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INTERIM RULES OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON THE HEARING OF COUNTERVAILING INVESTIGATION

The Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Foreign Trade and Economic Cooperation

No.10

The Interim Rules on the Hearing of Countervailing Investigation, examined and adopted at the executive meeting on February 10, 2002,
are hereby promulgated, and shall enter into force on March 13, 2002.

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

February 10, 2002

Interim Rules of the Ministry of Foreign Trade and Economic Cooperation on the Hearing of Countervailing Investigation

Article 1

These Rules are enacted in accordance with the relevant provisions in the Countervailing Rules of the People’s Republic of China in
order to ensure the fairness and justness of the countervailing investigation and maintain the lawful rights and interests of the
interested parties and the governments of the interested countries (regions).

Article 2

These Rules shall be applicable to the hearings held by the Ministry of Foreign Trade and Economic Cooperation in the process of countervailing
investigation for adjudication on subsidies.

Article 3

The Import and Export Fair Trade Bureau of the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as “the
Import and Export Fair Trade Bureau”) shall specifically organize the hearings for adjudication on subsidies.

Article 4

The hearings for adjudication on subsidies shall be held publicly. While the hearings involving State secrets, commercial secrets
or personal privacy may be held in other ways upon the decision by the Import and Export Fair Trade Bureau.

Article 5

The Import and Export Fair Trade Bureau shall hold a hearing upon the application by an interested party or the government of an interested
country (region). The Import and Export Fair Trade Bureau may, when necessary, decide to hold a hearing of its own accord.

Article 6

Where the Import and Export Fair Trade Bureau holds a hearing of its own accord, it shall notify the interested parties and the governments
of the interested countries (regions) in advance, and shall apply the relevant provisions in these Rules.

Article 7

The interested parties referred to in these Rules shall be the applicants for countervailing investigation, the known export operators
and import operators, and other interested organizations and individuals. The governments of the interested countries (regions) shall
be the governments of the exporting countries (regions) or of the countries (regions) of origin.

Article 8

An interested party or the government of an interested country (region) requesting a hearing shall file a written application for
such a request to the Import and Export Fair Trade Bureau.

The application shall include the following contents:

(1)

the name, address and the relevant information of the applicant for the hearing;

(2)

the application items;

(3)

the reason for the application.

Article 9

The Import and Export Fair Trade Bureau shall, within 15 days after the receipt of the written application of an interested party
or the government of an interested country (region) for a hearing, decide on whether to hold the hearing or not, and shall notify
the relevant interested parties (including the applicant) or the governments of interested countries (regions) in time.

Article 10

The notice of the Import and Export Fair Trade Bureau on deciding to hold the hearing shall include the following contents:

(1)

the decision on holding the hearing;

(2)

the reason for the decision on holding the hearing;

(3)

the time, place and relevant requirements for each interested party or the government of each interested country (region) to register
before the hearing;

(4)

other matters relating to the hearing.

Article 11

Each interested party or the government of each interested country (region) shall, after receiving the notice on deciding to hold
the hearing, register himself/itself in the Import and Export Fair Trade Bureau in time according to the contents and requirements
in the notice, and shall submit a written outline of his/its speaking in the hearing and the relevant evidence.

Article 12

The Import and Export Fair Trade Bureau shall, within 20 days as of the deadline for registration as determined in the notice on deciding
to hold the hearing, decide on the time, place, president and agenda of the hearing, and shall notify the interested parties registered
and the government of the interested countries (regions).

Article 13

The president of the hearing shall exercise the following powers in the hearing:

(1)

to preside the hearing conference;

(2)

to confirm the identifications of the participants of the hearing;

(3)

to maintain the order of the hearing;

(4)

to raise questions to each interested party or the government of each interested country (region);

(5)

to decide on whether to permit each interested party or the government of each interested country (region) to submit supplementary
evidence;

(6)

to decide to suspend or terminate the hearing;

(7)

other matters needed to be decided on in the hearing.

Article 14

Each interested party of a hearing may either have its legal representative or principle responsible person participate the hearing,
or entrust 1 to 2 agents to participate the hearing.

Article 15

An interested party or the government of an interested country (region) participating a hearing shall bear the following obligations:

(1)

to be present at the hearing on time and at the designated place;

(2)

to obey the hearing disciplines and the arrangements by the president of the hearing;

(3)

to truthfully answer the questions raised by the president of the hearing.

