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PROVISIONAL MEASURES ON ADMINISTRATION OF DOMESTIC SECURITIES INVESTMENTS OF QUALIFIED FOREIGN INSTITUTIONAL INVESTORS(QFII)

Provisional Measures on Administration of Domestic Securities Investments of Qualified Foreign Institutional Investors(QFII)

     China Securities Regulatory Commission

People’s Bank of China

Decree No. 12

The “Provisional Measures on Administration of Domestic Securities Investments of Qualified Foreign Institutional Investors (QFII)”,
which will come into effect from 1 December 2002, is hereby promulgated.

CSRC Chairman: Zhou Xiaochuan

PBOC Governor: Dai Xianglong

Nov. 5th 2002

Provisional Measures on Administration of Domestic Securities

Investments of Qualified Foreign Institutional Investors (QFII)

Chapter 1. General Provisions

   Article 1. Based upon China’s relevant laws and administrative regulations, this Regulation was promulgated for the purpose of governing Qualified
Foreign Institutional Investors’ investments in China’s securities market and promoting developments of China’s securities market.

   Article 2. Qualified Foreign Institutional Investors (hereinafter referred to as “QFII” which can be a single or a plural, as the case may be)
are defined in this Regulation as overseas fund management institutions, insurance companies, securities companies and other assets
management institutions which have been approved by China Securities Regulatory Commission (hereinafter referred to as “CSRC”) to
invest in China’s securities market and granted investment quota by State Administration of Foreign Exchange (hereinafter referred
to as “SAFE”).

   Article 3. QFII should mandate domestic commercial banks as custodians and domestic securities companies as brokers for their domestic securities
trading.

   Article 4. QFII should comply with laws, regulations and other relevant rules in China.

   Article 5. CSRC and SAFE shall, in accordance with the laws, supervise and govern the securities investing activities undertaken by QFII within
the jurisdiction of China.

Chapter 2. Qualifications, Criteria and Approval Procedures

   Article 6. A QFII applicant should fall within the following criteria:

(1) The applicant should be in sound financial and credit status, should meet the requirements set by CSRC on assets size and other
factors; and its risk control indicators should meet the requirements set by laws and securities authorities under its home jurisdiction;

(2) Employees of the applicant should meet the requirements on professional qualifications set by its home country/region;

(3) The applicant should have sound management structure and internal control system, should conduct business in accordance with the
relevant regulations and should not have received any substantial penalties by regulators in its home country/region over the last
three years prior to application;

(4) The home country/region of the applicant should have sound legal and regulatory system, and its securities regulator has signed
Memorandum of Understanding with CSRC and has maintained an efficient regulatory and co-operative relationship;

(5) Other criteria as stipulated by CSRC based on prudent regulatory principles.

   Article 7. The criteria of assets scale and other factors as referred to in the aforesaid article are:

For fund management institutions: Having operated fund business for over 5 years with the most recent accounting year managing assets
of not less than US$10 billion;

For insurance companies: Having operated insurance business for over 30 years with

paid-in capital of not less than US$1 billion and managing securities assets of not less than US$10 billion in the most recent accounting
year;

For securities companies: Having operated securities business for over 30 years with

paid-in capital of not less than US$1 billion and managing securities assets of not less than US$10 billion in the most recent accounting
year;

For commercial banks: Ranking among the top 100 of the world in the total assets for

the most recent accounting year and managing securities assets of not less than US$10 billion.

CSRC may adjust the aforesaid requirements subject to the developments of securities market.

   Article 8. To apply for QFII qualification and investment quota, an applicant should submit the following documents to CSRC and SAFE respectively
through its custodian:

1. Application Forms (including basic information on the applicant, investment quota applied for and investment plan, etc.);

2. Documents to verify that the applicant meets requirements set in Article 6;

3. Draft Custody Agreement signed with its expected custodian;

4. Audited financial reports for the most recent 3 years;

5. Statement on sources of the funds, and Letter of Undertaking promising not to withdraw funds during the approved period;

6. Letter of authorisation by the applicant;

7. Other documents as required by CSRC and SAFE.

All the aforesaid documents, if written in languages other than Chinese, must be accompanied by their Chinese translations or Chinese
extracts.

   Article 9. The CSRC shall, within 15 working days from the date the full set of application documents are received, determine whether to grant
approval or not. Securities Investment Licences will be issued to those applicants whose applications have been approved whereas
written notices will be given to those applicants whose applications have been rejected.

   Article 10. Applicants shall apply to the SAFE through their custodians for investment quotas after obtaining the Securities Investment Licences.

SAFE shall, within 15 working days from the date full set of application documents are received, determine whether to grant approval
or not. Applicants whose applications have been approved will be notified in writing their permitted investment quotas and Foreign
Exchange Registration Certificates will be issued. Written notices will be given to those applicants whose applications have been
rejected.

The Securities Investment Licence will automatically become void if an applicant is unable to obtain the Foreign Exchange Registration
Certificate within one year after the Securities Investment Licence is granted.

   Article 11. In order to encourage medium and long-term investments, preference will be given to the institutions managing closed-end Chinese
funds subject to the requirements of Article 6 or pension funds, insurance funds and mutual funds with good investment records in
other markets.

Chapter 3. Custody, Registration and Settlement

   Article 12. A custodian should meet the following requirements:

(1) Has a specific fund custody department;

(2) With paid-in capital of no less than RMB 8 billion;

(3) Has sufficient professionals who are familiar with custody business;

(4) Can manage the entire assets of the fund safely;

(5) Has qualifications to conduct foreign exchange and RMB business;

(6) No material breach of foreign exchange regulations for the recent three years.

Domestic branches of foreign-invested commercial banks with more than three years of continual operation are eligible to apply for
the custodian qualification. Their paid-in capital eligibility shall be based on their overseas headquarters’ capital.

   Article 13. Approvals from CSRC, People’s Bank of China (hereinafter referred to as “PBOC”) and SAFE are required for custodian status.

   Article 14. Domestic commercial banks should submit the following documents to CSRC, PBOC and SAFE to apply for custodian status:

1. Application Forms;

2. Copy of its financial business licence;

3. Management system in relation to its custody business;

4. Documents verifying that it has efficient information and technology system;

5. Other documents as required by CSRC, PBOC and SAFE.

CSRC, together with PBOC and SAFE, will review application documents and decide whether to approve the applications or not.

   Article 15. A custodian shall perform the following duties:

1. Safekeeping all the assets that QFII put under its custody;

2. Conducting all QFII related foreign exchange settlement, sales, receipt, payment and RMB settlement businesses;

3. Supervising investment activities of QFII, and reporting to CSRC and SAFE in case QFII investment orders are found to have violated
laws or regulations;

4. Reporting to SAFE about foreign exchange remittance and repatriation of QFII, in two working days after QFII remits/repatriates
its principal/proceeds ;

5. Reporting to CSRC and SAFE about the status of QFII’s RMB special account, in five working days after the end of each month;

6. Compiling an annual financial report on QFII’s domestic securities investment activities in the previous year and sending it to
CSRC and SAFE in three months after the end of each accounting year;

7. Keep the records and other related materials on QFII’s fund remittance, repatriation, conversion, receipt and payment for no less
than 15 years;

8. Other responsibilities as defined by CSRC, PBOC and SAFE based on prudent

supervision principles.

   Article 16. A custodian should strictly separate its own assets from those under its custody.

A custodian should set up different accounts for different QFII, and manage those accounts separately.

Each QFII can only mandate one custodian.

   Article 17. QFII should mandate its custodian to apply for a securities account on its behalf with securities registration and settlement institution.
When applying for a securities account on behalf of the QFII, a custodian should bring the QFII’ mandate and its Securities Investment
Licence and other valid documents, and file with CSRC the relevant situation within five working days after opening a securities
account.

QFII should mandate its custodian to open a RMB settlement account on its behalf with securities registration and settlement institution.
The custodian shall be responsible for the settlement of QFII’s domestic securities investment, and shall file with CSRC and SAFE
the relevant situation within five working days after opening a RMB settlement account.

Chapter 4. Investment Operations

   Article 18. Subject to the approved investment quota, QFII can invest on the following RMB financial instruments:

1. Shares listed in China’s stock exchanges (excluding B shares);

2. Treasuries listed in China’s stock exchanges;

3. Convertible bonds and enterprise bonds listed in China’s stock exchanges;

4. Other financial instruments as approved by CSRC.

   Article 19. QFII may mandate domestically registered securities companies to manage their domestic securities investments.

Each QFII can only mandate one investment institution.

   Article 20. For domestic securities investments, QFII should observe the following requirements:

1. Shares held by each QFII in one listed company should not exceed 10% of total outstanding shares of the company;

2. Total shares held by all QFII in one listed company should not exceed 20% of total outstanding shares of the company.

CSRC may adjust the above percentages based on the developments of securities market.

   Article 21. QFII’s domestic securities investment activities should comply with the requirements as set out in the Guidance for Foreign Investments
in Various Industries.

   Article 22. Securities firms should preserve the trading and transaction records of QFII for at least 15 years.

Chapter 5. Fund Management

   Article 23. Upon the approval of SAFE, a QFII should open a RMB special account with its custodian.

Within five working days after the opening of the RMB special account, the custodian should report to CSRC and SAFE for filing.

   Article 24. Revenue articles in the RMB special account shall include: settlement of funds (foreign exchange funds from overseas, and accumulated
settlement of foreign exchange should not exceed the approved investment quota), proceeds from the disposal of securities, cash dividends,
interests from current deposits and bonds. Expense articles in the RMB special account shall include: cost of purchasing securities
(including stamp tax and commission charges), domestic custodian fee and management fee, and payment for purchasing foreign exchange
(to be used to repatriate principals and proceeds).

The capital of special RMB account shall not be used for money lending or guarantee.

   Article 25. Within three months after receiving Securities Investment Licence from CSRC, QFII should remit principals from outside into China
and directly transfer them into RMB special accounts after full settlement of foreign exchange. The currency of the principals from
QFII should be exchangeable currency approved by SAFE and the amount of the principal should not exceed the approved quota.

If QFII has not fully remitted the principals within three months after receiving Foreign Exchange Registration Certificate, the actual
amount remitted will be deemed as the approved quota; thereafter the difference between approved quota and the actual amount shall
not be remitted inward prior to the obtaining of a newly approved investment quota.

   Article 26. In the case that a QFII is a closed-end Chinese fund management company, it can mandate its custodian, with the submission of required
documents to SAFE to apply for purchase of foreign exchange for the repatriation of principals by stages and by batches three years
after its remittance of the principals. The amount of each batch of principal repatriation should not exceed 20% of the total principals,
and the interval between two repatriations should not be shorter than one month.

Other types of QFII can mandate their custodians, with the submission of required documents, to apply to SAFE to repatriate the principals
by stages and by batches one years after their remittance of the principals. The amount of each batch of principal repatriation should
not exceed 20% of the total principals, and the interval between two repatriations should not be shorter than three months.

The overseas receivers of the above-mentioned repatriation should be the QFII themselves.

   Article 27. QFII whose principal of approved investment quota is remitted to China for less than one year but over three months, after the submission
of transfer application form & transfer contract and upon approval of CSRC and SAFE, may transfer the approved investment quota to
other QFII or other applicants who have fulfilled the requirements of Article 6.

After getting Securities Investment Licence from CSRC and investment quota from SAFE, the transferee can remit the difference as its
principals if the value of the transferred assets is lower than the investment quota approved by SAFE.

   Article 28. If QFII intends to remit principals inwards again after it partially or fully repatriates its principals, it should re-apply for
investment quota.

