right to the use of sea areas; where the use of a sea area is approved by a local people’s
government, it shall be registered with the said government, which shall issue to the applicant the certificate of the right to the
use of sea areas. The applicant shall, beginning from the date he receives the certificate, obtain the right to the use of the sea
area. 

Article 20  Apart from the manners in which to obtain the right to the use of sea areas in accordance with the provisions of
Article 19 of this Law, such right may also be obtained through bidding or auction. The plan for bidding or auction shall be formulated
by the department in charge of marine administration and submitted to the people’s government invested with the examination and approval
authority for approval before it is implemented. When formulating the plan for bidding or auction, the department in charge of marine
administration shall solicit opinions from the departments concerned at the same level. 

Once the bidding or auction is completed, the certificate of the right to the use of sea areas shall be issued to the winning bidder
or the vendee. The winning bidder or the vendee shall, beginning from the date he receives the certificate, obtain the right to the
use of the sea area. 

Article 21  Issuance of the certificate of the right to the use of sea areas shall be made known to the public. 

For issuance of the certificate of the right to the use of sea areas, no fees other than the ones for the use of sea areas may be
collected in accordance with law.  

Measures for issuance and administration of the certificate of the right to the use of sea areas shall be formulated by the State
Council. 

Article 22  Where, prior to implementation of this Law, sea areas are already used for aquaculture under the operation and administration
of rural collective economic organizations or villagers committees, if it conforms to marine function zoning, the right to the use
of such sea areas may, upon examination and approval by the local people’s government at the county level, be granted to the rural
collective economic organizations or villagers committees. Members of the collective economic organizations may contract to use such
areas for aquaculture. 

Article 23  The right of the owners of the right to the use of sea areas to utilize the areas and to get profits in accordance
with law shall be protected by law; no entity or individual may infringe upon their right. 

Owners of the right to the use of sea areas are obligated to protect and rationally utilize the sea areas in accordance with law.
They may not impede the non-exclusive use of sea areas that does not interfere with their use of the sea areas in accordance with
law. 

Article 24  During the period when they use the sea areas, no owners of the right to the use of sea areas may, without approval
according to law, engage in marine basic mapping. 

When owners of the right to the use of sea areas find that a major change has occurred in the natural resources and conditions of
the areas they are using, they shall, without delay, report the matter to the departments in charge of marine administration. 

Article 25  The maximum period for the right to the use of sea areas shall, on the basis of the purposes of their use, be determined
as follows:  

(1) 15 years for aquaculture; 

(2) 20 years for ship dismantling; 

(3) 25 years for tourism and recreation; 

(4) 30 years for the salt and mining industries; 

(5) 40 years for public welfare undertakings; and 

(6) 50 years for construction of ports, shipyards and other projects. 

Article 26  Where at the expiration of the period for the right to the use of the sea areas, the owner of the right needs to
continue to use the area, he shall, no later than two months prior to the expiration date, apply for extension to the people’s government
that originally gives approval. Except where it is necessary to revoke the right for the benefit of public interests or State security,
the people’s government that originally gives approval to the use of the sea area shall approve the application for extension. The
owner of the right who obtains approval for extension shall, in accordance with law, pay fees for the use of the sea area for the
extended period.  

Article 27   Where the owner of the right to the use of a sea area is altered owing to mergence into or separation from
another enterprise or because of running joint ventures or cooperative businesses with others, the matter shall be subject to approval
by the people’s government that originally gives approval to the use of the sea area. 

The right to the use of sea areas may be transferred in accordance with law. Specific measures in this regard shall be formulated
by the State Council. 

The right to the use of sea areas may be inherited in accordance with law.  

Article 28   No owners of the right to the use of sea areas may, without authorization, change the approved purposes of
use of the sea areas. Where it is really necessary to change the purposes, the matter shall, under the prerequisite that the change
accords with the marine function zoning, be submitted for approval to the people’s government that originally gives the approval
to the use of the sea areas. 

Article 29   Where at the expiration of the period for the right to the use of sea areas, the owner fails to apply for
its extension or the application for extension is not granted, such right shall be terminated. 

After the termination of the right to the use of sea areas, the former owner of the right shall dismantle the facilities and structures
that may cause pollution to the marine environment or impede the use of the areas for other projects. 

Article 30  To meet the need of public interests or State security, the people’s government that originally gives approval to
the use of certain sea areas may, in accordance with law, revoke the right to the use of those areas. 

Where in accordance with the provisions of the preceding paragraph, the right to the use of sea areas is revoked before the expiration
of the period for their use, the owner of the right shall be compensated appropriately. 

Article 31  Where a dispute arises over the right to the use of a sea area and the parties fail to settle it through consultation,
it shall be mediated by the department in charge of marine administration under the people’s government at or above the county level.
The parties may also directly take legal proceedings in a People’s Court. 

Prior to the settlement of the dispute, none of the parties may change the status quo in respect of the use of the sea areas. 

Article 32  The land brought into existence after completion of a sea-filling project shall be owned by the State.  

The owner of the right to the use of a sea area shall, within three months from the date the sea-filling project is completed and
by presenting the certificate of the right to the use of sea areas, apply to the department in charge of land administration under
the people’s government at or above the county level for land registration. The said people’s government shall register it and issue
to the owner in return the certificate of the right to the use of land so as to confirm such right. 

Chapter V 

Fees for the Use of Sea Areas 

Article 33  The State applies a system of compensation for the use of sea areas.  

For the use of sea areas, all entities and individuals shall pay fees in accordance with the regulations of the State Council. The
fees collected shall be turned over to the Treasury in accordance with the regulations of the State Council. 

Specific implementation ways and measures for collecting fees from the fishermen who use the sea areas for aquaculture shall be formulated
separately by the State Council. 

Article 34  In light of the different nature and circumstances in which the sea areas are used, the fees may, in accordance
with regulations, be paid in a lump sum or on an annual basis. 

Article 35  Where the sea areas are used for the following purposes, the fees for their use shall be exempted: 

(1) for military purposes; 

(2) reserved docks for official ships; 

(3) non-profit transportation infrastructures such as navigation channel and anchorage; and 

(4) non-profit, public welfare undertakings such as teaching, scientific research, disaster prevention and mitigation, and search,
rescue and salvage at sea; 

Article 36  In accordance with the regulations of the department of finance and the department in charge of marine administration
under the State Council, the fees for the use of the sea areas for the following purposes may be reduced or exempted upon examination
and approval by the department of finance and the department in charge of marine administration under the people’s government that
has the approval authority: 

(1) public utilities; 

(2) major national construction projects; and 

(3) aquaculture. 

Chapter VI 

Supervision and Inspection 

Article 37  The department in charge of marine administration under the people’s government at or above the county level shall
strengthen supervision over and inspection of the use of sea areas. 

The department of finance under the people’s government at or above the county level shall strengthen supervision over and inspection
of the collection of the fees for the use of sea areas. 

Article 38  The department in charge of marine administration shall build a stronger contingent by raising the political and
professional level of the supervisors and inspectors in the administration of the use of sea areas. The said supervisors and inspectors
shall enforce laws impartially, be devoted to their duties, honest and upright, provide services with civility and subject themselves
to supervision in accordance with law. 

No department in charge of marine administration or its staff members may participate or engage in production and operation activities
related to the use of sea areas. 

Article 39  When performing its duties of supervision and inspection, the department in charge of marine administration under
the people’s government at or above the county level shall have the right to take the following measures: 

(1) requesting the entities or individuals under inspection to provide the documents and information relating to the use of sea areas; 

(2) requesting the entities or individuals under inspection to give explanations on the issues relating to the use of sea areas; 

(3) entering the sea areas occupied by the entities or individuals under inspection for on-the-spot survey; 

(4) instructing the party concerned to discontinue the illegal act that is being conducted. 

Article 40  When performing their duties of supervision and inspection, supervisors and inspectors shall show their effective
papers for law enforcement. 

The entities and individuals concerned shall cooperate with the department in charge of marine administration when the latter conducts
supervision and inspection, and none of them may prevent supervisors and inspectors from performing their duties in accordance with
law, or impede their doing so. 

Article 41  When enforcing laws at sea, the departments concerned that exercise the power of marine supervision and administration
in accordance with the provisions of laws shall closely cooperate with and support each other in and jointly safeguard the State
ownership of the sea areas and the legitimate rights and interests of the owners of the right to the use of sea areas. 

Chapter VII 

Legal Liabilities 

Article 42  Entities or individuals that, without approval or with approval obtained through deception, illegally occupy sea
areas shall be instructed to return the illegally occupied sea areas and restore them to their original state, their illegal gains
shall be confiscated, and they shall also be fined not less than 5 times but not more than 15 times the fees payable for the sea
areas during the period of their illegal occupation. Entities or individuals that, without approval or with approval obtained through
deception, enclose or fill sea areas shall, in addition, be fined not less than 10 times but not more than 20 times the fees payable
for the sea areas during the period of their illegal occupation. 