Article 16

A hearing shall be held according to the following procedures:

(1)

the president of the hearing announces the beginning of the hearing, and reads out the hearing disciplines;

(2)

the president of the hearing checks the participants;

(3)

the interested parties and the governments of the interested countries (regions) make their statements;

(4)

the president of the hearing enquires the interested parties and the governments of the interested countries (regions);

(5)

the interested parties and the governments of the interested countries (regions) make their final statements;

(6)

the president announces the close of the hearing.

Article 17

The purpose of a hearing lies in the provision of opportunities for the investigation organ in further collecting information as well
as for the interested parties and the government of the interested countries (regions) in stating their opinions and in submitting
their evidence, therefore, no debate procedure is set up.

Article 18

Records shall be made in a hearing, on which the president of the hearing, the recorder and each interested party or the government
of each interested country (region) participating the hearing shall immediately sign their names or affix their seals. Where an interested
party or the government of an interested country (region) refuses to sign its name or affix its seal, the president of the hearing
shall clearly write down the relevant information on the records of the hearing.

Article 19

In case of any of the following circumstances, the Import and Export Fair Trade Bureau may decide to postpone or cancel a hearing:

(1)

the applicant for the hearing meets with events or acts of force majeure, and has submitted the written application for postponing
or canceling the hearing;

(2)

the countervailing investigation is terminated;

(3)

other matters for which the hearing should be postponed or cancelled.

Article 20

After the factors for postponing a hearing have been eliminated, the Import and Export Fair Trade Bureau shall immediately resume
the hearing, and shall notify the interested parties registered and the governments of the interested countries (regions).

Article 21

The form of the notices mentioned in these Rules shall be the announcement by the Ministry of Foreign Trade and Economic Cooperation,
or other forms adopted by the Import and Export Fair Trade Bureau under particular circumstances.

Article 22

The working language used in hearings shall be Chinese.

Article 23

The Ministry of Foreign Trade and Economic Cooperation shall be responsible for the interpretation of these Rules.

Article 24

These Rules shall enter into force on March 13, 2002.



 
The Ministry of Foreign Trade and Economic Cooperation
2002-02-10

 







CIRCULAR OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON THE REGISTRATION OF BRANCHES OF TRANSFORMED DIRECT SALE ENTERPRISES WITH FOREIGN INVESTMENT

e00330,e00241,e00219,e01229,e04671200204162002041620051231The State Administration for Industry and Commerceepdf/e01264.pdfD1foreign-funded, foreign investment, transformed direct sale enterprises, branches, transformed direct sale, registratione01264Circular of the State Administration for Industry and Commerce on the Registration of Branches of Transformed Direct Sale Enterprises
with Foreign Investment
GongShangWaiQiZi [2002] No.88April 16, 2002The administrations for industry and commerce of all provinces, autonomous regions, municipalities directly under the Central Government
and authorized cities: In order to carry out the Provisions of the Relevant Issues in the Implementation of the Circular Concerning the Change of Sales
Method by Direct Sale Enterprises with Foreign Investment(GongShangGongZi [2002] No.31) jointly promulgated by the State Administration
for Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation and the State Economic and Trade Commission, the
relevant matters of the establishment and alteration of branches and stores of transformed direct sale enterprises with foreign investment
(hereinafter referred to as transformed enterprises) are hereby notified as follows in accordance with the provisions of the Company
Law, the Regulations on the Administration of Company Registration and the Regulations on the Administration of Business Corporation
Registration:
1.The registration organs of the branches of transformed enterprises shall, on the basis of anew checking off the original examination
and approval documents and the transformation approval documents, determine the post_title of the branch over again. If the post_title is inconsistent
with the examination and approval documents or the examination and approval documents demarcate special business area within the
place the name of which is used in the post_title of the branch, the post_title shall be checked and determined over again in accordance with
the principle of “consistency between the place name in the post_title and the ratified business area”.
2.Where a transformed enterprise adds new stores within the business area of its branch, it shall be the transformed enterprise to apply
for registration to its registration organ and to the enterprise with foreign investment registration organ of the place where the
store is located. The registration organ shall handle the application in accordance with the registration procedures for branches
of enterprises with foreign investment. If the transformed enterprise adds new stores within the business area of its branch that has already been approved, then no examination
and approval is required.
3.With respect to the business scope or service scope of a transformed enterprise and its branches, the words “within the ratified administrative
areas, set up stores and employ sales persons, and sell products in accordance with the relevant provisions of the State……” shall
be added uniformly on the basis of the narration of the examination and approval documents.
4.The post_title of the branch of a transformed enterprise shall be determined uniformly in accordance with the principles provided for in
this Circular and the format as “post_title of the transformed enterprise + name of the ratified business area + Branch”, the post_title of
the store shall be determined uniformly in the format as “post_title of the branch + specific address of the store + Store”.
5.The transformed enterprises and their branches shall display, at the eye-catching places of their business sites, the special provisions
of the State on transformation to the sales method of setting up stores and employing sales persons.



