ORGANIC LAW OF THE NATIONAL PEOPLE’S CONGRESS

Organic Law of the National People’s Congress of the PRC

CONTENTS

CHAPTER I SESSIONS OF THE NATIONAL PEOPLE’S CONGRESS

CHAPTER II THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS

CHAPTER III THE COMMITTEES OF THE NATIONAL PEOPLE’S CONGRESS

CHAPTER IV DEPUTIES TO THE NATIONAL PEOPLE’S CONGRESS

CHAPTER I SESSIONS OF THE NATIONAL PEOPLE’S CONGRESS

Article 1. Sessions of the National People’s Congress shall be convened in accordance with the relevant provisions of the Constitution of the
People’s Republic of China.

The first session of each National People’s Congress shall be convened by the Standing Committee of the previous National People’s
Congress within two months of the election of deputies to the current National People’s Congress.

Article 2. A month before the convening of a session of the National People’s Congress, its Standing Committee shall notify the deputies of
the date of the session and of the main items on the proposed agenda.

The provisions of the preceding paragraph shall not apply to specially convened sessions of the National People’s Congress.

Article 3. After deputies to the National People’s Congress have been elected, their credentials shall be examined by the Credentials Committee
of the Standing Committee of the National People’s Congress.

Based on the reports submitted by the Credentials Committee, the Standing Committee of the National People’s Congress shall affirm
the qualifications of deputies or invalidate the election of individual deputies, and shall publish the list of affirmed deputies
prior to the first session of each National People’s Congress.

Deputies to the National People’s Congress who are elected through by-elections shall have their credentials examined in accordance
with the provisions of the preceding paragraphs.

Article 4. Deputies to the National People’s Congress shall be grouped into delegations based on the units that elect them. Each delegation
shall elect a head and deputy-heads.

Before each session of the National People’s Congress is convened, the delegations shall discuss matters concerning preparations for
the session put forward by the Standing Committee of the National People’s Congress. During the session, the delegations shall deliberate
on the bills and proposals submitted to the Congress, and the heads of delegations or representatives chosen by them may express,
on behalf of those delegations, opinions on the bills and proposals at meetings of the Presidium or at plenary meetings of the session.

Article 5. Before each session of the National People’s Congress, a preparatory meeting shall be held to elect a Presidium and a Secretary-General
for the session, adopt an agenda for that session and make decisions on other preparatory work.

The preparatory meeting shall be presided over by the Standing Committee of the National People’s Congress. The preparatory meeting
of the first session of each National People’s Congress shall be conducted by the Standing Committee of the previous National People’s
Congress.

Article 6. The Presidium shall preside over the sessions of the National People’s Congress.

The Presidium shall elect some of its members to rotate as executive chairmen of the sessions.

Standing chairmen shall be elected by the Presidium to convene and preside over meetings of the Presidium.

Article 7. For each session, the National People’s Congress shall set up a secretariat which shall work under the direction of the Secretary-General.

Each session of the National People’s Congress shall install several Deputy Secretaries-General, whose choice shall be decided on
by the Presidium.

Article 8. Members of the State Council, members of the Central Military Commission, the President of the Supreme People’s Court and the Procurator-General
of the Supreme People’s Procuratorate may attend meetings of the National People’s Congress but without voting rights. By decision
of the Presidium, responsible officers of other state organs and public organizations may also attend meetings of the National People’s
Congress without voting rights.

Article 9. The Presidium, the Standing Committee and the special committees of the National People’s Congress, the State Council, the Central
Military Commission, the Supreme People’s Court and the Supreme People’s Procuratorate may submit to the National People’s Congress
bills or proposals that fall within the scope of its functions and powers. The Presidium shall decide whether to refer the bills
or proposals to the various delegations or to the delegations and relevant special committees for deliberation. The result of the
deliberations shall then be reported to the Presidium which may, after its own deliberation and decision, put the bills or proposals
to a vote at a plenary meeting.

Article 10. A delegation or a group of thirty or more deputies may submit to the National People’s Congress bills or proposals that fall within
the scope of its functions and powers. The Presidium may decide whether or not to put the bills or proposals on the agenda of the
Congress, or it may refer the bills or proposals to the relevant special committees for deliberation and after receiving their opinions
then decide whether or not to put the bills or proposals on the agenda of the Congress.

Article 11. Deliberation on a bill or proposal submitted to the National People’s Congress shall terminate upon the request of its sponsor for
its withdrawal before it is put to a vote in the Congress.

Article 12. Sessions of the National People’s Congress shall adopt bills amending the Constitution, legislative bills and other bills in accordance
with the relevant provisions of the Constitution of the People’s Republic of China.

Article 13. Candidates for Chairman, Vice-Chairmen, Secretary-General and other members of the Standing Committee of the National People’s Congress,
President and Vice-President of the People’s Republic of China, Chairman of the Central Military Commission, President of the Supreme
People’s Court and Procurator-General of the Supreme People’s Procuratorate shall be nominated by the Presidium which, after consultation
among the various delegations, shall decide upon a formal list of candidates, based on the opinion of the majority of deputies.

Article 14. The Premier and other members of the State Council and members of the Central Military Commission other than its Chairman shall
be nominated in accordance with the relevant provisions of the Constitution.

Article 15. Proposals for the removal from office of a member of the Standing Committee of the National People’s Congress, the President or
Vice-President of the People’s Republic of China, a member of the State Council or the Central Military Commission, the President
of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate may be submitted by three or more delegations
or at least one-tenth of the number of deputies to the National People’s Congress. The Presidium shall then put the proposal before
the Congress for deliberation.

Article 16. During a session of the National People’s Congress, a delegation or a group of thirty or more deputies may address written questions
to the State Council and the ministries and commissions under the State Council. The Presidium shall decide whether to refer the
questions to the organs concerned for written replies or to ask the leaders of those organs to give oral replies at meetings of the
Presidium, the relevant special committees or the relevant delegations. If the replies are to be given at meetings of the Presidium
or special committees, the head of the delegation or of the group of deputies who addressed the questions may also attend the meetings
to express their opinions.

Article 17. During deliberation on a bill or proposal in the National People’s Congress, deputies may address inquiries to the relevant state
organs, and those organs shall send their representatives to give explanations at group meetings of the deputies or at delegation
meetings.

Article 18. At sessions of the National People’s Congress, elections may be conducted and bills may be passed by secret ballot, by a show of
hands or by any other form as decided by the Presidium.

Article 19. When the National People’s Congress is in session, deputies from the minority nationalities shall be provided with the necessary
facilities for interpretation.

Article 20. Sessions of the National People’s Congress shall be open to the public; when necessary, closed sessions may be held by decision of
a meeting of the Presidium and the heads of all the delegations.

Article 21. The proposals, criticisms and opinions put forward by deputies to the National People’s Congress or its Standing Committee concerning
any sphere of work shall be referred by the office of the Standing Committee to the relevant agencies or organizations for study,
handling and a responsible answer.

CHAPTER II THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS

Article 22. The Standing Committee of the National People’s Congress shall exercise the functions and powers prescribed in the Constitution
of the People’s Republic of China.

Article 23. The Standing Committee of the National People’s Congress shall be composed of the following personnel:

the Chairman;

the Vice-Chairmen;

the Secretary-General; and

other members.

Members of the Standing Committee shall be elected by the National People’s Congress from among its deputies.

A member of the Standing Committee may not hold office in the administrative, judicial or procuratorial organs of the state. If he
expects to hold such an office, he must first resign from his post in the Standing Committee.

Article 24. The Chairman of the Standing Committee shall preside over meetings of the Standing Committee and direct its work. The Vice- Chairmen
and the Secretary-General shall assist the Chairman in his work. When entrusted by the Chairman, a Vice-Chairman may exercise certain
functions and powers of the Chairman.

Should the Chairman of the Standing Committee be incapacitated for work for reasons of health or should his office fall vacant, the
Standing Committee shall choose one of the Vice-Chairmen to exercise the functions of the Chairman until the Chairman’s recovery
or until a new Chairman is elected by the National People’s Congress.

Article 25. A Council of the Chairman composed of the Standing Committee’s Chairman, Vice-Chairmen and Secretary-General shall handle the important
day-to-day work of the Standing Committee, which shall consist of the following:

(1) to decide on the time for each meeting of the Standing Committee and draft the agenda of the meeting;

(2) to decide whether the bills, proposals and questions submitted to the Standing Committee should be referred to the relevant special
committees or submitted to a general meeting of the Standing Committee for deliberation;

(3) to direct and coordinate the day-to-day work of the special committees; and

(4) to handle the other important day-to-day work of the Standing Committee.

Article 26. The Standing Committee shall establish a Deputies Credentials Committee.

The chairman, vice-chairmen and members of the Deputies Credentials Committee shall be nominated by the Council of the Chairman from
among the members of the Standing Committee, and the nominees shall be approved at a meeting of the Standing Committee.

Article 27. The Standing Committee shall establish a general office which shall work under the direction of the Secretary-General.

The Standing Committee shall install Deputy Secretaries-General, whom it shall appoint or remove upon recommendation by the Chairman
of the Standing Committee.

Article 28. When necessary, the Standing Committee may establish working commissions.

The chairman, vice-chairmen and members of the working commissions shall be appointed or removed by the Standing Committee upon recommendation
by its Chairman.

Article 29. Meetings of the Standing Committee, usually held once every other month, shall be called by its Chairman.

Article 30. When the Standing Committee is in session, the standing committees of the people’s congresses of the provinces, autonomous regions,
and municipalities directly under the Central Government may each send a chairman or vice-chairman to attend the meetings and express
their opinions.

Article 31. The legislative bills and other bills brought before the Standing Committee for deliberation shall be adopted by a simple majority
vote of all its members.

Article 32. The special committees of the National People’s Congress, the State Council, the Central Military Commission, the Supreme People’s
Court and the Supreme People’s Procuratorate may submit to the Standing Committee bills and proposals that fall within the scope
of its functions and powers. The Council of the Chairman shall decide whether to directly submit the bills and proposals to a meeting
of the Standing Committee for deliberation or to first refer them to the relevant special committees and after receiving the reports
on their deliberations then submit the bills and proposals to the Standing Committee for deliberation.

Bills and proposals that fall within the scope of the functions and powers of the Standing Committee may be submitted to the Standing
Committee by ten or more members of the Standing Committee. The Council of the Chairman shall decide whether to directly submit the
bills to a meeting of the Standing Committee for deliberation or to first submit them to the relevant special committees and after
receiving the reports on their deliberations then submit the bills to the Standing Committee for deliberation.