Article 43  Where entities that have no approval authority illegally approve the use of sea areas, or entities that have such
authority but gives approval beyond their limits of authority or at variance with the marine function zoning, the approval documents
are invalid and the sea areas illegally used shall be recovered. The persons directly in charge who illegally approve the use of
the sea areas and the other persons directly responsible shall be given administrative sanctions in accordance with law. 

Article 44  Where any entity or individual, in violation of the provisions of Article 23 of this Law, interferes with or obstructs
the lawful use of sea areas by the owner of the right to use of such areas, the owner of the right may appeal to the department in
charge of marine administration for removal of the interference or obstruction, he may also take legal proceedings in a People’s
Court in accordance with law. If losses are caused, the owner may ask for compensation according to law. 

Article 45  Anyone who, in violation of the provisions of Article 26 of this Law, continues to use the sea area without going
through the relevant formalities at the expiration of the period for the right to the use of the sea area shall be instructed to
go through the formalities within a time limit and may also be fined not more than RMB 10,000 yuan. If he refuses to go through the
formalities, he shall be deemed to be a person who illegally occupies a sea area and be punished as such. 

Article 46  Anyone who, in violation of the provisions of Article 28 of this Law and without authorization, changes the purposes
of use of the sea area shall be instructed to rectify within a time limit, his illegal gains shall be confiscated, and he shall also
be fined not less than 5 times but not more than 15 times the fees payable for the sea area during the period in which the purposes
of use of the sea area is illegally changed. If he refuses to rectify, the people’s government that issues the certificate of the
right to the use of sea areas shall revoke the certificate and the right to the use of sea areas. 

Article 47  Where the provisions of the second paragraph of Article 29 of this Law are violated, the right to the use of sea
areas shall be terminated, and if the original owner of the right fails to dismantle the facilities and structures for the use of
the sea areas in accordance with regulations, he shall be instructed to do so within a time limit. If he refuses to do so at the
expiration of the time limit, he shall be fined not more than 50, 000 yuan and the department in charge of marine administration
under the people’s government at or above the county level shall entrust a relevant unit to do the dismantling, and the owner shall
bear the expenses arising therefrom. 

Article 48  Where the owner of the right to the use of sea areas who should pay the fees for such use on an annual basis fails
to do so on schedule in violation of the provisions of this Law, he shall be instructed to pay the fees within a time limit; if he
still refuses to pay the fees within the time limit, the people’s government that issues the certificate of the right to the use
of sea areas shall revoke the certificate and the right to the use of sea area. 

Article 49  Any entity or individual that, in violation of the provisions of this Law, refuses to accept supervision and inspection
by the department in charge of marine administration, to give a truthful report or provide relevant information shall be instructed
to rectify and be given a disciplinary warning, and may also be fined not more than 20,000 yuan. 

Article 50  The administrative sanctions provided for by this Law shall be determined by the department in charge of marine
administration under the people’s government at or above the county level within the limits of its power, except where there are
already provisions in this Law that specify the penalizing authority. 

Article 51  Where the department in charge of marine administration under the State Council or under the people’s government
at or above the county level issues the certificate of the right to the use of sea areas in violation of the provisions of this Law,
or fails to conduct supervision after issuance of the certificate, or fails to investigate and deal with the illegal activities it
discovers, the persons directly in charge and the other persons directly responsible shall be given administrative sanctions in accordance
with law. The persons who engage in malpractice for personal gain, abuse their powers or neglect their duties, which constitutes
a crime, shall be investigated for criminal liabilities in accordance with law. 

Chapter VIII 

Supplementary Provisions 

Article 52  For use of a special sea area within the inland waters or territorial seas of the People’s Republic of China for
less than three months, and for use of the sea areas for exclusive activities, which may have a major impact on the security of national
defense, maritime traffic safety or other uses of the sea areas, formalities shall be completed for the issuance of a provisional
certificate for the use of sea areas through application of the relevant provisions of this Law mutatis mutandis. 

Article 53  The administrative measures for military use of the sea areas shall be formulated by the State Council and the Central
Military Commission on the basis of this Law. 

Article 54  This Law shall go into effect as of January 1, 2002.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







PREVENTION AND CONTROL OF DESERTIFICATION LAW

Law of the People’s Republic of China on Prevention and Control of Desertification

(Adopted at the 23rd Meeting of the Standing Committee of the Ninth National People’s Congress on August 31, 2001
and promulgated by Order No. 55 of the President of the People’s Republic of China on August 31, 2001) 

Contents 

Chapter I    General Provisions 

Chapter II   Plans for Prevention and Control of Desertification 

Chapter III  Prevention of Land Desertification 

Chapter IV   Rehabilitation of Desertified Land 

Chapter V    Supporting Measures 

Chapter VI   Legal Responsibility 

Chapter VII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted to prevent land desertification, rehabilitate desertified land, maintain eco-safety, and promote
sustainable economic and social development. 

Article 2  All activities for prevention of land desertification and for rehabilitation and exploitation of desertified land
in the territory of the People’s Republic of China shall be conducted in accordance with this Law. 

Land desertification refers to the process of expansion of natural deserts, damage to vegetation on sandy soil, and sand and soil
exposure induced by climatic variations and human activities. 

Land desertification mentioned in this Law refers to the process of expansion of natural deserts, and the process of shifting sand
development and of sand and soil exposure brought about by damage to vegetation or other ground covers on sandy soil, which are mainly
caused by irrational human activities. 

Desertified land mentioned in this Law includes land that has been desertified and land that markedly tends toward desertification.
The specific scope shall be defined in the national plan for preventing and controlling desertification approved by the State Council. 

Article 3  The following principles shall be observed in preventing and controlling desertification: 

(1) to make unified plans, adapt measures to local conditions, implement the plans in a step-by-step manner, and combine regional
prevention and control with key area prevention and control; 

(2) to give priority to prevention, combine prevention with control and adopt integrated approaches in rehabilitating desertified
land; 

(3) to combine protection and restoration of vegetation with rational use of natural resources; 

(4) to follow the law of ecology and rely on advancement of science and technology; 

(5) to combine efforts to improve ecological environment with efforts to help farmers and herdsmen to extricate themselves from poverty
and become prosperous; 

(6) to combine government support with local self-reliance, combine organization by the government with participation by people from
all walks of life, and encourage units and individuals to contract for prevention and control of desertification; and 

(7) to protect the legitimate rights and interests of people engaged in prevention and control of desertification. 

Article 4  The State Council and the people’s governments at or above the county level located in desertified regions shall
incorporate plans for prevention and control of desertification into the national economic and social development plan, guaranteeing
and supporting endeavors to prevent and control desertification. 

The people’s governments located in desertified regions shall take effective measures to prevent land desertification, rehabilitate
desertified land, maintain and improve the ecological quality in their respective administrative areas. 

The State, in desertified regions, establishes a responsibility, appraisal, reward and punishment system with respect to the targets
set to government leaders during their term of office. People’s governments at or above the county level located in desertified regions
shall report to the people’s congresses and their standing committees at the corresponding level on prevention and control of desertification. 

Article 5  Under the leadership of the State Council, the forestry administration department of the State Council shall be responsible
for organizing, coordinating and guiding the efforts made to prevent and control desertification throughout the country. 

The administrative departments under the State Council for forestry, agriculture, water conservancy, land, environmental protection
and the authority of meteorology shall, according to their duties prescribed by relevant laws and the division of responsibilities
defined by the State Council, assume their respective responsibilities and cooperate closely with one another in their joint efforts
to prevent and control desertification successfully. 

Each of the local people’s governments at or above the county level shall organize and exercise leadership over its subordinate departments,
so that they will, according to the division of responsibility, assume their respective responsibilities and cooperate closely with
one another in their joint efforts to prevent and control desertification successfully within their respective administrative areas. 

Article 6  Units or individuals that use land have the obligation to prevent the land from being desertified. 

Units or individuals that use desertified land have the obligation to rehabilitate the land. 

Article 7  The State supports scientific research in prevention and control of desertification and the wide use of technology
in this field, giving full play to the scientific research departments and institutions, training specialists, and improving the
scientific and technological level in this endeavor. 

The State supports international cooperation in prevention and control of desertification. 

Article 8  The people’s governments shall commend and reward the units and individuals that have made noticeable achievements
in prevention and control of desertification. Units or individuals that have made outstanding contributions to protection and improvement
of ecological quality shall be rewarded handsomely. 

Article 9  The people’s governments at various levels located in desertified regions shall organize relevant departments to
disseminate knowledge about prevention and control of desertification, enhance the awareness of the need to prevent and control desertification,
and increase their ability to do so. 

Chapter II 

Plans for Prevention and Control of Desertification 

Article 10  Unified plans shall be made for prevention and control of desertification. All activities for prevention and control
of desertification and exploitation of desertified land shall be conducted in compliance with plans for prevention and control of
desertification. 

In the plans for prevention and control of desertification, explicit stipulations regarding the time limit, steps, measures, etc.
for curbing the expansion of land desertification, gradually reducing the area of desertified land shall be included. The detailed
programmes for their implementation shall be incorporated into the five-year plan and the annual plan for national economic and social
development. 