   Article 29. If QFII needs to purchase foreign exchange to repatriate their post-tax profits of the previous accounting year which have been audited
by Chinese CPA, the QFII should mandate its custodian to apply to SAFE fifteen days prior to repatriation, together with the following
documents:

1. Repatriation Application Form;

2. Financial reports of the accounting year in which the profits are generated;

3. Auditor’s report issued by Chinese CPA;

4. Profits distribution resolutions or other effective legal documents;

5. Tax payment certificates;

6. Other documents as required by SAFE.

The overseas receivers of the above-mentioned repatriation should be the QFII themselves.

   Article 30. SAFE may adjust the timeframe required for QFII to repatriate its principal and proceeds, subject to the needs of China’s foreign
exchange balance.

Chapter 6. Regulatory Issues

   Article 31. CSRC and SAFE should annually review QFII’s Securities Investment Licence and Foreign Exchange Registration Certificate.

   Article 32. CSRC, PBOC and SAFE may require QFII, custodians, securities companies, stock exchanges, and securities registration and settlement
institutions to provide information on QFII’s domestic investment activities, and may conduct on-site inspections if necessary.

   Article 33. Stock exchanges and securities registration and settlement institutions may enact new operation rules or revise previous operation
rules on QFII’s domestic securities investments, the implementation of which will be effective upon approval of the CSRC.

   Article 34. In the event of any of the followings, QFII should file with CSRC, PBOC and SAFE in five working days:

1. Change of custodians;

2. Change of legal representatives;

3. Change of controlling shareholders;

4. Adjustment of registered capital;

5. Litigations and other material events;

6. Being imposed substantial penalties overseas;

7. Other circumstances as stipulated by CSRC and SAFE.

   Article 35. In the event of any of the followings, QFII should re-apply for its Securities Investment Licence:

1. Change of business name;

2. Acquired by or merged with other institution(s);

3. Other circumstances as stipulated by CSRC and SAFE.

   Article 36. In the event of any of the followings, QFII should surrender its Securities Investment Licence and Foreign Exchange Registration
Certificate to CSRC and SAFE respectively:

1. Having repatriated all its principals;

2. Having transferred its investment quota;

3. Dispersion of authorised entities, entering into bankruptcy procedures, or assets being taken over by receivers;

4. Other circumstances as stipulated by CSRC and SAFE.

If QFII fail to pass the annual review on Securities Investment Licences and Foreign Exchange Registration Certificates, as mentioned
in Article 31, the Licences/Certificates will automatically be invalid. And the QFII should return these Licences/Certificates as
required by the aforesaid Article.

   Article 37. In accordance with their respective authorities, CSRC, PBOC and SAFE will give warnings or penalties to QFII, custodians and securities
companies, etc. who violate this Regulation. The same breach, however, should not be subject to two administrative penalties or more.

Chapter 7. Supplementary Provisions

   Article 38. This Regulation is also applicable to institutional investors from Hong Kong Special Administrative Region, Macao Special Administrative
Region and Taiwan Region, who conduct securities investment businesses in Mainland China.

   Article 39. This Regulation will come into effect from 1 December 2002.

    

Source:China Net

EDITOR:Victor





REGULATIONS ON LABOR PROTECTION IN WORKPLACES WHERE TOXIC SUBSTANCES ARE USED






Regulations on Labor Protection in Workplaces Where Toxic Substances Are Used

     (Adopted at the 57th Executive Meeting of the State Council on April 30, 2002, promulgated by Decree No.352 of the State Council of
the People s Republic of China on May 12, 2002, and effective as of the date of promulgation)

Chapter I General Provisions

   Article 1 These Regulations are formulated in accordance with the provisions of the Law on the Prevention and Control of Occupational Diseases
and other relevant laws and administrative regulations for the purposes of ensuring the safe use of toxic substances in workplaces,
preventing against, controlling, and eliminating occupational poisoning hazards, and protecting workers’ life safety, body health
and their relevant rights and interests.

   Article 2 These Regulations shall be applicable to labor protection against possible occupational poisoning hazards due to the use of toxic
substances in workplaces.

   Article 3 Toxic substances are classified into general toxic substances and high toxic substances in light of the extent of occupational poisoning
hazards caused by toxic substances. The State exercises special control over the use of high toxic substances in workplaces.

The catalogues of general toxic substances and high toxic substances shall, on the basis of the national standards, be formulated,
adjusted and published by the administrative department for public health under the State Council jointly with the departments concerned.

   Article 4 An employing unit that engages in the operations in which toxic substances are used (hereinafter referred to as the employing unit)
shall use toxic substances that meet the national standards, and shall not use in workplaces the toxic substances that are explicitly
prohibited by the State, or that fail to meet the national standards.

An employing unit shall, as possible as it can, use nontoxic substances; where it is required to use toxic substances, low toxic
substances shall be selected for use with priority.

   Article 5 An employing unit shall, in accordance with the provisions of these Regulations and other relevant laws and administrative regulations,
take effective protective measures to prevent the occurrence of occupational poisoning accidents, and buy work injury insurance according
to law so as to safeguard workers’ life safety and body health.

   Article 6 The State encourages the research, development, popularization and application of the new technologies, new techniques and new materials
that are beneficial to the prevention, control and elimination of occupational poisoning hazards and to the protection of workers’
health, restricts the use of, or obsoletes, the technologies, techniques and materials that may cause serious occupational poisoning
hazards, and strengthens the basic research on the mechanism and regular rules for occupational diseases so as to improve the level
of science and technology in the prevention and control of occupational diseases.

   Article 7 Child laborers shall be prohibited from being employed.

An employing unit shall not assign minors and female employees in pregnancy or lactation to engage in the operations in which toxic
substances are used.

   Article 8 Trade unions shall urge and assist employing units in the publicity, education and training of occupational health, make proposals
and suggestions concerning employing units’ occupational health work, and coordinate with and urge the employing units to solve the
problems in relation to the prevention and control of occupational diseases that are reported by workers.

Trade unions shall have the right to demand corrections by employing units committing acts of infringing upon workers’ legal rights
and interests in violation of laws and regulations; in case of serious occupational poisoning hazards, they shall have the right
to require the employing units to take protective measures or suggest that the relevant departments of the people’s governments take
compulsory measures; in case of occupational poisoning accidents, they shall have the right to participate in the investigation and
handling of the accidents; under circumstances in which workers’ lives and health are jeopardized, they shall have the right to suggest
that the employing units should organize the evacuation of the workers from the premises in danger, and the employing units shall
immediately take such measures.

   Article 9 The administrative departments for public health and other relevant departments of the people’s governments at or above the county
level shall, in light of their respective functions and responsibilities, supervise employing units strict compliance of the provisions
of these Regulations and other relevant laws and regulations, strengthen the labor protection against the use of toxic substances
in workplaces, prevent the occurrence of occupational poisoning accidents, and ensure the rights enjoyed by the workers according
to law.

   Article 10 The people’s governments at all levels shall strengthen the leadership over the occupational health and safety as well as the relevant
labor protection in the workplaces where toxic substances are used, urge and support the administrative departments for public health
and other relevant administrative departments to fulfill their functions and responsibilities of supervision and inspection according
to law, and coordinate the work of solving relevant major problems in time; in case of occupational poisoning accidents, they shall
take effective measures to control the spreading of the accidental hazards and eliminate the accidental hazards, and deal with problems
arising from the accidents.

Chapter II Preventive Measures in Workplaces

   Article 11 The establishment of an employing unit shall meet the conditions provided for in the relevant laws and administrative regulations,
the relevant formalities shall be gone through according to law, and the business license shall be obtained.

The employing unit’s workplaces where toxic substances are used shall, in addition to the occupational health requirements provided
for in the Law on the Prevention and Control of Occupational Diseases, also meet the following conditions:

(1) the workplaces must be separated from the living areas, and no person shall reside in the workplaces;

(2) the harmful operations must be separated from the harmless operations, and the workplaces where high toxic substances are
used shall be isolated from other workplaces;

(3) effective ventilation facilities shall be installed, and automatic alarm facilities and ventilation facilities for accidents
shall be installed in the workplaces in case a large quantity of toxic substances may suddenly leak out or acute poisoning may be
easily caused; and

(4) emergency exits for evacuation and necessary hazard-eliminating areas shall be set up in the workplaces where high toxic
substances are used.

The employing unit and its workplaces that meet the conditions provided for in the preceding two paragraphs shall not engage
in the operations in which toxic substances are used unless the administrative department for public health has issued the occupational
health and safety license to it.

   Article 12 The yellow area-warning lines, warning marks, and warning specifications in Chinese shall be displayed in the workplaces where toxic
substances are used. Warning specifications shall indicate varieties and consequences of occupational poisoning hazards and the corresponding
preventive measures and emergency measures.

The red area-warning lines, warning marks, and warning specifications in Chinese shall be displayed, and communication and alarm
equipment shall be installed in the workplaces where high toxic substances are used.

   Article 13 Building projects, rebuilding projects, extension projects, technological transformation projects, and technology-introduction projects
(hereinafter collectively referred to as the construction projects) likely to cause occupational poisoning hazards shall be subject
to a pre-evaluation of the occupational poisoning hazards in accordance with the provisions of the Law on the Prevention and Control
of Occupational Diseases, and shall pass the examination and obtain the approval of the administrative departments for public health.
The safeguards against occupational poisoning hazards for a construction project that is likely to cause occupational poisoning hazards
shall be designed, constructed and put into production and utilization simultaneously with the project’s principal part. After a
construction project is completed, the effect of control over occupational poisoning hazards shall be evaluated, and the project
shall be subject to the inspection for acceptance by the administrative department for public health.

The design of safeguards against occupational poisoning hazards for a construction project involving the operations with high
toxic substances shall be subject to the hygienic examination by the administrative department for public health. The design shall
not be put into construction unless it has met the national occupational health standards and hygienic requirements upon examination.

   Article 14 The employing units shall, in accordance with the provisions of the administrative department for public health under the State Council,
promptly and truthfully declare the operation items which involve the occupational poisoning hazards to the administrative departments
for public health.

An employing unit that engages in the operations in which high toxic substances are used shall, when declaring operation items
with the use of high toxic substances, submit the following materials to the administrative department for public health:

(1) the evaluation report on the effect of control over occupational poisoning hazards;

(2) materials of the occupational health administrative system and operating rules; and

(3) emergency and first-aid pre-scheme against occupational poisoning accidents.

An employing unit that engages in the operations in which high toxic substances are used shall, when it changes varieties of
the high toxic substances used, make anew declarations to the administrative department for public health that originally accepted
its declarations in accordance with the provisions of the preceding paragraph.

Article15 An employing unit which changes its name, legal representative, or person in charge shall make a report thereon for the
record to the administrative department for public health that originally accepted its declarations.

   Article 16 An employing unit that engages in the operations in which high toxic substances are used shall assign emergency and first-aid personnel
and equip itself with necessary emergency and first-aid devices and equipment, formulate emergency and first-aid pre-schemes, revise
such pre-schemes in good time according to the practical situations, and organize rehearsals at regular intervals. The emergency
and first-aid pre-schemes and rehearsal records shall be reported for the record to the local administrative department for public
health, the department in charge of supervision on production safety, and the department of public security.

Chapter III Protection in Working Process

   Article 17 An employing unit shall, in accordance with the relevant provisions of the Law on the Prevention and Control of Occupational Diseases,
take effective occupational health protection and management measures to strengthen the protection and management for working process.

The employing units that engage in the operations in which high toxic substances are used shall assign the full-time or part-time
occupational health doctors and nurses. Where they have no conditions to assign such doctors and nurses, they shall sign contracts
with the occupational health and technical service agencies that have obtained qualification certification according to law for the
provision of occupational health services.

   Article 18 The employing units shall sign labor contracts with their workers, truthfully inform the workers of the possible occupational poisoning
hazards in the working process and the corresponding consequences, the safeguards against occupational poisoning hazards and the
welfares, and clearly state such information in the labor contracts without any concealment or cheating.

