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PREVENTION AND CONTROL OF DESERTIFICATION LAW

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

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

Contents 

Chapter I    General Provisions 

Chapter II   Plans for Prevention and Control of Desertification 

Chapter III  Prevention of Land Desertification 

Chapter IV   Rehabilitation of Desertified Land 

Chapter V    Supporting Measures 

Chapter VI   Legal Responsibility 

Chapter VII  Supplementary Provisions 

Chapter I 

General Provisions 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter II 

Plans for Prevention and Control of Desertification 

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

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

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

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

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

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

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

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

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

Chapter III 

Prevention of Land Desertification 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter IV 

Rehabilitation of Desertified land 

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

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

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

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

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

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

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

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

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

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

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

(3) certificate of funds needed for rehabilitation. 

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

(1) the rehabilitation scope and boundary; 

(2) phased goals and time limit for rehabilitation; 

(3) major rehabilitation measures; 

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

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

(6) other particulars needed to be stated clearly. 

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

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

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

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

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

Chapter V 

Supporting Measures 

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

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

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

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

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

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

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

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

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

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

Chapter VI 

Legal Responsibility 

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

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

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

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

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

PREVENTION AND CONTROL OF OCCUPATIONAL DISEASES LAW

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

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

Contents 

Chapter I    General Provisions 

Chapter II   Preliminary Prevention 

Chapter III  Prevention and Control in the Course of Work 

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

Chapter V    Supervision and Inspection 

Chapter VI   Legal Responsibility 

Chapter VII  Supplementary Provisions 

Chapter I 

General Provisions 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter II 

Preliminary Prevention 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter III 

Prevention and Control in the Course of Work 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) receive education and training in occupational health; 

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

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

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

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

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

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

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

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

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

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

Chapter IV 

Diagnosis of Occupational Diseases 

and Security for Occupational Disease Patients 

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

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

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

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

(1) the patient’s occupational history; 

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

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

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

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

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

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

PRODUCTION SAFETY LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.70

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

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

June 29, 2002

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

Chapter II Guarantee of Safety by Production and Business Operation Entities

Chapter III Rights and Obligations of Employees

Chapter IV Supervision and Administration of Production Safety

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

Chapter VI Legal Liabilities

Chapter VII Supplementary Provisions

Chapter I General Principles

Article 1

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

Article 2

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

Article 3

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

Article 4

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

Article 5

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

Article 6

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

Article 7

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

Article 8

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

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

Article 9

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

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

Article 10

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

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

Article 11

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

Article 12

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

Article 13

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

Article 14

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

Article 15

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

Chapter II Guarantee of Safety by Production and Business Operation Entities

Article 16

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

Article 17

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

a.

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

b.

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

c.

Ensuring the effective execution of input in production safety;

d.

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

e.

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

f.

Reporting production safety accidents truthfully and in good time.

Article 18

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

Article 19

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

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

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

Article 20

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

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

Article 21

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

Article 22

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

Article 23

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

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

Article 24

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

Article 25

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

Article 26

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

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

Article 27

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

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

Article 28

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

Article 29

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

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

Article 30

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

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

Article 31

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

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

Article 32

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

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

Article 33

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

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

Article 34

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

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

Article 35

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

Article 36

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

Article 37

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

Article 38

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

Article 39

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

Article 40

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

Article 41

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

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

Article 42

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

Article 43

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

Chapter III Rights and Obligations of Employees

Article 44

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

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

Article 45

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

Article 46

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

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

Article 47

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

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

Article 48

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

Article 49

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

Article 50

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

Article 51

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

Article 52

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

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

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

Chapter IV Supervision and Administration of Production Safety

Article 53

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

Article 54

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

Article 55

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

Article 56

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

a.

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

b.

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

c.

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

d.

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

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

Article 57

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

Article 58

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

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

Article 59

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

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

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

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

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

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

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

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

    

MOFTEC P.R.C.