Article 11  The forestry administration department under the State Council, along with the relevant departments under the State
Council in charge of agriculture, water conservancy, land, and environment protection, shall formulate the national plan for Prevention
and control of desertification and submit it to the State Council for approval before implementation. 

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, in compliance
with the national plan for prevention and control of desertification, formulate plans for prevention and control of desertification
in their respective administrative areas and submit them to the State Council or the relevant departments designated by the State
Council for approval before implementation. 

The people’s governments of cities and counties located in desertified regions shall, according to the plans for prevention and control
of desertification formulated by the people’s government at the next higher level, make arrangements to work out plans for prevention
and control of desertification in their respective administrative areas, and submit them to the people’s governments at the next
higher level for approval before implementation. 

Revision of the plans for prevention and control of desertification shall be subject to approval by the approving department; without
such approval, no unit or individual may revise the plans. 

Article 12  The plans for prevention and control of desertification shall be formulated on the basis of such natural conditions
as the geographic location of the desertified land, the category of the land, the condition of vegetation, climate, water resources
and extent of land desertification, as well as its ecological and economic functions, and shall be designed to provide differentiated
protection and to make all-purpose rehabilitation and rational use of desertified land. 

Contiguous stretches of desertified land, that do not meet the conditions for rehabilitation during the planned period or that are
not suitable for exploitation because of the need of ecological protection, shall be made enclosed and forbidden reserves of desertified
land for protective purposes. The boundary of such reserves shall be defined in the national plans for prevention and control of
desertification and in such plans of provinces, autonomous regions and municipalities directly under the Central Government. 

Article 13  The plans for prevention and control of desertification shall be dovetailed with the overall plan for land use;
the use of desertified land defined in the plans for prevention and control of desertification shall conform with the overall plan
for land use of the people’s government at the corresponding level. 

Chapter III 

Prevention of Land Desertification 

Article 14  The forestry administration department under the State Council shall organize other relevant administrative departments
to monitor, prepare statistics and make analysis of land desertification throughout the country, and release the monitoring results
periodically. 

The forestry or other relevant administrative departments of the people’s governments at or above the county level shall, in conformity
with the technical rules for monitoring land desertification, monitor desertified land and report the monitoring results to the people’s
government at the corresponding level and the forestry or other relevant administrative departments at the next higher level. 

Article 15  When in the course of monitoring, the forestry or other relevant administrative department of the people’s governments
at or above the county level discovers that a stretch of land is being desertified or desertification becomes aggravated, it report
to the people’s government at the corresponding level without delay. The people’s government that receives such report shall instruct
the administrative departments concerned to put a stop to the activities resulting in land desertification and take effective measures
for rehabilitation. 

The meteorological institutions at various levels shall enlist efforts to monitor and forecast drought and sandstorm and shall, upon
detecting the foretokens of drought or sandstorm, immediately report to the local people’s government. The people’s government that
receives such report shall take preventive measures, make disaster forecast whenever necessary, and make arrangements for the departments
of forestry, agriculture (animal husbandry) and other relevant departments to take emergency measures to avoid or mitigate the damages
inflicted by wind and sand. 

Article 16  The people’s governments at or above the county level located in desertified regions shall, in accordance with their
plans for prevention and control of desertification, set aside a certain proportion of land for establishing windbreaking and sand-fixing
forest networks or shelterbelts or planting perennial shrubs and herbaceous vegetation in light of local conditions. The forestry
administration department shall be responsible for determining the survival and conservation rates, assigning specific tasks, making
arrangements for implementation on a stretch-by-stretch basis, and defining responsibilities to ensure fulfillment of the tasks. 

No approval shall be granted to the felling of windbreaking and sand-fixing forest networks and shelterbelts, with the exception
of felling for purposes of tending and regeneration. Substituting forest networks and shelterbelts shall be formed near the windbreaking
and sand-fixing forest networks and shelterbelts before felling is conducted there for purposes of tending and regeneration. 

No approval shall be granted to the felling of the existing windbreaking and sand-fixing forest networks and shelterbelts in regions
where forest regeneration is difficult. 

Article 17  Cutting or digging shrubs, medicinal herbs and other sand-fixing plants in desertified land is prohibited. 

The people’s government at the county level located in a desertified region shall establish a vegetation protection and control system
for strict protection of vegetation, set up vegetation protection and control organizations in townships (towns) and villages wherever
necessary and designate people to conduct the protection and control. 

In areas of desertified land, contracts concerning all categories of land shall include responsibilities for vegetation protection. 

Article 18  The people’s governments at various levels located in grassland areas shall tighten control and redouble their effort
in developing the grasslands. The agriculture (animal husbandry) administration department shall be responsible for providing guidance
and getting the farmers and herdsmen organized to build artificial pastures, control the livestock-carrying capacity, readjust the
mix of livestock, improve the breed of livestock promote stall feeding and rotational grazing, and wipe out rodent and insect pests
on the grasslands, so as to protect grassland vegetation and prevent degradation and desertification of grasslands. 

The system of determining livestock-carrying capacity according to grass production shall be applied in grassland. The agriculture
(animal husbandry) administration department shall be responsible for determining the rate of livestock-carrying capacity and formulating
related regulations, making arrangements for their implementation level-by-level and defining responsibilities to ensure accomplishment. 

Article 19  The administrative department for water resources of the people’s governments at or above the county level located
in desertified regions shall improve unified allocation and control of the water resources in river basins and regions; when formulating
plans for the exploitation of water resources in river basins and regions and for water supply, it shall take into account the water
demand for vegetation protection in the whole river basin and region, so as to prevent damage to vegetation and land desertification
resulting from excessive exploitation of underground water and water resources at the upper reaches of a river. Once approved, the
plans shall strictly be implemented. 

The people’s governments at various levels located in desertified regions shall economize on the use of water, develop water-efficient
agriculture, animal husbandry and other industries. 

Article 20  No people’s government at or above the county level located in desertified regions may grant approval to land reclamation
along the periphery of deserts or on forest land and grassland. Where land has been reclaimed with adverse impacts on the ecosystems,
plans shall be made for conversion of the reclaimed farmland into forests or grasslands. 

Article 21  Where exploitation and construction activities are to be carried out in desertified land, the potential environmental
impact made by the project on the ecology of the locality and related regions shall be assessed in advance and a report on the environmental
impact shall be submitted according to law, which should include efforts to be made for prevention and control of desertification. 

Article 22  In the enclosed and forbidden reserves of desertified land, all the activities damaging the vegetation are prohibited. 

Relocation of immigrants in enclosed and forbidden reserves of desertified land is prohibited. The local people’s governments at
or above the county level shall make plans to help the farmers and herdsmen living in the enclosed and forbidden reserves of desertified
land move out of the areas and settle down appropriately. With regard to production and everyday life of the farmers and herdsmen
still living in the enclosed and forbidden reserves of desertified land, the authority there shall make proper arrangements for them. 

Without approval of the State Council or the authority designated by the State Council, no railways, highways, etc. may be constructed
in enclosed and forbidden reserves of desertified land. 

Chapter IV 

Rehabilitation of Desertified land 

Article 23  The people’s governments at all levels located in desertified regions shall, in accordance with plans for prevention
and control of desertification, make arrangements for the relevant departments, units and individuals to take measures, in light
of local conditions, to plant trees and grass artificially, sow seeds by plane, enclose sandy land to facilitate the growth of trees
and grass, and properly allocate water for ecological purposes – all in order to restore or increase vegetation and rehabilitate
desertified land. 

Article 24  The State encourages units and individuals, on a voluntary basis, to donate or, by other means, to take part in
public welfare activities, for rehabilitating desertified land. 

The forestry administration departments or other relevant administrative departments of the local people’s governments at or above
the county level shall allocate stretches of desertified land to and provide free technical guidance for units and individuals that
undertake to rehabilitate such land for public welfare. 

The units and individuals that engage in rehabilitation of desertified land for public welfare shall do so in compliance with the
technical requirements set by the forestry administration departments or other relevant administrative departments of the local people’s
governments at or above the county level. They may entrust the trees and grass they have planted to other persons or the relevant
administrative departments of the local people ‘s governments for protection and control. 

Article 25  Persons who enjoy the right to the use of desertified State-owned land or contractors who have the right to the
management of land owned by the collectives of farmers shall take measures to rehabilitate such land in order to improve the soil
quality. Those who are really not capable of accomplishing the task may entrust, or enlist the cooperation of, other persons to rehabilitate
the desertified land. In this connection, an agreement shall be signed to define the rights and obligations of each party. 

The people’s governments, the relevant administrative departments and technical advice stations located in desertified regions shall
provide the persons enjoying the right to the use of the land and the contractors for managing the land with technical guidance in
their efforts to rehabilitate the desertified land. 

When persons enjoying the right to the use of land and contractors, in their efforts to rehabilitate desertified land, take measures
to convert reclaimed land into forests or grasslands, plant trees and grass, or enclose areas for tending purposes, they shall, in
accordance with relevant State regulations, be enpost_titled to preferential policies adopted by people’ s governments. 