Where the workers change their operating posts or work contents during the term of the labor contracts concluded and engage in
the operations involving occupational poisoning hazards that are not specified in the labor contracts, the employing units shall,
in accordance with the provisions of the preceding paragraph, truthfully inform the workers, and modify the relevant terms and conditions
in the original labor contracts through consultation.

Where the employing units violate the provisions of the preceding two paragraphs, their workers shall have the right to refuse
to engage in the operations involving occupational poisoning hazards, and consequently the employing units shall not unilaterally
dissolve or terminate the labor contracts concluded with the workers.

   Article 19 The relevant managing personnel of the employing units shall be familiar with the relevant laws and regulations on prevention and
control of occupational diseases, and with the knowledge of ensuring the safe use of toxic substances by the workers in their operations.

The employing units shall provide occupational health training before the workers take up their jobs, and conduct regular occupational
health training when the workers are at posts, popularize the relevant occupational health knowledge, supervise and urge the workers
to abide by the relevant laws, regulations and operating rules, and guide the workers to correctly use safeguards against occupational
health hazards and individual protective appliances against occupational health hazards.

The workers shall not take up their jobs unless they have received the training and passed the examination.

   Article 20 The employing units shall guarantee the normal service conditions of the safeguards against occupational health hazards, emergency
and first-aid facilities, and communication and alarm facilities, and shall not dismantle them or stop the use of them without authorization.

The employing units shall frequently maintain and overhaul safeguards and facilities as specified in the preceding paragraph,
test their performances and effects at regular intervals, and ensure they are in good conditions.

In case that safeguards against occupational health hazards, emergency and first-aid facilities, and communication and alarm
facilities are in abnormal conditions, the employing units shall immediately stop the operations in which toxic substances are used.
The operations shall not restart unless all the aforesaid equipment and facilities are recovered to work normally.

   Article 21 The employing units shall provide protective appliances that meet the national occupational health standards to their workers engaging
in the operations in which toxic substances are used, and ensure their workers correct use of such appliances.

   Article 22 Toxic substances shall be attached with the specifications to indicate the true information such as product property, essential ingredients,
existing factors of occupational poisoning hazards, possible dangerous consequences, precaution items for safe use, measures to prevent
occupational poisoning hazards and the corresponding emergency and first-aid measures. Toxic substances without the specifications
or with unqualified specifications shall not be sold to the employing units.

The employing units shall have the right to demand the specifications from units that manufacture or trade in toxic substances.

   Article 23 Packages for toxic substances shall meet the national standards, and the safety labels for poisoning articles shall be stuck or fastened
thereto in a way easily comprehensible to the workers. Packages for toxic substances shall have conspicuous warning marks and warning
specifications in Chinese.

Units that trade in or use toxic substances shall not trade in nor use toxic substances without safety labels, warning marks
and warning specifications in Chinese.

   Article 24 The employing units shall, when maintaining or overhauling production installations involving the use of high toxic substances, work
out maintenance or overhaul scheme in advance to specify protective measures against occupational poisoning hazards, so as to safeguard
the maintenance or overhaul staff’s life safety and body health.

Maintenance or overhaul of production installations involving the use of high toxic substances shall be in strict accordance
with the maintenance or overhaul scheme and the operating rules. There shall be the specialized personnel to supervise the maintenance
or overhaul sites, and the corresponding warning marks shall be displayed.

   Article 25 Where it is required to enter and conduct operations in equipment, containers, or narrow or closed workplaces with high toxic substances,
the employing units shall take the following measures in advance:

(1) to keep the workplaces in good ventilation conditions, and ensure that the concentration of factors of occupational poisoning
hazards in the workplaces meet the national occupational health standards;

(2) to provide their workers with protective appliances that meet the national occupational health standards; and

(3) to assign the supervisory personnel and install the first-aid equipment on the spot.

In case that the measures specified in the preceding paragraph are not taken or the measures taken fail to satisfy the requirements,
the employing units shall not assign their workers to enter and conduct operations in equipment, containers, or narrow or closed
workplaces with high toxic substances.

   Article 26 The employing units shall, in accordance with the provisions of the administrative department for public health under the State Council,
regularly test and evaluate the factors of occupational poising hazards in the workplaces where toxic substances are used. The test
and evaluation results shall be kept in the employing units’ occupational health archives, and shall be reported at regular intervals
to the local administrative departments for public health and announced to the workers.

The employing units that engage in the operations in which high toxic substances are used shall, at least once a month, detect
factors of occupational poisoning hazards in the workplaces where high toxic substances are used, and shall evaluate the effect of
control over occupational poisoning hazards at least once every six months.

When factors of occupational poisoning hazards in the workplaces where high toxic substances are used fail to meet the national
occupational health standards and hygienic requirements, the employing units shall immediately stop operations involving high toxic
substances, and take the corresponding control measures. The operations shall not restart unless the aforesaid factors have met the
national occupational health standards and hygienic requirements after control measures are taken.

   Article 27 The employing units that engage in the operations in which high toxic substances are used shall set up shower compartments and changing
cabins as well as specialized compartments to wash, store, or dispose of working clothes, shoes, caps, etc. of the workers engaging
in the operations in which high toxic substances are used.

After the workers complete their operations, working clothes, shoes, caps, etc. used by them shall be stored in the workplaces
where high toxic substances are used, and shall not be worn in the workplaces where high toxic substances are not used.

   Article 28 The employing units shall, according to the provisions, shift posts for the workers engaging in the operations in which high toxic
substances are used.

The employing units shall provide allowances to the workers engaging in the operations in which high toxic substances are used.

   Article 29 Where the employing units halt production, change the line of production, or are shut down or dissolved, or go into bankruptcy, they
shall take effective measures to dispose of equipment, packages, and containers with the residues of toxic substances.

   Article 30 The employing units shall frequently supervise and inspect their implementation of the provisions of these Regulations, and shall
promptly solve the discovered problems in accordance with the requirements as provided for in these Regulations.

Chapter IV Occupational Health Surveillance

   Article 31 The employing units shall organize their workers engaging in the operations in which toxic substances are used to receive occupational
health examinations before taking up their jobs.

The employing units shall neither assign the workers who have not received occupational health examinations before taking up their
jobs to engage in the operations in which toxic substances are used, nor assign taboo-bound workers to engage in taboo operations.

   Article 32 The employing units shall organize their workers engaging in the operations in which toxic substances are used to receive occupational
health examinations at regular intervals.

When finding that the workers with occupational taboos or health injuries relating to their jobs, the employing units shall remove
them from their original posts in time, and make appropriate arrangements for them.

With respect to the workers for whom the reexaminations and medical observations are required, the employing units shall arrange reexaminations
and medical observations for them in accordance with the requirements of the physical examination institutions.

   Article 33 The employing units shall organize their workers engaging in the operations in which toxic substances are used to receive post-leaving
occupational health examinations, and shall not rescind or terminate the labor contracts concluded with the workers who have not
received the post-leaving occupational health examinations.

In case that the employing units are divided, merged, dissolved, or go into bankruptcy, they shall arrange health examinations
for the workers engaging in the operations in which toxic substances are used and make appropriate arrangements for the patients
suffering from occupational diseases in accordance with the relevant provisions of the State.

   Article 34 The employing units shall duly arrange health examinations and medical observations for their workers who have suffered or are likely
to suffer acute occupational poisoning hazards.

   Article 35 The employing units shall bear expenses for the occupational health examinations and medical observations for their workers.

   Article 36 The employing units shall establish occupational health surveillance archives.

The occupational health surveillance archives shall cover the following items:

(1) workers’ occupational history, and the history of exposure to occupational poisoning hazards;

(2) monitoring results of factors of occupational poisoning hazards in corresponding workplaces;

(3) occupational health examination results and the disposition; and

(4) materials relating to workers’ health, including diagnosis and treatment of occupational diseases.

Chapter V Workers’ Rights and Obligations

   Article 37 In case of threat to life safety or hazard to physical health of the workers engaging in the operations in which toxic substances
are used, the workers shall have the right to notify the employing units and to evacuate from the premises in danger caused by using
toxic substances.

The employing units shall not cancel or reduce wages and benefits enjoyed by the workers in normal working hours if the workers
exercise the rights specified in the preceding paragraph.

   Article 38 The workers shall enjoy the following occupational health protection rights:

(1) to receive occupational health education and training;

(2) to receive occupational diseases prevention and control services, including occupational health examination, diagnosis, treatment
and rehabilitation of occupational diseases;

(3) to learn factors of occupational poisoning hazards that have been caused or are likely to be caused in workplaces, the consequences,
and preventive measures against such hazards to be taken;

(4) to require the employing units to provide safeguards against occupational poisoning hazards that satisfy the requirements
for the prevention and control of occupational diseases and individual preventive appliances against occupational poisoning hazards,
and to improve the working conditions;

(5) to criticize, make exposures of or charges against any act of jeopardizing the life and health in violation of laws and regulations
on the prevention and control of occupational diseases;

(6) to refuse any command in violation of regulations or any order to conduct operations without safeguards against occupational poisoning
hazards; and

(7) to participate in the employing units’ democratic management in the work involving occupational health, and make comments
and suggestions for the prevention and control of occupational diseases.

The employing units shall guarantee the exercise of the rights by the workers as specified in the preceding paragraph. It shall
be prohibited from reducing workers’ wages, welfares or other benefits, or rescinding or terminating the labor contracts concluded
with the workers because the workers exercise their legitimate rights according to law.

   Article 39 The workers shall have the right to obtain the following materials from the employing units before they take up their jobs:

(1) properties and harmful ingredients of toxic substances used in workplaces, preventive measures, education and training materials;

(2) labels, marks, and the relevant materials of toxic substances;

(3) the specifications for the safe use of toxic substances; and

(4) other relevant materials which are likely to affect the safe use of toxic substances.

   Article 40 The workers shall have the right to consult or copy their own archives of occupational health surveillance.

The workers shall have the right to demand duplicate copies of their health surveillance archives when leaving the employing
units, and the employing units shall truthfully provide such duplicate copies at no charge and affix their seals on the duplicate
copies they provide.

   Article 41 Where an employing unit has bought work injury insurance for its workers in accordance with the provisions of the State, the workers
who suffer from occupational diseases shall have the right to enjoy the following benefits of the work injury insurance in accordance
with the provisions of the State on work injury insurance:

(1) medical expenses: expenses required for diagnosis and treatment of occupational diseases shall be paid from the work injury
insurance fund according to the prescribed standards;

(2) in-hospital food allowances: these shall be paid by the employing unit in certain proportion of the local standards of food
allowances for business trips;

(3) rehabilitation expenses: these expenses shall be paid from the work injury insurance fund according to the prescribed standards;

(4) expenses of appliances for the disabled: the expenses for supporting appliances out of the need of the disabled conditions
shall be paid from the work injury insurance fund according to the standards for the popular-type appliances;

(5) benefits enjoyed during the period of stopping of work but remaining on the payroll: their original wages and welfare benefits
shall not be changed, and shall be paid by the employing unit;

(6) nursing allowances: these allowances for the confirmed disability and necessary nursing services shall be paid from the work
injury insurance fund according to the prescribed standards;

(7) lump-sum disability subsidies: where the workers are determined as Grade 10 to Grade 1 disability through assessment, they
shall enjoy such subsidies equivalent to their six-month to 24-month wages based on the degree of disability, and such allowances
shall be paid from the work injury insurance fund;

(8) disability allowances: where the workers are determined as Grade 4 to Grade 1 disability through assessment, they shall enjoy
such allowances equivalent to 75% to 90% of their wages according to the provisions, and such allowances shall be paid from the work
injury insurance fund;

(9) death subsidies: where the workers are deceased due to occupational poisoning, such subsidies shall be paid in one lump sum
from the work injury insurance fund according to the standard of not less than 48-month wages based on the workers average monthly
wages in the previous year of the same overall planning areas;

(10) funeral subsidies: where the workers are deceased due to occupational poisoning, such subsidies shall be paid in one lump
sum from the work injury insurance fund according to the standard of 6-month wages based on the workers average monthly wages in
the previous year of the same overall planning areas;

(11) pensions for supporting the family members: where the workers are deceased due to occupational poisoning, pensions shall
be paid from the work injury insurance fund for the family members of the deceased for whom the deceased before their death provided
main sources of livelihood. The spouses of the deceased shall enjoy a monthly pension equivalent to 40% of the workers average
monthly wages in the previous year of the same overall planning area. The lineal relatives supported by the deceased before their
death shall enjoy per capita a monthly pension equivalent to 30% of the workers average monthly wages in the previous year of the
same overall planning area;

(12) other welfare benefits of the work injury insurance provided by the State.

