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CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON REFORMING THE ADMINISTRATIVE MODE OF SALES OF FOREIGN EXCHANGE EQUITY CAPITAL BY ENTERPRISES WITH FOREIGN INVESTMENT






The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange (SAFE) on Reforming the Administrative Mode of Sales of Foreign Exchange
Equity Capital by Enterprises with Foreign Investment

HuiFa [2002] No.59

June 17, 2002

Branches and administration offices of the SAFE in all provinces, autonomous regions, and municipalities directly under the Central
Government, and branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

In order to further improve the environment of foreign investment, enhance the supervisory efficiency of sales of foreign exchange
equity capital of enterprises with foreign investment, and facilitate the treasury management of enterprises with foreign investment,
the SAFE has decided to reform the administrative mode of sales of foreign exchange equity capital of enterprises with foreign investment
throughout the country on the basis of the experimental experience. To ensure the smooth implementation of this reform, a circular
on relevant issues is given hereunder:

1.

The administrative reform of sales of foreign exchange equity capital of enterprises with foreign investment refers to replacing the
administrative mode of case-by-case approval by branches or administration offices of the SAFE (hereinafter referred to as SAFE offices)
and of banks going through relevant formalities upon the approval certificate of SAFE offices, with immediate verification and handling
by authorized banks. In other words, SAFE offices authorize qualified banks to approve the sales of foreign exchange equity capital
of enterprises with foreign investment. Authorized banks are responsible for verification, statistical monitor and reporting within
the limits of their authority. SAFE offices exercise indirect supervision through authorized banks on the sales of foreign exchange
equity capital of enterprises with foreign investment.

2.

Foreign exchange equity capital of enterprises with foreign investment refers to foreign exchange deposits in enterprises with foreign
investment’ paid-in legal capital accounts whose balance ceiling have been set by SAFE offices. Sales of foreign exchange deposited
in other capital accounts shall still be verified and approved by SAFE offices concerned.

3.

A bank satisfying the following requirements may apply for the authorization at the SAFE office in its locality:

(1)

Having the business license of foreign exchange sales and purchases, and having no significant illegal records in foreign exchange
sales and purchases for capital account transactions in the latest three years;

(2)

Having perfect controlling measures on the administration of balance ceiling of paid-in legal capital accounts of enterprises with
foreign investment;

(3)

Having perfect internal control system for the administration of sales of foreign exchange equity capital by enterprises with foreign
investment;

(4)

Having a sound system of statistical monitoring and early warning to ensure that the data of sales of foreign exchange equity capital
and abnormal cases can be timely reported to the SAFE office concerned.

4.

When applying for the authorization, the bank shall submit the following documents to the SAFE office concerned:

(1)

A written application (including a statement on its foreign exchange business under capital account and compliance with legal provisions
in the latest three years);

(2)

License of Financial Business (photocopy);

(3)

Internal control system of crediting equity capital inflow into account and of purchase of foreign exchange. The internal control
system shall include the following contents:

a.

Operational procedures for crediting equity capital inflow and purchase of foreign exchange;

b.

Measures for controlling the balance ceiling of paid-in legal capital account;

c.

System of cross-check and graded examination over crediting equity capital inflow and purchase of foreign exchange;

d.

Statistical reporting system of crediting equity capital inflow and purchase of foreign exchange;

(4)

Curricula vitae of the persons to do that business;

(5)

Other documents required by the SAFE office.

5.

SAFE offices are in charge of examining and approving banks’ application for authorization under their jurisdiction. They shall examine
such application item by item to see whether the applicant satisfies all the requirements, authorize qualified banks to examine and
approve sales of foreign exchange equity capital by enterprises with foreign investment, and publish a name list of authorized banks
periodically.

6.

Authorized banks shall go through the formalities of crediting equity capital inflows and sales of foreign exchange equity capital
for normal expenditures of investment projects in strict accordance with relevant regulations of foreign exchange administration
and the Operational Procedures on Sales of Foreign Exchange Equity Capital (see Attachment 1). Credited foreign exchange inflows
shall be derived from the categories of income prescribed by the SAFE office. Accumulative credits cannot exceed the balance ceiling
of the paid-in legal capital account set by the SAFE office. Renminbi from the sales of foreign exchange equity capital can only
be used for normal productive and operational cost of investment projects.

7.

Where the SAFE office has introduced the Management Information System of Foreign Exchange Accounts (the MIS), authorized banks shall
transmit the original data of credits and sales to the SAFE office on the next working day. Where the SAFE office has not introduced
the MIS, authorized banks shall submit to the SAFE office the Statistical Statement on Sales of Foreign Exchange Equity Capital by
Enterprises with Foreign Investment (see Attachment 2) within the first 5 working days of every month. Authorized banks shall fax
the Statement of Large-sum Sales of Foreign Exchange Equity Capital by Enterprises with Foreign Investment (see Attachment 3) to
the local SAFE office on the next working day for a single sale of more than US$1 million or accumulative sales of more than US$1
million by an enterprise in a single day. Any abnormal case related to the business in question shall be reported to the local SAFE
office in time.

8.

SAFE offices shall strengthen the supervision over authorized banks, urge them to report data, statements and other materials on time,
analyze the statistical data carefully, make spot checks over authorized banks occasionally, investigate abnormal cases and report
them to the upper level without delay, and correct or deal with actions against rules in time. All SAFE offices shall make one or
two on-the-spot inspection biannually on authorized banks to have full knowledge of the sales of equity capital by enterprises with
foreign investment, and check the compliance with legal provisions and the execution of internal control system of authorized banks.
All SAFE branches and exchange administration offices shall submit to the SAFE a report on sales of foreign exchange equity capital
by enterprises with foreign investment and a Quarterly Statement of Sales of Foreign Exchange Equity Capital by Enterprises with
Foreign Investment (see Attachment 4) within the first 15 working days of each quarter.

9.

If an authorized bank fails to fulfill its duties in the examination of sales of foreign exchange equity capital by enterprises with
foreign investment and related statistics and reporting as required, or has made serious mistakes in controlling the balance ceiling
of the paid-in legal capital account, the SAFE office may suspend its qualification for three months in addition to giving it penalty
in accordance with relevant foreign exchange regulations. If the bank has corrected the mistakes in these three months, the SAFE
office may resume its authorization. If the illegal practice is especially serious, or the bank fails to correct its mistakes in
these three months, the SAFE office may deprive the bank of its qualification.

10.

To ensure the smooth implementation of the reform, all SAFE offices shall make the following preparations:

(1)

Formulate a Detailed Rules on Examination by Authorized Banks over Sales of Foreign Exchange Equity Capital by enterprises with foreign
investment in the light of the local conditions, and organize their implementation after reporting to the SAFE for record.

(2)

Organize propaganda and training on the reform and policies on foreign exchange administration related to foreign investment.

(3)

Make a thorough check on the paid-in legal capital accounts of enterprises with foreign investment while authorizing the banks to
see whether the banks have opened paid-in legal capital accounts without authorization, credited more foreign exchange inflows beyond
the balance ceiling of the account prescribed by the SAFE office, or bought foreign exchange equity capital without authorization.
Problems found in the check shall be dealt with according to relevant laws and regulations.

(4)

Check and confirm the basic business data reported by the banks proposed to be authorized. Firstly, check the account numbers and
balance ceilings of the accounts by comparing one by one with the data in the approval certificates of the SAFE office and the information
system of foreign exchange administration for enterprises with foreign investment. Secondly, check the accumulative credits and debits
and breakdowns (i.e., accumulative credits: remittance from overseas, transfers from domestic accounts; accumulative debits: remittance
to overseas, transfers to domestic accounts, sales) of each account dating from the opening of the account to the proposed date of
authorization. These data are regarded as the initial data of the paid-in legal capital accounts. After the authorization, these
data will be the base for future changes in the paid-in legal capital accounts.

11.

This circular shall enter into force as of July 1, 2002. Any problems encountered during the implementation shall be reported to the
Capital Account Management Department of the SAFE.

Attachment:

1.Operational Procedures on Sales of Foreign Exchange Equity Capital by Enterprises with Foreign Investment

2.Statistical Statement on Sales of Foreign Exchange Equity Capital by Enterprises with Foreign Investment (omitted)

3.Statement of Large-sum Sales of Foreign Exchange Equity Capital by Enterprises with Foreign Investment (omitted)

4.Quarterly Statement of Sales of Foreign Exchange Equity Capital by Enterprises with Foreign Investment (omitted)

Attachment 1:Operational Procedures on Sales of Foreign Exchange Equity Capital by Enterprises with Foreign Investmenthtm/e01409.htmLegal basis

￿￿

Legal basis

Documents to be examined

Elements to be examined

Principles of examination

Scope of authorization

Matters for attention

1. Rules on Foreign Exchange Sale, Purchase and Payment 
2. Circular on Issues Related to Strengthening Foreign Exchange Administration of Capital Account
3. Provisional Rules on Sales of Foreign Exchange under Capital Account
4. Circular on Reforming the Administrative Mode of Sales of Foreign Exchange Equity Capital by FFEs

1. Written application (indicating the account number, capital inflows, currency and amount to be sold, and purposes)
2. Business License and Foreign Exchange Registration Certificate (Original copies returned after verification,
photocopies kept for record )
3. Proof for the use of the renminbi from the sale (such as payroll, purchase contracts, house leasing contract,
agreement of land purchase, project contract, and etc; or valid certificates such as vouchers provided within a time limit)
4. Other documents as required

1. Accumulative credits and the balance ceiling of the account
2. Balance of the paid-in legal capital account
3. Annual inspection of the Foreign Exchange Registration Certificate
4. Business scope of the FFE

1 . Sale of foreign exchange is not permitted in case accumulative credits exceed the balance ceiling of the account.
2. Sale of foreign exchange is not permitted in case the balance of the account is exceeded.
3. Sale of foreign exchange is not permitted in case the FFE operates beyond its business scope.

Sales of foreign exchange equity capital deposited in the authorized banks are examined by the banks. For the FFEs who have
not taken part inspection or have not passed the annual inspection, their sales of foreign exchange equity capital
shall still be examined by SAFE offices.

1. A Statement of Bulky Sales of Equity Capital by FFEs should be faxed to the local SAFE office on the next working day
for a single sale of more than US$1 million and accumulative sales of more than US$1 million by a enterprise in
a single day.
2. A Statistical Statement on Sales of Foreign Exchange Equity Capital by FFEs should be submitted to the local
SAFE office within the first 5 working days of every month.
3. Any abnormal case shall be reported to the local SAFE office in time.
4. Authorized banks whose networks have been connected to SAFE system shall transmit the original data of credits
and sales to the local SAFE office on the next working day.