Article 26  Units or individuals that do not have land ownership or the right to the use of land but wish to engage in profit-making
rehabilitation activities shall sign an agreement in advance with the landowner or the person that has the right to the use of the
land in order to acquire such right in accordance with law. 

Before starting rehabilitation, the units or individuals engaged in profit-making rehabilitation shall submit an application for
rehabilitation, with the following documents attached, to the forestry administration department of the people’s government at or
above the county level located in the place where the rehabilitation project is to be launched or the relevant administrative department
designated by the said government: 

(1) lawful document of the land ownership or the right to the use of the land and rehabilitation agreement; 

(2) the rehabilitation proposals conforming to the plan for prevention and control of desertification ; and 

(3) certificate of funds needed for rehabilitation. 

Article 27  The rehabilitation proposals mentioned in Subparagraph (2) of the second paragraph in Article 26 of this Law shall
include the following: 

(1) the rehabilitation scope and boundary; 

(2) phased goals and time limit for rehabilitation; 

(3) major rehabilitation measures; 

(4) sources and quota of water supply approved by the local water resources administration department; 

(5) purpose of land use and measures for vegetation protection and control after rehabilitation; and 

(6) other particulars needed to be stated clearly. 

Article 28  The units and individuals enjoying in profit-making rehabilitation shall act in conformity with the rehabilitation
proposals. 

The State protects the legitimate rights and interests of the units and individuals that are engaged in rehabilitation of desertified
land. Without their permission, no unit or individual may carry out rehabilitation or exploitation on the land of which they have
acquired lawful ownership or the lawful right to the use. 

Article 29  After completing the rehabilitation task, the units or individuals concerned shall submit applications for inspection
and acceptance to the administrative department that accepts the rehabilitation applications. The said department shall issue rehabilitation
qualification certificates to those who pass the inspection. Those who fail shall continue rehabilitation of the desertified land. 

Article 30  Along both sides of railways, highways, rivers and water channels, and around cities, towns, villages, factories,
mines and reservoirs in regions where land has been desertified, a responsibility system for rehabilitation on a unit basis shall
be applied. The local people’s government at or above the county level shall issue letters of rehabilitation responsibilities to
the units. The said units shall be responsible for enlisting efforts to plant trees and grass or taking other rehabilitation measures. 

Article 31  The people’s governments at various levels located in desertified regions may get the local rural collective economic
organizations and their members organized, on a volutary basis, to concentrate their efforts on rehabilitating the desertified land.
The funds and labor put in by the said organizations and their members may be converted into shares or capital funds for the rehabilitation
projects, or be compensated by other means. 

Chapter V 

Supporting Measures 

Article 32  The State Council and the people’s governments at various levels located in desertified regions shall, on the basis
of their plans for prevention and control of desertification, allocate funds from their respective budgets to the budgeted projects,
to be used on the projects determined by them. When making plans for projects in respect of poverty alleviation, agriculture, water
conservancy, road construction, minerals, energy resources and all-purpose exploitation of agriculture, they shall, in light of the
specific conditions, plan for a number of sub-projects for prevention and control of desertification. 

Article 33  The State Council and the people’s governments of provinces, autonomous regions, and municipalities directly under
the Central Government shall formulate preferential policies to encourage and support units and individuals in their efforts to prevent
and control desertification. 

In conformity with relevant State regulations and on the basis of the area under prevention and control and the degree of difficulty,
the local people’s governments at or above the county level shall, where the units and individuals engaged in prevention and control
of desertification are concerned, apply preferential policies such as financial subsidy, interests which will be paid by budget and
tax and fee reduction or exemption. 

Units and individuals investing in prevention and control of desertification shall be exempted from all kinds of taxes during the
period of investment. Certain taxes may be exempted or reduced when they begin to earn a specified amount of profits . 

Article 34  Any unit or individual that apply for rehabilitating desertified State-owned land shall, upon approval given by
the people’s government at or above the county level in accordance with law, enjoy the right to the use of the land for a maximum
of 70 years. The specific number of years and the measures for management shall be formulated by the State Council. 

Any unit or individual that intend to rehabilitate collectively owned desertified land shall sign a contract with the owner of the
land. The specific number of years for the contract and obligations of the parties shall be laid down by the parties in the land-contracting
agreement pursuant to law. The county people’s government shall, in accordance with law, issue to the unit or individual a certificate
of land use right in order to protect the right of the unit or individual to the use of the desertified land owned by the collective. 

Article 35  Where, for the special need of ecological protection, rehabilitated land is designated, upon approval, as natural
reserve or enclosed and forbidden reserve of desertified land, the approving authority shall give reasonable financial compensation
to the units or individuals that have rehabilitated the land. 

Article 36  The State, in light of the need for prevention and control of desertification, makes arrangements for launching
key scientific research projects and demonstration and popularization projects for prevention and control of desertification, and
adopts preferential policies such as financial subsidy, reduction or exemption of taxes in respect of scientific research and technology
popularization in prevention and control of desertification, energy resources in the desertified land area, cultivation of desert
economic crops, water-efficient irrigation, prevention of grassland degradation, non-irrigated farming in sandy land, etc. 

Article 37  No Unit or individual may withhold or misappropriate the funds earmarked for prevention and control of desertification. 

The audit offices of the people’s governments at or above the county level shall, pursuant to law, audit and supervise the use of
funds earmarked for prevention and control of desertification. 

Chapter VI 

Legal Responsibility 

Article 38  Anyone who, in violation of the provisions in the first paragraph of Article 22 of this Law, engages in activities
damaging the vegetation in the enclosed and forbidden reserves of desertified land, shall be ordered by the forestry or agriculture
(animal husbandry) administration department of the local people’s government at or above the county level, within the limits of
its duties, to desist from the unlawful act, the illegal gains, if any, shall be confiscated; if a crime is constituted, criminal
responsibility shall be investigated in accordance with law. 

Article 39  Where persons who enjoy the right to the use of State-owned land or contractors who have the right to the management
of the land owned by the collectives of farmers, in violation of the provisions in the first paragraph of Article 25 of this Law,
fail to take measures to prevent and control desertification, thus causing serious desertification of land, the agriculture (animal
husbandry) or forestry administration department of the people’s government at or above the county level shall, within their respective
limits of duties, order them to rehabilitate the land within a time limit; where State-owned land is seriously desertified, the people’s
governments at or above the county level may take back the right to the use of the State-owned land. 

Article 40  Anyone who, in violation of the provisions of this Law, engages in  prevention and control of desertification
for making profits, thus aggravating land desertification, the administrative department of the local people’s government at or above
the county level which is responsible for accepting applications for profit-making prevention and control of desertification shall
order him to desist from the unlawful act and may also impose on him a fine not less than RMB 5,000 yuan but not more than 50,000
yuan per hectare. 

Article 41  Any unit or individual that, in violation of the provisions in the first paragraph of Article 28 of this Law, fails
to rehabilitate desertified land in conformity with the rehabilitation proposals or that, being unqualified by inspection and in
violation of the provisions in Article 29 of this Law, go on with the rehabilitation at variance with the requirements, shall be
ordered by the administrative department of the local people’s government at or above the county level which is responsible for accepting
applications for profit-making prevention and control of desertification to desist from the unlawful act and to make rectification
within a time limit, and may also be imposed a fine not less than the amount of the rehabilitation cost but not more than three time
the amount. 

Article 42  Anyone who, in violation of the provisions in the second paragraph of Article 28 of this Law and without permission
of the unit or individual concerned, carries out rehabilitation or exploitation in the area the said unit or individual is rehabilitating
shall be ordered by the administrative department of the local people’s government at or above county level which is responsible
for accepting applications for profit-making prevention and control of desertificatio

PREVENTION AND CONTROL OF OCCUPATIONAL DISEASES LAW

Law of the People’s Republic of China on Prevention and Control of Occupational Diseases

(Adopted at the 24th Meeting of the Standing Committee of the Ninth National People’s Congress on October 27, 2001
and promulgated by Order No. 60 of the President of the People’s Republic of China on October 27, 2001) 

Contents 

Chapter I    General Provisions 

Chapter II   Preliminary Prevention 

Chapter III  Prevention and Control in the Course of Work 

Chapter IV   Diagnosis of Occupational Diseases and Security for Occupational Disease Patients 

Chapter V    Supervision and Inspection 

Chapter VI   Legal Responsibility 

Chapter VII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted, in accordance wi9th the Constitution, for the purpose of preventing, controlling and eliminating
occupational disease hazards, preventing and controlling occupational diseases, protecting the health and related rights an interests
of workers, and promoting the development of the economy. 

Article 2  This Law is applicable to activities conducted within the territory of the People’s Republic of China to prevent
and control occupational diseases. 

The occupational diseases mentioned in this Law refer to the diseases contracted by the workers of enterprises, institutions and
household economic organizations (hereinafter all are referred to as the employer) due to their exposure in the course of work to
dusts, radioactive substances and other toxic and harmful substances, etc. 

The categories and catalogue of occupational diseases shall be arranged, readjusted and published by the administrative department
together with the administrative department for occupational security under the State Council. 