Where the State adjusts the items and standards of the welfare benefits of the work injury insurance after the implementation
of these Regulations, the adjusted provisions of the State shall prevail.

   Article 42 Where an employing unit has not bought work injury insurance, it shall, when its workers engaging in the operations in which toxic
substances are used suffer from occupational diseases, guarantee that such workers enjoy the welfare benefits for work injury in
accordance with the items and standards of the work injury insurance prescribed by the State.

   Article 43 Where an employing unit has no business license or its business license has been revoked according to law, it shall, when its workers
engaging in the operations in which toxic substances are used suffer from occupational diseases, make compensation in one lump sum
for these workers in accordance with the items and standards of the work injury insu

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE RELEVANT ISSUES CONCERNING FOREIGN EXCHANGE REGISTRATION FOR PURCHASE OF RIGHT TO THE USE OF LAND WITHIN CHINA BY FOREIGN INVESTORS

The State Administration of Foreign Exchange

Official Reply of the State Administration of Foreign Exchange on the Relevant Issues Concerning Foreign Exchange Registration for
Purchase of Right to the Use of Land Within China by Foreign Investors

HuiFu [2002] No.156

July 4, 2002

Shanghai Branch of the State Administration of Foreign Exchange:

The Request for Instructions on the Relevant Issues of Registration of Foreign Capital in Foreign Exchange of Foreign Direct Investment
(ShangHaiHuiFa [2002] No.62 ) has been received, we reply as follows after deliberation:

The advance payment for assignment of land use right made by foreign investors before they legally establish an enterprise with foreign
investment within China is land security deposit. In order to ensure the correct use of land security deposit and the successful
implementation of the registration of foreign capital in foreign exchange, the following provisions are stipulated on the inward
remittance, use, capital verification, transfer, outward remittance, etc. of the land security deposit of foreign investors:

1.

If the foreign investors need to pay the land security deposit to the land administrations before legally establishing enterprises
with foreign investment within China, they shall apply to the foreign exchange administrations to open temporary land security deposit
accounts, which shall be used to keep the foreign exchange remitted in by the foreign investors to pay the land security deposit,
and the foreign investors shall settle the exchange through those accounts to pay the land security deposit to the land administrations.

2.

The term of temporary account of land security deposit is 6 months, if it is necessary to be extended upon expiration, an application
shall be filed with the foreign exchange administration, which shall examine and decide whether to approve the extension on the basis
of the use of the account and the examination and approval of the establishment of the enterprise with foreign investment. If the
account has been used against the rules or the establishment of the enterprise with foreign investment hasn’t been approved, the
foreign exchange administration shall demand the enterprise to close that temporary security deposit account and to remit out the
capital therein.

3.

The maximum limit of a temporary land security deposit account shall be approved according to the actual needs of the purchase of
land use right by the foreign investors, during the term of the account, the accumulated credit arising in that account shall not
exceed the approved limit.

4.

Settlements of exchange under a temporary land security deposit account must be verified by the foreign exchange administration one
by one, and the use shall be limited only to the purchase of land use right and real properties attached to the land, you should
specify the materials of verification according to the actual situations. The prior-establishment expenditure incurred by the foreign
investors for establishing the enterprise with foreign investment shall still be paid from the temporary capital account.

5.

Foreign investors may not, before registering and establishing economic entities with the purchased land use right, engage in business
activities such as leasing, reselling, mortgage loaning, etc. of that land use right within China.

6.

After paying the land security deposit, if the foreign investor fails to establish the enterprise with foreign investment, they shall
apply to the foreign exchange administration for closing the temporary land security deposit account, and the remaining capital in
the account and the returned land security deposit may be remitted out of China upon the approval of foreign exchange administration.
You should specify the examination materials according to the actual situations.

7.

The capital in foreign exchange remitted into a temporary land security deposit account by foreign investors may be used as the capital
contribution after the establishment of the enterprise with foreign investment.

If the capital remitted into that account has been approved to be settled, certified public accountants may handle the capital verification
of the foreign party to the enterprise with foreign investment on the basis of the Document of Approving Foreign Exchange Transactions
under Capital Account issued by the foreign exchange administration for approving the settlement of exchange. If there is still foreign
exchange capital left in that account after the enterprise is established, the capital may be transferred to the capital account
of the enterprise with foreign investment, and certified public accountants shall certify to the bank that opened the capital account
of the foreign party’s capital contribution, the specific procedures for the certification and the registration of foreign capital
in foreign exchange shall conform to the requirements of Document CaiKuai [2002] No.1017and Document HuiFa [2002] No.42.

You should, in accordance with the foregoing principles, formulate operation rules to direct and regulate the operation of the banks
and accounting firms under your jurisdiction. The operation rules shall, after being formulated, be reported to the Capital Department
of the State Administration of Foreign Exchange Control for record.

 
The State Administration of Foreign Exchange
2002-07-04

 



DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON REVISING THE THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION

Decision of the Standing Committee of the National People’s Congress on Revising the Law of the People’s Republic of China on the
Prevention and Control of Atmospheric Pollution

     At its 15th Meeting, the Standing Committee of the Eighth National People’s Congress decides to revise the Law of the People’s
Republic of China on the Prevention and Control of Atmospheric Pollution as follows:

1. One paragraph is added to Article 8 as Paragraph 1: “The State adopts economic and technological policies and measures to
facilitate the prevention and control of atmospheric pollution and comprehensive utilization.”

2. One article is added as Article 9: “The people’s governments at various levels shall redouble their efforts in afforestation
and urban greening to improve the atmospheric environment.”

3. One article is added as Article 15: “Enterprises shall give priority to the adoption of clean production techniques that are
instrumental to high-efficient use of energy and reduced discharge of pollutants so as to decrease the generation of atmospheric
pollutants.

“The State practises an elimination system for the backward production techniques and backward equipment which seriously
pollutes the atmospheric environment.

“The competent department for comprehensive economic and trade affairs under the State Council shall, in conjunction with
other relevant departments under the State Council, publish a catalog of the techniques which seriously pollute the atmospheric
environment and the use of which shall be prohibited within a time limit, and a catalog of the equipment which seriously pollutes
the atmospheric environment and the production, sale, importation and use of which shall be prohibited within a time limit.

“Producers, sellers, importers or users shall, within the time limit prescribed by the competent department for comprehensive
economic and trade affairs under the State Council in conjunction with the relevant departments under the State Council,
stop the production, sale, importation or use of the equipment listed in the catalog specified in the preceding paragraph.
People who use the production techniques listed in the catalog specified in the preceding paragraph shall, within the time
limit prescribed by the competent department for comprehensive economic affairs under the State Council in conjunction
with the relevant departments under the State Council, stop using such techniques.

“The equipment eliminated in accordance with the provisions of the preceding two paragraphs may not be transferred to another
for use.”

4. One article is added as Article 24: “The State promotes the dressing of coal by washing to reduce the sulfur and ash in coal,
and restricts the mining of high-sulfur or high-ash coal. If the coal mined from a newly-built coal mine is of high-sulfur
or high-ash, supporting facilities for the dressing of coal by washing shall be installed to make the sulfur and ash
in coal fall within the prescribed limits.

“If the coal mined from an established coal mine is of high-sulfur or high-ash, supporting facilities for the dressing of
coal by washing shall be installed within a time limit in accordance with the plan approved by the State Council.

“It is prohibited to mine the coal with toxic or harmful substances, such as radioactive and arsenic, that exceed the prescribed
limits.”

5. One article is added as Article 25: “People’s governments of large or medium-sized cities shall make plans for people in the
urban areas to use sulfur-fixed briquette of coal as fuel or other clean fuel for cooking ranges, so as to gradually
eliminate the direct use of raw coal as fuel.”

6. One article is added as Article 26: “To establish a heat-engine plant within the urban areas of a city, both heating and electricity
shall be generated where it is necessary and conditions permit, and construction and acceptance for use of the network of pipelines
for heat supply shall be arranged in step with that of the main project of the plant.”

7. One article is added as Article 27: “The environmental protection department under the State Council together with relevant
department under the State Council may, in light of the meteorological, topographical, soil and other natural
conditions, delimit the areas where acid rain has occurred or will probably occur and areas that are seriously polluted
by sulfur dioxide as acid rain control areas and sulfur dioxide pollution control areas, subject to approval by the State
Council.

“With respect to the heat-engine plants and other large or medium-sized enterprises in the acid rain control areas or sulfur dioxide
pollution control areas that discharge sulfur dioxide, if they are newly-built construction projects which cannot use
low-sulfur coal, supporting facilities for desulphurization and dust removal must be installed or other measures for
control of the discharge of sulfur dioxide or for dust removal adopted; if they are established enterprises which do not
use low-sulfur coal, measures for control of discharge of sulfur dioxide or for dust removal shall be adopted. The State encourages
enterprises to adopt advanced technology for desulphurization and dust removal.

“Enterprises shall gradually adopt measures to control the nitrogen oxide generated by the burning of coal.”

8. One article is added as Article 36: “Operators of the catering trade in urban areas must observe the regulations of the State
Council on the administration of environmental protection in relation to the catering trade, and adopt measures to prevent
and control the pollution caused by lampblack to the residential environment in the neighbourhood.”

9. One article is added as Article 38: “The State encourages and supports the production and use of high-grade, unleaded
gasoline and restricts the production and use of leaded gasoline.

“Relevant competent departments under the State Council shall make plans for gradually reducing the production of leaded gasoline
so as finally to stop the production and use of leaded gasoline.”

10. One article is added as Article 40: “Whoever, in violation of the provisions of Article 15 of this Law produces, sells,
imports or uses the equipment that is prohibited to produce, sell, import or use or employs the techniques that are prohibited
to employ shall be ordered to make rectification by the competent department for comprehensive economic and trade affairs
of the people’s government at or above the county level; if the circumstances are serious, the said competent department
shall put forward suggestions thereon and submit them to the people’s government at the corresponding level, which shall, according
to the limits of authority prescribed by the State Council, order the offender to suspend operation or close down.”

11. The post_title of Chapter III is revised as follows: “Prevention and Control of Atmospheric Pollution by the Burning of Coal”.

This Decision shall go into effect as of the date of promulgation.

The Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution shall be revised correspondingly
in accordance with this Decision and shall be republished.

    

MOFTEC P.R.C.

EDITOR:Victor





PROVISIONS OF SHANGHAI MUNICIPALITY ON THE INTRODUCTION OF HIGH ACADEMIC LEVEL OVERSEAS PERSONEL SCHOOLED ABROAD

Provisions of ShangHai Municipality on the Introduction of High Academic Level Overseas Personel Schooled Abroad

     Article 1 The present Provisions are formulated in accordance with relevant policy of the State and this Municipality in order to
actively introduce high academic level overseas personnel schooled abroad, so as to promote high and new technology, pillar industries,
major engineering and major key technology of this Municipality with a view to catching up with and surpass the world’s advanced
level.