CIRCULAR ON TRANSMITTING THE CIRCULAR OF THE STATE DEVELOPMENT PLANNING COMMISSION AND THE MINISTRY OF FINANCE ON RE-VERIFICATION OF THE CHARGING CRITERIA OF REGULATORY FEES OF THE SECURITIES MARKET AND THE RELEVANT ISSUES

The China Securities Regulatory Commission Commission

Circular On Transmitting the Circular of the State Development Planning Commission and the Ministry of Finance on Re-Verification
of the Charging Criteria of Regulatory Fees of the Securities Market and the Relevant Issues

ZhengJianHuiJiZi [2003] No.2

February 9, 2003

Stock and futures exchanges, securities, fund and futures companies, and enterprises applying for public issuance of stocks, convertible
bonds and funds:

Here is to transmit the Circular of the State Development Planning Commission and the Ministry of Finance on Re-Verification of the
Charging Criteria of Regulatory Fees of the Securities Market and the Relevant Issues (JiJiaGe [2003] No. 60, see Attachment) and
notify you of the issues on payment of the fees as follows:

I.

The adjustment of the charging criteria on the regulatory fees of securities transactions only involves the increase and decrease
of the charging criteria between the CSRC and the stock exchanges while the charging criteria with the securities institutions and
investors remains the same. Upon the adjustment of the charging criteria on the regulatory fees of securities transactions, the formalities
fees for stock transactions with Shanghai and Shenzhen Stock Exchanges are decreased by 0.005￿￿nd that for fund transactions increased
by 0.04￿￿nd that for bond (exclusive of repurchase of treasury bonds) transactions increased by 0.01￿￿The regulatory fees of
securities transactions should be paid monthly, and Shanghai and Shenzhen Stock Exchanges shall pay the regulatory fees of securities
transactions of the previous month to the special remittance account of the central treasury before the 20th day of the next month.

II.

The fees for review and verification of public issuance should be paid to the special remittance account of the central treasury by
the enterprise applying for public issuance of stocks (including initial public issuance, additional issuance and allocation), convertible
bonds and funds when the CSRC accepts and investigates on application materials.

III.

The regulatory fees of financial institutions should be based on the registered capital as of the end of the last year, which should
be paid to the special remittance account of the central treasury by the securities firms, fund companies, futures companies before
April each year.

IV.

The regulatory fees of the futures markets should be paid monthly, and Shanghai, Dalian and Zhengzhou Futures Exchanges shall pay
the corresponding regulatory fees of futures market of the previous month to the special remittance account of the central treasury
prior to the 20th day of the next month.

V.

The special remittance account of the central treasury is as follows:

(I)

By T/T or M/T

Opening bank: CITIC Industrial Bank Head Office

Name of account: CSRC (special remittance account of the central treasury)

Bank account: 7111010189800000162

(II)

By transfer cheque or bank draft

Opening bank: CITIC Industrial Bank Head Office

Name of account: CSRC Accounting Department

Bank account 7111010189800000162

The above-mentioned paying units are required to pay the fees in a timely manner and upon payment timely notify our Accounting Department
of the communication addresses. In case of failure to pay the relevant fees, the CSRC may temporarily stop accepting the relevant
securities and futures businesses.

Contact: CSRC Accounting Department

Contact Tel: ￿￿010￿￿88061689 88061330

Contact with: Wang Meiling, Liu Yunfeng

Attachment: The Circular of the State Development Planning Commission and the Ministry of Finance on Re-Verification of the Charging
Criteria of Regulatory Fees of the Securities Market and the Relevant Issues Attachment:Circular of the State Development Planning Commission and the Ministry of Finance on Re-Verification of the Charging Criteria of Regulatory
Fees of the Securities Market and the Relevant Issues

JiJiaGe [2003] No. 60

January 8, 2003

China Securities Regulatory Commission Commission :

Your Letter Concerning Applying for the Adjustment of the Charging Criteria on Regulatory Fess of Securities and Futures Markets (ZhengJianHan
[2002] No. 268) has been acknowledged. And through study, the re-verified charging criteria of regulatory fees of the securities
market and the relevant issues are notified as follows in the principle of compensation of reasonable fees:

I.

The regulatory fees of securities transactions. For stocks, the fees should be decreased from 0.045% as per annual transaction volume
to 0.04￿￿for securities investment fund, charged at 0.04￿￿for bonds (exclusive of repurchase of treasury bonds), at 0.01￿￿The
fees should be paid by Shanghai and Shenzhen Stock Exchanges.

II.

The fees for review and verification of public issuance. For the enterprises applying for public issuance of stocks (inclusive of
convertible bonds), the criteria on collection of the fees for examination and verification of public issuance is adjusted from RMB30,000
to RMB200,000 per enterprise, and considering the different issuance procedures between funds and stocks, the fees concerned for
fund issuance are slightly lower than those for the stock issuance, which is RMB160,000 per enterprise.

III.

The regulatory fees of financial institutions. The fees collected only from the securities firms are adjusted as being collected from
the securities firms, fund management companies and futures brokerage companies that are registered in the territory of the PRC.
The fees collected from the securities firms annually at 1￿￿f the registered capital but no less than RMB10,000 and no more than
RMB100,000 are adjusted as annually at 0.5￿￿f the registered capital but no more than RMB300,000. The fees collected from the fund
management companies are annually at 0.5￿￿f the registered capital but no more than RMB300,000, and those from futures brokerage
companies annually at 0.5￿￿f the registered capital but no more than RMB50,000.

IV.

The regulatory fees of the futures markets. The fees still remain at annual 0.002￿￿s per the annual transaction volume, to be collected
from Shanghai, Dalian and Zhengzhou Futures Exchanges.

V.

The CSRC shall go through the formalities as specified with the State Development Planning Commission for alteration of the charging
licenses, and adopt the bills uniformly made and printed by the Ministry of Finance.

VI.

The CSRC shall execute the relevant charging of fees according to the charging items, charging scope and charging criteria as specified
and accept the regulatory supervisions by the state pricing and financial departments.

VII.

The Circular shall enter into force as of January 1, 2003 for a term of three years, upon expiration of which the CSRC shall submit
applications to the State Development Planning Commission and the Ministry of Finance. The fees to be charged of 2002 by the CSRC
should be executed in compliance with the Circular of the State Development Planning Commission and the Ministry of Finance on Adjustment
of the Charging Criteria of Regulatory Fees of the Securities Market (JiJiaGe [2000] No. 1059). As of the date of the execution of
this Circular, the provisions concerning the charging criteria on regulatory fees of the securities and futures markets of the State
Development Planning Commission and the Ministry of Finance shall be nullified simultaneously.

 
The China Securities Regulatory Commission Commission
2003-02-09

 



INTERIM PROCEDURES OF SHANGHAI MUNICIPALITY ON THE INTAKE OF EXPERTS FROM ABROAD

Interim Procedures of ShangHai Municipality on the Intake of Experts From Abroad

     Beijing,November 5(chinacourt.org)   Article 1 (Purpose and Basis)

For the purposes of carrying on effectively the intake of experts from abroad, of pushing forward the exchange of international talented
personnels and of promoting the economic construction and social development in Shanghai, the present Procedures are formulated in
accordance with the relevant provisions of the State and the actual situations of Shanghai.

   Article 2 (Definition)

The term “experts from abroad” used in the present Procedures means the overseas professionals in various fields who hold (including
those who once held) senior posts or possess rich practical experience or special skills and who are engaged by the governmental
departments, universities and colleges, social organizations, enterprises and institutions, etc. in Shanghai in accordance with
the relevant project agreements or employment contracts.

   Article 3 (Administrative Principle and Administrative department)

In Shanghai, the intake of experts from abroad shall practise the principle of centralized administration in combination with administration
at various levels and by various departments.

The Leading Group for the lntake of Intelligence from Abroad of Shanghai Municipality shall be responsible for the planning, coordination
and administration of the intake of experts from abroad in Shanghai.

The relevant business competent departments of Shanghai Municipality and the district/county people’s government shall be responsible
for the respective administration of the intake of experts from abroad.

   Article 4 (Administration Office)

The Office of the Leading Group for the Intake of lntelligence from Abroad of Shanghai Municipality (hereinafter referred to as Municipal
Intake Office, and abbreviated to MIO) shall be responsible for the routine planning, coordination and administration.

The duty of MIO includes:

1. To be responsible for making the planning and programme of the intake of experts from abroad;

2. To study and formulate relevant policies and norms for the intake of experts from abroad;

3. To coordinate and guide the intake of experts from abroad;

4. To raise an exclusive fund for the intake of experts from abroad;

5. To be responsible for organizing and implementing the statistical work of the intake of experts from abroad.

   Article 5 (Intake of Cultural and Educational Experts From Abroad)

A unit that needs to employ cultural and educational experts from abroad shall apply to the Shanghai Municipal Foreign Affairs Office
(hereinafter referred to as “Municipal Foreign Affairs Office”, and abbreviated to “MFAO”) for approval of qualification status.
The qualification status shall, after being verified by MFAO in consultation with relevant departments, be submitted to the State
Foreign Expert Bureau for examination and approval. A unit shall be able to employ cultural and educational experts from abroad only
after it has acquired the approval and the certificate of qualification status to employ cultural and educational experts from abroad.

A unit that employs cultural and educational experts from abroad shall report the case to MIO for record.

   Article 6 (Intake of Economic, Technical and Managerial Experts From Abroad)

A unit in Shanghai needs to employ economic, technical and managerial experts from abroad shall apply to the municipal business competent
department or the district/county people’s government for examination and approval. Upon approval, the approving authority shall
report the case to MIO for record.

   Article 7 (Application, Examination and Approval of Financial Aid)

If the employment of economic, technical and managerial experts from abroad needs financial aid from the Exclusive Intelligence Intake
Fund, the employer may submit an application, which shall be first confirmed by the municipal business competent department or the
district/county people’s government, to MIO for examination and approval.

   Article 8 (Types of Financial Aid)

If a project that mainly aims at social benefit or derives no direct economic benefit employs economic, technical and managerial experts
from abroad, it may apply for appropriation gratis.

If a project that may achieve economic benefit within one year and its funding requirement shall not exceed RMB 400,000, it may apply
for onerous transmission.

If a project that may achieve notable economic benefit but in a long run and requires bigger amount of fund, it may apply for loans
of discount interest.

The specific measures for financial aid shall be separately formulated by MIO together with the relevant departments.

   Article 9 (Channel of Employing Experts From Abroad)

The channel of employing experts from abroad shall be regulated in accordance with the relevant provisions of the State and of Shanghai
Municipality.