Article 33. During a session of the Standing Committee, a group of ten or more members of the Committee may submit to the Standing Committee
written questions addressed to the State Council and the ministries and commissions under the State Council. The Council of the
Chairman shall decide whether to refer the questions to the organs concerned for written replies or to request the heads of those
agencies to give oral replies at meetings of the Standing Committee or the relevant special committees. When replies are to be given
at meetings of the special committees, the members of the Standing Committee who submitted the questions may attend and express their
opinions.

Article 34. During each session of the National People’s Congress, the Standing Committee must make a report on its work to the National People’s
Congress.

CHAPTER III THE COMMITTEES OF THE NATIONAL PEOPLE’S CONGRESS

Article 35. The National People’s Congress shall establish a Nationalities Committee, a Law Committee, a Finance and Economic Committee, an
Education, Science, Culture and Public Health Committee, a Foreign Affairs Committee, an Overseas Chinese Committee and such other
special committees as may be deemed necessary by the National People’s Congress. The special committees shall be under the direction
of the National People’s Congress, and of its Standing Committee when the Congress is not in session.

Each special committee shall be composed of a chairman, vice-chairmen and members.

Candidates for chairman, vice-chairman or member of such special committees shall be nominated from among the deputies by the Presidium
and shall be approved by the National People’s Congress. When the National People’s Congress is not in session, its Standing Committee
may appoint additional members to the special committees, including a vice-chairman; the Council of the Chairman shall make nominations
for these appointments, which shall be subject to approval by a meeting of the Standing Committee.

Article 36. The chairman of each special committee shall preside over meetings of the committee and direct its work. The vice-chairmen shall
assist the chairman in his work.

The special committees may appoint a certain number of experts as advisers, if their work so requires. The advisers may attend special
committee meetings and express their opinions.

The advisers shall be appointed or removed by the Standing Committee of the National People’s Congress.

Article 37. The work of the special committees shall be as follows:

(1) to deliberate on bills and proposals received from the Presidium or the Standing Committee of the National People’s Congress;

(2) to submit to the Presidium or the Standing Committee of the National People’s Congress bills and proposals which are related to
the special committees and which fall within the scope of functions and powers of the National People’s Congress or its Standing
Committee;

(3) to examine and submit reports on items received from the Standing Committee of the National People’s Congress which are considered
to be in contravention of the Constitution or the law, namely: administrative regulations, decisions and orders issued by the State
Council; orders, instructions and regulations issued by the ministries and commissions under the State Council; regulations and resolutions
issued locally by the people’s congresses of the provinces, autonomous regions, and municipalities directly under the Central Government
and their standing committees; and decisions, orders and regulations issued by the people’s governments of the provinces, autonomous
regions, and municipalities directly under the Central Government;

(4) to examine questions referred by the Presidium or the Standing Committee of the National People’s Congress, to hear the replies
given by the organs questioned and, when necessary, to submit reports to the Presidium or the Standing Committee of the National
People’s Congress; and

(5) to investigate and propose solutions to issues which are related to the special committees and which fall within the scope of
functions and powers of the National People’s Congress or its Standing Committee.

The Nationalities Committee may, in addition, conduct investigations and make proposals on how to strengthen unity among the nationalities;
it shall deliberate on the regulations on autonomy and separate regulations submitted by the autonomous regions to the Standing Committee
of the National People’s Congress for approval and shall report its deliberations to the Standing Committee of the National People’s
Congress.

The Law Committee shall deliberate on all drafted laws submitted to the National People’s Congress or its Standing Committee; other
special committees shall send to the Law Committee their comments on the drafts which concern them.

Article 38. The National People’s Congress and its Standing Committee may appoint committees for the investigation of specific issues. The organization
and work of the committees shall be decided by the National People’s Congress or its Standing Committee.

CHAPTER IV DEPUTIES TO THE NATIONAL PEOPLE’S CONGRESS

Article 39. The term of office of the deputies to each National People’s Congress shall be five years, beginning with its first session and
ending with the first session of the succeeding National People’s Congress.

Article 40. Deputies to the National People’s Congress must observe the Constitution and the law in an exemplary way, keep state secrets and,
in the course of production, other work and the public activities in which they take part, assist in the enforcement of the Constitution
and the law.

Article 41. Deputies to the National People’s Congress should maintain close contact with the units that elected them and with the people.
They may attend, without voting rights, meetings of the people’s congresses of the units that elected them, so as to heed and convey
the opinions and demands of the people and work hard to serve them.

Article 42. While deputies to the National People’s Congress attend meetings of the Congress or perform other duties required of them as deputies,
the state shall provide them with appropriate allowances and material facilities according to their actual needs.

Article 43. No deputy to the National People’s Congress or member of its Standing Committee may be held legally liable for his speeches or votes
at various meetings of the National People’s Congress and its Standing Committee.

Article 44. No deputy to the National People’s Congress may be arrested or placed on criminal trial without the consent of the Presidium of
the National People’s Congress or, when the National People’s Congress is not in session, of its Standing Committee.

If a deputy to the National People’s Congress is caught in the act and detained, the public security organ which has detained him
shall immediately report the matter to the Presidium or the Standing Committee of the National People’s Congress.

Article 45. Deputies to the National People’s Congress shall be subject to the supervision of the units that elected them. Such units shall have
the power to recall the deputies they elect.

The recall of a deputy from the National People’s Congress shall require a simple majority vote of all the deputies of the unit that
elected him.

If the people’s congress of a province, autonomous region, or municipality directly under the Central Government is not in session,
its standing committee may, with the approval of a simple majority of its members, recall individual deputies elected to the National
People’s Congress by its people’s congresses.

Deputies being recalled may attend the meetings concerning their recall or submit written appeals to them.

Resolutions to recall deputies must be reported to the Standing Committee of the National People’s Congress for the record.

Article 46. If the office of a deputy to the National People’s Congress falls vacant for some reason, the electoral unit which elected him shall
hold by-elections to fill the vacancy. Should the office of an individual deputy to the National People’s Congress fall vacant when
the people’s congress of his province, autonomous region, or municipality directly under the Central Government is not in session,
its standing committee may hold by-elections to fill the vacancy.

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES CONCERNING THE REGISTRATION OF FOREIGN EXCHANGE BY DIRECT FOREIGN INVESTMENT

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Registration of Foreign Exchange by Direct
Foreign Investment

HuiFa [2002] No.42

April 30, 2002

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (hereafter “SAFE”) in
all provinces, autonomous regions, municipalities directly under the Central Government, and the braches in Shenzhen, Dalian, Qingdao,
Xiamen and Ningbo:

In order to carry out the Circular of the Ministry of Finance and the State Administration of Foreign Exchange on Further Strengthening
the Assessment of the Capital of enterprises with foreign investment and Perfecting the System for the Registration of Foreign Exchange
and Foreign Capital (CaiKuai [2002] No.1017, hereafter “the Circular”), to improve management and standardize business operations,
relevant issues are hereby notified as follows:

Perfecting the system for the registration of foreign exchange and foreign capital so as to be beneficial to standardizing the practicing
of certified accountants and to the reasonable and orderly flow of foreign capital. All the branches of the SAFE shall reach a common
understanding and pay high attention to it, try every effort to improve the internal control system, and do a good job in the inquiring,
verification and registration of the capital assessment of the enterprises with foreign investment. The branches and sub-branches
that have a heavy business burden shall arrange for more hands to do it. The internal departments of the foreign exchange administrations
shall pay attention to cooperating with each other. At the same time, special attention shall be paid to the assortment in work with
the local public fiscal authorities and the certified accountants associations (hereafter referred to as “CAAs”), and, on the basis
of the rigid implementation of the present Circular by the CAAs, you should cooperate closely with each other so as to improve the
quality of capital assessment of enterprises with foreign investment.

II.

The letters of inquiry concerning the contributions of the foreign investors shall be filled in by the enterprise concerned and be
accompanied by an attestation document (in photocopy) and an accountants firm shall be entrusted to make inquiries to the foreign
exchange administrations. When inquiring the foreign exchange administrations, the accountants firms shall present a letter of liaison
that bears the seal of the firm.

III.

The phrase “to inquire about the authenticity and lawfulness of the above documents” as mentioned in Article 1 , Item 4 of the Circular
refers to inquiring whether the relevant accounts of registered capital has been opened upon the approval of the competent foreign
exchange administration; whether the verification documents of foreign exchange business under relevant capital items are issued
by the competent foreign exchange administrations; whether relevant hardcopy customs declaration forms are in conformity with the
corresponding electronic ledgers in the online verification system for import and export declarations of customs and whether foreign
exchange has been paid.

IV.

The foreign exchange administration concerned shall, after receiving the letter of inquiring about the capital contribution of the
foreign parties and the attached attestation documents, make careful verifications according to the requirements of the operational
rules annexed to the present Circular (see Attachment I), give a reply within 5 work days, and place the letter of inquiring about
the capital contribution of the foreign parties, attestation documents, photocopy of the reply and other relevant materials concerning
the inquiring in archivist files for further reference.

If no error has been found through verification in the issues inquired about, the foreign exchange administration shall grant a number
for the registration of foreign capital and foreign exchange (The method for registering the numbers of foreign capital and foreign
exchange is: serial number of the certificate for foreign exchange registration is a two-figure sequence number, and the sequence
number is the serial number for the number of inquiries made about the enterprise concerned. E.g. if the enterprise inquires for
the second time, the serial number shall be 01.) and express the opinion in the letter of reply (for the format of letter of reply,
see Attachment II) by selecting a corresponding one from the following opinions:

The registered capital accounted inquired has been opened upon the approval of a branch (or sub-branch) or management department of
foreign exchange of our administration;

The verification document for the foreign exchange business under the capital items inquired has been issued by a branch (or sub-branch)
or management department of foreign exchange of our administration;

The declaration forms for the import goods inquired are in conformity with the verification system and no foreign exchange has ever
been paid.

If any of the issues inquired is found to be inconsistent with the relevant situations, the competent foreign exchange administration
may not grant a serial number for the registration of foreign capital and foreign exchange, and shall express the opinion in the
letter of reply (for the format of letter of reply, see Attachment III) by selecting a corresponding one from the following opinions:

The documents attached are incomplete (by specifying the post_titles of the documents);

The documents attached are not in conformity after verification (by specifying the post_titles of the documents, serial numbers and the
points that are not in conformity);

The attached documents are repeatedly used (by specifying the post_titles and serial numbers of the documents);

The capital contribution is made through a non-registered capital account;

The registered capital account has not be opened upon approval;

Payment has been made for the declaration form for the import goods (by specifying the serial number of the customs declaration);

The serial number of the letter of value appraisal of the commodity is not specified.