   Article 2 The primary candidates of high academic level overseas personnel shoaled abroad that this Municipality is to introduce are: senior
engineers and technicians and senior operation and management personnel much needed for the field of high and new technology, pillar
industries, major engineering, new industry and so forth; bellwethers in a certain world’s field of a certain discipline or technology;
personnel possessing patent, invention or know-how of world’s leading level or being a gap science and technology of our country
which is in urgent need of being filled; personnel necessary to the administrative departments and suitable to be advisers or to
be engaged in consulting work; personnel having earned a doctor’s degree in the field of urgently wanting specialty.

   Article 3 The relevant departments and units may strengthen their connection with high academic level overseas personnel schooled abroad, establish
work networks, and keep well informed on the current situation of high academic level overseas personnel schooled abroad through
organizations and institutions such as our working bodies stationed abroad and overseas Chinese mass organizations or through various
work fields and business channels.

   Article 4 The ways of encouraging high academic level overseas personnel schooled abroad to serve this Municipality’s construction include:

1. Engaging high academic level overseas personnel schooled abroad to hold the senior post of the unit and project of high and new
technology, pillar industry, major project, new industry and so forth;

2. Engaging high academic level overseas personnel schooled abroad to be advisers or expert consultants of administrative departments;

3. In voting high academic level overseas personnel schooled abroad to give lectures or carry on consultation in this Municipality;

4. Inviting high academic level overseas personnel schooled abroad to carry out academic exchange and scientific research cooperation
or undertake scientific research projects in the field of new and high technology or new discipline;

5. Engaging high academic level overseas personnel schooled abroad to work in the Municipality’s enterprises and institutions abroad
operated by this Municipality;

6. Allowing high academic level overseas personnel schooled abroad to serve Shanghai by utilizing the knowledge they have learned,
the technology they have mastered, the patent they have acquired, the experience they have accumulated, their achievements in scientific
research and so forth;

7. Allowing high academic level overseas personnel and schooled abroad to establish high and new technology enterprises in the form
of sole foreign-funded enterprises, equitable or cooperative joint ventures by using technology or money capital as investment.

   Article 5 For the units and projects of high and new technology, pillar industries, major engineering, new industry and so forth, emphasis
shall be laid on the introduction of high academic level overseas personnel schooled abroad, and a special fund shall be instituted
to assure its implementation. Part of the fund required for further introduction shall be set apart from the economic gains produced
by the projects having the introduced high academic level overseas personnel schooled abroad.

   Article 6 High-tech parks shall offer services in the aspects of the establishment of enterprise, of acting as import and export agency, of
business affairs, of public utilities, of labor and personnel affairs and the like to high academic level overseas personnel schooled
abroad in the course of establishing their high technology enterprises.

   Article 7 The remuneration to be paid to the introduced high academic level overseas personnel schooled abroad shall be determined by the engaging
unit through consultation with this personnel according the post they hold in this Municipality and their professional level with
reference to their pay abroad, and their remuneration shall be adjusted corresponding to the change in their post and their work.

   Article 8 The problem of housing of hieg academic level overseas personnel schooled abroad during their work in this Municipality shall be
solved through consultation the engaging unit held with them in the light of their remuneration. Their lodging may be either provided
by the engaging unit in the way of employment contract, or be rented or bought by them according to the principle of magnetization
of housing.

   Article 9 The relevant departments and units shall offer preferential terms and convenience to high academic level overseas personnel schooled
abroad in the settlement of their family members, enrollment in nurseries and entering schools of their sons and daughters, medical
treatment service, repeated entry and exit, purchase of house and so on.

   Article 10 A special fund shall be founded for the introduction of high academic level overseas personnel schooled abroad which is primarily
intended for subsidizing the administrative units and institutions operating with financial allocation to help them in introducing
high academic level overseas personnel schooled abroad.

This special fund shall be raised through financial appropriation and other channels. The specific methods of raising, use and management
of the fund shall be formulated by Shanghai Municipal Personnel Bureau jointly with Shanghai Municipal Finance Bureau and so forth.

A certain subsidization can be given from the special fund according to needs to carry out a high technology projects of world’s leading
level established by high academic level overseas personnel schooled abroad.

   Article 11 The Municipal People’s Government shall give spiritual and material encouragement and rewards, taking into consideration the specific
circumstances, to those high academic level overseas personnel schooled abroad who make important contribution to economic construction
and social development of this city.

Shanghai Municipal Personnel Bureau shall be responsible for the formulation of the plan of introduction of high academic level overseas
personnel schooled abroad and organizing its implementation, and organize at the same time the synthesization and analysis of information
on introduction of high academic level overseas personnel schooled abroad, authentication of qualification, the assessment of benefits
after introduction, etc., and the undertaking of related consultation and service.

   Article 13 The Shanghai Municipal Personnel Bureau shall be responsible for the interpretation of the present Provisions.

   Article 14 The present Provisions shall become effective on the date of promulgation.

    

MOFTEC P.R.C.

EDITOR:Victor





INTERIM MEASURES ON INFORMATION DISCLOSURE OF COMMERCIAL BANKS

The People’s Bank of China

Order of the People’s Bank of China

No.6

In order to strengthen market discipline of commercial banks, standardize information disclosure of commercial banks and promote safe,
sound and efficient operation of commercial banks, in accordance with laws and regulations of “Law on the People’s bank of China
of the People’s Republic of China” and “Commercial Banking Law of the People’s Bank of China”, Interim Measures on Information Disclosure
of Commercial Banks formulated by the People’s Bank of China are hereby promulgated and shall be come into force as of the day of
promulgation.

President of the People’s Bank of China, Dai Xianglong

May 15, 2002

Interim Measures on Information Disclosure of Commercial Banks

Chapter I General Provisions

Article 1

These rules are formulated on the basis of “Law on the People’s bank of China of the People’s Republic of China” and “Commercial Banking
Law of the People’s Bank of China”, which aim to strengthen market discipline of commercial banks, standardize information disclosure
of commercial banks, effectively safeguard legitimate interests of depositors and other stakeholders and promote safe, sound and
efficient operation of commercial banks.

Article 2

These rules are to be applied to commercial banks that are established legally within the territory of the People’s Republic of China,
including domestic commercial banks, wholly foreign funded banks, joint venture banks and branches of foreign banks.

Article 3

Commercial banks should disclose information according to these rules, which are the minimum requirements for commercial banks’ information
disclosure. While abiding by these rules, commercial banks can disclose more information than what has been required by these rules
at their own discretion.

In addition to these rules, listed commercial banks should also conform to relevant information disclosure rules published by regulatory
body of the securities industry.

Article 4

Information disclosure of commercial banks should be proceeded consistent with laws and regulations, the uniform domestic accounting
rules and relevant rules of the PBC.

Article 5

Commercial banks should disclose information in a standardized fashion, while ensuring authenticity, accuracy, integrity and comparability.

Article 6

Annual financial statements disclosed by commercial banks should be subject to auditing by accounting firms that are certified to
be engaged in finance-related auditing.

Article 7

The People’s Bank of China is to supervise commercial banks’ information disclosure according to relevant laws and regulations.

Chapter II Information to be Disclosed

Article 8

Commercial banks should disclose financial statements, and information on risk management, corporate governance and big events of
the year according to these rules.

Article 9

Commercial banks’ financial statements should include accounting report, annex and notes to this report and description of financial
position.

Article 10

Accounting report disclosed by commercial banks should include balance sheet, statement of income (profit and loss account), statement
of owner’s equity and other additional charts.

Article 11

Commercial banks should indicate inconsistence between the basis of preparation and the basic preconditions of accounting in their
notes to the accounting report.

Article 12

Commercial banks should explain in their notes to the accounting report the important policy of accounting and accounting estimates,
including: Accounting standards, accounting year, reporting currency, accounting basis and valuation principles; Type and scope of
loans; Accounting rules for investment; Scope and method of provisions against asset losses; Principle and method of income recognition;
Valuation method for financial derivatives; Conversion method for foreign currency business and accounting report; Preparation method
for consolidated accounting report; Valuation and depreciation method for fixed assets; Valuation method and amortization policy
for intangible assets; Amortization policy for long-term deferred expenses; Accounting practice for income tax.

Article 13

Commercial banks should indicate in their notes to the accounting report crucial changes of accounting policy and estimates, contingent
items and post-balance sheet items, transfer and sale of important assets.

Article 14

Commercial banks should indicate in their annex and notes to the accounting report the total volume of related party transactions
and major related party transactions. Major related party transactions refer to those with trading volume exceeding 30 million Yuan
or 1% of total net assets of the commercial bank.

Article 15

Commercial banks should indicate in their notes to the accounting report detailed breakdown of key categories in the accounting report,
including:

(1)

Due from banks by the breakdown of domestic and overseas markets.

(2)

Interbank lending by the breakdown of domestic and overseas markets.

(3)

Outstanding balance of loans at the beginning and the end of the accounting year by the breakdown of credibility loans, committed
loans, collateralized loans and pledged loans.

(4)

Non-performing loans at the beginning and end of the accounting year resulted from the risk-based loan classification.

(5)

Provisions for loan losses at the beginning and the end of the accounting year, new provisions, returned provisions and write-offs
in the accounting year. General provisions, specific provisions and special provisions should be disclosed separately.

(6)

Outstanding balance and changes of interest receivables.

(7)

Investment at the beginning and the end of the accounting year by instruments.

(8)

Interbank borrowing in domestic and overseas markets.

(9)

Calculation, outstanding balance and changes of interest payables.

(10)

Year-end outstanding balance and other details of off-balance sheet categories, including bank acceptance bills, external guarantees,
letters of guarantee for financing purposes, letters of guarantee for non-financing purposes, loan commitments, letters of credit
(spot), letters of credit (forward), financial futures, financial options, etc.

(11)

Other key categories.

Article 16

Commercial banks should disclose in their notes to the accounting report status of capital adequacy, including total value of risk
assets, amount and structure of net capital, core capital adequacy ratio and capital adequacy ratio.

Article 17

Commercial banks should disclose auditing report provided by the appointed accounting firms.

Article 18

Description of financial position should cover the general performance of the bank, generation and distribution of profit and other
events that have substantial impact on financial position and performance of the bank.

Article 19

Commercial banks should disclose following risks and risk management details:

(1)

Credit risk. Commercial banks should disclose status of credit risk management, credit exposure, credit quality and earnings, including
business operations that generate credit risks, policy of credit risk management and control, organizational structure and division
of labor in credit risk management, procedure and methods of classification of asset risks, distribution and concentration of credit
risks, maturity analysis of over-due loans, restructuring of loans and return of assets.

(2)

Liquidity risk. Commercial banks should disclose relevant parameters that can represent their status of liquidity, analyze factors
affecting liquidity and indicate their strategy of liquidity management.

(3)

Market risk. Commercial banks should disclose risks brought by changes of interest rates and exchange rate on the market, analyzing
impacts of such changes on profitability and financial positions of the bank and indicating their strategy of market risk management.

(4)

Operation risk. Commercial banks should disclose risks brought by flaws and mistakes of internal procedures, staff and system or by
external shocks and indicate the integrity, rationality and effectiveness of their internal control mechanism.

(5)

Other risks. Other risks that may bring severe negative impact to the bank.

Article 20

Commercial banks should disclose following information on corporate governance:

(1)

Shareholders’ meeting during the year.

(2)

Members of the board of directors and its work performance.

(3)

Members of the board of supervisors and its work performance.

(4)

Members of the senior management and their profiles.

(5)

Layout of branches and function departments.

Article 21

Chronicle of events disclosed by commercial banks in the year should at least include the following contents:

(1)

Names of the ten biggest shareholders and changes during the year.

(2)

Increase or decrease of registered capital, splitting up and merger.