 
The State Administration for Industry and Commerce
2002-04-16

 







CIRCULAR OF THE STATE ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON PRINTING AND DISTRIBUTING THE PROVISIONS OF THE STATE ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON THE ADMINISTRATION OF IMPORT OF MECHANICAL AND ELECTRICAL PRODUCTS






The State Administration of Quality Supervision, Inspection and Quarantine

Circular of the State Administration of Quality Supervision, Inspection and Quarantine on Printing and Distributing the Provisions
of the State Administration of Quality Supervision, Inspection and Quarantine on the Administration of Import of Mechanical and Electrical
Products

GuoZhiJianCai [2002] No.276

September 18, 2002

The bureau of quality and technical supervision of each province, autonomous region, municipality directly under the Central Government,
the Xinjiang Army Corps of Production and Construction and municipalities separately listed on the State plan, and each bureau of
quality inspection and quarantine directly under this Administration, the Certification and Accreditation Administration, the Standardization
Administration, and each entity directly under this Administration:

In order to strengthen the administration of import of mechanical and electrical products, the State Administration of Quality Supervision,
Inspection and Quarantine has formulated the Provisions of the State Administration of Quality Supervision, Inspection and Quarantine
on the Administration of Import of Mechanical and Electrical Products in accordance with the relevant provisions of the state on
import and export of electrical and mechanical products. The said Provisions are hereby printed and distributed to you, please carry
them out accordingly. Attachment:Provisions of the State Administration of Quality Supervision, Inspection and Quarantine on the Administration of Import of Mechanical
and Electrical Products

Chapter I General Provisions

Article 1

In order to strengthen the administration of import of mechanical and electrical products by the State Administration of Quality Supervision,
Inspection and Quarantine (hereinafter referred to as SAQSIQ), these Provisions are formulated pursuant to the Measures for the Administration
of Import of Mechanical and Electrical Products, the Rules for the Implementation of the Administration of Automatic Import License
for Mechanical and Electrical Products, the Rules for the Implementation of the Administration of Import Quota for Import of Mechanical
and Electrical Products and the Rules for the Implementation of the Administration of Import of Certain Mechanical and Electrical
Products etc.

Article 2

The Mechanical and Electrical Import and Export Office of the State Administration of Quality Supervision, Inspection and Quarantine
(hereinafter referred to as MEIEO) is set up under the Department of Planning and Finance of the SAQSIQ, its major duties include:

(1)

Carrying out the guidelines, policies, laws and regulations of the state on import and export of mechanical and electrical products,
formulating rules and regulations on the administration of import and export of mechanical and electrical products within the system,
and organizing the implementation and inspection.

(2)

Being responsible for the administration of import of mechanical and electrical products within the system, and process the following
formalities for import of mechanical and electrical products within the scope authorized by the state;

a.

Handling the issuance of import license for mechanical and electrical products to the import entities within the system (hereinafter
referred to as import entities);

b.

Being responsible for the collection and examination of the import quota of mechanical and electrical products within the system,
and reporting to the National Mechanical and Electrical Import and Export Office (hereinafter referred to as NMEIEO) for approval;

c.

Being responsible for the collection and examination of the certain mechanical and electrical products within the system, and reporting
to the NMEIEO for approval.

(3)

Being responsible for the collection, arrangement, analysis and statistics of the real time import data and submitting the data to
the NMEIEO, with the operations subject to the administration by the NMEIEO.

Chapter II Handling of Automatic Import License

Article 3

According to the Rules for the Implementation of the Administration of Automatic Import License for Mechanical and Electrical Products,
the mechanical and electrical products covered by the Catalog of Mechanical and Electrical Products Subject to Automatic Import License
shall be subject to the administration of automatic import license, with the exception of those prohibited and restricted from importing.