Article 3  In prevention and control of occupational diseases, the principle of putting prevention first and combining prevention
with controlling shall be upheld, and the diseases shall be controlled under different categories and dealt with in an all-round
way. 

Article 4  The workers enjoy the right to occupational health protection. 

The employer shall create the working environment and conditions that conform to the national norms for occupational health and requirements
for public health and take measures to ensure that the workers receive occupational health protection. 

Article 5  The employer shall establish and improve the responsibility system for prevention and control of occupational diseases,
in order to enhance management and raise the level in this field, and bear responsibility for the occupational disease hazards produced
in the unit. 

Article 6  The employer shall, as required by laws, undertake social insurance on industrial injuries. 

The administrative departments for occupational security under the State Council and the local people’s governments at or above the
country level shall conduct strict supervision and control of social insurance on industrial injuries, in order to ensure that the
workers receive social insurance for industrial injuries. 

Article 7  The State encourages research in development, popularization and employment of new technologies, new techniques and
new materials which are conducive to prevention and control of occupational disease and to protection of the workers’ health, and
basic research in pathogenic mechanism and etiologic rules of occupational diseases with redoubled efforts, in order to raise the
scientific and technical level in prevention and control of occupational diseases; actively adopts the technologies, techniques and
materials that are effective for prevention and control of occupational diseases and restrict the use of or eliminate the technologies,
techniques and materials that entail serious occupational disease hazards. 

Article 8  The State applies a supervision system for occupational health. 

The administrative department for public health under State Council shall be responsible for unified supervision over prevention
and control of occupational diseases throughout the country. The relevant departments under the State Council shall, within the limits
of their respective duties, be responsible for supervision related to prevention and control of occupational diseases. 

The public health administration departments of the local people’s governments at or above the country level shall, within their
own administrative areas, be responsible for supervision over prevention and control of occupational diseases. The relevant departments
of the said governments shall, within the limits of their respective duties, be responsible for supervision related to the same. 

Article 9  The State Council and the local people’s governments at or above the country level shall formulated plans for prevention
and control of occupational diseases, incorporate them into the national economic and social development plans and make arrangements
for their implementation.  

The people’s governments of townships, nationality townships and towns shall conscientiously implement this Law and support the public
health administration departments in performing their duties in accordance with law. 

Article 10  The public health administration departments and the relevant departments of the people’s governments at or above
the county level shall redouble their efforts in publicizing importance of prevention and control of occupational diseases and disseminate
knowledge about such prevention and control, in order to enhance the employer’s awareness of the need to prevent and control occupational
diseases, as well as the workers’ awareness of the need to protect their own health. 

Article 11  The national norms for occupational health related to prevention and control of occupational diseases shall be formulated
and published by the public health administration department under the State Council. 

Article 12  All units and individuals shall have the right to inform and lodge complaints against any violations of this Law. 

The units and individuals that have made outstanding contributions to prevention and control of occupational diseases shall be rewarded. 

Chapter II 

Preliminary Prevention 

Article 13  The workplace, set up by the employer, where occupational disease hazards are produced shall, apart from fulfilling
the conditions specified by laws and administrative regulations, meet the following requirements for occupational health: 

(1) The strength or concentration of the factors of occupational disease hazards shall meet the national norms for occupational health; 

(2) There are facilities commensurate with the prevention of occupational disease hazards; 

(3) The production processes are arranged rationally and in conformity with the principle of separation the harmful from non-harmful
processes; 

(4) There are supporting health facilities such as locker rooms, bathrooms and a lounge for pregnant women workers; 

(5) The equipment, tools, apparatus and other facilities meet the requirements for protecting workers’ physiological and psychological
health; and 

(6) The workplace meets the other requirements specified by laws administrative regulations and the public health administration
department under the State Council regarding the protection of worker’s health. 

Article 14  A report system for projects entailing occupational disease hazards shall be established in the public health administration
departments. 

The employer that has projects entailing occupational disease hazards included in the published catalogue of occupational diseases
shall make a timely and truthful report to the public health administration department for supervision. 

The specific measures for report on projects entailing occupational disease hazards shall be formulated by the public health administration
department under the State Council. 

Article 15  For construction projects, including projects to be constructed, expanded and reconstructed, and projects for technical
updating and introduction, which may produce occupational disease hazards, the unit responsible for a construction project shall,
during the period of feasibility study, submit to the public health administration department a preliminary assessment report on
the hazards. The said department shall, within 30 days from the date the report is received, make a decision upon examination and
inform the unit of the decision in writing. Where a unit fails to submit such a report to or obtain approval by the public health
administration department after examination of the report, the authority concerned may not grant approval to the construction project. 

The preliminary assessment report on the occupational disease hazards shall include the assessment of the occupational hazard factors
that the construction project may produce and of the effects that such factors may have on the workplace and the workers’ health,
the defined category of the hazards and the measures to be taken for prevention of occupational diseases. 

The catalogue of the categories of occupational disease hazards shall be prepared, and the measures for their control on the basis
of the categories shall be formulated, by the public health administration department under the State Council. 

Article 16  The expenditure entailed by the facilities included in a construction project, for prevention of occupational diseases
shall be incorporated into the budget of the project, and the facilities shall be designed, built and put into operation and use
simultaneously with the main body of the construction project. 

For construction projects that produce serious occupational disease hazards, the design of the protective facilities shall be subject
to examination by the public health administration department. Only when the design conforms to the national norm for occupational
health and meet the requirements for occupational health, construction can be started. 

Before the construction project is completed for inspection and acceptance, the construction unit shall assess the effect of the
control of occupational disease hazards when the project is completed and ready for inspection and acceptance, the facilities for
prevention of occupational diseases may be put into formal operation and use only after they pass the inspection by the public health
administration department. 

Article 17  Preliminary assessment of occupational disease hazards and of the effect of the control of such hazards shall be
conducted by the occupational health technical service that is set up in accordance with law and is authenticated as qualified by
the public health administration department of the people’s governments at or above the provincial level. The assessment made by
the said institution shall be objective and truthful. 

Article 18  The State exercises special control over operations exposes to radioactive and highly toxic hazards. The specific
control measures shall be formulated by the State Council. 

Chapter III 

Prevention and Control in the Course of Work 

Article 19  The employer shall take the following measures for prevention and control of occupational disease: 

(1) to set up or designate an institution or organization for occupational health control, and have it manned with full-time or part-time
occupational health professionals to be responsible for prevention and control of occupational diseases in the unit; 

(2) to make plans for prevention and control of occupational diseases and programs for their implementation; 

(3) to establish and improve the control system for occupational health and rules for its application; 

(4) to keep files on occupational health and files on monitoring and protecting of the workers’ health, and improve the practice; 

(5) to set up and improve the system for monitoring and assessing the factors of occupational disease hazards at the workplace; and 

(6) to make and improve preliminary plans for emergency rescue in accidents caused by occupational disease hazards. 

Article 20 The employer shall have effective facilities for prevention of occupational disease and shall provide individual workers
with articles for prevention of occupational diseases. 

The articles for prevention of occupational diseases provided by the employer to individual workers shall meet the requirements for
prevention and control of occupational diseases; otherwise, such articles may not be used. 

Article 21  The employer shall give priority to the use of new technologies, new technologies and new materials that are conducive
to prevention and control of occupational diseases and to protection of workers’ health, in order to gradually replace the technologies,
techniques, and materials that produce serious occupational disease hazards. 

Article 22  The employer of a unit where occupational disease hazards are produced shall set up bulletin boards at eye-catching
places to publish the rules and regulations for prevention and control of occupational diseases, the rules for their application,
emergency rescue measures in accidents caused by occupational disease hazards, and the monitoring results of the factors of occupational
disease hazards at the workplace. 

At eye-catching places, alarming signs with warning descriptions in Chinese shall be put up at the operation posts where serious
occupational disease hazards are produced. The descriptions shall clearly furnish the categories, consequences and prevention of
and the emergency rescue measures for, the occupational disease hazards. 

Article 23  At the workplace with toxic and hazardous substances where acute occupational injuries may occur, the employer shall
have such places equipped with alarming devices, first-aid articles and washing equipment, and have emergency exit passages built
and necessary risk obviating areas prepared. 

For the workplaces exposed to radioactive substances and the transportation and storage of radioisotope, the employer shall install
protective equipment and alarming devices, and make sure that the workers exposed to radioactive rays wear dosimeters for personal
use. 

With regard to the equipment for prevention of occupational diseases, emergency rescue facilities, and the articles to be used by
individuals for prevention of occupational diseases, the employer shall have them maintained and overhauled regularly and have their
properties and effects tested periodically, in order to keep them in normal condition. Without authorization, it may not have them
dismantle or discontinue their use. 

Article 24  The employer shall assign special persons to carry out day-to-day monitoring of the factors of occupational disease
hazards and make sure that the monitoring system is kept in normal working conditions. 

The employer shall, in accordance with the regulations of the public health administration department under the State Council, have
the factors of occupational disease hazards monitored and assessed regularly at the workplace. The results of monitoring and assessment
shall be kept in the unit’s files of occupational health regularly reported to the local public health administration department
and announced to the workers. 