MIO shall, considering the need of the intake of experts from abroad, establish dossier data of overseas personnel and intelligence
resources to provide consultative service for the intake of experts from abroad in Shanghai.

   Article 10 (Signing of Employment Contract)

Unless otherwise explicitly specified in the project agreement or contract relevant to the intake of experts from abroad, a unit that
employs experts from abroad shall, according to the law, sign an employment contract with the expert in person or with the institution
that sends the expert.

The making of the employment contract shall follow the principle of equality, mutual benefit and consensus through consultation.

   Article 11 (Main Content of Employment Contract)

The employment contract shall include the following clauses:

1. The names and nationalities of the contract parties;

2. The date and place on which and where the contract is signed.

3. The time limit, location and manner of the contract performance;

4. The rights and obligations of the contract parties;

5. The expenditure and its payment;

6. The liability for the breach of the contract;

7. The conditions for the modification, annulment and termination of the contract;

8. The settlement of disputes arising in the performance of the contract;

9. The language/languages used in the contract and its/their effect;

10. Other clauses that the contract parties consider necessary to be stipulated in the contract.

The contract parties shall strictly perform the contractual clauses.

   Article 12 (Payment and Other Treatment of Experts From Abroad)

If the employer shall pay the expert from abroad, the payment can not be lower than the minimum payment stipulated by the State Foreign
Expert Bureau. To the expert from abroad who offers help but gets no payment, the relevant unit shall provide him/her with necessary
allowance.

The exchange of foreign currencies for experts from abroad shall be handled in accordance with the Circular of the State Foreign Expert
Bureau, Ministry of Finance and the State Exchange Control Administration on the Permission for Working Personnel of Foreign Nationalities
to Exchange for Part of Foreign Currencies.

The paying of individual income tax for experts from abroad shall be handled in accordance with the Individual Income Tax Law of the
People’s Republic of China and the rules for its implementation; if there exists a tax agreement between the People’s Republic of
China and the country from which the expert comes, the relevant clauses of the agreement shall apply.

An expert from abroad shall, according to the relevant provisions, be able to enjoy preferential treatment in carrying self-use personal
articles into and out of the People’s Republic of China, buying goods, exchanging for foreign currencies and taking tourism, etc.
with his/her “Foreign Expert Certificate” or “Foreign Expert Card”.

   Article 13 (Award to Experts From Abroad for Their Scientific Research Achievements)

An expert from abroad who has made great scientific achievement or great invention and creation during his/her working period in Shanghai
shall be awarded according to the Award Regulations of the People’s Republic of China and the Invention Award Regulations of the
People’s Republic of China.

An expert from abroad may apply for patent for his/her invention and creation achieved during his/her working period in Shanghai according
to the Patent Law of the People’s Republic of China.

   Article 14 (Award to Experts From Abroad for Their Outstanding Contributions)

According to the relevant provisions of the State and Shanghai Municipality, an expert from abroad who has made an outstanding contribution
in his/her work shall be given the following awards:

1. post_title of honour, certificate of merit and pecuniary reward by the employing unit;

2. “Magnolia Commemorative Award” and “Magnolia Honourable Award” issued by Shanghai Municipal People’s Government;

3. “Friendship Award” issued by the State Foreign Expert Bureau after being applied for by the relevant department of Shanghai Municipality
and approved by the State Foreign Expert Bureau.

   Article 15 (Media’s Coverage Concerning Experts From Abroad)

News and any other mass media’s coverage concerning an expert from abroad shall acquire the consent of the employing unit and the
expert from abroad concerned for the coverage; and before releasing, the manuscript shall be submitted to the municipal competent
department for examination and approval.

   Article 16 (Settlement of Dispute)

Any dispute concerning the employment contract between an expert from abroad and the employing unit may be settled through consultation
or mediation of the relevant department. If the consultation or the mediation is unsuccessful, either party may apply for arbitration
or bring a suit in a people’s court.

   Article 17 (Employment of Experts From Hong Kong, Macao and Taiwan Regions)

If the relevant department or unit in Shanghai needs to employ experts from Hong Kong, Macao and Taiwan regions, the present Procedures
shall apply.

   Article 18 (Interpretative Department for Implementation of the Present Procedures)

The Leading Group for the Intake of Intelligence from Abroad of Shanghai Municipality shall be responsible for the interpretation
of the implementation of the present Procedures.

   Article 19 (Effective Date)

These procedures shall become effective on the date of promulgation.

    

MOFTEC P.R.C.

EDITOR:Victor





TERRITORIAL SEA AND THE CONTIGUOUS ZONE

Law of the People’s Republic of China on the Territorial Sea and the Contiguous Zone

     Article 1 This Law is enacted for the People’s Republic of China to exercise its sovereignty over its territorial sea and the control
over its contiguous zone, and to safeguard its national security and its maritime rights and interests.

   Article 2 The territorial sea of the People’s Republic of China is the sea belt adjacent to the land territory and the internal waters of the
People’s Republic of China. The land territory of the People’s Republic of China includes the mainland of the People’s Republic of
China and its coastal islands; Taiwan and all islands appertaining thereto including the Diaoyu Islands; the Penghu Islands; the
Dongsha Islands; the Xisha Islands; the Zhongsha Islands and the Nansha Islands; as well as all the other islands belonging to the
People’s Republic of China.

The waters on the landward side of the baselines of the territorial sea of the People’s Republic of China constitute the internal
waters of the People’s Republic of China.

   Article 3 The breadth of the territorial sea of the People’s Republic of China is twelve nautical miles, measured from the baselines of the
territorial sea.

The method of straight baselines composed of all the straight lines joining the adjacent base points shall be employed in drawing
the baselines of the territorial sea of the People’s Republic of China.

The outer limit of the territorial sea of the People’s Republic of China is the line every point of which is at a distance equal to
twelve nautical miles from the nearest point of the baseline of the territorial sea.

   Article 4 The contiguous zone of the People’s Republic of China is the sea belt adjacent to and beyond the territorial sea. The breadth of
the contiguous zone is twelve nautical miles.

The outer limit of the contiguous zone of the People’s Republic of China is the line every point of which is at a distance equal to
twenty-four nautical miles from the nearest point of the baseline of the territorial sea.

   Article 5 The sovereignty of the People’s Republic of China over its territorial sea extends to the air space over the territorial sea as well
as to the bed and subsoil of the territorial sea.

   Article 6 Foreign ships for non-military purposes shall enjoy the right of innocent passage through the territorial sea of the People’s Republic
of China in accordance with the law.

Foreign ships for military purposes shall be subject to approval by the Government of the People’s Republic of China for entering
the territorial sea of the People’s Republic of China.

   Article 7 Foreign submarines and other underwater vehicles, when passing through the territorial sea of the People’s Republic of China, shall
navigate on the surface and show their flag.

   Article 8 Foreign ships passing through the territorial sea of the People’s Republic of China must comply with the laws and regulations of
the People’s Republic of China and shall not be prejudicial to the peace, security and good order of the People’s Republic of China.

Foreign nuclear-powered ships and ships carrying nuclear, noxious or other dangerous substances, when passing through the territorial
sea of the People’s Republic of China, must carry relevant documents and take special precautionary measures.

The Government of the People’s Republic of China has the right to take all necessary measures to prevent and stop non-innocent passage
through its territorial sea.

Cases of foreign ships violating the laws or regulations of the People’s Republic of China shall be handled by the relevant organs
of the People’s Republic of China in accordance with the law.

   Article 9 The Government of the People’s Republic of China may, for maintaining the safety of navigation or for other special needs, request
foreign ships passing through the territorial sea of the People’s Republic of China to use the designated sea lanes or to navigate
according to the prescribed traffic separation schemes. The specific regulations to this effect shall be promulgated by the Government
of the People’s Republic of China or its competent authorities concerned.

   Article 10 In the case of violation of the laws or regulations of the People’s Republic of China by a foreign ship for military purposes or
a foreign government ship for non-commercial purposes when passing through the territorial sea of the People’s Republic of China,
the competent authorities of the People’s Republic of China shall have the right to order it to leave the territorial sea immediately
and the flag State shall bear international responsibility for any loss or damage thus caused.

   Article 11 All international organizations, foreign organizations or individuals shall obtain approval from the Government of the People’s Republic
of China for carrying out scientific research, marine operations or other activities in the territorial sea of the People’s Republic
of China, and shall comply with the laws and regulations of the People’s Republic of China.

All illegal entries into the territorial sea of the People’s Republic of China for carrying out scientific research, marine operations
or other activities in contravention of the provisions of the preceding paragraph of this Article, shall be dealt with by the relevant
organs of the People’s Republic of China in accordance with the law.

   Article 12 No aircraft of a foreign State may enter the air space over the territorial sea of the People’s Republic of China unless there is
a relevant protocol or agreement between the Government of that State and the Government of the People’s Republic of China, or approval
or acceptance by the Government of the People’s Republic of China or the competent authorities authorized by it.

   Article 13 The People’s Republic of China has the right to exercise control in the contiguous zone to prevent and impose penalties for activities
infringing the laws or regulations concerning security, the customs, finance, sanitation or entry and exit control within its land
territory, internal waters or territorial sea.

   Article 14 The competent authorities concerned of the People’s Republic of China may, when they have good reasons to believe that a foreign
ship has violated the laws or regulations of the People’s Republic of China, exercise the right of hot pursuit against the foreign
ship.

Such pursuit shall be commenced when the foreign ship or one of its boats or other craft engaged in activities by using the ship pursued
as a mother ship is within the internal waters, the territorial sea or the contiguous zone of the People’s Republic of China.

If the foreign ship is within the contiguous zone of the People’s Republic of China, the pursuit may be undertaken only when there
has been a violation of the rights as provided for in the relevant laws or regulations listed in Article 13 of this Law.

The pursuit, if not interrupted, may be continued outside the territorial sea or the contiguous zone until the ship pursued enters
the territorial sea of its own country or of a third State.

The right of hot pursuit provided for in this Article shall be exercised by ships or aircraft of the People’s Republic of China for
military purposes, or by ships or aircraft on government service authorized by the Government of the People’s Republic of China.

   Article 15 The baselines of the territorial sea of the People’s Republic of China shall be promulgated by the Government of the People’s Republic
of China.

   Article 16 The Government of the People’s Republic of China formulates the relevant regulations in accordance with this Law.

   Article 17 This Law shall come into force on the date for promulgation.

    

MOFTEC P.R.C.