EDITOR:Victor






PROCEDURAL CONCLUSION OF TREATIES

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

    

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

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

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

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

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

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

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

(1) The People’s Republic of China;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(6) Other treaties and agreements subject to ratification.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    






ADMINISTRATIVE RULES ON TRUST AND INVESTMENT COMPANIES

The People’s Bank of China

Order of the People’s Bank of China

No.5

In accordance with laws of Trust law of the People’s Republic of China and Law of the People’s Republic of China on the People’s Bank
of China etc, and regulations of the State Council, Administrative Rules on Trust and Investment Companies amended by the People’s
Bank of China, are hereby promulgated and carried out.

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

May 9, 2002

Administrative Rules on Trust and Investment Companies

Chapter I General Provisions

Article 1

These rules are formulated according to the “Trust Law of the People’s Republic of China”, the ” Law on the People’s Bank of China
of the People’s Republic of China” and relevant rules of the State Council, so as to strengthen supervision and administration of
Trust and Investment Companies (TICs), standardize their operations and promote healthy development of the trust and investment industry.

Article 2

Trust and Investment Companies (TICs) hereof refer to financial institutions that are mainly engaged in trust business and established
in accordance with ” Company Law of the People’s Republic of China” and these rules.

Article 3

“Trust” in these rules refers to following activities: The client entrusts his or her property to the trustee based on his or her
trust in the trustee and the property is managed and disposed of by the trustee on his or her own name in a way that is in line with
the client’s will and aimed at benefiting the beneficiary or achieving other particular goals.

“Client” refers to individuals, legal persons or other legal organizations that have full capacity to perform civil action; “Beneficiary”
refers to individuals, legal persons or other legal organizations that enjoy the benefits of entrusted property. The Client and the
Beneficiary could be the same person, or otherwise. The trustee could be the beneficiary but not the only beneficiary of the same
entrustment.

Article 4

“Trust business” in the regulation refers to the operation that a TIC accept the entrustment and deal with the entrustment affairs
as the trustee for the purpose of operating and earning remuneration.

Article 5

“Entrusted property” in these rules refers to property accepted by a TIC through entrustment commitments. Any property obtained from
the management, utilization, disposal or other operations of the entrusted property by a TIC shall also be regarded as entrusted
property. Any property whose transaction is prohibited by laws and regulations shall not be used as entrusted property. Any property
whose transaction is restricted by laws and administrative regulations can be used as entrusted property after being approved by
relevant authorities.

The entrusted properties are neither a TIC’s own assets nor its liabilities to the beneficiary. When a TIC ceases operation, the entrusted
property shall not be included in assets to be liquidated.

Article 6

The entrustment will not terminate with the dissolution, bankruptcy or closure of a TIC, nor with its quitting from the entrustment,
unless it is stipulated otherwise by laws or entrustment contract.

Article 7

The operations of a TIC shall be organized in accordance with laws, regulations and entrustment contract, and shall not harm the interests
of the state and the general public or the legitimate interest of other persons.

Article 8

When managing and disposing of the entrusted property, a TIC shall be faithful to their duties and fulfill the obligation of being
honest, credible, prudent and efficient.

Article 9

A TIC shall not be allowed to take deposits, issue bonds or borrow from abroad.

Article 10

The People’s Bank of China is to supervise TICs and their operations according to laws, administrative regulations and these rules.

Chapter II Establishment, Alteration and Termination of TICs

Article 11

TICs shall be established in the form of limited liability companies or share-holding companies.

Article 12

A TIC shall get the approval of the People’s Bank of China for its establishment and the “license for trust and investment institution”
as well. No entities or individuals can engage in trust business without approval of the People’s Bank of China, nor can any commercial
institution use “Trust & Investment” in its name unless particularly permitted by laws and regulations.

Article 13

The establishment and operation of a TIC shall meet the following criteria:

1)

Articles of association that conform to the “Company law of the People’s Republic of China” and regulations of the People’s Bank of
China.

2)

Eligible shareholders according to regulations of the People’s Bank of China.

3)

Registered capital no less than the minimum requirements stipulated by these rules.

4)

Eligible senior managerial personnel and qualified trust business staff according to regulations of the People’s Bank of China.