The factors of occupational disease hazards shall be monitored and assessed by the occupational health technical service institutions
set up in accordance with law and authenticated as qualified by the public health administration departments of the people’s governments
at or above the provincial level. The monitoring and assessment made by the said institution shall be objective and truthful. 

When discovering the factors of occupational disease hazards at the workplace do not conform to the national requirements for occupational
health, the employer shall immediately adopt appropriated measures to keep them under control. If they still cannot meet the norms
or requirements, the operation where such factors exist, shall be stopped. It can be resumed only after the factors are kept under
control and meet the said norms and requirements. 

Article 25  When providing the employer with the equipment that may produce occupational disease hazards, the supplier shall
give a handbook in Chinese and put up alarming signs with warning descriptions in Chinese at eye-catching spots on the equipment.
The descriptions shall clearly furnish the properties of the equipment, the possible occupational disease hazards it may produce,
points for attention for safety operation and maintenance, protection against occupational diseases, measures for emergency rescue,
etc. 

Article 26  When providing the employer with occupational disease hazards producing chemicals, radioisotope or materials containing
radioactive substances, the supplier shall give a handbook in Chinese. The handbook shall clearly contain the properties of the product,
the main constituents, the hazardous factors present and the possible hazardous consequences, the points for attention for safety
application, protection against occupational diseases, emergency rescue measures, and other particulars. On the package of the product
there shall be eye-catching alarming signs with warning descriptions in Chinese. In the places where the materials mentioned above
are stored, signs for dangerous goods or alarming signs for radioactive substances shall be put up at specified spots. 

For chemicals pertaining to occupational disease hazards which are to be used or imported for the first time in the country, the
user or importer shall, upon approval by the relevant department under the State Council, as required by State regulations, submit
to the public health administration department under the State Council the report on the identification of the toxicity of the chemicals
and the documents proving its registration with the department concerned or proving the approval for import. 

Radioisotope, radiation devices and goods containing radioactive substances shall be imported in accordance with the relevant regulations
of the State. 

Article 27  No unit or individual may produce, deal in, import or use the equipment or materials which may produce occupational
disease hazards and the use of which is prohibited by State decree. 

Article 28  No unit or individual may transfer the operation that produces occupational disease hazards to another unit or individual
that lacks the conditions for prevention of occupational diseases. No unit or individual that lacks the conditions for prevention
of occupational diseases may accept any operation that produces occupational disease hazards. 

Article 29  The employer shall know the occupational disease hazards produced by the technologies, techniques and materials
it employs; if it conceals the fact that the technologies, techniques and materials produce occupational disease hazards and employs
them, it shall bear responsibility for the consequences of the hazards. 

Article 30  When signing with the workers labor contracts (including contracts of employment), the employer shall truthfully
inform the workers of he potential occupational disease hazards the consequences in the course of work, the measures for prevention
of such diseases and the material benefits, and it shall have the same clearly put down in the contracts; it may not conceal the
facts or deceive the workers. 

If, during the contracted period of time, a worker, because of change in work post or assignment, begins to engage in an operation
with occupational disease hazards, which is not mentioned in the contact, the employer shall, in accordance with the provisions in
the preceding paragraph, perform its obligation by informing the worker of the true situation and, through consultation with the
worker, alter the related provisions in the original contract. 

If the employer violates the provisions in the preceding two paragraphs, the worker shall have the right to reject the assignment
where occupational disease hazards exist, and the employer may not thus cancel or terminate labor contract with the worker. 

Article 31  Leading members of the employer shall receive training in occupational health and observe the laws and regulations
on prevention and control of occupational diseases and, in accordance with law, make arrangements for prevention and control of such
diseases within the unit. 

The employer shall provide the workers with pre-service training in occupational health and regular in-service training in this field,
in order to popularize knowledge about occupational health, urge on them the need to abide by the laws, rules and regulations on
prevention and control of occupational diseases and the rules of operation, as well as to show them the correct way of using the
facilities for prevention of occupational diseases and such articles for personal use. 

The workers shall learn and grasp the knowledge related to occupational health, observe the laws, rules and regulations on prevention
and control of occupational diseases and the rules of operation, correctly use and maintain the facilities for prevention of occupational
diseases as well as such articles provided to them for their personal use. When they discover any hidden danger of occupational disease
hazard accident, they shall report immediately. 

If a worker does not perform the obligation specified in the preceding paragraph, the employer shall enlighten him on the need to
do so. 

Article 32  With regard to the workers who engage in operation exposed to occupational disease hazards, the employer shall,
in accordance with the regulations of the public health administration department under the State Council, make arrangements for
pre-service, in-service and job leaving occupational health checkups and truthfully inform the workers of the results of the checkups.
The expenses for occupational health checkups shall be borne by the employer. 

No employer may assign to workers who have not received pre-service occupational health check-ups any jobs exposed to occupational
disease hazards, nor assign to workers forbidden jobs. Workers whose signs of job-related injuries are shown by occupational health
checkups shall be transferred from their original posts and proper arrangements shall be made for them. With regard to workers who
have not received occupational health checkups before leaving their jobs, the employer may not cancel or terminate the labor contracts
concluded with them. 

Occupational health checkups shall be undertaken by the medical and health institutions approved by the public health administration
departments of the people’s government at or above the provincial level. 

Article 33  The employer shall keep files on occupational health monitoring and protection for the workers and keep the files
in good condition for a specified period of time. 

In the file on occupational health monitoring and protection shall be recorded the worker’s professional history, history of exposure
to occupational disease hazards, the results of occupational health checkups and diagnosis and treatment of occupational diseases
and other information related to his health. 

When a worker leaves the employer, he shall have the right to ask for a copy of the file on monitoring and protection of his occupational
health. The employer shall provide a truthful copy to him free of charge, and have it signed and sealed. 

Article 34  When an accident of acute occupational disease hazards occurs or is likely to occur, the employer shall immediately
adopt emergency rescue and control measures and at the same time report to the local public health administration department and
any relevant departments. Upon receiving the report, the public health administration department shall, together with the relevant
departments, make arrangements for investigation and handling without delay. When necessary, it may adopt temporary control measures. 

With regard to the workers who are exposed to, or are likely exposed to, an accident of acute occupational disease hazards, the employer
shall immediately make arrangements for their rescue and treatment, for health checkups and medical observation. The expenses thus
entailed shall be borne by the employer. 

Article 35  No employer may assign minors jobs that are exposed to occupational disease hazards, or assign women workers who
are pregnant or breastfeeding babies jobs that are harmful to them and to the embryos and the babies. 

Article 36  The workers shall enjoy the following rights of protection for their occupational health: 

(1) receive education and training in occupational health; 

(2) to receive services for prevention and control of occupational diseases, such as health checkups, diagnosis, treatment and recuperation; 

(3) to know about the occupational disease hazard factors that may or are likely to exist at the workplace, the consequences of the
hazards and the necessary measures to be taken for prevention of occupational diseases; 

(4) to ask the employer to provide the facilities for prevention of occupational diseases that meet the requirements for prevention
and control of such diseases, provide the workers with articles to be used personally for the same purpose and improve the working
conditions; 

(5) to criticize, report and accuse violations of the laws and regulations on prevention and control of occupational diseases and
acts that endanger the lives and health of the workers; 

(6) to reject directions that are against regulations and coercive orders for doing jobs where the measures for prevention of occupational
diseases are lacking; and 

(7) to participate in the unit’s democratic management of occupational health, and to put forward comments and suggestions about
prevention and control of occupational diseases. 

The employer shall ensure that the workers exercise the rights mentioned in the preceding paragraph. Any reduction of the workers’
wages, welfare or material benefits, and any cancellation or termination of the labor contracts concluded with the workers, because
the workers exercise their legitimate rights pursuant to law, shall be invalid. 

Article 37  The trade union organizations shall urge and assist the employer in publicity and training in occupational health,
put forward comments and suggestions about prevention and control occupational diseases in the unit, consult with the employer about
the questions on prevention and control of occupational diseases raised by the workers and urge the employer to solve them. 

The trade union organizations shall have the right to demand rectification where the employer violates the laws and regulations on
prevention and control of occupational diseases and infringes upon the workers’ legislative rights and interests. When serious occupational
hazards occur, they shall have the right to demand that protective measures be taken, or to raise suggestions to the government department
concerned for adoption of compulsory measures. When an occupational disease hazard accident occurs, they shall have the right to
participate in the investigation and handling of the accident. When they discover that the workers’ lives or health are in danger,
they shall have the right to make suggestions to the employer that arrangements be made for the workers to withdraw from the dangerous
spot, and the employer shall take action immediately. 

Article 38  The expenses which the employer, in compliance with the requirements for prevention and control of occupational
disease, pays for prevention and control of occupational disease hazards, public health monitoring at the workplace, health monitoring
and protection and training in occupational health shall truthfully be incorporated into the production cost in accordance with relevant
State regulations. 

Chapter IV 

Diagnosis of Occupational Diseases 

and Security for Occupational Disease Patients 

Article 39  Diagnosis of occupational diseases shall be conducted by medical and health institutions approved by the public
health administration departments of the people’s governments at or above the provincial level. 