The foreign exchange administrations shall keep a record of the incoming letters and replies, and the procedures for receiving the
letters shall be strictly followed.

VI.

In the appraisal of the capital contribution of a foreign party concerned who makes its contribution by way of physical materials,
if the photocopy of the hardcopy declaration form of the import goods submitted by an entrusted accountant’s firm that does not bear
the special seal of a designated foreign exchange bank and the foreign exchange administration, the department in charge of the management
of capital projects under the foreign exchange administration shall inquire the department in charge of the writing-off of import
about whether the content of the declaration form is in consistency with the corresponding electronic ledgers in the “online verification
system for import and export declaration forms”, and whether foreign exchange has been paid or whether they have been written off.
The department in charge of the writing-off of import shall complete the inquiry within two work days.

The department in charge of the writing-off of import accesses the “online verification system for the import and export declaration
forms” by using a “Super-financial IC Card”. If it is confirmed by retrieving the “online verification system for the import and
export declaration forms” that the hardcopy declaration forms is consistent with the corresponding electronic ledgers and foreign
exchange has not been paid or written off, the department in charge of import shall settlement the account and write off the electronic
ledgers of the declaration forms in the “online verification system for the import and export declaration forms”, and provide the
electronic ledger of the import declaration form that bears the “business seal of import writing-off supervision” to the department
in charge of the management of capital projects.

If the hardcopy import declaration form is inconsistent with the electronic ledgers thereof or if foreign exchange has already been
paid or written off, the department in charge of writing off imports shall make a remark and put the seal “business seal of import
writing-off supervision” on the printout of the electronic ledgers of the declaration form, and return it back to the department
in charge of management of capital projects.

If there is no corresponding electronic ledgers for the hardcopy declaration form in the “online verification system for import and
export declaration forms”, the department in charge of writing off imports shall make a remark and put the seal “business seal of
import writing-off supervision” on the printout of the electronic ledgers of the declaration form, and return it to the department
in charge of the management of capital projects.

VII.

With regard to the verification documents for the foreign exchange business under capital projects issued at other places, the foreign
exchange administration of the place where the verification is done shall send a photocopy of the verification documents and a letter
of inquiry (see Attachment IV) by fax to the foreign exchange administration of the place where they are issued, and the latter shall,
after verification, specify the result of verification and put a “business seal for foreign exchange under the capital project” on
the letter of inquiry, and send it back by fax within two work days to the foreign exchange administration where the verification
is done. In the meanwhile, the foreign exchange administration of the place where the documents are issued shall place the relevant
materials in the archivist files for further reference.

VIII.

If, after completing the procedures of inquiring about the capital contribution of foreign parties, an accountant’s firm fails to
issue a capital appraisal report due to the change of circumstances, it shall inform the foreign exchange administration in written
form of the changes, and the foreign exchange administration shall write off the serial number for the registration of foreign capital
and foreign exchange.

IX.

Foreign exchange administrations shall establish special computerized or manual ledgers (the computerized ledgers shall have the simple
functions of search and gathering information). After confirming that there are no errors in the inquiring document on the basis
of verification and giving a reply, they shall record down the contents of the “List of Contributions Made by Foreign Investors”
provided in the inquiring letters. The registered amount of foreign capital and foreign exchange shall, after deducting the contribution
by way of intangible assets, be more than the total amount specified in the attestation documents of capital contribution by foreign
parties, and, in the meanwhile, record down the name of the enterprise, the legal person code, date of contribution, and the serial
number for registering foreign capital and foreign exchange. If the serial number for the registration of foreign capital and foreign
exchange has already been written off, it should also be marked in the corresponding ledgers.

The foreign exchange administrations shall gather together “Reports of the Registration of Foreign Capital and Foreign Exchange by
(MM/YY) of (Name of Place)” on the monthly basis and by hierarchical order (see Attachment V). All the sub-branches shall submit
their reports to the branches within the first 5 work days of each month, and the branches (or departments in charge of the management
of foreign exchange) submit their reports, after gathering together, to the General Administration within the first 8 work days of
each month.

XI.

The provisions concerning the inquiry about the capital appraisal and registration of the enterprises with foreign investment within
the export processing zones and the bonded areas as well as the enterprises with foreign investment and those established by non-investment
enterprises with foreign investment through reinvestment within the Shanghai Diamond Exchange shall be separately formulated. Before
the new provisions are formulated, the original provisions shall be followed, and the accountants firms need not go through the procedures
of inquiring about the capital contributions of the foreign parties at the foreign exchange administrations.

XII.

If any foreign exchange administration finds that any accountants’ firm fails to follow the inquiry procedures in the issuance of
capital appraisal reports or issues false reports, it shall inform the local accountants association, and, before the local accountants
association or public fiscal authority makes a decision on how to deal with it, the foreign administration concerned shall not accept
any new inquiries from the accountants’ firm concerned.

XIII.

If, in the process of handling the inquiries and registrations of capital appraisals of enterprises with foreign investment, any foreign
exchange administration finds that any designated bank of foreign exchange or any enterprise with foreign investment violates the
provisions of foreign exchange administration, it shall give a punishment according to relevant statutory provisions concerning foreign
exchange administration.

XIV.

The present Circular shall enter into force as of May 1, 2002. Should you have any question in the process of implementation, please
ask the Department of Capital Projects under the SAFE without delay.

Annexes:

I.Operational Rules for the Verification and Registration of Inquiries

II.Reply to Letters of Inquiry about the Capital Contributions by Foreign Parties (Format I) (omitted)

III.Reply to Letter of Inquiry about the Capital Contributions by Foreign Parties (Format II) (omitted)

IV.Letter of Inquiry about Foreign Exchange Business under Capital Projects in Other Places (Format III) (omitted)

V.Reports of the Registration of Foreign Capital and Foreign Exchange by (MM/YY) of (Name of Place) (Format IV) (omitted)

Attachment I:1Operational Rules for the Verification and Registration of Inquiries about the Contribution and Capital Appraisal of Spot Exchange
by Foreign Investors

1. Statutory basis;

2. Materials for verification;

3. Principles of verification;

4. Elements of verification;

5. Range of authorization

6. Points of attention.

Circular of the Ministry of Finance and the State Administration of Foreign Exchange on Further Strengthening the Appraisal of Capital
of Enterprises with Foreign Investment and Improving the System for the Registration of Foreign Capital and Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Registration of Foreign Exchange Directly Invested by Foreign Investors

Measures for the Administration of Intraterritorial Foreign Exchange Accounts

Letter of Inquiry about the Capital Contribution of Foreign Investors

Reply to Letters of Inquiry of Banks

Foreign investors shall follow the procedures of making foreign exchange contributions according to the relevant provisions of the
State Administration of Foreign Exchange

Whether registered foreign exchange capital listed in the “List of Contributions Made by Foreign Investors” as provided in the Letter
of Inquiry about the Contributions Made by Foreign Investors;

Whether the registered capital account has been opened upon the approval of a competent foreign exchange administration;

Whether it is marked “Account for Registered Capital” in the column of “Nature of Account”;

If the remitting bank is an intraterritorial bank, whether the transfer of original currency has been approved;

Whether the letter of inquiry of the bank is repeatedly used.

The branches and sub-branches thereof shall handle their businesses according to the principle of territory.

The replies shall be made within 5 work days.

If no error is found upon verification, a serial number shall be granted and the foreign capital and foreign exchange shall be registered.

If errors are found upon verification, no serial number may be granted and the foreign capital and foreign exchange may not be registered.

Due to the reasons of handling charges of the banks, the registered amount of foreign exchange registered capital may be reasonably
smaller than the amount listed in the reply to the letters of inquiry issued by the banks concerned.

The foreign exchange administrations need not make any comment in the letter of inquiry

Attachment I:2Operational Rules for the Verification and Registration of Capital Appraisal of Contributions Made by Way of Physical Materials

1. Statutory basis;

2. Verification materials;

3. Principles of verification;

4. Elements of Verification;

5. Range of authorization;

6. Points of attention.

Circular of the State Administration of Foreign Exchange on the Registration of Foreign Exchange Directly Invested by Foreign Investors

Letter of Inquiry about the Capital Contribution of Foreign Investors

Declaration form for import goods that does not bear the special seal of a designated bank and that of a competent foreign exchange
administration (photocopy)

Foreign investors shall truthfully perform its obligation of making contributions by way of physical materials and observe the relevant
procedures for administration

Whether registered capital contributed by physical materials listed in the “List of Contributions Made by Foreign Investors” as provided
in the Letter of Inquiry about the Contributions Made by Foreign Investors is smaller than or equal to the amount as provided in
the declaration form for the import of goods;

Whether the customs declaration for the import of goods is in conformity with the electronic ledgers in the “online verification system
for the customs declarations for the import and export of goods” and if foreign exchange has been paid;

If the foreign investors in a Chinese-foreign equity joint enterprise or Chinese-foreign cooperative enterprise make their contributions
by ways of physical materials, whether the serial number of the letter of appraisal of the value of commodities has been given in
the column for remarks in the customs declaration for importing and exporting goods as provided in the letter of inquiry

The branches and sub-branches thereof shall handle their businesses according to the principle of territory.

The replies shall be made within 5 work days.

If no error is found upon verification, a serial number shall be granted and the foreign capital and foreign exchange shall be registered.

If errors are found upon verification, no serial number may be granted and the foreign capital and foreign exchange may not be registered.

Due to the reasons of appraising the value of the commodities, the registered amount of capital contribution made by way of physical
materials may be reasonably smaller than the amount listed in the customs declaration for importing and exporting goods.

The foreign exchange administrations need not make any comment in the letter of inquiry

Attachment I:3Operational Rules for the Verification and Registration of Verification Documents of Foreign Exchange Business under Capital Projects

1. Statutory basis;

2. Verification materials;

3. Principles of verification;

4. Elements of verification;

5. Range of authorization;

6. Points of attention.

Circular of the State Administration of Foreign Exchange on the Registration of Foreign Exchange Directly Invested by Foreign Investors

Letter of Inquiry about the Capital Contribution of Foreign Investors;

Verification Document for Foreign Exchange Business under Capital Projects (photocopy)

Foreign investors shall go through the procedures for the intraterritorial reinvestment by way of RMB and intraterritorial transfer
of foreign exchange according to the administrative provisions of the State Administration of Foreign Exchange.

Whether the situations as listed in the “List of Contributions Made by Foreign Investors” as provided in the Letter of Inquiry about
the Contributions Made by Foreign Investors are in conformity with the situations listed in the verification documents for the foreign
exchange business under capital projects;

Whether the verification documents for the foreign exchange business under capital projects are in conformity with the verification
documents kept by the foreign exchange administration;

Whether the verification documents for the foreign exchange business under capital projects are in conformity with the search results
of the foreign exchange administration concerned.