Article 4

Procedures for applying for automatic import license:

(1)

An import entity shall go through the formalities for automatic import license with the MEIEO before signing the contract, and shall
submit one piece of the Import Application Form of Mechanical and Electrical Products (see the attachment) completely filled out
and affixed with official seal;

(2)

The MEIEO shall examine the application form and, if the requirements are met, issue the Automatic Import License within 10 workdays.

Article 5

The import entity shall handle the sales and payment of foreign exchange with the bank, and go through the formalities for check and
clearance with the customs by right of the Automatic Import License.

Article 6

The valid term of the Automatic Import License is one year, if the import entity needs to extend the period for special reasons within
the valid term, it shall apply for replacement of the license and extension of the period with the MEIEO, the Automatic Import License
may be extended for only once. If the import entity needs to alter the contents of the relevant items in the Automatic Import License
for special reasons within the valid term (no alteration is needed if the foreign exchange actually used is less than 10% of the
foreign exchange planned to be used), it shall apply for alteration and replacement of the license with the MEIEO by presenting the
original Automatic Import License. The MEIEO shall withdraw the old license, and print the words “replacement” in the notes column
in the new license.

Chapter III Application for Import Quota for Mechanical and Electrical Products

Article 7

An import entity shall report its plan on import quota for mechanical and electrical products of the next year to the MEIEO before
August 15 of each year (report after signing a contract is not allowed), the MEIEO shall collect the reports and make examination
and verification before August 31, and transmit the reports to the NMEIEO.

Article 8

After the NMEIEO has assigned the quota index, an import entity shall fill in the Import Application Form of Mechanical and Electrical
Products in duplication, submit the application report (including the use of import quota, the feasibility report of the introduced
project etc) and other relevant documents to the MEIEO, which shall transmit these documents to the NMEIEO for examination and approval.

Article 9

An import entity shall apply for the Import Quota License with the Ministry of Foreign Trade and Economic Cooperation with (MOFTEC)
the Import Quota Certificate of Mechanical and Electrical Products issued by the NMEIEO, the valid term for application shall be
the current year when the Import Quota Certificate of Mechanical and Electrical Products is issued, any application filed after that
period will be ineffective.

Article 10

If an import entity needs to, after drawing the Import Quota Certificate of Mechanical and Electrical Products, alter some project
contents for special reasons within the valid term (no alteration is needed if the foreign exchange actually used is less than 10%
of the foreign exchange planned to be used), it shall apply for the alteration and replacement with the department that issued the
certificate by taking with it the original Import Quota Certificate of Mechanical and Electrical Products. When an import entity
applies for the Import Quota License by taking the Import Quota Certificate of Mechanical and Electrical Products, it may not alter
any project contents in the Import Quota Certificate of Mechanical and Electrical Products.

Article 11

In case of loss of the Import Quota Certificate of Mechanical and Electrical Products, the holder shall immediately report the loss
to, at the same time, the original department in charge of import quota, the original department in charge of license and the customs
of the port where the customs declaration was made. If no serious consequences arise, the import entity may apply for issuance of
a new certificate with the NMEIEO.

Chapter IV Application for Import of Certain Mechanical and Electrical Products

Article 12

An import entity applying for import of certain mechanical and electrical products shall faithfully fill in the Import Application
Form of Mechanical and Electrical Products in duplication, submit them to the MEIEO, which shall, after examination and verification,
transmit them to the NMEIEO for examination and approval.

Article 13

An import entity shall sign a contract with the Import License of Mechanical and Electrical Products issued by the NMEIEO, process
the sales and payment of foreign exchange with the bank, and go through the formalities for check and clearance with the customs.

Article 14

The valid term of the Import License of Mechanical and Electrical Products is 1 year, if an import entity needs to extend that period
for special reasons within the valid term, it shall apply for the extension and replacement of the license with the department that
issued the license, and the Import License of Mechanical and Electrical Products may be extended only once. If an import entity needs
to alter the relevant project contents for special reasons within the valid term (no alteration is needed if the foreign exchange
actually used is less than 10% of the foreign exchange planned to be used), it shall apply for the alteration and replacement, by
taking with it the original Import License of Mechanical and Electrical Products, with the department that issued the license.

Article 15

In case of loss of the Import License of Mechanical and Electrical Products, an import entity shall immediately report the loss to
the department that issued the license, which shall issue a new license after verification if no serious consequences arise.

Chapter V Supplementary Provisions

Article 16

If an import entity, in violation of the state provisions, forges, sells, or transfers without authorization the import certifications
of mechanical and electrical products etc, the relevant parties shall be given administrative punishments pursuant to law, and the
criminal responsibilities shall be investigated for if a crime is constituted.