EDITOR:Victor





CIRCULAR ON THE RELEVANT ISSUES CONCERNING THE EXPERIMENTAL ESTABLISHMENT OF LOGISTICS ENTERPRISES WITH FOREIGN INVESTMENT

2002062020020720The Ministry of Foreign Trade and Economic Cooperationepdf/e02918.pdfB3, D1establishment, foreign investment, logistics enterprise, investore02918Circular on the Relevant Issues concerning the Experimental Establishment of Logistics Enterprises with Foreign InvestmentWaiJingMaoZiYiHan [2002] No. 615June 20, 2002The commissions (departments, bureaus) of foreign trade and economic cooperation of Jiangsu, Zhejiang, Guangdong, Beijing, Tianjin
, Chongqing, Shanghai and Shenzhen:In order to promote the opening and healthy development of international trade and modern logistics industry, we hereby plan to carry
out an experiment in respect of logistics industry with foreign investment in some regions within China. For the sake of clarifying
the conditions and procedures for the logistics industry with foreign investment in the experimental stage, we hereby give our notice
on the relevant issues concerning the experimental establishment of logistics enterprises with foreign investment as follows:Article 1 A logistics enterprise with foreign investment shall be a enterprise with foreign investment established by an investor from the outside
of the territory in the form of Chinese-foreign joint venture or Chinese-foreign cooperative venture, which is able to, upon the
actual needs, organically combine some of the links such as the transport, storage, loading and unloading, processing, packing, distribution,
information treatment, import and export, etc. of goods, to form a comparatively entire supplying chain to provide users with multifunctional
and integrative services (hereinafter referred to as logistics enterprise with foreign investment).Article 2 Investors from the outside of the territory are permitted to invest in and operate the international circulation logistics and third-party
logistics business in the form of Chinese-foreign joint venture or Chinese-foreign cooperative venture.Article 3 Investors applying for establishing a logistics enterprise with foreign investment must meet the following conditions:(1)Among the investors who plan to establish a logistics enterprise with foreign investment engaging in the international circulation
logistics business, there shall be at least one party who has good achievements and experiences in operating international trade,
international freight or international freight agency, and such an investor shall be the largest shareholder among the Chinese or
foreign investors.(2)Among the investors who plan to establish a logistics enterprise with foreign investment engaging in the third-party logistics business,
there shall be at least one party who has good achievements and experiences in operating transportation or logistics, and such an
investor shall be the largest shareholder among the Chinese or foreign investors.Article 4 An established logistics enterprise with foreign investment must meet the following requirements:(1)its registered capital shall not be lower than 5 million USD;(2)for a logistics enterprise with foreign investment engaging in the international circulation logistics business, the proportion of
the shares held by the investors from the outside of the territory shall not exceed 50%;(3)it has a fixed business site;(4)it has the necessary facilities for operating the business.Article 5 Upon approval, a logistics enterprise with foreign investment may operate part or all of the following businesses:(1)the international circulation logistics business: import and export business and the relevant services, including the self-managing
import and export, or the import and export of goods under agency, provision of the import and export business under agency upon
entrustment by export processing enterprises; and provision of the international freight agency for the imported and exported goods
sea transported, air transported or land transported.(2)the third-party logistics business: transport, storage, loading and unloading, packing, and distribution of common goods carried by
road, as well as the relevant information treatment services and consulting business; domestic freight agency; management and operation
of logistics business by making use of computer network. Where a logistics enterprise with foreign investment plans to engage in
the transport of common goods carried by road and to manage and operate the logistics business by making use of computer network,
it shall obtain the approval of the relevant department in accordance with the present laws and regulations.Article 6 Whoever intends to establish a logistics enterprise with foreign investment shall file an application to the department in charge
of foreign trade and economic cooperation of the province, autonomous region, municipality directly under the Central Government
or municipalities separately listed on the State plan where the enterprise is to be located, and shall submit the following documents:(1)the application letter;(2)the feasibility study report;(3)attestations on the qualification of the parties to the joint venture as provided for by Article 4 of this Circular, or other relevant
statement documents;(4)the legal attestation documents and credit certificates of the Chinese and foreign investors;(5)the contract and the articles of association;(6)the name list of the members of the board of directors or the joint managerial institution and the major managers as well as their
resumes;(7)the notice on pre-approval concerning the enterprise name issued by the administrative department for industry and commerce;(8)attestation of the business site of the enterprise;(9)other documents required by the department in charge of foreign trade and economic cooperation.Article 7 A logistics enterprise with foreign investment shall be established according to the following procedures: The department in charge
of foreign trade and economic cooperation of a province, autonomous region, municipality directly under the Central Government or
municipalities separately listed on the State plan shall, within 10 days as of receipt of the application documents, give opinions
on the preliminary examination in accordance with this Circular, and submit the said opinions to the department in charge of foreign
trade and economic cooperation under the State Council for approval; The department in charge of foreign trade and economic cooperation
under the State Council shall, after receipt of the application documents, make a written decision within 30 days on whether to approve
the application. If the application conforms to the provisions, the approval certificate for the enterprise with foreign investment
shall be issued; otherwise the said department shall return the application and notify the applicant in written form and explain
the reasons. A logistics enterprise with foreign investment engaging in the international circulation logistics business shall, within
10 days as of the date when the approval certificate for the enterprise with foreign investment is issued, take the “Approval Certificate
of the People’s Republic of China for Enterprise of International Freight Agency” at the department in charge of foreign trade and
economic cooperation under the State Council.Article 8 An enterprise with foreign investment shall comply with the procedures provided for in this Circular if intending to enlarge its business
scope to engage in the logistics industry.Article 9 The operational period of a logistics enterprise with foreign investment shall usually not exceed 20 years. Upon approval by the original
approving organ, a logistics enterprise with foreign investment may extend its operational period.Article 10 A logistics enterprise with foreign investment may, in accordance with the relevant present provisions, apply to establish branches
in other places in China. The business scope of each branch shall not exceed that of the logistics enterprise with foreign investment.Article 11 Logistics enterprises with foreign investment shall strictly abide by the laws and regulations of the state in respect of foreign
investment, and shall also, according to its business scope, abide by the laws and regulations on the administration of the industry
in such respects as transportation, international freight agency and telecommunication. Any logistics enterprise with foreign investment
violates laws or regulations shall be punished accordingly.Article 12 The experimental regions shall be stipulated by the MOFTEC, and shall temporarily be four municipalities directly under the Central
Government, namely, Beijing, Tianjin, Shanghai and Chongqing. Experiments are to be carried out in Zhejiang, Jiangsu and Guangdong
Provinces and Shenzhen Special Economic Zone.Article 13 The investment by investors from Hong Kong, Macao and Taiwan Region for experimental establishment of logistics enterprises shall
be handled with reference to the principles of this Circular.Article 14 This Circular shall enter into force as of the thirtieth day after its distribution.



 
The Ministry of Foreign Trade and Economic Cooperation
2002-06-20

 






DONATION FOR PUBLIC WELFARE UNDERTAKINGS

Category  BASCI CIVIL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-06-28 Effective Date  1999-09-01  


Law of the People’s Republic of China on Donation for Public Welfare Undertakings

Contents
Chapter I  General Provisions
Chapter II  Donation and Acceptance of Donation
Chapter III  Usage and Management of Donated Property
Chapter IV  Preferential Measures
Chapter V  Legal Liability
Chapter VI  Supplementary provisions

(Adopted at the Tenth Meeting of the Standing Committee of the Ninth National People’s Congress on June 28,1999; promulgated by the
Order No. 19 of the President of the People’s Republic of China on June 28, 1999 and effective as of September 1, 1999)

Contents

    Chapter I  General Provisions

    Chapter II  Donation and Acceptance of Donation

    Chapter III  Usage and Management of Property Donated

    Chapter IV  Preferential Measures

    Chapter V  Legal Liability

    Chapter VI  Supplementary Provisions

Chapter I  General Provisions

    Article 1  This Law is enacted with a view to encouraging donation, standardizing the act of donation and acceptance of donation,
protecting the lawful rights and interests of donors, donees and beneficiaries, and promoting the development of public welfare undertakings.

    Article 2  On the condition that natural persons, legal persons, and other organizations voluntarily donate property to legally established
public welfare associations and not-for-profit public welfare institutions without any compensation, and the donated property is
used for public welfare undertakings, this Law shall be applied.

    Article 3  Public welfare undertakings mentioned in this Law refer to following matters:

    (1)activities of relieving disasters, helping the poor, assisting the
disabled as well as other social groups and individuals in trouble;

    (2)education, science, culture, public health, and sports;

    (3)environmental protection, construction of public facilities;

    (4)other social and public welfare undertakings promoting the development and progress of society.

    Article 4  Donation shall be made on a voluntary basis and without compensation, compulsory apportions or apportions in disguised
form are prohibited, the engagement of for-profit activities in the name of donation shall not be permitted.

    Article 5  The use of donated property shall be subject to the willingness of a donor, and conforms to the purpose of public welfare,
the donated property shall not be misappropriated for other purposes.

    Article 6  The making of donation shall be in conformity with laws and regulations; it shall not go against social morality, nor
impair public interests and other citizens’ legal rights and interests.

    Article 7  Property and its increment accepted as donation by public welfare associations is social and public property, which is
protected by laws of the State; no unit or individual may appropriate, seize, or damage it.

    Article 8  The State supports the development of public welfare undertakings, and gives supports and preferential treatments to public
welfare associations and not-for-profit public welfare institutions with a nature of.

    The State encourages natural persons, legal persons and other organizations to make donations to public welfare
undertakings.

    Natural persons, legal persons and other organizations making outstanding contributions to donation for public
welfare undertakings are to be given commendation by the people’s governments or the relevant departments. Before giving public commendation
to a donor, comment for the donor shall be obtained in advance.
Chapter II  Donation and Acceptance of Donation

    Article 9  Natural persons, legal persons and other organizations may make donations to public welfare associations and not-for-profit
public welfare institutions comforting to their wishes of making donation. The property they donate shall be legal property on which
they have the right of disposition.

    Article 10  Public welfare associations and not-for-profit public welfare institutions may accept donation in accordance with this
Law.

    Public welfare associations mentioned in this Law refer to legally established foundations, charity organizations
and other associations that hold the principle of developing public interests.

    Not-for-profit public welfare institutions mentioned in this Law refer to legally established educational
institutions, institutions for scientific research, medical and public health institutions, social and public cultural institutions,
social and public physical institutions and social welfare institutions, etc, which are engaged in public welfare undertakings and
do not aim at making profit.

    Article 11  When natural disaster happens or the donors out of the territory require the people’s governments at or above the county
level or their departments to be the donees, the people’s governments at or above the county level or their departments may accept
the donation, and manage the donated property according to the relevant provisions of this Law.