The branches and sub-branches thereof shall handle their businesses according to the principle of territory.

The replies shall be made within 5 work days.

If no error is found upon verification, a serial number shall be granted and the foreign capital and foreign exchange shall be registered.

If errors are found upon verification, no serial number may be granted and the foreign capital and foreign exchange may not be registered.

The verification Document for Foreign Exchange Business under Capital Projects which is regarded as the attestation document is still
effective even exceeding 15 workdays. The (sub)branches or administrative departments of foreign exchange can’t bring forth the negative
opinions accordingly.

If any foreign investor makes reinvestments within the territory by RMB and any foreign exchange is transferred to its account of
registered capital, this sum of transferred foreign exchange shall be recorded down in the corresponding column of “Way of Investment”
of the registration forms.

The foreign exchange administrations need not make any comment in the letter of inquiry.

The State Administration of Foreign Exchange
2002-04-30

GOVERNMENT PROCUREMENT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.68

Government Procurement Law of the People’s Republic of China has been adopted at the 28th Meeting of the Standing Committee of the
Ninth National People’s Congress on June 29, 2002, and promulgated by Order No.68 of the President of the People’ s Republic of China
on June 29, 2002, it will come into force as of January 1, 2003.

President of the People’s Republic of China Jiang Zemin

June 29, 2002

Government Procurement Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Government Procurement Party

Chapter III Forms of Government Procurement

Chapter IV Procedure for Government Procurement

Chapter V Government Procurement Contract

Chapter VI Query and Complaint

Chapter VII Supervision and Inspection

Chapter VIII Legal Responsibilities

Chapter IX Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is hereby enacted in order to standardize the government procurement behavior, improve the efficiency of use of government
procurement funds, safeguard the state interests and public interests of society, protect the legitimate rights and interests of
government procurement parties, and promote the building of an honest and clean government.

Article 2

Government procurement within the territory of the People’s Republic of China shall be governed by this Law.

Government procurement mentioned therein refers to behaviors of state organs at various levels, undertakings and social organizations
that procure with fiscal funds commodities, engineering works and related services within the catalogue made for centralized procurement
according to law or procure them in excess of their quotas.

The catalogue and quota for centralized government procurement shall be set forth within the limit of authority as prescribed herein.

Procurement mentioned herein refers to the behavior of obtaining compensated commodities, engineering works and related services,
including purchase, lease, consignment, employment, etc. by means of contract.

Commodities mentioned herein refer to substances of different kinds in all forms, including raw and semi-finished materials, fuels,
equipment, products, etc.

Engineering works mentioned herein refer to construction projects including the construction, reconstruction, extension, fitting,
removal, repair of buildings and component parts.

Services mentioned herein refer to all objects other than commodities and engineering works under government procurement.

Article 3

Government procurement shall be conducted in line with the principles of openness, transparency, fair competition, impartiality and
honesty.

Article 4

Where government procurement of engineering works takes the form of public bidding, the bidding law shall prevail.

Article 5

No units and individuals are allowed to obstruct and restrict by whatsoever means suppliers from their free access to the government
procurement markets in their locality and industry.

Article 6

Government procurement shall be carried out strictly in accordance with the approved budget for the purpose.

Article 7

Government procurement may be conducted in combination of centralized and scattered ways. The scope of centralized procurement shall
be determined on the basis of the catalogue for centralized procurement published by the people’s government at the provincial level
or above.

For those to be procured by government under central budget, the catalogue for centralized procurement of them shall be determined
and published by the State Council; for those under local budget, the catalogue for centralized procurement of them shall be determined
and published by the governments of province, autonomous region and centrally administered municipality or organizations with their
authority.

Items included in the catalogue for centralized government procurement shall be procured in a centralized way.

Article 8

The quotas for government procurement shall be determined and published by the State Council if they fall into those to be procured
under central budget; or by the governments of province, autonomous region and centrally administered municipality or organizations
with their authority if they fall into those to be procured under local budget.

Article 9

Government procurement shall be helpful to the realization of the state policy targets for economic and social development, including
environment protection, support to the underdeveloped areas and areas of minorities, and promotion of development of small and medium-sized
enterprises.

Article 10

Government procurement shall target at domestic commodities, engineering works and services, except in the following cases:

(1)

Where commodities, engineering works or services to be procured are not available or cannot be obtained under reasonable commercial
conditions within the territory of China;

(2)

Where such items are to be procured for use outside China; and

(3)

Where other laws and administrative regulations prescribe otherwise for such procurement.

Domestic commodities, engineering works and services afore-mentioned shall be defined in accordance with the relevant regulations
of the State Council.

Article 11

Information on government procurement shall be timely released to the public on the news media as designated by the government supervisory
and administrative department in charge of government procurement, except such information as involves business secret.

Article 12

If, in the activity of government procurement, the procurement personnel and concerned people have a conflict of interest with the
suppliers, they must avoid from the activity. In case the suppliers consider the procurement personnel and concerned people have
a conflict of interest with them, they can petition for the avoidance of the former.

Concerned people afore-mentioned include members of the bid appraisal committee if the procurement is carried out by public bidding,
members of the negotiation team if it is done by competitive negotiation, and members of the inquiry team if it is done at inquiry
price, etc.

Article 13

The fiscal department of the people’s governments at various levels is one in charge of supervision and administration of government
procurement and shall perform its supervisory and administrative functions regarding government procurement activities according
to law.

Other relevant departments of the people’s governments at various levels shall, according to law, perform their supervisory and administrative
functions in connection with government procurement activities.

Chapter II Government Procurement Parties

Article 14

Government procurement parties mentioned herein refer to various kinds of mainstream entities, including procurement personnel, supplier
and procurement agency that have rights to and obligations for government procurement activities.

Article 15

Procurement party refers to state organs, undertakings and social organizations.

Article 16

A centralized procurement organization shall be the procurement agency. People’s governments of cities and autonomous prefectures
with administrative districts shall set up centralized procurement agencies at their respective levels in light of the requirements
for items to be procured.

Centralized procurement agencies shall be non-profitable corporate bodies that deal with procurement matters in accordance with the
instructions of procurement parties.

Article 17

When centralized procurement agencies conduct government procurement activities, they shall meet the requirements that the procurement
price should be lower than the average market price, the procurement efficiency be higher, the quality of procurement be fine and
the services be excellent.

Article 18

When a procurement party purchases items that are included in the catalogue for centralized government procurement, such items must
be procured by a centralized procurement agency on its behalf; if the intended items are not included in the catalogue for centralized
government procurement, the procurement party may purchase them on their own, or request a centralized procurement agency to do instead
on its behalf within a given limit.

Where items included in the catalogue for centralized procurement are those to be procured by the government for general use, a centralized
procurement agency should be entrusted to do the job; if, however, they are to be used by any department or by the system it belongs
to for special purposes, they should be procured by the department in a centralized way; if they are to be used by any department
exclusively for special purposes, the department may procure them on its own with the approval of the people’s government at the
level of province or above.

Article 19

A procurement parties may entrust any procurement agency that the relevant department under the State Council or the relevant department
of the people’ s government at the provincial level has certified as qualified to carry out government procurement within the limit
of authority.

A procurement party has the option to select any procurement agency, and no unit or individual is allowed to designate in whatsoever
form any procurement agency for the procurement party.

Article 20

Where a procurement party entrusts according to law a procurement agency to carry out procurement on its behalf, the procurement party
shall enter into an agency agreement with the procurement agency, wherein prescribing the items so entrusted and their respective
rights and obligations so agreed upon between both sides.

Article 21

Suppliers mentioned herein refer to corporate bodies, other organizations or natural persons that supply commodities, engineering
works or services to procurement parties.

Article 22

Suppliers participating in government procurement activities shall meet the following requirements:

(1)

They have the capability of undertaking civil liability;

(2)

They have a fine business reputation and a sound financial accounting system;

(3)

They have the necessary equipment and professional skills to perform contracts;

(4)

They have a fine record of paying taxes and surcharges and social security funds according to law;

(5)

They have no record of material malpractice in its business operation during the three years before participation in the government
procurement activity; and

(6)

They meet any other requirements as may be prescribed by laws and administrative regulations.

Procurement parties may, in light of the special requirements for the items to be procured, set forth special terms and conditions
for the suppliers to meet, but are not allowed to give suppliers different or discriminative treatment by means of unreasonable requirements.

Article 23

Procurement parties may request suppliers involved in government procurement to provide documents evidencing their qualification and
business performance, and carry out examination of their qualification in light of the conditions set for them herein and on the
basis of the specific requirements of the items to be procured for them to meet.

Article 24

More than two natural persons, corporate bodies or other organizations may be formed into an associate to participate government procurement
in the capacity of one supplier.

Suppliers participating in government procurement in the form of an associate should all meet the requirements as set forth in Article
22 herein and shall provide the procurement party with the agreement of association, indicating the jobs and obligations they undertake
respectively. All parties to an associate as one side should enter into a procurement agreement with the procurement party as the
other side, assuming several and joint liabilities to the procurement party for the things and matters as agreed upon therein.

Article 25

Government procurement parties are prohibited from colluding with each other to infringe upon state interests, public interests of
society and the legitimate rights and interests of others involved or excluding other suppliers from competition by whatsoever means.

Suppliers are prohibited from winning the bid or concluding any transaction by offering a bribe or by any other illicit means towards
the procurement party, procurement agency, member of the bid appraisal committee, member of the competitive negotiation team and
member of the inquiry team.

Procurement agencies are prohibited from obtaining unlawful benefits from the procurement parties by bribe or any other illicit means.

Chapter III Forms of Government Procurement

Article 26

Government procurement shall take the following forms:

(1)

public bidding;

(2)

invitation for bid;

(3)

competitive negotiation;

(4)

unitary source purchase;

(5)

inquiry; and

(6)

other forms as may be approved by the government procurement supervisory and administrative department under the State Council in
charge of government procurement.

Public bidding should be taken as the main form of government procurement.

Article 27

Where procurement parties should purchase commodities or services in the form of public bidding, the specific quotas shall be stipulated
by the State Council if they fall into those to be procured under central budget, or by the people’s governments of province, autonomous
region and centrally administered municipality if they are included in the catalogue for local government procurement under local
budget. In special cases where forms other than public bidding have to be adopted, approval should, before start of the procurement
activity, be obtained from the procurement supervisory and administrative department of the people’s government of city or autonomous
prefecture with administrative districts.