Article 17

The functionaries of the departments of import administration shall enhance their sense of service, those that abuse their powers,
neglect their duties or seek private benefits through wrongful means in violation of these Provisions in their administration work
shall be given administrative punishments pursuant to administrative regulations, and the criminal responsibilities shall be investigated
for if a crime is constituted.

Article 18

The power to interpret these Provisions shall remain with the MEIEO.

Article 19

These Provisions shall enter into force as of the date of promulgation. The Measures of the State Administration of Quality Supervision,
Inspection and Quarantine on the Administration of Import of Mechanical and Electrical Products shall be nullified simultaneously.

Attachment:Import Application Form of Mechanical and Electronic Productshtm/e03119.htmNew Page 1

1￿￿ Importer
 
   ￿￿

3￿￿Name of Operator (Stamp of Consignee)
     
￿￿￿￿(￿￿￿￿ǩ￿)
      Telephone
     
￿绰

2￿￿Consignee
     
￿￿￿￿

4￿￿Area￿￿Department of Consignee
   
￿￿￿￿￿￿￿￿￿nt>(￿￿￿)


                   Year
Month Date
                    
￿ ￿ ￿

5￿￿Terms of Trade
     
ó￿￿￿ʽ

8￿￿ Country￿￿Region of Trading
 
   ó￿￿￿nt>(￿￿￿nt>)

6￿￿Terms of Foreign Exchange
     
￿￿￿Դ

9￿￿Country￿￿Region of Origin
  
  ԭ￿￿(￿￿￿nt>)

7￿￿Place of Clearance
     
￿￿￿ؿڰ￿

10￿￿Use of Goods
        
￿Ʒ￿;

  A￿￿ Type of project: ￿￿sic Construction   ￿￿chnical Reformation   ￿￿hers    Industry of
project: ￿￿/font>

     ￿Ŀ￿￿￿￿￿￿ont>￿￿Ŀ ￿￿ont>￿￿￿￿￿ ￿￿ont>￿￿￿Ŀ ￿Ŀ￿ҵ￿￿￿￿/font>

11￿￿  Description of Goods  Code of Goods  Status of Equipment
    ￿Ʒ￿￿￿ ￿Ʒ￿￿(H.S.) ￿￿￿״̬

12￿￿Specification
  ￿￿￿￿￿￿￿/font>

13￿￿Unit
  ￿￿λ

14￿￿Quantity
  ￿

15￿￿Unit Price( )
  ￿￿￿￿/font>

16￿￿Amount( )
  ￿ֵ

17￿￿ Amount in USD
 ￿ֵ￿￿Ԫ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18￿￿Total
  ￿￿￿/font>

 

 

 

 

 

19￿￿Supplementary Details
        ￿￿ע

Area￿￿Department of Consignee’s Notion(Stamp)
￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿)

Date
￿￿￿￿

    Note: Item A is not required for application for import of "single unit".
          Manufactured under the supervision of the MOFTEC




LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PROTECTION OF CULTURAL RELICS






e01536

The Standing Committee of the National People’s Congress

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

No.76

The Law of the People’s Republic of China on the Protection of Cultural Relics has been revised and adopted at the 30th meeting of
the Standing Committee of the Ninth National Congress of the People’s Republic of China on October 28, 2002, the revised Law of the
People’s Republic of China on the Protection of Cultural Relics is hereby promulgated and shall come into force on the day of promulgation.

President of the People’s Republic of China Jiang Zemin

October 28, 2002

Law of the People’s Republic of China on the Protection of Cultural Relics ContentsChapter I General Rules

Chapter II Unmovable Cultural Relics

Chapter III Archaeological Excavations

Chapter IV Cultural Relics in Collection of Cultural Institutions

Chapter V Cultural Relics in Civil Collection

Chapter VI Entry and Exit of Cultural Relics

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Rules

Article 1

With a view to strengthening the protection of cultural relics, inheriting the splendid historical and cultural legacy of the Chinese
Nation, promoting the scientific research, conducting education in patriotism and revolutionary tradition, and building the socialist
spiritual and material civilization, this Law is formulated in accordance with the Constitution.