5)

Complete organizational structure, comprehensive rules of trust operation and sound risk-control systems.

6)

Business premise, security system and other business-related facilities as required.

7)

Other criteria set by the People’s Bank of China.

The People’s Bank of China can review the application for the establishment of a TIC according to the need of economic development
and the market situation of trust business.

Article 14

The registered capital of a TIC shall be no less than RMB 300 million Yuan.

A TIC engaged in foreign exchange business shall have foreign currency of no less than USD 15 million in its registered capital.

The People’s Bank of China can modify the minimum requirement of registered capital for the establishment of a TIC according to the
development needs of TIC sector.

Article 15

A TIC shall obtain approval from the People’s Bank of China in following matters:

1)

Change of name.

2)

Change of registered capital.

3)

Change of location.

4)

Change of organizational structure.

5)

Adjustment of business scope.

6)

Change of senior management.

7)

Change of major shareholders or shareholding structure. Shareholders of a listed TIC with their holdings of tradable shares less than
10% of total shares are not included.

8)

Modification of the Articles of Association.

9)

Merger or split-up.

10)

Other changes stipulated by the People’s Bank of China.

Article 16

A TIC that applies for dissolution due to the merger, split-up or other reasons stipulated in its Articles of Association can dissolute
after being approved by the People’s Bank of China, and then be liquidated by a liquidation task force set up in accordance with
relevant laws.

Article 17

When a TIC cannot pay its maturing debt due to illegal operations or poor management, and the public interests would be damaged or
the financial system would be endangered unless it is closed, the People’s Bank of China shall close it according to the ” Regulations
on Closure of Financial Institutions”.

Article 18

A TIC that can’t pay its maturing debt may apply for bankruptcy to the People’s Court with the approval of the People’s Bank of China.

Article 19

The approval procedure of TICs’ establishment, alteration and termination shall follow the relevant regulations of the People’s Bank
of China.

Chapter III Business Scope

Article 20

A TIC can apply to engage in part or all of the following businesses both in local and foreign currencies:

1)

Entrusted funds management. The Client entrusts funds, which are his or her legitimate property, to the TIC to be managed, used and
disposed of on agreed terms and objectives.

2)

Entrusted management of movables, real estate and other properties. The Client entrusts his or her property or property rights, including
moveable property, real estate, land, copyright and intellectual property rights, to the TIC to be managed, used or disposed of on
agreed terms and objectives.

3)

Entrusted management of investment funds permitted by relevant laws and administrative regulations. A TIC can engage in investment
fund business as a sponsor of an investment fund or a fund management company.

4)

Restructuring and acquisition of enterprises’ assets; intermediary businesses such as project financing, corporate financial management,
financial consulting, etc.

5)

Entrusted underwriting of treasury bonds, financial institutions bonds and corporate bonds with approval of relevant departments of
the State Council.

6)

Management, utilization and disposal of entrusted properties.

7)

Entrusted custody.

8)

Credit certification and investigation; business consulting.

9)

Providing guarantee for others backed by its own assets.

10)

Other businesses approved by the People’s Bank of China.

Article 21

A TIC can accept entrustments with following public objectives according to relevant provisions of the” Trust Law of the People’s
Republic of China”:

1)

Poverty aid.

2)

Disaster relief.

3)

Assistance to the disabled.

4)

Development of education, science, sports, culture and art.

5)

Development of medical care and public sanitation.

6)

Development of environmental protection, preservation of ecological environment.

7)

Development of other social courses that are in the interest of the society.

Article 22

A TIC can manage or use the entrusted property by means of leasing, selling, lending, investing or interbank lending according to
the terms of entrustment contract.

Article 23

A TIC can design its businesses products according to objectives of the entrustment, types of entrusted property or different ways
of management of entrusted property.

Article 24

A TIC’s own capital in the account of owner’s equity, which is permitted to be used according to relevant rules, can be deposited
in banks or used in interbank lending, lease financing and investment. However, its outstanding balance of equity investment and
fixed assets for its own use shall not exceed 80% of its net assets.