Article 28

Procurement parties are prohibited from breaking up the whole of commodities or services into parts that should be procured by public
bidding in attempt to avoid procurement by public bidding.

Article 29

Commodities or services in line with either of the following cases may be procured by invitation for bid:

(1)

they are of special nature and can only be procured from a limited number of suppliers; or

(2)

The percentage of expenses in the total value of government procurement is too large if they are procured by public bidding.

Article 30

Commodities or services in line with any of the following cases may be procured by competitive negotiation according to this law:

(1)

after public bidding, there is no supplier tender or qualified tender or re-bidding is not possible;

(2)

specific descriptions or requirements cannot be determined for the sake of complex technology or special nature;

(3)

the time limit cannot meet the demand of users if public bidding is adopted;

(4)

The total price of the commodities or services cannot be worked out beforehand.

Article 31

Commodities or services in line with any of the following cases may be procured by unitary source purchase:

(1)

they can only be procured from a sole supplier;

(2)

procurement from other suppliers is impossible due to the occurrence of an unexpected critical situation;

(3)

Additional procurement should be made from the original suppliers in order to keep consistency with the previous procurement or meet
the needs of supportive services, and the total amount of additional procurement does not exceed 10% of the original contract value
of procurement.

Article 32

Where the description and standard of commodities to be procured are unified, and commodities on hand are sufficient with a small
margin of change in price, they may be procured in the form of inquiry according to this law.

Chapter IV Procedure for Government Procurement

Article 33

When the department with the budgeting function prepares the budget for the ensuing fiscal year, the items of government procurement
and capital budget for the year should be listed and reported to the fiscal department for consolidation. The departmental budget
shall be approved in accordance with the limit of administrative power and procedure.

Article 34

Where commodities or services are to be procured in the form of invitation for bid, the procurement party shall select at random more
than three suppliers from among the qualified suppliers and send them invitation for bid.

Article 35

Where commodities or services are to be procured in the form of invitation for bid, the length of time between the date the bid documents
are sent out and the deadline for the submission of tender documents by the tender shall be no less than 20 days.

Article 36

Where procurement takes the form of invitation for bid, the bid should be cancelled in any of the following cases:

(1)

there are no more than three suppliers that are eligible or give essential response to the bid documents;

(2)

there is any illegal and breaching act that affects fair procurement;

(3)

the offer of the tender exceeds the budget for procurement and is not affordable by the procurement party;

(4)

The task of procurement is cancelled for any important change.

After cancellation of the bid, the procurement party should notify the tender of the reason therefor.

Article 37

After cancellation of the bid, arrangement for a new invitation for bid should be made unless the task of procurement is cancelled.
If it is necessary to adopt any other form of procurement, approval should, before the start of procurement activity, be obtained
from the government procurement supervisory and administrative department of the people’s government of city and autonomous prefecture
with administrative districts.

Article 38

Where the form of competitive negotiation is adopted for procurement, the following procedure should be observed:

(1)

Formation of a negotiation team. The team shall comprise more than three members in odd number who are representative and relevant
experts of the procurement party, among them experts should account for no less than two-thirds (2/3) of the total number of its
members.

(2)

Preparation of negotiation documents. These documents shall definitely specify the procedure and contents of negotiation, terms and
conditions of the draft contract, the criterion for conclusion of transactions, etc.

(3)

Listing the names of suppliers to be invited to negotiation. The negotiation team shall select no less than three suppliers from among
those eligible on the list and send them the negotiation documents.

(4)

Negotiation. All members of the negotiation team shall together negotiate with the candidate suppliers respectively. During the period
of negotiation, neither party may disclose the technical know-how, price and other information of any other supplier. If there is
any material change in the negotiation documents, the negotiation team shall notify in writing all the suppliers participating the
negotiation.

(5)

Determination of the conclusive supplier. After completion of negotiation, the negotiation team shall demand all the participant suppliers
to give a final offer within a given deadline, and the procurement party shall select from the candidates suggested by the negotiation
team and determine the conclusive supplier under the principle that the procurement requirements in amount, quality, service and
lowest offer are all met and notify the result to all the other failing participant suppliers.

Article 39

Where the form of unitary source purchase is adopted, the procurement party and the supplier shall abide by the principles as stipulated
herein, and the procurement should be completed on the basis of guaranteeing the quality of the procured items and of the reasonable
price as agreed upon between both sides.

Article 40

Where the form of inquiry is adopted for procurement, the following procedure shall be abided by:

(1)

Formation of an inquiry team. The inquiry team shall comprise more than three members in odd number who are representative and relevant
experts of the procurement party, among them experts should account for no less than two-thirds (2/3) of the total number of its
members. The inquiry team should make stipulations regarding the price structure, the criterion for conclusion of transaction, and
other items of the procurement.

(2)

Listing the names of suppliers to be inquired. The inquiry team shall select no less than three suppliers from among those eligible
on the list in light of its procurement demand, and issue a notice of inquiry for them to offer price.

(3)

Inquiry. The inquiry team shall demand the inquired supplier to give a one-time offer without alteration.

(4)

Determination of the conclusive supplier. The procurement party shall select and determine the conclusive supplier under the principle
that the procurement requirements for amount, quality, service and lowest offer are all met and notify the result to all the other
failing participant suppliers.

Article 41

The procurement party or the procurement agency with its authority shall organize an inspection on how the supplier has performed
the contract. Where large-size or complex items for government procurement are involved, the state-certified quality testing organization
should be invited to participate in the inspection. All the members of the inspection party should sign their names on the certificate
of acceptance and bear the corresponding legal liability.

Article 42

The procurement party and the procurement agency shall keep in safe custody the procurement documents for each item under the government
procurement catalogue, and are prohibited from forging, altering, concealing or destroying any of them. The duration of custody of
procurement documents shall be at least 15 years counting from the date of completion of procurement.

Procurement documents include the record of procurement activities, budget for procurement, bid documents, tender documents, bid appraisal
standards, appraisal report, bid decision document, contract, certificate of acceptance, and response to inquiry, decision to settle
the complaint and other related documents and information.

The record of procurement activities shall at least contain the following contents:

(1)

category and name of the item to be procured;

(2)

budget for procurement, structure of funds and contract price;

(3)

form of procurement, and the reason if any form other than public bidding is adopted;

(4)

requirements and reasons set for the suppliers to be invited and selected;

(5)

bid appraisal standards, and the reason why the bid winner is determined;

(6)

reason for cancellation of the bid; and

(7)

corresponding record if any form other than public bidding is adopted.

Chapter V Government Procurement Contract

Article 43

Government procurement contracts shall be governed by the Contract Law. The rights and obligations of the procurement party and the
supplier shall be agreed upon in the form of contract under the principle of equality and voluntariness.

A procurement party may appoint any procurement agency to conclude, on its behalf, a government procurement contract with the supplier.
Where a contract is signed by a procurement agency in the name of the procurement party, the power of attorney issued by the procurement
party shall be required and treated as annex to the contract.

Article 44

A government procurement contract shall be made in writing.

Article 45

The procurement supervisory and administrative department under the State Council shall, in consultation with other departments thereunder,
stipulate what specific terms and conditions must be contained in a procurement contract.

Article 46

The procurement party, the bid winner and conclusive supplier shall, within 30 days after the issue of notices of winning the bid
and concluding the transaction, enter into a government procurement contract on the items as determined by the procurement documents.

The notices of winning the bid and concluding the transaction shall have binding force upon both the bid winner and the supplier.
If, after issue of the notices of winning the bid and concluding the transaction, the procurement party alters the results of bid
winning and conclusion of transaction, or the bid winner and the supplier give up the bid and the transaction, the breaching party
shall bear the legal liability according to law.

Article 47

The procurement party shall, within 7 business days after the date on which the government procurement contract is signed, submit
a copy thereof to the procurement supervisory and administrative department of the government at the same level for its record.

Article 48

The bid winner and the conclusive supplier may, with the approval of the procurement party, perform the contract in the form of sub-contract.

Where a government procurement contract is to be performed in the form of sub-contract, the bid winner and the conclusive supplier
shall be responsible to the procurement party in respect of the items procured and those sub-contracted, and the sub-conclusive suppliers
be responsible to the procurement party in respect of the items sub-contracted .

Article 49

In case the procurement party needs an increase of the same commodities, engineering works or services as the contracted subject in
the process of performance, supplementary contracts may be concluded with the procurement party, provided all the other terms and
conditions remain unchanged, and the total amount of such supplementary contract prices does not exceed 10% of the original contract
price.

Article 50

Both parties to a government procurement contract shall not alter, suspend or terminate the contract without mutual consent.

In case the continuous performance of a government procurement contract would do harm to the interests of the state and society, both
parties thereto shall alter, suspend or terminate the contract. The party with fault shall bear the liability of compensating the
other; if, however, both parties have faults, they shall bear their respective liability.

Chapter VI Query and Complaint

Article 51

When the supplier has any question about the government procurement activities, the question may be put to the procurement party,
and the procurement party shall give a reply but the reply must not involve any business secrete.

Article 52

Where the supplier deems that the procurement documents, the procurement process and the result of winning the bid and concluding
the transaction have infringed upon its rights and interests, he may, within 7 business days after he knows or should know such infringement,
raise a query in writing to the procurement party.

Article 53

The procurement party shall, within 7 business days after receipt of the written query, give a reply and notify in writing the query
supplier and other suppliers, but the reply must not involve any business secrete.

Article 54

Where the procurement party entrusts a procurement agency to make procurement on its behalf, the supplier may consult or make a query
of the procurement agency, and the latter shall give a reply to the former within the limit of authority as prescribed in Articles
51 and 53.

Article 55

If the query supplier is not satisfied with the reply given by the procurement party or its agency, or the procurement party or its
agency fails to give a reply within the given period of time, he may, within 15 business days after expiry of the given period, lodge
a complaint with the government procurement supervisory and administrative department of the people’s government at the same level.

Article 56

The government procurement supervisory and administrative department shall, within 30 business days after receipt of any complaint,
make a decision on the matter complained about and notify in writing the complainant and the persons involved in the complaint.

Article 57

When the government procurement supervisory and administrative department is dealing with the complaint, it may notify in writing
the procurement party to cease its procurement activity if the situation warrants it, provided the duration of suspension does not
exceed 30 days at longest.

Article 58

In case the complainant is not satisfied with the decision on his complaint or the government procurement supervisory and administrative
department fails to deal with the case within the time limit, the complainant may petition for administrative reconsideration or
lodge an administrative lawsuit at the people’s court.