(3)

Other important information that is necessary for the general public to know.

Article 22

Information of foreign bank branches is to be collected and disclosed by the primary reporting branch.

Foreign bank branches don’t need to disclose information that is only mandated and required for disclosure by institutions with legal
person status.

Foreign bank branches should translate into Chinese and disclose the summary of information disclosed by their head offices.

Article 23

Commercial banks need not disclose information of unimportant categories. However, if the omission or misreporting of certain categories
or information may change or affect the assessment or judge of the information users, commercial banks should regarded the categories
as key information categories and disclose them.

Chapter III Management of Information Disclosure

Article 24

Commercial banks should prepare in Chinese their annual reports with all the information to be disclosed and publish them within 4
month after the end of each accounting year. If they are not able to disclose such information on time due to special factors, they
should apply to the People’s Bank of China for delay of disclosure at least 15 days in advance.

Article 25

Commercial banks should submit their annual reports to the People’s Bank of China prior to disclosure.

Article 26

Commercial banks should make sure that their shareholders and stakeholders could obtain the annual reports on a timely basis.

Commercial banks should put their annual reports in their major operation venue, so as to ensure such reports are readily available
for the general public to read and check. The PBC encourage commercial banks to disclose main contents of their annual reports to
the public through media.

Article 27

Boards of directors in commercial banks are responsible for the information disclosure. If there is no board of directors in the bank,
the president (head) of the bank should assume such a responsibility.

Boards of directors and presidents (heads) of commercial banks should ensure the authenticity, accuracy and integrity of the disclosed
information and take legal responsibility for their commitments.

Article 28

Commercial banks and their involved staff that provide financial statements with false information or concealing important facts should
be punished according to the ” Rules on Punishment of Financial Irregularities”.

Accounting firms and involved staff that provide false auditing report should be punished according to the “Interim Measures on Finance-related
Auditing Business by Accounting Firms”.

Chapter IV Supplementary Provisions

Article 29

Commercial banks with total assets below RMB 1 billion or with total deposits below RMB 500 million are exempted from the compulsory
information disclosure. However, the People’s Bank of China encourages such commercial banks to disclose information according to
these rules.

Article 30

The People’s Bank of China is responsible for the interpretation of these rules.

Article 31

These rules shall enter into force as of the date of promulgation and are to be applied to all commercial banks except city commercial
banks.

City commercial banks should adopt these rules gradually from January 1, 2003 to January 1, 2006.



 
The People’s Bank of China
2002-05-15

 






PROVISIONS OF THE MINISTRY OF JUSTICE ON THE EXECUTION OF THE REGULATIONS ON THE ADMINISTRATION OF FOREIGN LAW FIRMS’ REPRESENTATIVE OFFICES IN CHINA

The Ministry of Justice of the People’s Republic of China

Order of the Ministry of Justice of the People’s Republic of China

No.73

The Provisions of the Ministry of Justice on the Execution of the Regulations on the Administration of Foreign Law Firms’ Representative
Offices in China, which were adopted after deliberation at the Executive Meeting of the Minister on June 25, 2002, are hereby promulgated
and shall come into force on September 1, 2002.

Minister of the Ministry of Justice Zhang Fusen

July 4, 2002

Provisions of the Ministry of Justice on the Execution of the Regulations on the Administration of Foreign Law Firms’ Representative
Offices in China

Chapter I General Provisions

Article 1

These Provisions have been enacted for the Regulations on the Administration of Foreign Law Firms’ Representative Offices in China
(hereinafter referred to as the Regulations) to be executed and for the judicial administrative departments to fulfill their duties
of administering the foreign legal service activities within China.

Article 2

The foreign law firms as used in these Provisions shall refer to the lawyer practicing agencies that are legally established within
China, composed of foreign practicing lawyers, engaging in the legal service activities other than the affairs on Chinese law, and
with all or part of the members independently bearing the external civil liabilities. But the following situations are excluded:

(1)

Legal service departments of foreign governments, commercial organizations and other agencies;

(2)

Practicing associations of two or more foreign practicing lawyers or law firms that share neither the profits nor the risks.

Article 3

The foreign practicing lawyers as used in these Provisions shall refer to the persons that have legally acquired the practice qualification
of foreign lawyers and that have obtained the legal practice licenses in the countries where they acquired their practice qualification.

Chapter II Establishment and Registration of Representative Offices

Article 4

“Being in need of establishing a representative office in China to carry out legal services” prescribed in Subparagraph 3 of Article
7 of the Regulations shall be determined according to the following factors:

(1)

The social and economic development status of the place of domicile of the representative office to be established;

(2)

The need of the legal service development of the place of domicile of the representative office to be established;

(3)

The applicant’s scale, time of establishment, major business areas and professional specialties, analysis of the business prospect
and planning of the future business development of the representative office to be established;

(4)

Restrictive provisions of Chinese laws and regulations on conducting certain legal service activities or affairs.

Article 5

“Application letter signed by the main responsible person of the foreign law firm on establishing the representative office and sending
the representatives” prescribed in Subparagraph 1 of Paragraph 1 of Article 8 shall include the following contents:

(1)

Chinese name and foreign name of the representative office to be established, and the name of the city where the representative office
is to be located;

(2)

Basic information of the applicant: including the time of starting business, number of the lawyers, number of the partners, business
areas, major achievements, information about the branches or representative offices established in other countries or regions, business
activities related to China, address of the headquarters and contacting methods, etc.;

(3)

The applicant’s organizational form and form for the bearing of legal liabilities;

(4)

Sum and scope of the practice risk insurance purchased by the applicant;

(5)

Feasibility study and development plan of the business prospect of the representative office to be established, and the major business
scope of the representative office to be established;

(6)

Promises of the representative office to be established and the representatives to be sent on bearing all the civil liabilities for
the legal service activities they conduct within China;

(7)

Promises on the authenticity, completeness and accuracy of the information provided, and the consistency between the Chinese translation
and the original text;

(8)

Promises on abiding by Chinese laws, regulations and rules after the application is approved;

(9)

Promises on purchasing the practice risk insurance meeting the requirements for the representative office and the representatives
thereof after the application is approved.

Article 6

For one that does have difficulties in submitting the “partnership agreement or articles of association of this foreign law firm”
prescribed in Subparagraph 3 of Paragraph 1 of Article 8 , it may provide the introduction partnership agreement, the shareholders’
agreement or the documents that has to do with the articles of association involving the time of signing the articles of association,
initiators, organizational form and legal liability form, etc. that are signed by the main responsible person.

Article 7

The documents submitted pursuant to Paragraph 3 of Article 8 of the Regulations shall enclose the Chinese translation, and shall
be separately bound into three pieces in the form of original and counterpart.

Article 8

A foreign law firm to establish a representative office may not use a name prohibited or restricted by Chinese laws, regulations and
rules as the Chinese translation of its name, neither may it use any character that may lead to misunderstanding by the public.

Article 9

One applying for establishing a representative office shall have a chief representative to be sent and several representatives to
be sent.

Article 10

The following conditions shall be met if one applies for adding representative offices:

(1)

The representative office recently established in China has practiced for 3 successive years;

(2)

The representative offices already established and the representatives thereof has abided by Chinese laws, regulations and rules,
abided by lawyers’ professional ethics and practice disciplines, and hasn’t been investigated for any legal liabilities provided
for by the Regulations.

The successive practicing time prescribed in Subparagraph 1 of the preceding paragraph shall be calculated from the day on which the
Department (Bureau) of Justice of the province, autonomous region or municipality directly under the Central Government (hereinafter
referred to as the province, autonomous region and municipality directly under the Central Government) where the representative office
domiciles made the registration of start of business for the first time.

Article 11

One applying for adding a representative office shall submit the following materials besides the materials prescribed in Article 8
of the Regulations:

(1)

Basic information of the representative offices already established;

(2)

Copies of the Practice Licenses of Foreign Law Firm’s Representative Office in China (counterpart) of the representative offices already
established;

(3)

Certifications, which meet the provisions of Subparagraphs 1 and 2 of Paragraph 1 of Article 10 of these Provisions, issued by the
Departments (Bureaus) of Justice of the provinces, autonomous regions and municipalities directly under the Central Government where
the representative offices domicile.

The above materials shall enclose Chinese translations, and shall be separately bound into three pieces in the form of original and
counterpart.

Article 12

The Department (Bureau) of Justice of the province, autonomous region or municipality directly under the Central Government shall,
after receiving the application materials for establishing representative office submitted by an applicant, deal with them according
to the following situations:

(1)

If the application materials are complete, the Department (Bureau) of Justice shall deal with them according to Article 9 of the
Regulations;

(2)

If the application materials are incomplete, the Department (Bureau) of Justice shall notify the applicant to supplement the materials
within 15 days from the day of receiving the application materials. If the applicant supplements the materials within 3 months from
the day of first submitting the application materials, the materials shall be dealt with according to the preceding subparagraph;
if the applicant fails to supplement the materials within 3 months from the day of first submitting the application materials, the
Department (Bureau) of Justice shall decide not to accept the application, and notify the applicant in written form within 15 days.

Article 13

The Ministry of Justice shall, after receiving the application materials of the applicants and the examination opinions reported by
the Departments (Bureaus) of Justice of the provinces, autonomous regions and municipalities directly under the Central Government,
make the decision within 6 months, issue the practice licenses and the counterparts to the representative offices approved to be
established, and notify the Departments (Bureaus) of Justice of the provinces, autonomous regions and municipalities directly under
the Central Government to issue the practice certificates to the representatives; and for those not approved, the reasons shall be
explained in written form.

Article 14

The applicant shall, within 30 days from the day of obtaining the practice license, and taking the counterpart of the license, go
through the procedures for registration and for issuance of the representatives’ work visas at the departments of technical supervision,
public security, labor, bank, taxation of the place where the representative office domiciles and the Chinese embassies and consulates
stationed abroad.

Article 15

The applicant shall, within 30 days after finishing the procedures prescribed in Article 14 of these Provisions, make the registration
of start of business and pay the registration fee at the Department (Bureau) of Justice of the province, autonomous region or municipality
directly under the Central Government where it domiciles.

Copies of the following materials shall be submitted for the handling of the procedures for registration of start of business:

(1)

Practice license of the foreign law firm’s representative office in China (counterpart);

(2)

Practice certificates of the representatives of the foreign law firm’s representative office;

(3)

Notarized office place certifications, including the post_title certification, and the agreement on house lease (the term shall be 1 year
or more).

For those failing to make the registration of start of business within the period prescribed in Paragraph 1 of this Article, the practice
license of the foreign law firm’s representative office in China and the practice certificates of the representatives of the foreign
law firm’s representative office shall become void automatically.

Article 16

A representative office may not carry out legal services if it has not made the registration of start of business.

Article 17

To make the registration of annual inspection, a representative office shall, apart from the materials prescribed in Article 22 of
the Regulations, submit the following notarized or certified documents provided by the body of lawyer administration of the country
where the representatives sent acquired their practice qualification:

(1)

Certifications proving that the representatives of the office have not been given any criminal punishment or any other punishment
for violation of lawyer professional ethics or practice disciplines;

(2)

Copies of the effective practice liability risk insurance of the representative office and the representatives thereof.

Article 18

If a representative office and the representatives thereof have passed the annual inspection, the Department (Bureau) of Justice of
the province, autonomous region or municipality directly under the Central Government shall handle the annual registration of the
representative office and the representatives sent, and charge the registration fee.

Chapter III Alteration and Writing-off of Representative Offices

Article 19

If a foreign law firm that has established the representative office is under any of the situations, the representative office shall
report that to the Department (Bureau) of Justice of the province, autonomous region or municipality directly under the Central Government
where it domiciles:

(1)

The name, domicile of the headquarters or main responsible person of the law firm is altered;

(2)

The law firm is merged or split.