Article 25

After being approved by the People’s Bank of China, a TIC can engage in interbank borrowing and lending.

Article 26

The business scope of a TIC shall be defined by its Articles of Association and approved by the People’s Bank of China.

Chapter IV Rules of Business Operation

Article 27

An entrustment shall be created in a written form, including entrustment contracts, wills or other written documents required by relevant
laws and administrative regulations.

Article 28

When an entrustment is created in the form of an entrustment contract, the entrustment contract shall contain the following contents:

1)

Objectives of the entrustment.

2)

Name and addresses of the client and the trustee.

3)

The beneficiary or the coverage of beneficiaries.

4)

Scope, type and condition of the entrusted property.

5)

Rights and obligations of involved parties of the entrustment.

6)

Revealing and undertaking of risks arising from the management of entrusted property.

7)

Management of the entrusted property and the trustee’s authorized business scope.

8)

Calculation of benefits of the entrustment and the way in which the benefits to be transferred to the beneficiary.

9)

Calculation and payment of TIC’s remuneration.

10)

Tax payments on the entrusted property and accounting of other costs.

11)

Maturity and termination of the entrustment.

12)

Ownership of the entrusted property when the entrustment terminates.

13)

Reporting of entrustment affairs.

14)

The responsibilities for defaults of the involved parties and resolution of disputes.

15)

Selection and appointment of new trustee.

16)

Other items that both the client and the trustee deem necessary to be included.

Article 29

A TIC shall follow the principle of maximizing beneficiary’s benefit when dealing with entrustment affairs, and manage the entrusted
property prudently.

Article 30

A TIC shall not take deposits in the name of entrusted funds management or other businesses.

Article 31

A TIC shall refrain from following behaviors when doing trust business:

1)

Seek illegitimate gains by taking advantage of its trustee status.

2)

Misuse entrusted property for non-entrusted purposes.

3)

Promise no losses of entrusted property or guarantee minimum returns.

4)

Use entrusted property to provide guarantees.

5)

Invest the entrusted funds in securities issued by itself or related persons.

6)

Lend the entrusted fund to itself or other related persons.

7)

Trade entrusted properties between different trust accounts.

8)

Trade between its’ own assets and the entrusted property.

9)

Other behaviors prohibited by laws, administrative regulations and the People’s Bank of China.

Transactions based on the terms of entrustment contract and conducted at a fair market price by a TIC are exempted from items (4)-(8)
in the above article.

Article 32

The related persons mentioned above refer to:

1)

Shareholders of the TIC holding shares of more than 10% of the total.

2)

Enterprises invested and controlled by the TIC.

3)

Directors, supervisors, managers and trust business staff of the TIC and their relatives.

4)

Companies, enterprises and other commercial entities with the persons mentioned above holding more than 5% of total shares or holding
senior management positions.

Article 33

A TIC shall conduct the entrusted business by itself unless stipulated otherwise by entrustment contract or justified by unavoidable
incidents. In the case of the latter, the TIC can entrust others to do the business on its behalf.

Article 34

Confidentiality shall be kept regarding information of the client, the beneficiary and the situation of entrustment affairs, unless
stipulated otherwise by laws, administrative regulations or the entrustment contract.

Article 35

A TIC shall separate its own assets from entrusted properties and manage entrusted properties of different clients separately in different
accounts.

Article 36

A TIC shall maintain complete records of entrustment affairs, and report to clients and beneficiaries at least every year situation
of the entrusted properties, management, utilization and disposal of entrusted properties and income and expenses.

Clients and beneficiaries are enpost_titled to inquire about the management, utilization and disposal of entrusted properties and income
and expenses at any time, and request explanations from TICs.

Article 37

A TIC receives remuneration for its trust business in the way of commissions and service charges as agreed.

A TIC’s remuneration is determined through negotiation with its clients, unless stipulated otherwise by the People’s Bank of China.

Article 38

Losses of the entrusted property due to a TIC’ violation of the entrustment objectives and managerial responsibility or improper operations
shall be compensated or restored to the original state by the TIC. The TIC cannot ask for any remuneration before the compensation
or the restoration is made.