Chapter VII Supervision and Inspection

Article 59

The government procurement supervisory and administrative department shall strengthen supervision and inspection of government procurement
activities and organizations in charge of centralized procurement.

Supervision and inspection shall include the following main items:

(1)

the implementation of the laws, administrative regulations and rules regarding government procurement;

(2)

the implementation of the requirements in respect of the scope, form and procedure of procurement; and

(3)

the professional quality and technical ability of the government procurement personnel.

Article 60

The government procurement supervisory and administrative department shall set up no organization for centralized procurement and
is not allowed to participate any procurement activities in connection with government procurement items.

The procurement agency should have no relationship of subordination to or other relationship of interest with the administrative organ.

Article 61

A centralized procurement organization should have a sound internal supervisory and administrative system. The procedures for making
and implementing decisions on procurement activities should be clearly defined, and the decision-makers and the implementers should
supervise and restrain each other. The functions and powers of the personnel responsible for procurement and those for examination
of contract and check and acceptance of procured goods should be expressly defined and separated.

Article 62

Personnel in charge of centralized procurement should have corresponding professional quality and technical ability, which meet the
requirements for one to hold a professional post as prescribed by the regulations of the government procurement supervisory and administrative
department.

The centralized procurement organization should strengthen education and training of its working personnel, and at a regular time
make appraisal of their professional l

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

The State Administration for Industry and Commerce

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

GongShangQiZi [2001] No.238

August 29,2001

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

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

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

II.

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

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

ORGANIC LAW OF THE STATE COUNCIL

Organic Law of the State Council of the PRC

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The State Administration of Taxation

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

GuoShuiHan [2002] No.373

April 30,2002

The State Taxation Bureau of Shanghai:

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

The State Administration of Taxation
2002-04-30

POPULARIZATION OF SCIENCE AND TECHNOLOGY LAW

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



	(Adopted at the 28th Meeting of the Ninth National People’s Congress of the People’s Republic of China on June 29, 2002 and promulgated by Order No. 71 of the President of the People’s Republic of China on June 29, 2002) Contents Chapter I General Provisions Chapter II Organization and Administration Chapter III Responsibility of the Society Chapter IV Safeguards Chapter V Legal Responsibility Chapter VI Supplementary Provision Chapter I General Provisions Article 1 This Law is enacted in accordance with the Constitution and other related laws for the purposes of implementing the strategy of invigorating the country through science and education and the strategy of sustainable development, redoubling the efforts to popularize science and technology, raising the citizens’ scientific and cultural level and promoting economic and social progress. Article 2 This Law shall apply to activities conducted by the State and the community to popularize scientific and technological knowledge, promote scientific approaches, disseminate scientific ideas and carry forward scientific spirit. For popularization of science and technology (hereinafter referred to as PST), such ways as may make it easy for the general public to understand, accept and participate in shall be adopted. Article 3 State organs, armed forces, public organizations, enterprises and institutions, rural grassroots organizations and other organizations shall work for PST. Citizens have the right to participate in PST activities. Article 4 PST is a public welfare undertaking and an essential component of the socialist material and spiritual civilization. It is a long-term task of the State to develop the PST undertaking. The State supports efforts for PST made by people in minority ethnic areas and in outlying and poverty-stricken areas. Article 5 The State protects the lawful rights and interests of the PST organizations and workers, encourage them to carry out PST activities independently, and initiate PST undertakings according to law. Article 6 The State supports all quarters of society to initiate PST undertakings. Such undertakings may be operated under market mechanism. Article 7 Work for PST shall be characterized by mass participation, socialization and regularity and shall be integrated with practice and carried out in light of local conditions, and take various forms. Article 8 In PST, the scientific spirit shall be upheld and pseudo shall be opposed and resisted. No unit or individual may, in the name of PST, engage in activities at the expense of public interests. Article 9 The State supports and promotes cooperation and exchange with foreign countries in the field of PST. Chapter II Organization and Administration Article 10 To exercise leadership over PST, people’s governments at various levels shall incorporate it into their plans for national economic and social development, in order to create a good environment and favorable conditions for PST. People’s governments at or above the county level shall establish a coordination system for PST. Article 11 The administrative department for science and technology under the State Council shall be in charge of formulating national plans for PST, provide policy-related orientation and exercise supervision and inspection, in order to advance work in this field. Other administrative departments under the State Council shall, within the limits of their functions and duties, be in charge of work related to PST. The administrative departments for science and technology of the local people’s governments at or above the county level and other administrative departments shall, under the leadership of the people’s governments at the same level and within the limits of their respective functions and duties, be in charge of work related to PST in their own regions. Article 12 The science and technology associations constitute the main quarters of the society working for PST. The associations shall carry out activities for PST which are characterized by mass participation, socialization and regularity, support related public organizations, enterprises and institutions in their efforts to carry out activities for PST, assist the government in formulating PST plans, and put forward suggestions to the governments when the latter makes policy-decisions on PST. Chapter III Responsibility of the Society Article 13 PST is a common task of the society as a whole. People form all circles of the society shall get organized to participate in different kinds of PST activities. Article 14 Various kinds of schools and other institutions of education shall make education in popular science and technology an essential component of quality-oriented education and make arrangements for students to carry out varied forms of activities for PST. Science and technology halls (stations), science and technology centers and other education bases for PST shall arrange extracurricular activities for education in science and technology among teen-agers. Article 15 Institutions of scientific research and technological development, institutions of higher education and public organizations in the fields of natural and social sciences shall get science and technology workers and teachers organized and support them in carrying out activities for PST and shall encourage them to publicize the importance of PST in combination with their own jobs. Where conditions permit, laboratories, exhibition rooms and other places and facilities shall be open to the general public, for holding lectures and providing consultancy there. Science and technology workers and teachers shall give full play to their advantages and expertise and take and active part in and support activities for PST. Article 16 Institutions and organizations of the press, publishing radio, film and television, and culture shall give full play to their own advantages to make a success of PST. In comprehensive newspapers and periodicals there shall be a special column or page for PST; radio and TV broadcasting stations shall have a PST program or relay such programs; film and television program production, distribution and showing institutions shall redouble their efforts in the production, distribution and showing of films and TV programs on PST; Institutions for publishing and distributing books and periodicals shall support the publication and distribution of books and periodicals on PST; comprehensive internet websites shall have PST pages; science and technology halls (stations), libraries, museums, culture centers and other places for cultural activities shall play role of education in popular science and technology. Article 17 State organs and institutions in charge of medical service and health care, family planning, environmental protection, land resources, sports, meteorology, earthquake, cultural relics, tourism, etc. shall conduct activities for PST in combination with their own functions. Article 18 Trade unions, Communist Youth League organizations, women’s federations and other public organizations shall arrange activities for PST in combination with the characteristics of the different groups of people they work among. Article 19 Enterprises shall conduct activities for PST in combination with technical up-dating and training in workers’ skills and may have, where conditions permit, halls and facilities open to the general public for PST. Article 20 The State strengthens work for PST in rural areas. Rural grassroots organizations shall, in light of the local need for economic and social development and centering on scientific production and a cultured life, play the role of town or township PST organizations or rural schools in the efforts for PST. The various forms of rural economic organizations, institutions for the spread of agricultural technology and professional technology associations in rural areas shall, while spreading the use of advanced and applicable technologies, disseminate scientific and technological knowledge among the farmers. Article 21 Urban grassroots organizations and communities shall, by making use of the local resources in science and technology, education, culture, public health, tourism, etc., conduct activities for PST in combination with the needs of the residents in their daily lives, study, health care, recreation, etc. Article 22 Units in charge of the operation and management of parks, department stores, airports, railway stations, ports and other public places shall, within the limits of their jurisdiction, increase publicity of the need for PST. Chapter IV Safeguards Article 23 People’s governments at various levels shall incorporate the expense for PST into their budget at the same level and gradually increase the input in PST, in order to guarantee that work in this field will go smoothly. Related departments of people’s governments at various levels shall arrange a certain amount of funds for PST. Article 24 People’s governments of provinces, autonomous regions and municipalities directly under the Central Government and other local people’s governments where conditions permit shall incorporate the construction of halls and facilities for PST into their plans for urban and rural construction and plannings for capital construction; they shall make better use of, maintain or refurbish the existing halls and facilities for PST. The halls for PST built with government investment shall be manned with the necessary full-time staff and be open to the general public all the year round, teen-agers shall enjoy preferences, and the halls may not be used for other purposes. Where they are short of funds, the government at the same level shall provide them with subsidies to enable them to operate normally. Where conditions are lacking for building halls for PST activities, the existing facilities for science and technology, education, culture, etc. may be used for such activities and galleries and show windows for PST may be set up. Article 25 The State supports work for PST and, in accordance with law, applies preferential taxation policies for undertakings in this field. For conducting PST activities and initiating PST undertakings, PST organizations may, in accordance with law, obtain subsidies and donation. Article 26 The State encourages public organizations and individuals at home and abroad to establish PST funds in support of support PST undertakings. Article 27 The State encourages public organizations and individuals at home and abroad to donate property in support of PST undertakings. Where such property is used for PST undertakings or is invested in the construction of PST halls or facilities, preferences shall be given in accordance with law. Article 28 Funds earmarked for PST and property donated by public organizations and individuals for PST undertakings shall be used for such undertakings, and no unit or individual may pocket, withhold or misappropriate them. Article 29 People’s governments and science and technology associations at various levels and related units shall support PST workers in their work and shall commend and award the organizations and individuals that have made important contributions to PST. Chapter V Legal Responsibility Article 30 Whoever, in the name of PST, engages in activities at the expense of public interests, disturbs social order or obtains money or things of value by cheating shall be criticized and educated by a competent department and be stopped; if he violates provisions on security administration, the public security organ shall impose a security administration punishment on him according to law; if a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. Article 31 Whoever, in violation of the provisions of this Law, pockets, withholds or misappropriates government funds earmarked for PST, or embezzles or misappropriates money or articles donated shall be ordered by a competent department to return them within a time limit; the persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law; if a crime is constituted, he and the persons shall be investigated for criminal responsibility. Article 32 Whoever, without authorization, puts to other uses the PST halls constructed with government investment shall be ordered by a competent department to set it right within a time limit. Where the circumstances are serious, the persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law. Whoever disturbs order in PST halls or damages PST halls or facilities shall ordered to desist from the wrongdoing, put the halls or facilities back to their former state or compensate for the damages. If a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. Article 33 Any state functionary who abuses his power in PST, neglects his duties or engages in malpractices for personal gain shall be given an administrative sanction in accordance with law. If a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. Chapter VI Supplementary Provision Article 34 This Law shall go into effect as of the date of promulgation.