Article 20

If a representative office is to alter its Chinese or English name, the foreign law firm that established it shall submit the application
letter for the alteration and the relevant documents signed by the main responsible person to the Department (Bureau) of Justice
of the province, autonomous region or municipality directly under the Central Government where the representative office domiciles.
The Department (Bureau) of Justice shall, within 15 days from receiving the application materials, present its examination opinions
to the Ministry of Justice, which shall handle the procedures for approval within 15 days from receiving the examination opinions.

The representative office shall, taking the notice of approval of the Ministry of Justice, go through the relevant procedures for
alteration at the Department (Bureau) of Justice of the province, autonomous region or municipality directly under the Central Government
where it domiciles.

Article 21

If a foreign law firm applies for writing off its representative office, it shall submit the application letter signed by its main
responsible person to the Department (Bureau) of Justice of the province, autonomous region or municipality directly under the Central
Government where the representative office domiciles.

The Department (Bureau) of Justice of the province, autonomous region or municipality directly under the Central Government shall,
within 30 days from receiving the application, report the examination opinions to the Ministry of Justice, which shall handle the
procedures for approval within 30 days from receiving the examination opinions.

Article 22

The representative office shall, from the day of receiving the notice of approval for the writing-off from the Ministry of Justice,
carry out the liquidation pursuant to law. And it may not transfer any of its property before all the debts are paid off.

As for the representative office that has been written off, its practice license and the counterpart thereof, and the practice certificates
of the representatives shall be withdrawn, and the Department (Bureau) of Justice of the province, autonomous region or municipality
directly under the Central Government where it domiciles shall make a public announcement.

Article 23

After a representative office has been written off, the creditors shall have the right to recover the unliquidated creditor’s rights
from the foreign law firm.

Article 24

If a representative office is involved in either of the situations prescribed in Subparagraphs 1 or 3 of Paragraph 1 of Article 14
of the Regulations, it shall, within 3 months from the law firm it belongs to is dissolved or written off, report to the Department
(Bureau) of Justice of the province, autonomous region or municipality directly under the Central Government where it domiciles,
which shall report to the Ministry of Justice to cancel the practice license, and handle the procedures for writing-off according
to these Provisions.

Article 25

If a representative office needs to suspend the business because of special causes, the law firm it belongs to shall submit the application
letter signed by the main responsible person to the Department (Bureau) of Justice of the province, autonomous region or municipality
directly under the Central Government where it domiciles, which shall announce the suspension of business after approval.

The suspension of business of the representative office may not exceed 1 year. Those suspending the business for more than 1 year
shall be regarded as being written off automatically.

Article 26

To apply for moving a representative office to another city, a foreign law firm shall file the application with the Department (Bureau)
of Justice of the province, autonomous region or municipality directly under the Central Government where the office is to be moved
to, which shall, after examination, report the application to the Ministry for approval.

The representative office shall, taking the notice of approval, go through the relevant procedures for writing-off and registration
pursuant to the provisions.

Chapter IV Sending and Changing of Representatives

Article 27

A representative office shall comply with the provisions of Subparagraph 2 of Article 7 of the Regulations when it sends or changes
the chief representative or sends representatives.

A member of the lawyers’ association of the country where he acquired his practice qualification shall refer to the member of a legal
national or regional lawyers’ industrial organization of the country where he acquired his practice qualification. If there is no
lawyers’ industrial organization, the representative may be a person registered at the body of lawyer administration of the country
where he acquired his practice qualification.

Practicing time abroad shall refer to the time that the lawyer, after obtaining the lawyer practice license in the country where he
acquired his practice qualification, made the registration of lawyer practice at the statutory body of lawyer registration of that
country, including the practicing time in any separate tariff zone of China. Practicing time abroad may be calculated accumulatively.

A person holding the same post shall refer to a practicing lawyer who enjoys the same rights and assumes the same obligations as those
of the partners in the aspects of the management, profit and risk sharing of the law firm.

Article 28

A foreign law firm shall submit the following materials if it wishes to send or change the chief representative or to send representatives:

(1)

Application letter signed by the main responsible person of that foreign law firm, which shall include the following contents:

1.

Basic information about the chief representative to be sent or changed or the representatives to be sent;

2.

Posts to assume and the terms;

3.

Promises in line with Subparagraph 2) of Article 7 of the Regulations;

4.

Promises on the authenticity, completeness and accuracy of the information and materials provided, and the consistency between the
Chinese translation and the original text;

5.

Promises on abiding by the laws, regulations and rules of China after obtaining the approval;

6.

Promises on continually purchasing the practice risk insurance meeting the requirements for those personnel after obtaining the approval.

(2)

Materials provided for in Subparagraphs 4 to 7 of Article 8 of the Regulations;

(3)

Copies of the practice risk insurance documents of the representatives to be;

(4)

Identity certifications of the representatives to be.

The materials prescribed in Subparagraphs 2 and 3 of the preceding paragraph shall be notarized and certified.

The foregoing application materials shall enclose Chinese translations, and shall be separately bound into 3 pieces in the form of
original and counterpart.

Article 29

The Departments (Bureaus) of Justice of the provinces, autonomous regions and municipalities directly under the Central Government
shall deal with the application materials of the to-be representatives submitted by the foreign law firms according to the following
situations:

(1)

If the application materials are complete, the Department (Bureau) of Justice shall deal with them according to Article 9 of the
Regulations;

(2)

If the application materials are incomplete, the Department (Bureau) of Justice shall, within 15 days from receiving the application
materials, notify the applicant to supplement the materials. If the applicant supplements the materials within 3 months from the
day of submitting the application materials for the first time, the Department (Bureau) of Justice shall deal with them according
to the preceding paragraph; if the applicant fails to supplement the materials within 3 months from the day of first submitting the
application materials, the Department (Bureau) of Justice shall make the decision on not accepting them, and shall notify the applicant
in written form within 15 days.

Article 30

After receiving the application materials of foreign law firms and the examination opinions submitted by the Departments (Bureaus)
of Justice of the provinces, autonomous regions and municipalities directly under the Central Government, the Ministry of Justice
shall grant the approval within 6 months, if it decides not to grant the approval, it shall inform the applicants of the reasons
in written form.

The representative office shall, taking the notice of approval, draw the practice certificates of the representatives of foreign law
firm’s representative office at the local Department (Bureau) of Justice of the province, autonomous region or municipality directly
under the Central Government, and go through the relevant procedures at the relevant departments.

Article 31

If the Ministry of Justice cancels the practice certificate of a representative in any of the situations prescribed in Article 13
of the Regulations, the Department (Bureau) of Justice of the province, autonomous region or municipality directly under the Central
Government where the representative office domiciles, shall withdraw the practice license of the representative office, write off
its registration of practice and make a public announcement.

Chapter V Practice Rules

Article 32

The following acts shall be regarded as “affairs on Chinese law” prescribed in Article 15 of the Regulations:

(1)

Participating in litigation activities within China as lawyers;

(2)

Providing opinions or certifications on the specific issues governed by Chinese laws in contracts, agreements, articles of association
or other written documents;

(3)

Providing opinions and certifications on the acts or events governed by Chinese laws;

(4)

Presenting agent opinions or comments on the application of Chinese laws and the facts involving Chinese laws as agents in arbitration
activities;

(5)

Handling, on the trustor’s behalf, the procedures for registration, alteration, application or putting on record, and other procedures
at the government organs of China or other organizations authorized by laws and regulations with administrative authorities.

Article 33

When providing the information related to the influence of Chinese legal environment according to Subparagraph 5 of Paragraph 1 of
Article 15 of the Regulations, the representative office and the representatives thereof may not provide any specific opinions or
judgment on the application of Chinese laws.

Article 34

In accordance with Article 11 of the Regulations, representative offices shall open RMB accounts and foreign exchange accounts in
the banks to accept the remittance from the clients inside the territory of China.

Representative offices shall, according to the laws and regulations of China on taxation, make the registration of taxation, perform
the obligations of paying taxes, and may apply to the local organs in charge of taxation for drawing or purchasing invoices.

Article 35

If a representative office employs assistant personnel with Chinese nationality, it shall handle the employment relationship with
the department of service for foreign enterprises of the place where it domiciles, and draw the employees’ certificates at the Department
(Bureau) of Justice of the province, autonomous region or municipality directly under the Central Government where it domiciles.

Article 36

If a representative office employs assistant personnel with foreign nationalities, it shall, according to the relevant provisions
on foreigners’ employment in China, apply to the Department (Bureau) of Justice of the province, autonomous region or municipality
directly under the Central Government where it domiciles, and go through the procedures for employment and residence at the relevant
departments.

Article 37

The representative offices shall observe the following rules when making publicity:

(1)

Those informing the clients that they may engage in the business within China shall, at the same time, inform the clients that they
don’t have the qualification, licenses or capacity to engage in Chinese legal services;

(2)

Those declaring to the clients that they are qualified as Chinese lawyers or used to be Chinese practicing lawyers shall, at the same
time, declare that they may not practice as Chinese lawyers now;

(3)

Those making publicity through letters or business cards shall include the statements prescribed in Subparagraphs 1 and 2 in their
publicity.

Article 38

The representatives and assistant personnel of the representative offices may not provide Chinese legal services to the clients in
the name of “consultants on Chinese laws”.

Article 39

A representative offices and the law firm it belongs to may not conduct the following acts:

(1)

Directly or indirectly investing in Chinese law firms;

(2)

Making practicing associations with Chinese law firms or Chinese lawyers that share the profits or risks;

(3)

Establishing joint offices or sending personnel to Chinese law firms to engage in legal service activities;

(4)

Managing, operating, controlling or enjoying the equity rights and interests of Chinese law firms.

Article 40

Any of the following situations shall be deemed as employing Chinese practicing lawyers:

(1)

Reaching employment or labor agreements with Chinese practicing lawyers;

(2)

Having actual employment or labor relationship with Chinese practicing lawyers;

(3)

Reaching agreements with Chinese practicing lawyers on sharing the profits or risks, or participating in the management;

(4)

Paying remuneration, expenses or business dividends to individual Chinese practicing lawyers;

(5)

Employing Chinese practicing lawyers to carry out business activities in the name of the law firm the representative office belongs
to or of the representative office.

Article 41

A representative office shall make clarifications and explanations for its acts that have been complained.

Chapter VI Supplementary Provisions

Article 42

A representative office shall hang the Practice License of Foreign Law Firm’s Representative Office in China at the eye-catching position
in its office place.

A representative office shall set up a sign in its office place, on which the complete Chinese name and English name of it shall be
written.

Article 43

The Practice License of Foreign Law Firm’s Representative Office in China shall be printed and issued by the Ministry of Justice.

The Practice Certificate of Representative of Foreign Law Firm’s Representative Office and the Employee Certificate of Foreign Law
Firm’s Representative Office shall be printed by the Ministry of Justice and be issued by the Departments (Bureaus) of Justice of
the provinces, autonomous regions or municipalities directly under the Central Government.

Article 44

Only the license-issuing units may, according to legal procedures, withhold or revoke the Practice License of Foreign Law Firm’s Representative
Office in China, the Practice Certificate of Representative of Foreign Law Firm’s Representative Office and the Employee Certificate
of Foreign Law Firm’s Representative Office, no other unit or individual may confiscate, seize or damage those licenses and certificates.

Article 45

No one may forge, alter, lease, lend, transfer or sell the practice license of a representative office and the counterpart thereof,
or the practice certificates and employee certificates of the representatives.

Whoever violates the preceding paragraph shall be investigated for the corresponding legal liabilities.

Article 46

A representative office which has lost its practice license or a representative who has lost his practice certificate must announce
the loss before it/he may apply for a replacement.

Article 47

These Provisions shall enter into force as of September 1, 2002.