Article 39

Any cost or debt of a TIC arising from its dealing with entrustment affairs shall be paid with the entrusted property, while the client
shall be clearly informed with such a provision or the provision shall be included in the entrustment contract. If a TIC makes advance
payment with its own assets, it can enjoy the preferential reimbursement with the entrusted property. Any loss or debt resulted from
a TIC’s managerial failure or improper operations shall be paid by the TIC’s own assets.

Article 40

If a TIC disposes of the entrusted property against objectives of the entrustment or makes serious mistakes in its management, utilization
and disposal of the entrusted property, the client shall be enpost_titled to discharge the TIC in accordance to the entrustment contract
or apply to the People’s Court for discharging the TIC.

Article 41

When a TIC ceases operation; its managerial responsibility for the entrustment business also ceases. The liquidation task force shall
keep the entrusted property in careful custody, prepare report on entrustment affairs and transfer the entrusted property to the
new trustee, unless being stipulated otherwise by the entrustment contract.

Article 42

When a TIC’s responsibility as a trustee is brought to an end according to laws and regulations, a new TIC shall be selected according
to the terms of entrustment contract; if there is no such stipulation in the entrustment contract, a replacement shall be selected
by the client; if the client cannot make the choice, it shall be selected by the beneficiary; if the beneficiary has no civil capacity
or only limited civil capacity, the selection will be made by its guardian as stated by law.

Article 43

The entrustment terminates under any of the following circumstances in a TIC’s trust business:

1)

Occurrence of specific incidents that call for a termination as defined in the entrustment contract.

2)

Continuation of the entrustment is against objectives of the entrustment.

3)

The objectives of entrustment have been achieved, or are not possible to achieve.

4)

Agreed by all relevant parties of the entrustment.

5)

The entrustment matures.

6)

The entrustment is withdrawn.

7)

The entrustment is canceled.

8)

All the beneficiaries give up their rights to benefit from the entrustment.

Article 44

When the entrustment ends, a TIC shall prepare liquidation reports on their entrustment affairs. If the beneficiary or the owner of
the entrusted property has no objection, the TIC shall be released from responsibilities for affairs outlined in the liquidation
report, unless the TIC has been found in irregularities.

Article 45

When accepting funds entrusted to them to determine on behalf of the clients how to manage these funds, a TIC shall be subject to
the following restrictions:

1)

Maturity of the entrustment shall be no less than 1 year.

2)

Every single entrusted fund shall be no less than RMB 50,000 Yuan.

Article 46

The People’s Bank of China can formulate rules on the management of entrusted funds that are entrusted to a TIC to determine their
management according to the need of financial risks prevention.

Article 47

When engaged in foreign exchange trust business, a TIC shall abide by relevant regulations on foreign exchange controls and be supervised
and examined by the foreign exchange control authorities.

Article 48

The total amount of the guarantees provided by a TIC or its outstanding borrowing shall not exceed its registered capital.

Article 49

A TIC shall conform to relevant regulations of the People’s Bank of China when engaging in interbank lending with entrusted funds
or its own funds.

Article 50

A TIC shall retain 5% of its after-tax profit each year as a provision to compensate losses of the entrusted property, and it can
stop this provisioning when the cumulative balance reaches 20% of its registered capital.

Compensation provision of a TIC shall only be deposited in domestic commercial banks with sound operation and strong performance or
invested in treasury bonds.

Chapter V Supervision and Self-regulation

Article 51

A TIC shall formulate its own rules on trust business and other businesses, establish and improve its own managerial system and internal
controls, and report to the People’s Bank of China for record-keeping.

A TIC shall establish an internal audit department to audit and supervise its operation. The internal audit department of a TIC shall
submit internal auditing reports to the board of directors at least every six months, and send copies of the reports to the People’s
Bank of China at the same time.

Article 52

A TIC shall organize its account books in accordance with laws, conduct separate accounting on trust and non-trust businesses, and
maintain separate accounts for each of its trust businesses. Its financial and accounting standards shall be brought to be in line
with relevant rules of the Ministry of Finance.