    The people’s governments at or above the county level or their departments may transfer the property they
accept as donation to public welfare associations or not-for-profit public welfare institutions; may also distribute the property
in light of the donors’ wishes or use it to initiate public welfare work, however, the people’s governments at or above the county
level and their departments themselves shall not a beneficiary.

    Article 12  Donors may make a donation agreement with donees in terms of the sorts, quality, quantity and use of donated property.
Donors have the right to decide quantity, use and forms of donation.

    Donors shall perform the donation agreement according to law, and transfer the donated property to donees
in accordance with the time limit and forms agreed upon in the agreement.

    Article 13  When donating property to initiate a public welfare project, the donor shall make a donation agreement with the donor,
agreeing on the capital, construction, management and use of the projects.

    For a donated public welfare project, the unit accepting the donation shall undergo examination and approval
procedures according to the provisions of the State, and shall alone, or together with the donor, organize the construction. The
quality of the project shall conform to the standards of the State.

    After the completion of a donated public welfare project, the unit accepting the donation shall report particulars
to the donors about the construction, use of construction capital, and check-and-acceptance of quality of the project.

    Article 14  A donor may head the donated project with his name for commemoration; for a project wholly donated by a donor or a project
constructed with the capital mainly donated by the donor, the donor may propose the post_title of the project, and then submit to the
people’s government at or above the county level for approval.

    Article 15  As to property donated by donors outside the territory, the donee shall undergo entry procedures according to the relevant
provisions of the State; where the donated property is under the management of license, the donee shall undergo the procedures for
applying and obtaining a license according to the relevant provisions of the State, the Customs shall check, clear and supervise
the property on the basis of the license.

    If overseas Chinese make donations, the department of the people’s governments at or above the county level
in charge of overseas Chinese affairs may assist to undergo entry procedures, and provide help to the donors in implementing the
projects.
Chapter III  Usage and Management of Donated Property

    Article 16  After accepting a donation, the donee shall issue a legal and valid receipt to the donor, register the donated property
on a record, and management the property in a proper way.

    Article 17  Public welfare associations shall use the donated property to imburse activities and undertakings conforming to their
principles. Property donated for salvation shall be promptly used for salvation. The amount of capital used for imbursing public
welfare undertakings by a foundation every year shall not be less than the proportion prescribed by the State.

    A public welfare association shall strictly abide by the relevant provisions of the State, and actively keep
and increase the value of the donated property according to principle of legality, safety and effect.

    A not-for-profit public welfare institution shall use the donated property to develop public welfare undertakings
of its own, and shall not misappropriate the property for other purposes.

    As to property not easy for storage or transportation, or exceeding actual necessity, the donee may sell it,
the income therefrom shall be used for the purpose of the donation.

    Article 18  Where a donation agreement has been made between the donee and the donor, the donee shall use the property according to
the purpose agreed upon, and shall not change the uses of the donated property without authorization. If it is really necessary to
change the uses of the property, consent form the donor shall be obtained.

    Article 19  The donees shall, according to the relevant provisions of the State, establish and perfect financial and accounting systems
and systems for using donated property, strengthen the management of donated property.

    Article 20  The donees shall report to the relevant governmental departments the use and management of the donated property every
year, and accept supervision. When necessary, the relevant governmental departments may audit their finance.

    The Customs shall conduct supervision and management on donated articles import duties of which are reduced
or exempted,

    The overseas Chinese affairs department under the people’s government at or above the county level may take
part in supervising the use and management of the property donated by oversea Chinese.

    Article 21  Donors have rights to donees with respect to the use and management of donated property, and put forward suggestion and
opinion. As to the inquiries of the donors, the donees shall make truthful replies.

    Article 22  Donees shall publicize the donation and use as well as management of the donated property, and accept supervision of the
society.

    Article 23  Public welfare associations shall practise strict economy, and decrease managerial cost; salary of staff members and administrative
expenses shall be paid from interest and other income according to the standards prescribed by the State.
Chapter IV  Preferential Measures

    Article 24  When donating property for public welfare undertakings according to the provisions of this Law, corporations and other
enterprises may be given  preferential treatment in enterprise income tax according to the provisions of laws and administrative
regulations.

    Article 25  When donating property for public welfare undertakings according to the provisions of this Law, Natural persons, individual
businesses of industry and commerce may be given preferential treatment in individual income tax according to the provisions of laws
and administrative regulations.

    Article 26  As to materials donated from abroad to public welfare associations and not-for-profit public welfare institutions for
public welfare undertakings, import duties and value-added tax in import may be reduced or exempted according to the provisions of
laws and administrative regulations.

    Article 27  As to donated projects, the local people’s governments shall give support and preference.
Chapter V  Legal Liability

    Article 28  Without permission of a donor, if a donee presumes to change the nature and uses of the donated property, the relevant
department of the people’s government at or above the county level shall order to make corrections, and give a warning. Where the
making of corrections is refused, upon approval of the donor, the people’s government at or above the county level may hand over
for management the property to public welfare associations or not-for-profit public welfare institutions that have identical or similar
principles.

    Article 29  Whoever misappropriates, seizes or embezzles donated property shall be ordered by the relevant departments of the people’s
government at or above the county level to return the misused money or articles, and shall also impose a fine; the direct responsible
persons shall be punished by units to which they belong according to the relevant provisions; where a crime is constituted, criminal
liability shall be investigated according to law.

    The money and articles returned or recovered according to the provisions of the preceding paragraph shall
be used for their original purposes and uses.

    Article 30  In the course of donation, whoever commits any one of the following acts shall be punished according to the relevant provisions
of laws and regulations; where a crime is constituted, criminal liability shall be investigated according to law.

    (1)to evade foreign exchange, to wangle foreign exchange;

    (2)to evade or dodge tax;

    (3)to engage in smuggling activities;

    (4)with no permission of the Customs and not paying due tax, to sell, transfer or use for other purposes within
the territory the donated property that is imported with a reduced or exempted tax.

    Article 31  The staff members in the unit accepting the donation who abuse their powers, neglect their duties or practise favoritism
for personal interests, thereby causing heavy losses to donated property, shall be punished by the unit to which they belong according
to the relevant provisions; where crimes are constituted, criminal liabilities shall be investigated.
Chapter VI  Supplementary provisions

    Article 32  This Law shall take effect as of September 1, 1999.





MEASURES FOR ELECTION OF DEPUTIES THE CHINESE PEOPLE’S LIBERATION ARMY TO THE NATIONAL PEOPLE’S CONGRESS AND LOCAL PEOPLE’S CONGRESSES AT OR ABOVE THE COUNTY LEVEL

Measures for Election of Deputies the Chinese People’s Liberation Army to the National People’s Congress and Local People’s Congresses
at or Above the County Level

     CHAPTER I GENERAL PROVISIONS CHAPTER II ELECTION COMMITTEES CHAPTER III DECISION ON AND ALLOCATION OF THE NUMBER OF DEPUTIES CHAPTER
IV ELECTORAL DISTRICTS AND ELECTORAL UNITS CHAPTER V NOMINATION OF CANDIDATES FOR DEPUTIES CHAPTER VI ELECTION PROCEDURE CHAPTER
VII SUPERVISION OVER AND RECALL OF DEPUTIES AND BY-ELECTION CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 1 The Measures are enacted in accordance with the relevant provisions of the Constitution of the People’s Republic of China and the
Electoral Law of the National People’s Congress and Local People’s Congresses of the People’s Republic of China.

   Article 2 Members of the Chinese People’s Liberation Army on active service and other persons who take part in election in the PLA shall, according
to these Measures, elect their deputies to the National People’s Congress or local people’s congresses at or above the county level.

   Article 3 An election committee shall be established for the PLA as a whole and for any PLA unit at or above the regimental level.

The PLA Election Committee shall direct the election work of the entire PLA. Election committees at other levels shall conduct the
election work of the units at their own levels respectively.

   Article 4 The servicemen committees of companies and other grassroots units shall conduct the election work of their own units.

   Article 5 Members of the PLA on active service, persons who have retired from active service and for whom arrangements have been made in the
PLA or who are waiting to be transferred to local governments for arrangements, workers and office staff serving in the PLA, and
other persons who are administratively affiliated to the PLA, shall take part in election in the PLA.

Family members of officers who live together with the officers may, with the approval of the election committee or the servicemen
committee, take part in election in the PLA, if it is difficult for them to take part in local election because the residential area
of the local inhabitants is far from the place where the PLA unit is stationed.

   Article 6 PLA representatives stationed in civilian factories or railway, water transport or scientific research institutions, and PLA members
studying at civilian colleges and schools may take part in local election.

   Article 7 All the persons listed in Article 5 of these Measures who have reached the age of 18 shall qualify as voters and have the right to
vote or stand for election, regardless of ethnic status, race, sex, occupation, family background, religious belief, education, property
status or length of residence.

Persons who have been deprived of political rights according to law shall have no right to vote or stand for election.

Persons who suffer from mental illness and are incapable of exercising their electoral rights, when verified by an election committee
as such, shall not take part in election.

   Article 8 The members composing the PLA Election Committee shall be subject to approval of the Standing Committee of the National People’s
Congress. The members composing the election committee at any other level shall be subject to approval of the election committee
at the next higher level.

Election committees at lower levels shall be subject to the direction of election committees at higher levels.

   Article 9 The PLA Election Committee shall be composed of nine to fifteen members, including one chairman and one to three vice-chairmen.
An election committee at any other level shall be composed of five to eleven members, including one chairman and one or two vice-chairmen.

   Article 10 The election committee at or above the regimental level shall organize and guide the election work of the subordinate units, and
do the following:

(1) examine the qualifications of the delegates to the servicemen congress;

(2) fix the date for election;

(3) publish the list of candidates for deputies to the people’s congress;

(4) preside over balloting at the servicemen congress or the servicemen assembly at the corresponding level; and

(5) preside over the servicemen congress or the servicemen assembly when recalling deputies to the people’s congress or holding a
by-election and accept resignations of deputies.

   Article 11 The election committee at any level shall establish an office to handle specific routine matters related to election at that level.

The office shall be affiliated to the political department, and its staff members shall be determined by the election committee itself.

CHAPTER III DECISION ON AND ALLOCATION OF THE NUMBER OF DEPUTIES

   Article 12 The number of deputies to be elected from the PLA to the National People’s Congress shall be decided by the Standing Committee of
the National People’s Congress.

   Article 13 The number of deputies to the National People’s Congress to be elected by the PLA general departments, units at the level of major
military command and the General Office of the Central Military Commission shall be allocated by the PLA Election Committee.