Article 40  The workers may have their occupational diseases diagnosed in the medical and health institutions that undertake
diagnosis of such diseases in accordance with law and are located in the place of the employer or the workers’ residence. 

Article 41  The criteria for the diagnosis of occupational diseases and the measures for such diagnosis and confirmation shall
be formulated by the public health administration department under the State Council. The measures for confirmation of the grades
for injuries and disabilities caused by occupational diseases shall be formulated by the labor security administration department
together with the public health administration department under the State Council. 

Article 42  In the diagnosis of occupational diseases, the following factors shall be analyzed comprehensively. 

(1) the patient’s occupational history; 

(2) the history of exposure to occupational disease hazards and on-the-spot investigation and assessment of the hazards; and 

(3) the clinical symptoms and the results of auxiliary examinations. 

Where there is no proof to negate the inevitable connection between the factors of the occupational disease hazards and the patient’s
clinical symptoms, after exclusion of other pathogenic factors, the case o the patient shall be diagnosed as occupational disease. 

The medical and health institution that undertakes the diagnosis of occupational diseases shall at least have three licenced doctors
who are qualified for diagnosis of occupational diseases to make diagnosis collectively. 

The certificate for diagnosis of occupational diseases shall be signed jointly by the doctors who participate in the diagnosis and
be stamped with seal of the medical and health institution after its examination and approval. 

Article 43  Where the employer or the medical and health institution discovers any patient of occupational disease or any patient
suspected of such disease, it shall report to the local public health administration department without delay. Where a patient is
confirmed as one suffering from occupational disease, the employer shall also report to the local labor security administration department. 

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

CIRCULAR ON QUESTIONS CONCERNING THE HANDLING OF TAXATION RELATED TO ENTERPRISES WITH FOREIGN INVESTMENT IN MEDICAL AND EDUCATIONAL TRADES

Circular on Questions Concerning the Handling of Taxation Related to Enterprises with Foreign Investment in Medical and Educational
TradeS

     To the tax bureaus of various provinces, autonomous regions and municipalities, the tax bureaus of various cities with independent
planning and various sub-bureaus of the Offshore Oil Tax Administration:

The question concerning the handling of taxation related to enterprise with foreign investment in medical and educational trades is
hereby clarified as follows:

I. In accordance with the principle as stipulated in the Article 1 of the Income Tax Law (hereinafter referred to as Tax Law) for
enterprise with foreign investment and Foreign Enterprises and Article 2 of the Detailed Rules for Implementation of the Tax Law
for enterprise with foreign investment and Foreign Enterprises (hereinafter referred to as the Detailed Rules for Implementation),
enterprise income tax shall be calculated and paid in accordance with the stipulations of the Tax Law and its Detailed Rules for
Implementation for the business income and other income of the enterprise with foreign investment in the medical and educational
undertakings.

II. The fees collected from students by enterprise with foreign investment in the educational trade as well as other incomes, except
for the items which are exempt from business tax in accordance with the stipulations of Section (4), Clause 1, Article 6 of the Provisional
Regulations Concerning Business Tax, shall be regarded as business income of the enterprises and business tax is calculated and paid;
the balance of the whole lot of income (including income that is exempt from business tax) they gained, after deducting from cost,
expenses and losses, shall be regarded as payable amount of income on the basis of which enterprise income tax is calculated and
paid. For school operating with foreign investment which first collects cash pledge and then returns the cash pledge in full after
the conclusion of the school term in accordance with the school statute or the stipulations of the entrance contract and which uses
the interest on cash pledge as tuition, the cash pledge may not be regarded as business income, only the interest gained on the cash
pledge is regarded as business income on which tax is calculated and paid; for schools which first collect high- value fees in accordance
with the school statute or the stipulations of the entrance contract, the fees are partially returned to the students after the conclusion
of the school term or when the students discontinue their schooling midway or leave the school, and are partially retained for the
enterprise itself, the part of fees that should be returned may be regarded as cash pledge, not as business income, but tax is calculated
and paid for the interest derived therefrom and that part of fees not to be returned which is regarded as business income when received.

III. For the various items of incomes gained by enterprise with foreign investment in the medical trade, with the exception of the
projects which are exempt from business tax as stipulated in Section (3), Clause 1, Article 6 of the Provisional Regulations on Business
Tax, shall all be subjected to the calculation and payment of business tax; the balance of the various items of income they gained,
after deducting related costs, expenses and losses, shall be regarded as the amount of taxable income for which enterprise income
tax is calculated and paid.

    

MOFTEC P.R.C.

EDITOR:Victor






PROCEDURAL CONCLUSION OF TREATIES

The Procedural Law of the People’s Republic of China on Conclusion of Treaties

    

   Article 1. This Law is formulated in accordance with the Constitution of the People’s Republic of China.

   Article 2. This Law shall be applicable to bilateral or multilateral treaties and agreements, and other instruments of the nature of a treaty
or agreement concluded between the People’s Republic of China and foreign states.

   Article 3. The State Council of the People’s Republic of China, that is, the Central People’s Government shall conclude treaties and agreements
with foreign states.

The Standing Committee of the National People’s Congress of the People’s Republic of China shall decide on the ratification and abrogation
of treaties and important agreements concluded with foreign states.

The President of the People’s Republic of China shall, pursuant to the decisions of the Standing Committee of the National People’s
Congress, ratify and abrogate treaties and important agreements concluded with foreign states.

The Ministry of Foreign Affairs of the People’s Republic of China shall, under the leadership of the State Council, administer specific
affairs concerning the conclusion of treaties and agreements with foreign states.

   Article 4. The People’s Republic of China shall conclude treaties and agreements with foreign states in the name of:

(1) The People’s Republic of China;

(2) The Government of the People’s Republic of China;

(3) The government departments of the People’s Republic of China.

   Article 5. The procedures for the decision on negotiating and signing of treaties and agreements are as follows:

(1) With respect to the negotiation and signing of treaties and agreements in the name of the People’s Republic of China, the Ministry
of Foreign Affairs, or the departments concerned under the State Council in conjunction with the Ministry of Foreign Affairs, shall
make a recommendation and work out the draft treaty or agreement of the Chinese side, and submit it to the State Council for examination
and decision;

(2) With respect to the negotiations and signing of treaties and agreements in the name of the Government of the People’s Republic
of China, the Ministry of Foreign Affairs or the departments concerned under the State Council after consultation with the Ministry
of Foreign Affairs, shall make a recommendation and work out the draft of the Chinese side and submit it to the State Council for
examination and decision. With respect to agreements concerning specific business affairs, with the consent of the State Council,
the draft agreement of the Chinese side shall be examined and decided upon by the departments concerned under the State Council or
in consultation with the Ministry of Foreign Affairs when necessary;

(3) With respect to the negotiations and signing of agreements in the name of a government department of the People’s Republic of
China concerning matters within the functional competence of the department concerned, the decision shall be made by the department
or in consultation with the Ministry of Foreign Affairs. In the case of an agreement involving matters of major importance or matters
falling within the functional competence of other departments under the State Council, the department concerned or in consultation
with the other departments concerned the State Council, shall submit it to the State Council for decision. The draft agreement of
the Chinese side shall be examined and decided upon by the department concerned or in consultation with the Ministry of Foreign Affairs
when necessary.

In case that the Chinese draft of a treaty or agreement already examined and decided upon by the State Council shall have to undergo
major modifications as a result of negotiation, the revised draft shall be re-submitted to the State Council for examination and
decision.

   Article 6. For the purpose of negotiating and signing treaties or agreements, representatives shall be appointed according to the following
procedures:

(1) With respect to the conclusion of a treaty or agreement in the name of the People’s Republic of China or the government of the
People’s Republic of China, a representative shall be appointed by the State Council upon recommendation by the Ministry of Foreign
Affairs or the department concerned under the State Council. The full powers of the representative shall be signed by the Premier
of the State Council, but may also be signed by the Minister of Foreign Affairs.

(2) With respect to the conclusion of an agreement in the name of a government department of the People’s Republic of China, a representative
shall be appointed by the head of the department concerned. The letter of authorization for the representative shall be signed by
the head of the department. When the contracting parties agree that it is necessary for the head of the department to produce full
powers for singing an agreement concluded in the name of the department, the full powers shall be signed by the Premier of the State
Council, but may also be signed by the Minister of Foreign Affairs.

(3) With respect to the negotiations and signing of agreements in the name of a government department of the People’s Republic of
China concerning matters within the functional competence of the department concerned, the decision shall be made by the department
or in consultation with the Ministry of Foreign Affairs. In the case of an agreement involving matters of major importance or matters
falling within the functional competence of other departments under the State Council, the department concerned or in consultation
with the other departments concerned under the State Council, shall submit it to the State Council for decision. The draft agreement
of the Chinese side shall be examined and decided upon by the department concerned or in consultation with the Ministry of Foreign
Affairs when necessary.

In case that the Chinese draft of a treaty or agreement already examined and decided upon by the Sate Council shall have to undergo
major modifications as a result of negotiation, the revised draft shall be re-submitted to the State Council for examination and
decision.