Article 53

A TIC shall establish and improve its own financial and accounting system according to relevant regulations, honestly keep records
and fully reflect its operation and financial position. Its annual financial statement shall be audited by certified accountants
who have the required qualifications.

A TIC shall send required information to the People’s Bank of China and other relevant authorities according to rules and regulations,
including business reports, accounting reports on trust and non-trust businesses and catalog of trust accounts, etc.

Article 54

The trust business department of a TIC shall operate independently from other departments. Staff of this department shall not hold
concurrent posts in other departments and specific information of its business shall not be shared with other departments.

Article 55

The People’s Bank of China can examine the operation of a TIC regularly or irregularly. The People’s Bank of China can order a TIC
to invite qualified intermediaries to audit its operation and financial position when it deems necessary.

A TIC shall provide accounting reports and information of its operation and financial position according to the requirements of the
People’s Bank of China and honestly indicate situation of relevant businesses.

Article 56

A qualification review system shall be applied to the senior management of a TIC by the People’s Bank of China. No senior manager
can take his or her office without his or her qualification being reviewed by the People’s Bank of China, or if he or she fails to
pass that review.

When a senior manager leaves his or her post, he or she shall be subject to ex-post auditing and the outcome shall be recorded with
the People’s Bank of China. When a TIC changes its legal representative, the old representative shall not leave the post until qualification
of the new representative has been certified by the People’s Bank of China.

Article 57

The People’s Bank of China shall conduct trust business qualification examination to the trust business personnel of a TIC. Those
who pass the examination will be granted by the People’s Bank of China certificate of qualified trust business personnel; those who
fail the examination shall not be allowed to engage in trust business. The particulars of this examination system are to be specifically
formulated by the People’s Bank of China.

Article 58

If any of the senior managers or business staff violates laws, regulations or relevant rules of the People’s Bank of China, the People’s
Bank of China has the right to revoke his qualification in trust business.

Article 59

The People’s Bank of China can question the senior management of a TIC on significant problems discovered in its supervision of the
TIC, and require it to take corrective measures within a certain period of time.

Article 60

When a TIC’s operation is found in trouble as a result of chaotic management, the People’s Bank of China can require it to take measures
to consolidate or restructure, and suggest removal of senior management. The People’s Bank of China can also take it over if it deems
necessary.

Article 61

TICs can jointly set up a trade association to promote self-regulation.

Any activities of such a trade association are to be guided and supervised by the People’s Bank of China.

Chapter VII Penalty Provisions

Article 62

Establishing a TIC or engaging in trust business without the approval of the People’s Bank of China shall be banned and punished according
to the” Rules On Banning Illegal Financial Institution and Illegal Financial Business”.

Article 63

If the People’s Bank of China found any concealment or misreporting of information in a TIC’s application for its establishment, alteration
and termination, it could command the TIC to make correction or withdraw the approval already granted.

Article 64

The People’s Bank of China shall require a TIC that has violated Article 30 in handling entrusted funds business to return all the
deposits it has absorbed, and suspend part or all of its business; senior management accountable for such a violation and other staff
with immediate responsibility shall be disciplined and their qualifications for senior management or trust business staff shall also
be revoked by the People’s Bank of China. When committing a crime, they shall be subject to criminal prosecution.

Article 65

A TIC that has violated Article 31 shall be punished according to Article 28 of the “Rules on Punishment of Financial Irregularities”.

Article 66

A TIC that has violated other articles of these rules shall be punished according to the “Rules on Punishment of Financial Irregularities”
and relevant rules by the People’s Bank of China.

Article 67

If a TIC does not accept punishments issued by the People’s Bank of China, it shall be allowed to request an administrative review
or file an administrative suit with the People’s Court.

Chapter VIII Supplementary Provisions

Article 68

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

Article 69

These rules shall enter into force as of the date of promulgation, and the ” Regulation on Trust and Investment Companies” published
on January 10, 2002 by the People’s Bank of China is abolished at the same time.