Article 2

The state shall place under its protection, within the boundaries of the People’s Republic of China, the following cultural relics:

(1)

Sites of ancient culture, ancient tombs, ancient architectural structures, cave temples, stone carvings and mural paintings that are
of historical, artistic or scientific value;

(2)

Important historical sites, material objects and typical buildings of modern and contemporary times related to major historical events,
revolutionary movements or famous people that are highly memorable or are of great significance for education or for the preservation
of historical data;

(3)

Valuable works of art and handicraft articles dating from various historical periods;

(4)

Important documents as well as manuscripts, books and materials, etc., that are of historical, artistic or scientific value dating
from various historical periods; and

(5)

Typical material objects reflecting the social system, social production or the life of various nationalities in different historical
periods.

The criteria and measures for the determination of cultural relics shall be formulated by the department of cultural relics administration
under the State Council, which shall report such measures to the State Council for approval.

Fossils of paleo vertebrates and paleo anthropoids of scientific value shall be protected by the state in the same way as cultural
relics.

Article 3

Unmovable cultural relics, such as sites of ancient culture, ancient tombs, ancient architectural structures, cave temples, stone
carvings, mural paintings, and important historical sites and typical buildings of modern and contemporary times, etc., may be determined
as major historical and cultural sites protected at the national level, historical and cultural sites protected at the province level
and historical and cultural sites protected at the level of city or county.

Movable cultural relics, such as important material objects, artworks, documents, manuscripts, books and materials, and typical material
objects, etc., are divided into valuable cultural relics and ordinary cultural relics; valuable cultural relics are divided into
Grade 1 cultural relics, Grade 2 cultural relics and Grade 3 cultural relics.

Article 4

The principles of focus on protection, giving first place to rescue, reasonably utilization and strengthening the management shall
be followed in the work concerning cultural relics protection.

Article 5

All cultural relics remaining underground or in the inland waters or territorial seas within the boundaries of the People’s Republic
of China shall belong to the state.

Sites of ancient culture, ancient tombs and cave temples shall belong to the state. Unmovable cultural relics, such as memorial buildings,
ancient architectural structures, stone carvings, mural paintings and typical buildings of modern and contemporary times, etc. designated
for protection by the state, shall belong to the state, unless it is otherwise provided by the state.

Ownership of state-owned unmovable cultural relics shall not be changed as a result of the change of ownership of or use right to
the land to which the cultural relics are attached.

The following movable cultural relics shall belong to the state:

(1)

Cultural relics unearthed within China, except otherwise provided for by the state;

(2)

Cultural relics in the collection and preservation by collection entities of state-owned cultural relics, as well as other state organs,
armed forces, state-owned enterprises and public institutions, etc;

(3)

Cultural relics collected and purchased by the state;

(4)

Cultural relics donated to the state by citizens, legal persons and other organizations;

(5)

Other cultural relics owned by the state as provided for by the law.

Ownership of state-owned movable cultural relics shall not be changed as a result of the termination or alteration of the collection
or preservation entities.

Ownership of state-owned cultural relics shall be protected by law and shall not be infringed upon.

Article 6

The ownership of memorial buildings, ancient architectural structures and cultural relics handed down from generation to generation
that belong to collectives or individuals shall be protected by law. Owners of the cultural relics must abide by the relevant state
regulations governing the protection and control of cultural relics.

Article 7

All government organs, public organizations and individuals have the obligation to protect cultural relics pursuant to law.

Article 8

The department of cultural relics administration under the State Council shall take charge of the work concerning cultural relics
protection throughout the country.

Local people’s governments at various levels shall be responsible for the work of protecting cultural relics in their respective administrative
jurisdictions. The departments of local people’s governments at and above the county level that undertakes the protection of cultural
relics shall supervise and administrate cultural relics protection within their respective administrative jurisdictions.

The relevant administrative departments of local people’s governments at and above the county level shall be responsible for the relevant
cultural relics protection work within their respective scope of duties.

Article 9

The people’s governments at various levels shall stress the protection of cultural relics, properly handle the relationship between
economic construction, social development, and cultural relics protection, and ensure the safety of cultural relics.

Infrastructure constructions and tourism development must comply with the principles for the protection of cultural relics, and may
not damage cultural relics.

Public security bodies, industry and commerce administrations, customs offices, urban and rural construction planning bodies and other
relevant state organs shall earnestly perform their duties of cultural relics protection and maintain the order of cultural relics
administration pursuant to law.

Article 10

The state develops the cause of cultural relics protection. The people’s governments at and above the county level shall bring the
cause of cultural relics protection into the national economic and social development planning of the corresponding levels, and the
expenses needed shall be listed in the budgets of the government of corresponding levels.