   Article 14 The number of deputies to the local people’s congresses at or above the county level to be elected by PLA units stationed in different
places shall be decided by the standing committees of the people’s congresses of the places where the PLA units are stationed.

Matters concerning election shall be decided respectively by the provincial military command, the garrison command, the military subcommand
or the arm-the-people department through consultation with the standing committee of the people’s congress of the place where it
is stationed; where a major military command is located in a province, autonomous region or municipality directly under the Central
Government, such matters shall be decided exclusively by the major military command through consultation with the standing committee
of the people’s congress of the province, autonomous region or municipality directly under the Central Government.

CHAPTER IV ELECTORAL DISTRICTS AND ELECTORAL UNITS

   Article 15 Deputies to the people’s congress at the county level from stationed PLA units shall be elected directly in the electoral district
by the PLA members on active service and other persons qualified to take part in election in the PLA who are stationed in that administrative
region. Electoral districts shall be zoned according to the distribution of the PLA units stationed in that administrative region.

The zoning of electoral districts shall be decided on the basis of one to three deputies to be elected from each electoral district.

   Article 16 Deputies to be elected by stationed PLA units to the people’s congresses of cities divided into districts, autonomous prefectures,
provinces, autonomous regions and municipalities directly under the Central Government shall be elected at the servicemen congresses
convened by units at or above the regimental level.

Deputies to the National People’s Congress shall be elected at the servicemen congresses convened by the general departments, units
at the level of major military command and the General Office of the Central Military Commission.

   Article 17 Delegates to the servicemen congress of the unit at or above the divisional level shall be elected at the servicemen congress at
the next lower level. Where no servicemen congress is held by the unit at the next lower level, the delegates shall be elected at
the servicemen assembly.

Delegates to the servicemen congress of the unit at the brigade or regimental level shall be elected at the servicemen assemblies
convened by the companies and other grassroots units.

Servicemen congresses shall be convened by election committees; servicemen assemblies shall be convened by election committees or
servicemen committees.

CHAPTER V NOMINATION OF CANDIDATES FOR DEPUTIES

   Article 18 Candidates for deputies to be elected by the PLA to the National People’s Congress and local people’s congresses at or above the
county level shall be nominated on the basis of electoral districts or electoral units.

Organizations of the Communist Party of China at various levels in the PLA may recommend candidates for deputies. A group of at least
ten voters or ten delegates of the servicemen congress may also recommend candidates. Those who submit recommendations shall provide
information to the election committee or the servicemen committee on the backgrounds of the candidates.

   Article 19 The number of candidates for deputies shall be greater than the number of deputies to be elected.

The number of candidates for deputies to be directly elected by the voters shall be from one-third to one hundred percent greater
than the number of deputies to be elected; the number of candidates for deputies to be elected by the servicemen congress shall be
from 20 to 50 percent greater than the number of deputies to be elected.

   Article 20 The election committee or the servicemen committee shall collect the list of candidates for deputies directly elected by the voters
and publish it, 20 days prior to the date of election, for repeated deliberation, discussion and consultation by the voters of the
electoral district, and shall, in accordance with the opinion of the majority of voters, decide upon a formal list of candidates
to be made public five days prior to the date of election.

When the servicemen congress at or above the regimental level is to elect deputies to the people’s congress, the time for nominating
and deliberating candidates for such deputies shall not be less than two days. The election committee at the said level shall print
and distribute the list of candidates for deputies nominated according to law to all the delegates to the servicemen congress for
deliberation and discussion. If the number of nominees conforms to the proportion for competitive election as provided in Article
19 of these Measures, balloting shall be held directly. If the number of nominees exceeds the maximum proportion for competitive
election as provided in Article 19 of these Measures, preliminary election shall be held. By order of the number of votes that the
nominees have obtained in the preliminary election, a formal list of candidates shall be decided upon in agreement with the specific
proportion for competitive election as is determined by the servicemen congress at the said level.

   Article 21 When a servicemen congress is to elect deputies to the National People’s Congress and local people’s congresses at or above the county
level, the candidates for deputies shall not be limited to the current delegates to the servicemen congress.

   Article 22 The election committee or the servicemen committee shall give information about the candidates’ backgrounds.

Organizations or individuals may, at group meetings of voters or of delegates to the servicemen congress, give information about backgrounds
of the candidates they nominate. However, it must stop on the day of election.

   Article 23 Where deputies are to be directly elected, the election in each electoral district shall be conducted by convening servicemen assembly
or setting up polling stations or providing mobile polling boxes. Balloting shall be presided over by the servicemen committee or
the election committee.

Balloting to be held at the servicemen congress shall be presided over by the election committee.

   Article 24 Deputies from the PLA to the National People’s Congress and local people’s congresses at or above the county level shall be elected
by secret ballot.

A voter who cannot fill out his ballot due to disability or other reasons may ask another person he trusts to do it for him.

   Article 25 A voter who is absent during the time of an election may, with the approval of the servicemen committee or the election committee,
entrust another voter with a proxy vote. A voter shall not stand proxy for more than three persons.

   Article 26 A voter may vote for or against a candidate for deputy and may vote instead for any other voter or abstain.

   Article 27 When balloting has been concluded, scrutineers and vote- counters elected by the voters or by the delegates to the servicemen congress,
and members of the election committee or of the servicemen congress shall check the number of people who voted against the number
of votes cast and make a record of it; the record shall be signed by scrutineers.

   Article 28 An election shall be null and void if the number of votes cast is greater than the number of people who voted, and it shall be valid
if the number of votes cast is equal to or less than the number of people who voted.

A ballot shall be null and void if the number of candidates voted for is greater than the number of deputies to be elected, and it
shall be valid if the number of candidates voted for is equal to or less than the number of deputies to be elected.

   Article 29 In a direct election, the election shall be valid if more than half of all the voters in an electoral district cast their votes.
Candidates for deputies shall be considered elected only when they have obtained more than half of the votes cast by the voters
who take part in the election.

In an election held by the servicemen congress, candidates for deputies shall be considered elected only when they have obtained more
than half of the votes cast by all the delegates.

   Article 30 Where the number of the candidates who have obtained more than half of the votes exceeds the number of deputies to be elected, the
ones who have obtained more votes shall be considered elected. Where the number of votes for some candidates is tied, making it impossible
to determine the ones to be elected, another balloting shall be conducted for these candidates to resolve the tie, and the ones who
have obtained more votes shall be considered elected.

Where the number of elected deputies who have obtained more than half of the votes is less than the number of deputies to be elected,
another election shall be held to make up the difference. When another election is held, the name list of candidates shall, by order
of the number of votes they have obtained in the first balloting, be determined in accordance with the proportion for competitive
election as provided in Article 19 of these Measures. If only one deputy is to be elected, the number of candidates shall be two.

When another election is held to elect deputies to a people’s congress at the county level in accordance with the provisions in the
preceding paragraph, the candidates who have obtained more votes shall be considered elected; however, the number of the votes they
have obtained shall not be less than one-third of the votes cast. When another election is held by the servicemen congress at or
above the regimental level to elect deputies to the people’s congresses of a city divided into districts, an autonomous prefecture,
province, autonomous region or municipality directly under the Central Government or to the National People’s Congress, the candidates
shall be considered elected only when they have obtained more than half of the votes cast by all the delegates to the servicemen
congress.

   Article 31 The election committee or the servicemen committee shall determine, in accordance with the provisions in these Measures, whether
or not the result of an election is valid and shall announce it accordingly.

CHAPTER VII SUPERVISION OVER AND RECALL OF DEPUTIES AND BY-ELECTION

   Article 32 All deputies elected from the PLA to the National People’s Congress and local people’s congresses at or above the county level are
subject to supervision by the voters and the electoral units which elected them. Both the voters and electoral units shall have the
right to recall the deputies elected by them.

   Article 33 With respect to deputies to the people’s congress at the county level, a group of at least ten voters in the electoral district may
submit a demand in writing to the election committee at the brigade or regimental level for the recall of a deputy they elected.

In a demand for the recall of a deputy, the reasons for the recall shall be clearly stated. The deputy proposed to be recalled shall
have the right to defend himself at the servicemen assembly or may present a written statement in his own defence.

The election committee at the brigade or regimental level shall print and distribute the demand for the recall of a deputy and the
written defence of the deputy proposed to be recalled to the voters in the electoral district from which he was elected.

When the demand for the recall is put to vote, the election committee at the brigade or regimental level shall preside over it.

   Article 34 When a servicemen congress is in session, an election committee at or above the regimental level may submit a proposal for the recall
of a deputy to the people’s congress who was elected by the servicemen congress. In such a proposal, the reasons for the recall
shall be clearly stated.

When a servicemen congress is in session, the deputy proposed to be recalled shall have the right to defend himself or submit a written
defence. The proposal for the recall shall be put to vote after it is examined by the congress.

   Article 35 The proposal for the recall of a deputy shall be voted by secret ballot.

   Article 36 The recall of a deputy to the people’s congress at the county level shall be subject to adoption by a majority vote of the voters
in the electoral district from which the deputy was elected.

The recall of a deputy elected at a servicemen congress to the people’s congress shall be subject to adoption by a majority vote of
the delegates to that servicemen congress.

The resolution on the recall shall be reported for the record to the standing committee of the people’s congress at the corresponding
level and to the PLA election committee at the next higher level.

   Article 37 Deputies elected from the PLA to the people’s congress of a city divided into districts, an autonomous prefecture, province, autonomous
region or municipality directly under the Central Government or to the National People’ Congress may submit their written resignations
to the election committees of the electoral units that elected them. Deputies elected from the PLA to the people’s congress at the
county level may submit their written resignations to the election committees or servicemen committees of the electoral districts
from which they were elected. When the request of a deputy for resignation is granted by a servicemen congress or by a servicemen
assembly, the matter shall be reported for the record to the standing committee of the people’s congress at the corresponding level
and to the PLA election committee at the next higher level.

   Article 38 If a deputy’s post becomes vacant for some reason during his term of office, the electoral district or electoral unit which elected
him shall hold a by-election to fill the vacancy.

If a deputy elected from the PLA to a local people’s congress at or above the county level is transferred out of his administrative
region during his term of office, he is automatically disqualified as deputy and a by-election shall be held to fill the vacancy.

When a by-election is conducted to fill the vacant posts of deputies, the number of candidates may be greater than or equal to the
number of deputies to be elected.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 39 Expenses for elections in the PLA shall be covered by military expenditure.

    

MOFTEC P.R.C.