ADMINISTRATION OF THE USE OF SEA AREAS LAW

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



	(Adopted at the 24th Meeting of the Standing Committee of the Ninth National People’s Congress on October 27, 2001 and promulgated by Order No. 61 of the President of the People’s Republic of China on October 27, 2001) Contents Chapter I General Provisions Chapter II Marine Function Zoning Chapter III Application for, and Examination and Approval of, the Use of Sea Areas Chapter IV Right to the Use of Sea Areas Chapter V Fees for the Use of Sea Areas Chapter VI Supervision and Inspection Chapter VII Legal Liabilities Chapter VIII Supplementary Provisions Chapter I General Provisions Article 1 This Law is enacted for the purpose of strengthening the administration of the use of sea areas, safeguarding State ownership of the sea areas and the legitimate rights and interests of the sea area users, promoting rational development and sustainable utilization of the sea areas. Article 2 For the purpose of this Law, the sea areas refer to the sea surface, water volume, seabed and subsoil of the inland waters and territorial seas of the People’s Republic of China. The inland waters in this Law refer to the sea areas extending from the landward side of the territorial seas of the People’s Republic of China to the coastline. This Law shall be applicable to any exclusive activities relating to the continuous use of a specific sea area over three months within the inland waters or territorial seas of the People’s Republic of China. Article 3 The sea areas are owned by the State, and the State Council exercises the right of ownership in the sea areas on behalf of the State. No entity or individual may seize, buy or sell the sea areas or illegally transfer them in other ways. Any entity or individual that intends to use the sea areas is required to obtain the right to their use in accordance with law. Article 4 The State applies the system for marine function zoning. The sea areas shall be used in conformity with the marine function zoning. The State exercises strict control over the activities relating to the use of the sea areas that may alter their natural attributes, such as filling sea areas and reclaiming land from them. Article 5 The State establishes an information system for the administration of the use of sea areas in order to oversee and monitor the use of the sea areas. Article 6 The State establishes a registration system for the right to the use of sea areas. Such right shall, once registered in accordance with law, be protected by law. The State establishes a statistics system for the use of the sea areas and periodically issues the statistics of such. Article 7 The department in charge of marine administration under the State Council shall be responsible for supervision over the use of the sea areas nationwide. The departments in charge of marine administration under the local people’s governments at or above the county level shall, as authorized, be responsible for supervision over the use of the sea areas adjacent to their administrative regions respectively. The department in charge of marine administration shall, in accordance with the Fisheries Law of the People’s Republic of China, conduct supervision over marine fishery. The maritime administration authority shall exercise supervision over maritime traffic safety in accordance with the Maritime Traffic Safety Law of the People’s Republic of China. Article 8 All entities and individuals are obligated to abide by the laws and regulations on the administration of the use of the sea areas and have the right to report violations of such laws and regulations and bring complaints about them. Article 9 People’s governments shall reward the entities and individuals that have achieved outstanding successes in protecting and rationally utilizing the sea areas and in scientific research in this field. Chapter II Marine Function Zoning Article 10 The department in charge of marine administration under the State Council shall, in conjunction with the departments concerned and the people’s governments of coastal provinces, autonomous regions, and municipalities directly under the Central Government work out marine function zoning plans. The departments in charge of marine administration under the coastal local people’s governments at or above the county level shall, in conjunction with the departments concerned of the people’s governments at the same level, work out the local marine function zoning plans on the basis of such plans worked out at the next higher level. Article 11 Marine function zoning plans shall be worked out on the following principles: (1) scientifically defining the functions of the sea areas in light of such natural attributes as their geographical location, natural resources and natural environment; (2) making overall arrangements for the use of sea areas among various related sectors according to the needs of economic and social development; (3) protecting and improving the ecological environment, ensuring the sustainable utilization of the sea areas and promoting the development of the marine economy; (4) ensuring the maritime traffic safety; and (5) safeguarding the security of national defense and guaranteeing the needs in the military use of the sea areas. Article 12 Marine function zoning plans shall be subject to examination and approval by different levels. The national marine function zoning plan shall be submitted to the State Council for approval. The marine function zoning plan of a coastal province, autonomous region or municipality directly under the Central Government shall, after examination and consent by the people’s government of the said province, autonomous region or municipality, be submitted to the State Council for approval. The marine function zoning plan of a coastal city or county shall, after examination and consent by the people’s government of the said city or county, be submitted for approval to the people’s government of the province, autonomous region or municipality directly under the Central Government where the city or county is located, and reported to the department in charge of marine administration under the State Council for the record. Article 13 With regard to alteration of a marine function zoning, a proposal for alteration shall be put forward by the department that works out the plan for the zoning, in conjunction with the departments concerned at the same level, for approval by the original approving department. In the absence of such approval, no functions of the sea areas defined by the marine function zoning may be altered. Where marine function zoning that needs to be altered for public interests, security of national defense or construction of large-scale energy, traffic or other infrastructures shall be subject to approval by the State Council, and the alteration shall be made according to the documents of approval issued by the State Council. Article 14 A marine function zoning plan shall, upon approval, be made known to the public except for the parts relating to State secrets. Article 15 Plans for acquaculture, the salt industry, communications, tourism and other industries that involve the use of sea areas shall be made in conformity with the marine function zoning . The overall plan for the utilization of coastal land, urban planning and port planning that involve the use of sea areas shall be dovetailed with the marine function zoning. Chapter III Application for, Examination and Approval of the Use of Sea Area Article 16 Any entity and individual may, for the use of sea areas, apply to the department in charge of marine administration under the people’s government at or above the county level. To apply for the use of sea areas, the applicant shall submit the following written materials: (1) an application for the use of sea areas; (2) feasibility assessment of the use of the sea areas; (3) relevant credit certifying papers; and (4) other written materials specified by laws and regulations. Article 17 The department in charge of marine administration under the people’s government at or above the county level shall, on the basis of the marine function zoning, examine applications for the use of sea areas, and shall, in accordance with the provisions of this Law and the regulations of the people’s government of the province, autonomous region, or municipality directly under the Central Government, submit the applications for approval to the people’s government invested with the approval authority. When examining applications for the use of sea areas, the department in charge of marine administration shall solicit opinions from the departments concerned at the same level. Article 18 Use of sea areas for the following projects shall be subject to examination and approval by the State Council: (1) a project that involves filling of more than 50 ha. of a sea area; (2) a project that involves enclosure of more than 100 ha. of a sea area; (3) a project that involves the use of more than 700 ha. of a sea area without altering the natural attributes of the area; (4) major national construction projects; and (5) other projects specified by the State Council. The authority for examination and approval of the use of sea areas for projects other than the ones specified in the preceding paragraph shall, with the authorization of the State Council, be defined by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. Chapter IV Right to the Use of Sea Areas Article 19 Where the use of a sea area is approved by the State Council after the application for its use is approved in accordance with law, it shall be registered with the department in charge of marine administration under the State Council, which shall issue to the applicant the certificate of the right to the use of sea areas; where the use of a sea area is approved by a local people’s government, it shall be registered with the said government, which shall issue to the applicant the certificate of the right to the use of sea areas. The applicant shall, beginning from the date he receives the certificate, obtain the right to the use of the sea area. Article 20 Apart from the manners in which to obtain the right to the use of sea areas in accordance with the provisions of Article 19 of this Law, such right may also be obtained through bidding or auction. The plan for bidding or auction shall be formulated by the department in charge of marine administration and submitted to the people’s government invested with the examination and approval authority for approval before it is implemented. When formulating the plan for bidding or auction, the department in charge of marine administration shall solicit opinions from the departments concerned at the same level. Once the bidding or auction is completed, the certificate of the right to the use of sea areas shall be issued to the winning bidder or the vendee. The winning bidder or the vendee shall, beginning from the date he receives the certificate, obtain the right to the use of the sea area. Article 21 Issuance of the certificate of the right to the use of sea areas shall be made known to the public. For issuance of the certificate of the right to the use of sea areas, no fees other than the ones for the use of sea areas may be collected in accordance with law. Measures for issuance and administration of the certificate of the right to the use of sea areas shall be formulated by the State Council. Article 22 Where, prior to implementation of this Law, sea areas are already used for aquaculture under the operation and administration of rural collective economic organizations or villagers committees, if it conforms to marine function zoning, the right to the use of such sea areas may, upon examination and approval by the local people’s government at the county level, be granted to the rural collective economic organizations or villagers committees. Members of the collective economic organizations may contract to use such areas for aquaculture. Article 23 The right of the owners of the right to the use of sea areas to utilize the areas and to get profits in accordance with law shall be protected by law; no entity or individual may infringe upon their right. Owners of the right to the use of sea areas are obligated to protect and rationally utilize the sea areas in accordance with law. They may not impede the non-exclusive use of sea areas that does not interfere with their use of the sea areas in accordance with law. Article 24 During the period when they use the sea areas, no owners of the right to the use of sea areas may, without approval according to law, engage in marine basic mapping. When owners of the right to the use of sea areas find that a major change has occurred in the natural resources and conditions of the areas they are using, they shall, without delay, report the matter to the departments in charge of marine administration. Article 25 The maximum period for the right to the use of sea areas shall, on the basis of the purposes of their use, be determined as follows: (1) 15 years for aquaculture; (2) 20 years for ship dismantling; (3) 25 years for tourism and recreation; (4) 30 years for the salt and mining industries; (5) 40 years for public welfare undertakings; and (6) 50 years for construction of ports, shipyards and other projects. Article 26 Where at the expiration of the period for the right to the use of the sea areas, the owner of the right needs to continue to use the area, he shall, no later than two months prior to the expiration date, apply for extension to the people’s government that originally gives approval. Except where it is necessary to revoke the right for the benefit of public interests or State security, the people’s government that originally gives approval to the use of the sea area shall approve the application for extension. The owner of the right who obtains approval for extension shall, in accordance with law, pay fees for the use of the sea area for the extended period. Article 27 Where the owner of the right to the use of a sea area is altered owing to mergence into or separation from another enterprise or because of running joint ventures or cooperative businesses with others, the matter shall be subject to approval by the people’s government that originally gives approval to the use of the sea area. The right to the use of sea areas may be transferred in accordance with law. Specific measures in this regard shall be formulated by the State Council. The right to the use of sea areas may be inherited in accordance with law. Article 28 No owners of the right to the use of sea areas may, without authorization, change the approved purposes of use of the sea areas. Where it is really necessary to change the purposes, the matter shall, under the prerequisite that the change accords with the marine function zoning, be submitted for approval to the people’s government that originally gives the approval to the use of the sea areas. Article 29 Where at the expiration of the period for the right to the use of sea areas, the owner fails to apply for its extension or the application for extension is not granted, such right shall be terminated. After the termination of the right to the use of sea areas, the former owner of the right shall dismantle the facilities and structures that may cause pollution to the marine environment or impede the use of the areas for other projects. Article 30 To meet the need of public interests or State security, the people’s government that originally gives approval to the use of certain sea areas may, in accordance with law, revoke the right to the use of those areas. Where in accordance with the provisions of the preceding paragraph, the right to the use of sea areas is revoked before the expiration of the period for their use, the owner of the right shall be compensated appropriately. Article 31 Where a dispute arises over the right to the use of a sea area and the parties fail to settle it through consultation, it shall be mediated by the department in charge of marine administration under the people’s government at or above the county level. The parties may also directly take legal proceedings in a People’s Court. Prior to the settlement of the dispute, none of the parties may change the status quo in respect of the use of the sea areas. Article 32 The land brought into existence after completion of a sea-filling project shall be owned by the State. The owner of the right to the use of a sea area shall, within three months from the date the sea-filling project is completed and by presenting the certificate of the right to the use of sea areas, apply to the department in charge of land administration under the people’s government at or above the county level for land registration. The said people’s government shall register it and issue to the owner in return the certificate of the right to the use of land so as to confirm such right. Chapter V Fees for the Use of Sea Areas Article 33 The State applies a system of compensation for the use of sea areas. For the use of sea areas, all entities and individuals shall pay fees in accordance with the regulations of the State Council. The fees collected shall be turned over to the Treasury in accordance with the regulations of the State Council. Specific implementation ways and measures for collecting fees from the fishermen who use the sea areas for aquaculture shall be formulated separately by the State Council. Article 34 In light of the different nature and circumstances in which the sea areas are used, the fees may, in accordance with regulations, be paid in a lump sum or on an annual basis. Article 35 Where the sea areas are used for the following purposes, the fees for their use shall be exempted: (1) for military purposes; (2) reserved docks for official ships; (3) non-profit transportation infrastructures such as navigation channel and anchorage; and (4) non-profit, public welfare undertakings such as teaching, scientific research, disaster prevention and mitigation, and search, rescue and salvage at sea; Article 36 In accordance with the regulations of the department of finance and the department in charge of marine administration under the State Council, the fees for the use of the sea areas for the following purposes may be reduced or exempted upon examination and approval by the department of finance and the department in charge of marine administration under the people’s government that has the approval authority: (1) public utilities; (2) major national construction projects; and (3) aquaculture. Chapter VI Supervision and Inspection Article 37 The department in charge of marine administration under the people’s government at or above the county level shall strengthen supervision over and inspection of the use of sea areas. The department of finance under the people’s government at or above the county level shall strengthen supervision over and inspection of the collection of the fees for the use of sea areas. Article 38 The department in charge of marine administration shall build a stronger contingent by raising the political and professional level of the supervisors and inspectors in the administration of the use of sea areas. The said supervisors and inspectors shall enforce laws impartially, be devoted to their duties, honest and upright, provide services with civility and subject themselves to supervision in accordance with law. No department in charge of marine administration or its staff members may participate or engage in production and operation activities related to the use of sea areas. Article 39 When performing its duties of supervision and inspection, the department in charge of marine administration under the people’s government at or above the county level shall have the right to take the following measures: (1) requesting the entities or individuals under inspection to provide the documents and information relating to the use of sea areas; (2) requesting the entities or individuals under inspection to give explanations on the issues relating to the use of sea areas; (3) entering the sea areas occupied by the entities or individuals under inspection for on-the-spot survey; (4) instructing the party concerned to discontinue the illegal act that is being conducted. Article 40 When performing their duties of supervision and inspection, supervisors and inspectors shall show their effective papers for law enforcement. The entities and individuals concerned shall cooperate with the department in charge of marine administration when the latter conducts supervision and inspection, and none of them may prevent supervisors and inspectors from performing their duties in accordance with law, or impede their doing so. Article 41 When enforcing laws at sea, the departments concerned that exercise the power of marine supervision and administration in accordance with the provisions of laws shall closely cooperate with and support each other in and jointly safeguard the State ownership of the sea areas and the legitimate rights and interests of the owners of the right to the use of sea areas. Chapter VII Legal Liabilities Article 42 Entities or individuals that, without approval or with approval obtained through deception, illegally occupy sea areas shall be instructed to return the illegally occupied sea areas and restore them to their original state, their illegal gains shall be confiscated, and they shall also be fined not less than 5 times but not more than 15 times the fees payable for the sea areas during the period of their illegal occupation. Entities or individuals that, without approval or with approval obtained through deception, enclose or fill sea areas shall, in addition, be fined not less than 10 times but not more than 20 times the fees payable for the sea areas during the period of their illegal occupation. Article 43 Where entities that have no approval authority illegally approve the use of sea areas, or entities that have such authority but gives approval beyond their limits of authority or at variance with the marine function zoning, the approval documents are invalid and the sea areas illegally used shall be recovered. The persons directly in charge who illegally approve the use of the sea areas and the other persons directly responsible shall be given administrative sanctions in accordance with law. Article 44 Where any entity or individual, in violation of the provisions of Article 23 of this Law, interferes with or obstructs the lawful use of sea areas by the owner of the right to use of such areas, the owner of the right may appeal to the department in charge of marine administration for removal of the interference or obstruction, he may also take legal proceedings in a People’s Court in accordance with law. If losses are caused, the owner may ask for compensation according to law. Article 45 Anyone who, in violation of the provisions of Article 26 of this Law, continues to use the sea area without going through the relevant formalities at the expiration of the period for the right to the use of the sea area shall be instructed to go through the formalities within a time limit and may also be fined not more than RMB 10,000 yuan. If he refuses to go through the formalities, he shall be deemed to be a person who illegally occupies a sea area and be punished as such. Article 46 Anyone who, in violation of the provisions of Article 28 of this Law and without authorization, changes the purposes of use of the sea area shall be instructed to rectify within a time limit, his illegal gains shall be confiscated, and he shall also be fined not less than 5 times but not more than 15 times the fees payable for the sea area during the period in which the purposes of use of the sea area is illegally changed. If he refuses to rectify, the people’s government that issues the certificate of the right to the use of sea areas shall revoke the certificate and the right to the use of sea areas. Article 47 Where the provisions of the second paragraph of Article 29 of this Law are violated, the right to the use of sea areas shall be terminated, and if the original owner of the right fails to dismantle the facilities and structures for the use of the sea areas in accordance with regulations, he shall be instructed to do so within a time limit. If he refuses to do so at the expiration of the time limit, he shall be fined not more than 50, 000 yuan and the department in charge of marine administration under the people’s government at or above the county level shall entrust a relevant unit to do the dismantling, and the owner shall bear the expenses arising therefrom. Article 48 Where the owner of the right to the use of sea areas who should pay the fees for such use on an annual basis fails to do so on schedule in violation of the provisions of this Law, he shall be instructed to pay the fees within a time limit; if he still refuses to pay the fees within the time limit, the people’s government that issues the certificate of the right to the use of sea areas shall revoke the certificate and the right to the use of sea area. Article 49 Any entity or individual that, in violation of the provisions of this Law, refuses to accept supervision and inspection by the department in charge of marine administration, to give a truthful report or provide relevant information shall be instructed to rectify and be given a disciplinary warning, and may also be fined not more than 20,000 yuan. Article 50 The administrative sanctions provided for by this Law shall be determined by the department in charge of marine administration under the people’s government at or above the county level within the limits of its power, except where there are already provisions in this Law that specify the penalizing authority. Article 51 Where the department in charge of marine administration under the State Council or under the people’s government at or above the county level issues the certificate of the right to the use of sea areas in violation of the provisions of this Law, or fails to conduct supervision after issuance of the certificate, or fails to investigate and deal with the illegal activities it discovers, the persons directly in charge and the other persons directly responsible shall be given administrative sanctions in accordance with law. The persons who engage in malpractice for personal gain, abuse their powers or neglect their duties, which constitutes a crime, shall be investigated for criminal liabilities in accordance with law. Chapter VIII Supplementary Provisions Article 52 For use of a special sea area within the inland waters or territorial seas of the People’s Republic of China for less than three months, and for use of the sea areas for exclusive activities, which may have a major impact on the security of national defense, maritime traffic safety or other uses of the sea areas, formalities shall be completed for the issuance of a provisional certificate for the use of sea areas through application of the relevant provisions of this Law mutatis mutandis. Article 53 The administrative measures for military use of the sea areas shall be formulated by the State Council and the Central Military Commission on the basis of this Law. Article 54 This Law shall go into effect as of January 1, 2002.