 
The People’s Bank of China
2002-05-09

 







CATALOGUE OF COMMODITIES FORBIDDEN TO IMPORT (THE FOURTH BATCH AND THE FIFTH BATCH)

The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs and the State Administration of Environmental
Protection

Catalogue of Commodities Forbidden to Import (the fourth batch and the fifth batch)

No. 25 [2002]

In accordance with Regulations of the People’s Republic of China on Controlling the Import and Export of Commodities, the Law of the
People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and Circular on Several Issues
Concerning the Seventh Type of Waste (HuangFa [2000] No.19), the Catalogue of Commodities Forbidden to Import (the fourth batch and
the fifth batch) is now promulgated and shall enter into force as of August 15, 2002.

Attachment:Catalogue of Commodities Forbidden to Import (the Forth Batch)

No. Commodity Code Commodity Name Notes

1. 0501.0000 unprocessed human hair, no matter washed or not; wasted human hair

2. 0502.1030 bristles and wasted bristles

3. 0502.9020 badger hair and other wasted animal hair used for making brushes

4. 0 503.0090.10 wasted horse hair

5. 1703.1000 sugarcane molasses

6. 1703.9000 other molasses

7. 2517.2000 scoria, scruff and similar industrial draff

8. 2517.3000 asphalt macadam

9. 2620.2900 other calx and draff whose major ingredient is lead

10. 2620.3000 calx and draff whose major ingredient is copper

11. 2620.9910 calx and draff whose major ingredient is tungsten

12. 2620.9990.90 calx and draff whose major ingredient is other metal or compound Except for 2620.9990.10, the calx or draff whose
major ingredient is vanadium pentexide more than 10%

13. 4004.0000.10 Wasted tyre and its dices

14. 4115.2000.10 leather waste residue, ash, sludge and its powder

15. 6309.0000 old clothing

16. 8548.1000 wasted crushed aggregates of batteries and wasted batteries

Catalogue of Commodities Forbidden to Import (the Fifth Batch)

Catalogue of Junked Electromechanical Products (including components and parts, dismantled articles, broken articles, smashed articles
unless it is other provided by law.)

No. Commodity Code Commodity Name Name

1. 8415.1010-8415.9090 air-conditioner

2. 8417.8020 incinarator for radwaste

3. 8418.1010-8418.9999 refrigerator

4. 8471.1000-8471.5090 Cyber-equipment

5. 8471.6010 display

6. 8471.6031-8471.6039 printer

7. 8471.6040-8471.9000 other input-output parts for computers and other components of automatic data processing equipment

8. 8516.5000 microwave

9. 8516.6030 electric cooker

10. 8517.1100-8517.1990 Wired phone

11. 8517.2100-8517.2200 electrograph and tape machine

12. 8521.1011-8521.9090 video tape recorder, record player and laser video cassette recorder

13. 8525.2022-8525.2029 mobile communication equipment

14. 8525.3010-8525.4050 vidicon, video camera recorder and digital camera

15. 8528.1210-8528.3020 TV set

16. 8534.0010-8534.0090 printing circuit

17. 8540.1100-8540.9990 thermionic tube, coldcathode tube, lightcathode tube

18. 8542.1000-8542.9000 Integrate circuit and microeletronic components

19. 9009.1110-9009.9990 duplicating machine

20. 9018.1100-9018.9090 medical appliance

21. 9022.1200-9022.9090 radial application equipment



 
The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs and the State Administration
of Environmental Protection
2002-07-03

 







DECISION OF NPC ON AUTHORIZING THE PEOPLE’S CONGRESS OF XIAMEN CITY AND ITS STANDING COMMITTEE AND THE PEOPLE’S GOVERNMENT OF XIAMEN CITY TO FORMULATE REGULATIONS AND RULES RESPECTIVELY FOR IMPLEMENTATION IN THE XIAMEN SPECIAL ECONOMIC ZONE

Decision of NPC on Authorizing the People’s Congress of XIAMEN City and its Standing Committee and the People’s Government of XIAMEN
City to Formulate Regulations and Rules Respectively for Implementation in the XIAMEN Special Economic Zone