EDITOR:Victor





THE ENQUIRY MEASURES OF CHINA WTO ENQUIRY OFFICES (FOR TRIAL IMPLEMENTATION)

WTO Notification and Enquiry Center of the Chinese Government

The Enquiry Measures of China WTO Enquiry Offices (for Trial Implementation)

WTO Notification and Enquiry Center of the Chinese Government

January 1, 2002

1.

Purpose of Enquiry: to establish an open and transparent trade administration system, and to perform the obligations of China for
its accession to the WTO.

In accordance with the relevant provisions of World Trade Organization on transparency, and China’s commitments to the World Trade
Organization members (paragraph 2(C) in China’s Protocol of Accession): China shall establish or designate an enquiry office where,
upon request of any individual, enterprise or WTO Member, all information relating to the Article 2 of these Measures may be obtained.
Replies to requests for information shall generally be provided within 30 days after receipt of a request. In exceptional cases,
replies may be provided within 45 days after receipt of a request. Notice of the delay and the reasons therefor shall be provided
in writing to the interested party. Replies to WTO Members shall be complete and shall represent the authoritative view of the Chinese
government. Accurate and reliable information shall be provided to individuals and enterprises.

2.

Scope of Enquiry: All of China’s information on laws, regulations, judicial orders or judgments, administrative decisions and other
measures pertaining to or affecting trade in goods, services, TRIPS or the control of foreign exchange. Such information shall include
the name of the country or the governing organ subordinated to the country (including liaison point), which is responsible for implementing
a certain measure.

3.

Objects of Enquiry: WTO Members, Chinese and foreign enterprises and individuals.

4.

Manner of Enquiry: Enquiry in writing. Anyone in need of enquiry may download the enquiry application form from the MOFTEC’s web
site (www.moftec.gov.cn) or obtain the enquiry application form by fax to 0086-10-65197340, and shall submit the said form to China
WTO Enquiry office by fax or by letter.

5.

Time Limit of Enquiry: The enquiry office shall reply the enquiry requests in writing within 30 days after receipt of an application
form (the time on the receiving local stamp seal or receiving the fax shall be the time of receipt). In exceptional cases, replies
may be provided within 45 days after receipt of a request. Notice of the delay and the reasons therefor shall be provided in writing
to the interested party.

6.

These Measures shall come into effect on January 14, 2002.

Enquiry Application Form of WTO Notification and Enquiry Center of the Chinese Government(omitted)



 
WTO Notification and Enquiry Center of the Chinese Government
2002-01-01

 






PROVISIONS ON FOREIGN INVESTMENT IN CIVIL AVIATION

The General Administration of Civil Aviation, the Ministry of Foreign Trade and Economic Cooperation, the State Development Planning
Commission

Decree of the General Administration of Civil Aviation of China, the Ministry of Foreign Trade and Economic Cooperation of the People’s
Republic of China and the State Development Planning Commission of the People’s Republic of China

No.110

The Provisions on Foreign Investment in Civil Aviation, which were adopted at the Executive Meeting of the General Administration
of Civil Aviation of China, the Ministry of Foreign Trade and Economic Cooperation and the State Development Planning Commission
and approved by the State Council on December 10, 2001, are hereby promulgated and shall enter into force on August 1, 2002.

Director General of the General Administration of Civil Aviation Yang Yuanyuan

Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangsheng

Director of the State Development Planning Commission Zeng Peiyan

June 21, 2002

Provisions on Foreign Investment in Civil Aviation

Article 1

In order to expand the opening of the civil aviation industry of China (hereinafter referred to as civil aviation), to promote the
reform and development of the civil aviation and to protect the legitimate rights and interests of the investors, these Provision
have been enacted in accordance with the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures, the Law
of the People’s Republic of China on Chinese-foreign Contractual Joint Ventures, the Provisions on Guidance of Foreign Investment
Direction and the Catalog for Guidance of Foreign Investment Industries (hereinafter referred to as the Guidance Provisions and the
Catalog respectively), and the relevant laws and regulations on civil aviation.

Article 2

These Provisions shall apply to the investment made in the civil aviation by foreign companies, enterprises and other economic organizations
or individuals (hereinafter referred to as the foreign investors).

Article 3

The scope of civil aviation that foreign investors may invest in shall include: civil airports, public air transport enterprises,
general aviation enterprises and projects related to air transport. Foreign investors are forbidden from investing in and managing
air traffic control systems.

(1)

Foreign investors are encouraged to construct civil airports. The “civil airports” as used in these Provisions shall exclude airports
for both civil and military use. Foreign-funded civil airports are divided into two categories:

1.

Flying areas of civil airports, including the runway, taxiway, connecting apron, parking apron, and flight assisting light;

2.

Terminal buildings.

(2)

Foreign investors are encouraged to invest in the existing public air transport enterprises. Foreign investors are encouraged to invest
in the general aviation enterprises engaging in agriculture, forestry and fishery operations. Foreign investors are allowed to invest
in the general aviation enterprises engaging in business flight, air sight-seeing or serving the industry, but may not engage in
the projects involving state secrets.

(3)

The “projects related to air transport” shall include: air fuel, airplane maintenance, freight transport and storage, ground service,
air food, parking lots and other approved projects.

Article 4

The forms of foreign investment shall include:

(1)

Equity joint venture or contractual joint venture (hereinafter referred to as joint venture);

(2)

Purchasing shares of civil aviation enterprises, including the shares issued overseas and the foreign shares issued inside China by
the aviation enterprises;

(3)

Other approved investment forms. Foreign investors must be qualified as a Chinese legal person to invest, in the form of contractual
joint venture, in public air transport and general aviation enterprises engaging in business fight and air sight-seeing.

Article 5

Where foreign investors invest in public air transport enterprises and civil airports, under the same conditions, priority shall be
given to the foreign enterprises of the same kind with international advanced management level.

Article 6

Where foreign investors invest in civil airports, the Chinese party shall take the relatively holding position. Where foreign investors
invest in public air transport enterprises, the Chinese party shall take the holding position, and the proportion of investment made
by one foreign investor (including its associate enterprises) may not exceed 25%. Where foreign investors invest in the general aviation
enterprises engaging in business flight, air sight-seeing or that serving the industry, the Chinese party shall take the holding
position; where they invest in the general aviation enterprises engaging in agriculture, forestry or fishery operations, the proportion
of foreign investment shall be determined by both the Chinese and foreign parties through negotiation.

Article 7

The operating period of joint ventures with foreign investment shall not exceed 30 years generally.

Article 8

With respect to civil airport enterprises with foreign investment, their charges for air service shall conform to the uniform standard
of the state, and the standards of the charges for non-air service shall be determined by the local price departments at the request
of the enterprises. The public air transport enterprises and general aviation enterprises with foreign investment shall execute the
price policies of the State.

Article 9

With respect to the land needed for the construction of civil airports, the foreign investors shall go through the procedures for
land evaluation and the examination and approval of disposition of land use right in accordance with the laws and regulations of
the state on land administration and the provisions of the General Administration of Civil Aviation of China (hereinafter referred
to as the GACA) on the administration of airport land use.

Article 10

The foreign investors investing in the construction of civil airports may enjoy the priority to invest in and manage the projects
related to air transport.

Article 11

With respect to the projects above the quota for foreign investment in civil aviation, according to the nature of the projects, the
State Development Planning Commission (for basic construction projects) and the State Economic and Trade Commission (for technical
reform projects) shall, with the consent of the GACA, respectively make examination and approval of the project proposals and the
feasibility study reports; the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) shall make
the examination and approval of the contracts and articles of association. With respect to the projects under the quota, the GACA
shall make the examination and approval of the project proposals and the feasibility study reports, and the MOFTEC shall make the
examination and approval of the contracts and articles of association. Where foreign investors invest in the projects related to
air transport, such as freight transport and storage, ground service, air food, and parking lots, etc., they shall go through the
procedures for examination and approval in accordance with the procedures and authorities prescribed in the Guidance Provisions and
the Catalog.

Article 12

After the contracts and articles of association of the civil airport projects with foreign investment have been approved, the foreign
investors shall apply to the MOFTEC for the certificate of approval for foreign-funded enterprise and then go through the relevant
procedures for registration at the administrations for industry and commerce. After the contracts and articles of association of
the public air transport enterprises and general aviation enterprises with foreign investment have been approved, the enterprises
shall apply to the GACA for drawing or altering their licenses for operation, apply to the MOFTEC for drawing the certificate of
approval for foreign-funded enterprise, and go through the relevant registration procedures at the administrations for industry and
commerce.

Article 13

Where civil aviation enterprises issue shares overseas, issue foreign shares inside China or absorb foreign investment by other means,
they shall go through the procedures for examination and approval with the relevant authorities of the state.

Article 14

The capital increase, change of equity, and other matters of foreign-funded civil aviation enterprises (projects) shall be submitted
for examination and approval to the organ that originally made the examination and approval.

Article 15

The GACA and its local administrations shall exercise industrial administration and supervision over the business activities of foreign-funded
civil aviation enterprises.

Article 16

These Provisions shall be referred to if companies, enterprises, other economic organizations or individuals from the Special Administrative
Region of Hong Kong, the Special Administrative Region of Macao and Taiwan area invest in civil aviation in other Chinese provinces,
autonomous regions and municipalities directly under the Central Government.

Article 17

These provisions shall enter into force as of August 1, 2002. The Circular on the Relevant Policies Concerning Foreign Investment
in Civil Aviation promulgated by the GACA and the MOFTEC on May 6, 1994 (MinHangZongJuHan [1994] No.448) and the Circular on the
Explanation for Several Issues of the Relevant Policies Concerning Foreign Investment in Civil Aviation promulgated by the GACA and
the MOFTEC on October 25, 1994 (MinHangZongJuFa [1994] No.271) shall be nullified at the same time.



 
The General Administration of Civil Aviation, the Ministry of Foreign Trade and Economic Cooperation, the State Development
Planning Commission
2002-06-21

 






AGREEMENT ON RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENT BETWEEN THE GORERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN PREAMBLE

AGREEMENT ON RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENT BETWEEN THE GORERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT
OF THE ISLAMIC REPUBLIC OF IRAN PREAMBLE

The Government of the People’s Republic of China and the Government of the Islamic Republic of Iran hereinafter referred to as the
“Contracting Parties”,

Desiring to intensify economic cooperation to the mutual benefit of both States;

Intending to utilize their economic resources and potential facilities in the area of investments as well as to create and maintain
favorable conditions for investments of the investors of the Contracting Parties in each other’s territory and;

Recognizing the need to promote and protect investments of the investors of the Contracting Parties in each others’ territory;

Have agreed as follows:

Article 1

DEFINITIONS

For the purpose of this Agreement, the meanings of the terms used therein are as follows:

1.