 
The Ministry of Justice of the People’s Republic of China
2002-07-04

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE REVISION OF THE REGULATIONS OF THE CHINESE PEOPLE’S LIBERATION ARMY ON THE MILITARY SERVICE OF OFFICERS IN ACTIVE SERVICE

Decision of the Standing Committee of the National People’s Congress on the Revision of the Regulations of the Chinese People’s Liberation
Army on the Military Service of Officers in Active Service

     In order to further strengthen the building of a revolutionary, younger, better educated and professional officer corps, the Seventh
Meeting of the Standing Committee of the Eighth National People’s Congress, having examined the proposal submitted by the State Council
and the Central Military Commission on Amendments (Draft) to the Regulations of the Chinese People’s Liberation Army on Military
Service of Officers in Active Service, decides to make the following revisions of the Regulations of the Chinese People’s Liberation
Army on the Military Service of Officers in Active Service:

1. Article 3 is revised as follows: “In the selection and use of officers, the principles of appointing people on their merits, stressing
both political integrity and professional competence, attaching importance to actual performance and exchanging officers when appropriate
shall be adhered to, and democratic supervision exercised.

2. Article 9 is revised as follows: “When the number of officers trained in military academies or schools cannot meet the needs, in
peacetime, outstanding soldiers selected and trained in training institutions designated by the People’s Liberation Army’s general
departments may be promoted to officers, or civilian college graduates and other specialized technical personnel may be enrolled
into the Army and commissioned as officers; in wartime, officers may be appointed directly from among soldiers, officers called up
from the reserve service and personnel of non-military departments.”

3. Item (1) of Article 11 is revised as follows: “Officers from the Chief of the General Staff and the Director of the General Political
Department down to the division commander shall be appointed or removed by the Chairman of the Central Military Commission.”

4. Item (2) of Article 11 is revised as follows: “Officers at the level of deputy division commander (or brigade commander) and the
level of regiment commander (or deputy brigade commander) and senior specialized technical officers shall be appointed or removed
by the Chief of the General Staff, the Director of the General Political Department, the Director and Political Commissar of the
General Logistics Department, the commanders and political commissars of the major military commands and of various services and
arms, or the heads of units equivalent to the major military commands; officers at the level of regiment commander (or deputy brigade
commander) in units equivalent to quasi major military commands shall be appointed or removed by the heads of those units.”

5. The following paragraph is added to Article 11 as Paragraph 2: “The appointment and removal of officers described in the preceding
paragraph shall be conducted in accordance with the procedures prescribed by the Central Military Commission.”

6. Article 13 is revised as follows: “The maximum age for operational, political and logistics officers in combat troops in peacetime
shall be:

30 for officers at the platoon level;

35 for officers at the company level;

40 for officers at the battalion level;

45 for officers at the regimental level;

50 for officers at the divisional level;

55 for officers at the corps level; and

63 for officers at the level of deputy commander of the major military command and 65 for officers at the level of commander of the
major military command.”

“The maximum age for officers at the battalion or regimental level aboard naval vessels shall be 45 and 50 respectively.”

“The maximum age for a small number of officers at the divisional or corps level in combat troops may be appropriately extended, provided
this is necessitated by work and approved by the authorities with the prescribed power for appointment and removal. However, the
maximum age extention for officers at the divisional level and at the level of corps commander shall not be more than five years
while the maximum age extention for officers at the level of deputy corps commander shall not be more than three years.”

7. Article 14 is revised as follows: “The maximum age for officers at or below the regimental level in provincial military command
(garrison command) systems, logistics bases and their branch departments, academies and schools, and scientific and technological
institutions shall be determined in accordance with the provisions of the first paragraph of Article 13 of the present Regulations;
the maximum age for officers at the divisional level shall be 55 and for officers at the level of deputy corps commander or corps
commander shall be 58 and 60 respectively.”

8. Paragraph 1 of Article 15 is revised as follows: “The maximum age for officers at or below the battalion level in the offices of
the various general departments and the offices of the major military commands of the People’s Liberation Army shall be determined
in accordance with the provisions of the first paragraph of Article 13 of the present Regulations; the maximum age for officers at
the divisional level shall be 55; the maximum age for officers at the level of deputy corps commander or corps commander shall be
58 and 60 respectively. The maximum age for officers at the regimental level in the offices of the general departments shall be
45 and may be extended for five years when necessitated by work; the maximum age for officers at the regimental level in the offices
of the major military commands shall be 45, and the maximum age for a small number of such officers when necessitated by work may
be extended for three years.”

9. Paragraph 1 of Article 16 is revised as follows: “The maximum age for specialized technical officers in peacetime shall be:

40 for junior specialized technical officers;

48 for intermediate specialized technical officers; and

60 for senior specialized technical officers.”

10. Paragraph 2 of Article 26 is revised as follows: “The disciplinary sanctions shall fall into the following categories: warning;
serious warning; recording of a demerit; recording of a serious demerit; demotion to a lower post, demotion to a lower rank or grade;
dismissal from post; disciplinary discharge from the military service and other disciplinary sanctions prescribed by the Central
Military Commission.”

11. Article 29 is revised as follows: “A system linking salary to post and military rank and a regular salary increase system shall
be instituted for officers, who shall also enjoy allowances and subsidies in accordance with the relevant regulations of the State
and the Army. The specific measures shall be prescribed by the Central Military Commission.

“Officers shall continue to draw their salaries, when they in accordance with the relevant regulations receive off-service training,
vacation, medical treatment or recuperation, or when they wait for new assignments after being relieved of their duties.”

12. Article 34 is revised as follows: “Officers shall retire from active service when they reach the maximum age for active service
in peacetime.”

“The maximum age for officers in active service in peacetime shall be:

55 for officers at the divisional level in combat troops; and

58 for officers at the level of deputy corps commander and 60 for officers at the level of corps commander in combat troops.”

“The maximum age for officers in active service at other levels shall be the same as the maximum age for their posts.”

13. Paragraph 5 of Article 37 is revised as follows: “As regards officers who have been in active service for 30 years or more, or
who have been in active service and have worked for the State for a total of 30 years or more, or who are aged 50 or more at or above
the divisional level may be treated as pensioners, provided that they are released from active service upon approval of their applications
for retirement by the competent authorities; and those who are at the regimental level and not suitable for transference to civilian
jobs or other arrangements may be treated as pensioners, provided their retirement is approved by the competent authorities.”

14. Article 39 is renumbered Article 38. Article 38 is renumbered Article 39 and revised as follows: “The affairs of officers who
have been retired from active service shall be administered by the government. Specific measures shall be prescribed by the State
Council and the Central Military Commission.” The following paragraph is added as Paragraph 2 of this Article: “The affairs of officers
who have left their posts to rest or who are at or above the corps level when they retire shall be administered in accordance with
relevant regulations of the State Council and the Central Military Commission.”

The present Decision shall enter into effect as of the date of promulgation.

The Regulations of the Chinese People’s Liberation Army on the Military Service of Officers in Active Service shall be revised in
accordance with the present Decision and repromulgated.

    

MOFTEC P.R.C.

EDITOR:Victor





REGULATION FOR THE IMPLEMENTATION OF TRADEMARK LAW

Regulation for the Implementation of Trademark Law puts into effect

Author:Chen Zhixin Du Xiaoxi

     Beijing,September 19(chinacourt.org)    Regulation for the Implementation of Trademark Law of the People s Republic of China puts into effect on September 15th 2002.

Xu Jianxin, the Section Chief of Trademark office of Shen Yang Industry and Commerce Bureau, said that the main characteristic of
the new statute which was enhancing the protection on famous trademark. At the same time it gave the persons more powers to punish
the actions of infringing on trademark. The Department of Industry and Commerce was enpost_titled to amerce a fine less than 100 thousand
RMB.

It is reported, the revised Trademark Law and Regulations for the Implementation are enhancing the protection on exclusive right
of trademark and increasing the number of punishing fine. The infringing goods will be confiscated. If somebody s action had broken
the law, he would be investigated the criminal responsibility.

According to the Regulation for the Implementation ,trademark holder can make an application to the charge department of enterprise
name registration for removing the name of infringing registration.

In addition, geography trademark can be protected as attestation of trademark and registration of collectivity trademark.

    

Source:China Court Net

TRANSLATOR:Victor EDITOR:Jeff





CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ENTERPRISE INCOME TAX PREFERENTIAL POLICES TO BE ENJOYED BY ENTERPRISES WITH FOREIGN INVESTMENT WHICH INCREASE INVESTMENTS

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Enterprise Income Tax Preferential Polices to Be Enjoyed
by Enterprises with Foreign Investment Which Increase Investments

CaiShui [2002] No.56

June 1, 2002

The financial departments (bureaus) and state taxation bureaus of all provinces, autonomous regions, municipalities directly under
the Central Government and municipalities separately listed on the State plan, the local taxation bureaus of Guangdong and Hai’nan,
Local Taxation Bureau of Shenzhen, the Financial Bureau of Xinjiang Army Corps of Production and Construction:

For a period of time , it has been reported in many regions whether enterprises with foreign investment may, if increasing investments
to enlarge the orperational scale beyond the original contract , enjoy and calculate separately the proceeds of the time income
tax perferential treatment from such increased investment items, provided for in Article 8 of the Income Tax Law of the People’s
Republic of China on Enterprises with Foreign Investment and Foreign Enterprises (hereinafter referred to as the Tax Law) in contrast
with the Circular of the Ministry of Finance and the State Administration of Taxation on Several Provisions concerning the Issue
of Levy of the Income Tax from Chinese-Foreign Equity Joint Ventures, Chinese-Foreign Cooperative Production Enterprises and Wholly
Foreign-Owned Enterprises (CaiShuiWaiZi [1986] No.102). After study, we hereby, in accordance with the relevant provisions in the
Tax Law and the detailed rules for its implementation, give our notice as follows concerning the issue of enterprises with foreign
investment enjoying the income tax perferential treatment due to their increase of investment items with a view to encouraging large
transnational companies to invest in China, improving the efficiency of China’s utilization of foreign investments and further improving
the tax preferential polices::

I.

For any enterprise with foreign investment which engages in the encouraged category of projects in the Catalogue for the Guidance
of Foreign Investment Industries approved by the State Council and meets any of the following conditions, the investor may, with
regard to the proceeds from investment items beyond the original contract, separately calculate and enjoy the regularly reduced or
exempted enterprise income tax preferential treatment provided for in Paragraphs 1 and 2 of Article 8 of the Tax Law:

(1)

the newly increased amount of registered capital due to the increase of investment is no less than 60 million USD;

(2)

the newly increased amount of registered capital due to the increase of investment is no less than 150 million USD, and also no less
than 50% of the enterprise’ original registered capital.

The execution of the above tax preferences must be based upon the application of the enterprise involved and the approval of the
taxation organ at the provincial level. Each taxation organ at the provincial level shall submit the information on its approval
to the Ministry of Finance and the State Administration of Taxation for record.

II.

An enterprise with foreign investment shall distinguish its production and operation of the increased investment items from the production
and operation of the original investments, and shall separately set up account books and documents, and accurately calculate the
respective taxable income. Where an enterprise with foreign investment fails to reasonably calculate the respective taxable income,
the taxation organ may reasonably divide the respective taxable income on the basis of such proportion as income, assets, etc. of
the enterprise.

III.

This Circular shall enter into force as of January 1, 2002. Where the investments increased by an enterprise with foreign investment
before January 1, 2002 meet the conditions in this Circular, the enterprise may, among the years for tax reduction and exemption
as determined in the Tax Law, enjoy the preferential treatment for the years after January 1, 2002, and the tax amount levied before
January 1, 2002 shall not be refunded.



 
The Ministry of Finance, the State Administration of Taxation
2002-06-01

 






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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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