The state financial allocation used in cultural relics protection shall be increased with the increase of financial revenue.

The public income of state-owned museums, memorials, and cultural relics protection entities shall be especially used in cultural
relics protection, and no entity or individual may take into their own possession or misappropriate the fund.

The state encourages the establishment of social foundations for cultural relics protection, especially used in cultural relics protection,
through donation and other forms, and no entity or individual may take into their own possession or misappropriate the fund.

Article 11

Cultural relics are non-renewable cultural resources. The state shall strengthens the propaganda and education on cultural relics
protection, enhance the sense of cultural relics protection of the people, encourage the scientific research of cultural relics protection,
and improve the scientific and technological level of cultural relics protection.

Article 12

The state shall give moral encouragement or material awards to entities or persons for any of the following performances:

(1)

Serious implementation of the laws and regulations concerning cultural relics and remarkable achievements in protecting cultural relics;

(2)

Resolute struggle against criminal acts in the interest of protecting cultural relics;

(3)

Donation of important cultural relics in one’s own collection to the state or making donations for the cause of cultural relics protection;

(4)

Timely communication of information on, or delivery of, the cultural relics discovered, which facilitates their protection;

(5)

Major contribution in archaeological excavations.

(6)

Important inventions and innovations in, or other major contributions to, the science and techniques for the protection of cultural
relics;

(7)

Meritorious service in rescuing cultural relics in danger of being destroyed; and

(8)

Long-time service and outstanding achievements in the field of cultural relics.

Chapter II Unmovable Cultural Relics

Article 13

The department of cultural relics administration under the State Council shall select, from among the historical and cultural sites
protected at the levels of province, city and county, those of significant historical, artistic or scientific value as major historical
and cultural sites protected at the national level, or shall directly designate such sites and report them to the State Council for
approval and announcement.

Sites protected at the level of province shall be subject to the approval and announcement of the people’s governments at the levels
of province, autonomous region, and municipality directly under the Central Government, and be reported to the State Council for
record.

Sites protected at the level of city and county shall be subject to the approval and announcement of the people’s governments at the
level of city divided into districts, autonomous prefecture and county, and be reported to the people’s governments of provinces,
autonomous regions, or municipalities directly under the Central Government for record.

Unmovable cultural relics not approved and announced as protected historical and cultural sites shall be registered and announced
by the departments of cultural relics administration of the people’s governments at the county level.

Article 14

A city with an unusual wealth of cultural relics of high historical value and major revolutionary significance may be famous city
of historical and cultural value, which shall be subject to the approval and announcement of the State Council.

A town, street, or village with an unusual wealth of cultural relics of high historical value and major revolutionary significance
may be a street, village or towns of historical and cultural value, which shall be subject to the approval and announcement of the
people’s governments of provinces, autonomous regions, or municipalities directly under the Central Government, and shall be reported
to the State Council for record.

The local people’s governments at and above the county level of the place where the famous cities, streets, villages and towns of
historical and cultural value are located shall organize the formulation of plans on protection of those famous cities, streets,
villages and towns, and bring that planning into the overall city planning.

Measures for the protection of famous cities, the streets, villages and towns of historical and cultural value shall be formulated
by the State Council.

Article 15

The people’s government of the provinces, autonomous regions, and municipalities directly under the Central Government and of cities
and counties shall delimit the necessary scope of protection, put up signs and notices, and establish records and files for the historical
and cultural sites protected at different levels and shall, in the light of different circumstances, establish special organs or
assign full-time personnel to be responsible for the administration of these sites. The scope of protection and records and files
for the major historical and cultural sites protected at the national level shall be reported by the departments of cultural relics
administration of the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government
to the department of cultural relics administration under the State Council for record.

The departments of cultural relics administration of the local people’s governments at and above the county level shall, according
to the demand for protecting different cultural relics, work out specific protective measures for the unmovable cultural relics of
the protected historical and cultural sites and those not approved as protected sites, and shall announce and implement such measures.

Article 16

When drawing up plans for urban and rural construction, the people’s governments at various levels must, according to the needs of
cultural relics protection, see to it that the protective measures for the historical and cultural sites protected at different levels
are first worked out through consultation by the departments of urban and rural construction planning in conjunction with the departments
of cultural relics administration, and that such measures are included in the plans.