     The Second Session of the Eighth National People’s Congress, having considered the proposal submitted by deputy Yuan Qitong together
with other 35 deputies to the National People’s Congress at the First Session of the Eighth National People’s Congress for authorizing
the People’s Congress of Xiamen City and its Standing Committee and the People’s Government of Xiamen City to formulate regulations
and rules respectively, decides that the People’s Congress of Xiamen City and its Standing Committee are authorized to formulate,
in light of the specific conditions and actual needs of the special economic zone and pursuant to the provisions of the Constitution
and the basic principles laid down in laws and administrative rules and regulations, regulations for implementation in the Xiamen
Special Economic Zone which shall be submitted to the Standing Committee of the National People’s Congress, the State Council and
the Standing Committee of the People’s Congress of Fujian Province for the record, and that the People’s Government of Xiamen City
is authorized to formulate rules and is responsible for their implementation in the Xiamen Special Economic Zone.

    

MOFTEC P.R.C.

EDITOR:Victor






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

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

     China Securities Regulatory Commission

People’s Bank of China

Decree No. 12

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

CSRC Chairman: Zhou Xiaochuan

PBOC Governor: Dai Xianglong

Nov. 5th 2002

Provisional Measures on Administration of Domestic Securities

Investments of Qualified Foreign Institutional Investors (QFII)

Chapter 1. General Provisions

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

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

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

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

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

Chapter 2. Qualifications, Criteria and Approval Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3. Draft Custody Agreement signed with its expected custodian;

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

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

6. Letter of authorisation by the applicant;

7. Other documents as required by CSRC and SAFE.

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

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

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

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

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

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

Chapter 3. Custody, Registration and Settlement

   Article 12. A custodian should meet the following requirements:

(1) Has a specific fund custody department;

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

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

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

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

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

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

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

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

1. Application Forms;

2. Copy of its financial business licence;

3. Management system in relation to its custody business;

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

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

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

   Article 15. A custodian shall perform the following duties:

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

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

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

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

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

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

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

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

supervision principles.

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

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

Each QFII can only mandate one custodian.

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

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

Chapter 4. Investment Operations

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

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

2. Treasuries listed in China’s stock exchanges;

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

4. Other financial instruments as approved by CSRC.

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

Each QFII can only mandate one investment institution.

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

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

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

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

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

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

Chapter 5. Fund Management

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Repatriation Application Form;

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

3. Auditor’s report issued by Chinese CPA;

4. Profits distribution resolutions or other effective legal documents;

5. Tax payment certificates;

6. Other documents as required by SAFE.

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

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

Chapter 6. Regulatory Issues

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

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

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

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

1. Change of custodians;

2. Change of legal representatives;

3. Change of controlling shareholders;

4. Adjustment of registered capital;

5. Litigations and other material events;

6. Being imposed substantial penalties overseas;

7. Other circumstances as stipulated by CSRC and SAFE.

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

1. Change of business name;

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

3. Other circumstances as stipulated by CSRC and SAFE.

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

1. Having repatriated all its principals;

2. Having transferred its investment quota;

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

4. Other circumstances as stipulated by CSRC and SAFE.

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

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

Chapter 7. Supplementary Provisions

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

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

    

Source:China Net

EDITOR:Victor






REGULATIONS ON LABOR PROTECTION IN WORKPLACES WHERE TOXIC SUBSTANCES ARE USED

Regulations on Labor Protection in Workplaces Where Toxic Substances Are Used

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

Chapter I General Provisions

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

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

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

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

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

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

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

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

   Article 7 Child laborers shall be prohibited from being employed.

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

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

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

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

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

Chapter II Preventive Measures in Workplaces

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter III Protection in Working Process

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter IV Occupational Health Surveillance

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

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

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

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

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

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

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

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

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

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

The occupational health surveillance archives shall cover the following items:

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

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

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

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

Chapter V Workers’ Rights and Obligations

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

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

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

(1) to receive occupational health education and training;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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...