   Article 6. For the purpose of negotiating and signing treaties or agreements, representatives shall be appointed according to the following
procedures:

(1) With respect to the conclusion of a treaty or agreement in the name of the People’s Republic of China or the Government of the
People’s Republic of China, a representative shall be appointed by the State Council upon recommendation by the Ministry of Foreign
Affairs or the department concerned under the State Council. The full powers of the representative shall be signed by the Premier
of the State Council, but may also be signed by the Minister of Foreign Affairs.

(2) With respect to the conclusion of an agreement in the name of a government department of the People’s Republic of China, a representative
shall be appointed by the head of the department concerned. The letter of authorization for the representative shall be signed by
the head of the department. When the contracting parties agree that it is necessary for the head of the department to produce full
powers for signing an agreement concluded in the name of the department, the full powers shall be signed by the Premier of the State
Council, but may also be signed by the Minister of Foreign Affairs.

The following persons shall dispense with full powers for negotiating and signing treaties and agreements:

(1) The Premier of the State council and the Minister of Foreign Affairs;

(2) The heads of the diplomatic missions of the People’s Republic of China who negotiate and sign treaties or agreements concluded
between China and the States to which they are accredited, unless it is otherwise agreed by the contracting parties;

(3) The heads of the government departments of the People’s Republic of China who negotiate and sign the agreements concluded in the
name of their departments, unless it is otherwise agreed by the contracting parties;

(4) The representatives accredited by the People’s Republic of China to an international conference or international organization
for the purpose of negotiating treaties or agreements in that conference or organization, unless it is otherwise agreed by the conference
or otherwise provided for in the constitution of that organization.

   Article 7. The ratification of treaties and important agreements shall be decided upon by the Standing Committee of the National People’s Congress.

The treaties and important agreements referred to in the preceding paragraph are as follows:

(1) Treaties of friendship and cooperation, treaties of peace and other treaties of a political nature;

(2) Treaties and agreements concerning territory and delimitation of boundary lines;

(3) Treaties and agreements relating to judicial assistance and extradition;

(4) Treaties and agreements which contain stipulations inconsistent with the laws of the People’s Republic of China;

(5) Treaties and agreements which are subject to ratification as agreed by the contracting parties;

(6) Other treaties and agreements subject to ratification.

A treaty or an important agreement after being signed, shall be submitted by the Ministry of Foreign Affairs or by the department
concerned under the State Council in conjunction with the Ministry of Foreign Affairs to the State Council for examination. It shall
then be submitted by the State Council to the Standing Committee of the National People’s Congress for decision on ratification.
The President of the People’s Republic of China shall ratify it pursuant to the decision of the Standing Committee of the National
People’s Congress.

After the ratification of a bilateral treaty or an important bilateral agreement, the Ministry of Foreign Affairs shall execute the
formalities for the exchange of the instruments of ratification with the other contracting party. After the ratification of a multilateral
treaty or an important multilateral agreement, the Ministry of Foreign Affairs shall execute the formalities for the deposit of the
instrument of ratification with the depositary state or international organization. The instrument of ratification shall be signed
by the President of the People’s Republic of China and countersigned by the Minister of Foreign Affairs.

   Article 8. After the signing of agreements or other signed instruments of the nature of a treaty which do not fall under Paragraph 2, Article
7 of this Law and which are subject to approval as required by the State Council or as agreed by the contracting parties, the aforesaid
agreements or instruments shall be submitted by the Ministry of foreign Affairs or the departments concerned under the State Council
in conjunction with the Ministry of Foreign Affairs to the State Council for approval.

With respect to approved agreements and other approved instruments of the nature of a treaty, in the case of a bilateral one, the
Ministry of Foreign Affairs shall execute the formalities for the exchange of the instruments of approval with the other contracting
party or for mutual notification by diplomatic notes of the approval. In the case of a multilateral one, the Ministry of Foreign
Affairs shall execute the formalities for the deposit of the instrument of approval with the depositary state or international organization
concerned. The instrument of approval shall be signed by the Premier of the State Council, but may also be signed by the Minister
of Foreign Affairs.

   Article 9. After the signing of the agreements for which on ratification by the Standing Committee of the National People’s Congress or approval
by the State Council are not required the agreements shall be submitted by the departments concerned under the State Council to the
State Council for the record, except those agreements concluded in the name of the government departments of the People’s Republic
of China which are to be submitted by these departments to the Ministry of Foreign affairs for registration.

   Article 10. If the two contracting parties need to go through different domestic legal procedures for the entry into force of the same treaty
of agreement, the said treaty or agreement shall enter into force upon the mutual notification by diplomatic notes of the accomplishment
by the two parties of their respective legal procedures.

After the signing of treaties and agreements listed in the preceding paragraph, the formalities of ratification, approval, entry on
the record or registration shall be executed as the case requires in accordance with Articles 7, 8 and 9 of this Law. The formalities
of notification by note shall be completed by the Ministry of Foreign Affairs.

   Article 11. The decision to accede to multilateral treaties or agreements shall be made respectively by the Standing Committee of the National
People’s Congress or the State Council.

The procedures for acceding to multilateral treaties and agreements are as follows:

(1) To accede to a multilateral treaty or an important multilateral agreement listed in Paragraph 2, Article 7 of this Law, the Ministry
of Foreign Affairs or the department concerned under the State Council in conjunction with the Ministry of Foreign Affairs shall
make a recommendation after examination and submit it to the State Council, Whereupon the State Council shall, after review, submit
it to the Standing Committee of the National People’s Congress for decision on accession. The instrument of accession shall be signed
by the Minister of Foreign Affairs, and the specific procedures executed by the Ministry of Foreign Affairs.

(2) To accede to a multilateral treaty or agreement other than those listed in Paragraph 2, Article 7 of this Law, the Ministry of
Foreign Affairs or the department concerned under the State Council in conjunction with the Ministry of Foreign Affairs shall make
a recommendation after examination and submit it to the State Council for decision on accession. The instrument of accession shall
be signed by the Minister of Foreign Affairs, and the specific formalities executed by the Ministry of Foreign Affairs.

   Article 12. The decision to accept a multilateral treaty or agreement shall be made by the State Council.

In the case of a multilateral treaty or agreement containing clauses of acceptance which is signed by the Chinese representative or
not signed because no signature is necessary, the Ministry of Foreign Affairs or the department concerned under the State Council
in conjunction with the Ministry of Foreign Affairs shall make recommendation after examination and submit it to the State Council
for decision on acceptance. The instrument of acceptance shall be signed by the Minister of Foreign affairs, and the specific formalities
executed by the Ministry of Foreign Affairs.

   Article 13. A bilateral treaty or agreement concluded by the People’s Republic of China with a foreign state shall be done in the Chinese language
and the official language of the other contracting party, both texts being equally authentic. When necessary, a text in the language
of a third country agreed upon by the two contracting parties may be executed in addition as a third, equally authentic, official
text or an unofficial text for reference. It may be stipulated by consent of the two contracting parties that the third text shall
prevail in case of divergence of interpretation of the treaty of agreement.

For agreements concerning business affairs and treaties and agreements concluded with international organizations, a single language
fairly commonly used internationally may also be used by consent of the two contracting parties or in accordance with the provisions
of the constitutions of the international organizations concerned.

   Article 14. Signed originals of bilateral treaties and agreements concluded in the name of the People’s Republic of China or the Government
of the People’s Republic of China and copies of multilateral treaties and agreements certified as true by the depositary states or
international organizations concerned shall be deposited with the Ministry of Foreign Affairs. Signed originals of bilateral agreements
concluded in the name of the government departments of the People’s Republic of China shall be deposited with these departments.

   Article 15. A treaty or an important agreement of which the Standing Committee of the National People’s Congress has decided on ratification
or accession shall be published in the bulletin of the Standing Committee of the National People’s Congress. The measures for publishing
other treaties and agreements shall be provided for by the State Council.

   Article 16. Treaties and agreements concluded by the People’s Republic of China shall be compiled by the Ministry of Foreign Affairs into a
Collection of Treaties of the People’s Republic of China.

   Article 17. Treaties and agreements concluded by the People’s Republic of China shall be registered with the Secretariat of the United Nations
by the Ministry of Foreign Affairs in accordance with the relevant provisions of the United Nations Charter.

Treaties and agreements concluded by the People’s Republic of China that require registration with other international organizations
shall be registered by the Ministry of Foreign Affairs or the departments concerned under the State Council in accordance with the
provisions of the respective constitutions of the international organizations.

   Article 18. The procedures for the conclusion of a treaty or an agreement with an international organization by the People’s Republic of China
shall be conducted in accordance with this Law and the provisions of the constitution of the international organization.

   Article 19. The procedures for amendment to, abrogation of and withdrawal from treaties and agreements concluded by the People’s Republic of
China shall follow mutatis mutandis the procedures for the conclusion of the treaties and agreements in question.

   Article 20. The State Council may formulate regulations in accordance with this Law for its implementation.

   Article 21. This Law shall come into force from the date of its promulgation.

    






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...