The term “investment” refers to every kind of property or asset, including the following, invested by the investors of one Contracting
Party in the territory of the other Contracting Party in accordance with the laws and regulations of the other Contracting Party:

(a)

movable and immovable property as well as rights related thereto; such as mortgages and pledges;

(b)

shares, debentures, stocks and any other kind of participation in companies;

(c)

right to claim money and/or any other performance having an economical value associated with an investment;

(d)

industrial and intellectual property rights;

(e)

special rights conferred by law including rights to search for, extract or exploit natural resources.

Any change in the form in which assets are invested does not affect their character as investments, provided that such changes are
consistent with the legislation of the host Contracting Party.

2.

The term “investors” refers to the following persons who invest in the territory of the other Contracting Party within the framework
of this Agreement:

(a)

natural persons who, according to the laws of either Contracting Party, are considered to be its national and have not the nationality
of the host Contracting Party.

(b)

legal entities, including companies, corporations, associations, and other organizations incorporated and constituted under the laws
and regulations of either Contracting Party and have their seats in the territory of that Contracting Party.

3.

The term “returns” refers to the amounts legally yielded by an investment including profit derived from investments, dividends, royalties,
fees and other legitimate income.

Article 2

PROMOTION OF INVESTMENTS

1.

Either Contracting Party shall encourage its investors to invest in the territory of the other Contracting Party.

2.

Either Contracting Party shall, within the framework of its laws and regulations, create favorable conditions for attraction of investments
of investors of the other Contracting Party in its territory.

Article 3

ADMISSION OF INVESTMENTS

1.

Either Contracting Party shall admit investments of investors of the other Contracting Party in its territory in accordance with its
laws and regulations.

2.

When an investment is admitted, either Contracting Party shall, in accordance with its laws and regulations, grant visas, work permits
as well as all other necessary permits for the realization of such an investment.

Article 4

PROTECTION OF INVESTMENTS

1.

Investments of investors of either Contracting Party effected within the territory of the other Contracting Party shall, in accordance
with the laws and regulations of the host Contracting Party, receive full legal protection and fair treatment not less favorable
than that accorded to its own investors or to investors of any third state who are in a comparable situation.

2.

If a Contracting Party has accorded or shall accord in future special advantages or rights to investor(s) of any third state by virtue
of an existing or future agreement establishing a free trade area, a customs union, a common market or a similar regional organization
and /or by virtue of an arrangement on the avoidance of double taxation, it shall not be obliged to accord such advantages or rights
to investors of the other Contracting Party.

Article 5

MORE FAVORABLE PROVISIONS

Notwithstanding the terms set forth in this Agreement, more favorable provisions which have been or may be agreed upon by either of
the Contracting Parties with an investor of the other Contracting Party are applicable.

Article 6

EXPROPRIATION AND COMPENSATION

1.

Investments of investors of either Contracting Party shall not be nationalized, confiscated, expropriated or subjected to similar
measures by the other Contracting Party except such measures are taken for public purposes, in accordance with the legal procedure
provided for in the laws and regulations of that Contracting Party, in a non-discriminatory manner and against compensation.

2.

The amount of compensation shall be equivalent to the value of investment immediately before the action of nationalization, confiscation
or expropriation was taken. The compensation shall be made without delay, be effectively realizable and freely transferable. In case
of undue delay, which is longer than 30 days as from the date of expropriation, the financial costs related to the delayed payment
shall be borne by the expropriating Contracting Party from the date on which the payment becomes due to the date of actual payment.

Article 7

LOSSES

Investors of either Contracting Party whose investments suffer losses due to any armed conflict, war or similar state of emergency
in the territory of the other Contracting Party shall be accorded by the other Contracting Party treatment as regards restitution,
indemnification, compensation and other settlements no less favorable than that accorded to its own investors or to investors of
any third country.

Article 8

REPATRIATION AND TRANSFER

1.

Each Contracting Party shall, in accordance with its laws and regulations, permit in good faith the following transfers related to
investments referred to in this Agreement, to be made freely and without delay out of its territory:

(a)

returns;

(b)

proceeds from the sale and/or liquidation of all or part of an investment;

(c)

royalties and fees related to transfer of technology agreement;

(d)

sums paid pursuant to Article 6 and/or 7 of this Agreement;

(e)

loan installments which are related to an investment and paid out of such investment activities;

(f)

monthly salaries, wages and other revenues received by the nationals of the other Contracting Party, who have obtained the corresponding
word permits related to an investment in the territory of the host Contracting Party;

2.

The above transfers shall be effected in a convertible currency and at the current rate of exchange in accordance with the exchange
regulations prevailing on the date of transfer.

3.

The investor and the host Contracting Party may agree otherwise on the manner of repatriation or transfers referred to in this Article.

Article 9

SUBROGATION

If a Contracting Party or its designated agency, within the framework of a legal system, subrogates an investor pursuant to a payment
made under an insurance or guarantee agreement against non-commercial risks:

(a)

such subrogation shall be recognized by the other Contracting Party;

(b)

the subrogee shall not be enpost_titled to exercise any rights other than the rights which the investor would have been enpost_titled to exercise.

Article 10

OBSERVANCE OF COMMITMENTS

Either Contracting Party shall guarantee the observance of the commitments it has entered into with respect to investments of investors
of the other Contracting Party.

Article 11

SCOPE OF THE AGREEMENT

This Agreement shall apply to investments, which are made prior to or after its entry into force by investors of either Contracting
Party in accordance with the laws and regulations of the other Contracting Party in the territory of the latter.

As far as the Islamic Republic of Iran is concerned, this Agreement shall only apply to the investments approved by Organization for
Investment. Economic and Technical Assistance of Iran (O.I.E.T.A.I.) or any other agency which may succeed it.

Article 12

SETTLEMENT OF DISPUTES BETWEEN A CONTRACTING PARTY AND INVESTOR (S) OF THE OTHER CONTRACTING PARTY

1.

If any dispute arises between the host Contracting Party and investor(s) of the other Contracting Party with respect to an investment,
the host Contracting Party and the Investor(s) shall primarily endeavor to settle the dispute in an amicable manner through negotiation
and consultation.

2.

In the event that the host Contracting Party and the investor(s) can not agree within six months from the date of notification of
the claim by one party to the other, either of them may refer the dispute to the competent courts of the host Contracting Party or
with due regard to its own laws and regulations to an arbitral tribunal of three members referred to in paragraph 5 below.

3.

A dispute primarily referred to the competent court of the host Contracting Party, as long as it is pending, can not be referred to
arbitration save with the parties’ agreement; and in the event that a final judgement is rendered, it can not be referred to arbitration.

4.

National courts shall not have jurisdiction over any dispute referred to arbitration. However, the provisions of this paragraph do
not bar the winning party go seek for the enforcement of the arbitral award before national courts.

5.

The host Contracting Party or the investor(s) of the other Contracting Party who desires to refer the dispute to arbitration shall
appoint an arbitrator through a written notice sent to the other party. The other party shall appoint an arbitrator within sixty
days from the date of receipt of the said notice and the appointed arbitrators shall within sixty days from the date of the last
appointment, appoint the chairman. In the event that either party fails to appoint its arbitrator within the mentioned period and/or
the appointed arbitrators fail to agree on the chairman, either party may request the Secretary General of the International Center
for Settlement of Investment Disputes to appoint the failing party’ s arbitrator or the chairman, as the case may be. However, the
chairman shall be a national of a state having diplomatic relations with both Contracting Parties.

6.

The ad hoc arbitral tribunal shall determine its own procedure and the place of arbitration.

7.

The tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both parties to the dispute.
Both Contracting Parties shall commit themselves to the enforcement of the award.

8.

Each party to the dispute shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The
relevant costs of the chairman and tribunal shall be borne in equal parts by the parties to the dispute. The tribunal may in its
award direct that a higher proportion of the costs be borne by one of the parties to the dispute.

Article 13

SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES

1.

All disputes arising between the Contracting Parties relating to the interpretation or application of this Agreement shall, in the
first place, be settled amicably by consultation. In case of disagreement, either Contracting Party may subject to its laws and regulations,
while sending a notice to the other party, refer the case to an arbitral tribunal of three members consisting of two arbitrators
appointed by the Contracting Parties and a chairman.

In case the dispute is referred to the arbitral tribunal, either Contracting Party shall appoint an arbitrator within sixty days from
the receipt of the notification and the arbitrators appointed by the Contracting Parties shall appoint the chairman within sixty
days from the date of last appointment. If either Contracting Party does not appoint its own arbitrator or the appointed arbitrators
do not agree on the appointment of the chairman within the said periods, each Contracting Party may request the President of the
International Court of Justice to appoint the arbitrator of the failing party or the chairman, as the case may be. However, the chairman
shall be a national of a state having diplomatic relations with both Contracting Parties at the time of the appointment.

2.

In case the chairman is to be appointed by the President of the International Court of Justice, if the President of the International
Court of Justice is prevented from carrying out the said function or if he is a national of either Contracting Party, the appointment
shall be made by the Vice-President of the International Court of Justice, and if the Vice-President is also prevented from carrying
out the said function or he is a national of either Contracting Party, the appointment shall be made by the senior member of the
said court who is not a national of either Contracting Party.

3.

Subject to other provisions agreed by the Contracting Parties, the arbitral tribunal shall determine its procedure and place of arbitration.

4.

The decisions of the arbitral tribunal shall be binding on the Contracting Parties.

Article 14

VALIDITY OF THE AGREEMENT

1.

This Agreement shall enter into force for a period of ten years on the first day of the following month after the date of the last
notification of either Contracting Party to the other Contracting Party that it has fulfilled necessary measures in accordance with
its laws and regulations for the entry into force of this Agreement. After the said period, this Agreement shall remain in force
thereafter unless one of the Contracting Parties notifies the other Contracting Party in writing of its unwillingness to continue
with it, six months prior to the expiration or termination thereof.

2.

After the expiration of the validity or termination of this Agreement its provisions shall apply to investments under this Agreement
for a further period of ten years.

In Witness Whereof the undersigned, duly authorized thereto by respective Governments, have signed this Agreement.

Done in duplicate at Beijing on June 22, 2000 corresponding to 2nd Tir1379 in the Chinese, Persian and English languages, all texts
being equally authentic. In case of divergence of interpretation, the English text shall prevail.

For the Government of the￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿For the Government of the

People’s Republic of China￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Islamic Republic of Iran



 
The Government of the People’s Republic of China
2000-06-22

 






1234...7Page 3 of 7

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...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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