PREVENTION AND CONTROL OF DESERTIFICATION LAW

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

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

Contents

Chapter I General Provisions

Chapter II Plans for Prevention and Control of Desertification

Chapter III Prevention of Land Desertification

Chapter IV Rehabilitation of Desertified Land

Chapter V Supporting Measures

Chapter VI Legal Responsibility

Chapter VII Supplementary Provisions

Chapter I

General Provisions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter II

Plans for Prevention and Control of Desertification

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

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

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

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

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

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

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

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

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

Chapter III

Prevention of Land Desertification

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter IV

Rehabilitation of Desertified land

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

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

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

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

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

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

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

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

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

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

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

(3) certificate of funds needed for rehabilitation.

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

(1) the rehabilitation scope and boundary;

(2) phased goals and time limit for rehabilitation;

(3) major rehabilitation measures;

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

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

(6) other particulars needed to be stated clearly.

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

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

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

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

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

Chapter V

Supporting Measures

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

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

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

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

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

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

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

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

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

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

Chapter VI

Legal Responsibility

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

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

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

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

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

PREVENTION AND CONTROL OF OCCUPATIONAL DISEASES LAW

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

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

Contents

Chapter I General Provisions

Chapter II Preliminary Prevention

Chapter III Prevention and Control in the Course of Work

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

Chapter V Supervision and Inspection

Chapter VI Legal Responsibility

Chapter VII Supplementary Provisions

Chapter I

General Provisions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter II

Preliminary Prevention

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter III

Prevention and Control in the Course of Work

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) receive education and training in occupational health;

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

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

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

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

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

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

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

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

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

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

Chapter IV

Diagnosis of Occupational Diseases

and Security for Occupational Disease Patients

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

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

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

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

(1) the patient’s occupational history;

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

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

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

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

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

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

1...567 Page 6 of 7

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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

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CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

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CONSTITUTION ACT, 1982 – page 7

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CONSTITUTION ACT, 1982 – page 22

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CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

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