Article 17

No additional construction projects or operations such as explosion, drilling or excavation, etc. may be undertaken within the scope
of protection of a protected historical and cultural site. However, if additional construction projects or operations such as explosion,
drilling or excavation need to be undertaken within the scope of protection of such a site due to special reasons, the safety of
the site must be guaranteed, and approval must be obtained from the people’s government which made the original approval and announcement
on the designation of the site, with consent first obtained from the department of cultural relics administration of the people’s
government at the next higher level; If additional construction projects or operations such as explosion, drilling or excavation
are to be undertaken within the scope of protection of a major historical and cultural site protected at the national level, approval
must be obtained from the people’s government of the relevant province, autonomous region, or municipality directly under the Central
Government, with consent first obtained from the department of cultural relics administration under the State Council.

Article 18

According to the actual needs for the protection of cultural relics and with the approval of the people’s government of the province,
autonomous region or municipality directly under the Central Government, a certain area for construction control may be delimited
around a protected historical and cultural site and be announced.

Construction projects in such an area shall not deform the historical features of the protected historical and cultural site; the
project design scheme must, according to the level of the site, be subject to the consent of the corresponding department of cultural
relics administration before it is submitted to the department of urban and rural construction planning for approval.

Article 19

Within the scope of protection and the area for construction control of a protected historical and cultural site, no facility that
pollutes the site and the environment thereof may be constructed, neither may any activity that may affect the safety and environment
of that site be carried out. The existing facilities that pollute protected historical and cultural sites and the environment thereof
shall be disposed of within the prescribed time limits.

Article 20

Unmovable cultural relics shall be avoided in the choosing of construction sites by whatever possible means; if a protected historical
and cultural site can’t be avoided for special circumstances, the original site shall be protected by whatever possible means.

Where the original site is to be protected, the construction entity shall work out protective measures in advance, and, according
to the level of the protected historical and cultural site, submit such measures to the corresponding department of cultural relics
administration for approval, and shall list the protective measures in the feasibility study report or the planning project description.

Where the original site can’t be protected and removal for protection in other place or dismantling must be carried out, the matter
shall be submitted for approval to the people’s government of the province, autonomous region or municipality directly under the
Central Government; for removal or dismantling of a historical and cultural site protected at the provincial level, consent of the
department of cultural relics administration under the State Council must be obtained before the matter is submitted for approval.
No major historical and cultural site protected at the national level may be dismantled, if it is needed to remove such a site, the
people’s government of the province, autonomous region or municipality directly under the Central Government shall submit the matter
to the State Council for approval.

Mural paintings, sculptures, and construction components that are included in state-owned unmovable cultural relics dismantled pursuant
to the preceding paragraph and that have collection values shall be collected by the cultural relics collection entities designated
by the departments of cultural relics administration.

The expenses needed for protection of the original site, for removal and dismantling provided for in this article shall be listed
in the project budget of the construction entity.

Article 21

Repairs and maintenance of state-owned unmovable cultural shall be taken care of by the users, and repairs and maintenance of non-state-owned
cultural relics shall be taken care of by the owners. Where any non-state-owned cultural relics are in danger of being damaged and
the owner is incapable of repairing, the local people’s government shall give assistance; where the owner is capable of repairing
but refuses to perform the repair obligation, the people’s government at or above the county level shall rescue and repair the culture
relics, and the expenses incurred thereby shall be borne by the owner.

Repairing of a protected historical and cultural site shall be submitted for approval to the corresponding department of cultural
relics administration according to the site’s level; repairing of unmovable culture relics which haven’t been determined as protected
historical and culture sites shall be submitted for approval to the department of cultural relics administration of the people’s
governments at the county level which accepted the registration.

Repairing, removal and reconstruction of a protected historical and culture site shall be undertaken by an entity with the qualification
certificate for cultural relics project.

The principle of keeping the cultural relics in their original state must be adhered to in the repairing, maintenance and removal
of unmovable cultural relics.

Article 22

Where unmovable cultural relics have been ruined completely, the relics ruins shall be protected, and no reconstruction shall be conducted
on the original site. However, if it is necessary to reconstruct on the original site for special circumstances, the department of
cultural relics administration of the people’s government of the province, autonomous region, or municipality directly under the
Central Government shall, after obtaining consent from the department of cultural relics administration under the State Council,
submit for approval to the people’s government of the province, autonomous region, or municipality directly under the Central Government;
where it is necessary to reconstruct on the original site of a major historical and cultural site protected at the national level,
the people’s government of the province, autonomous region, or municipality directly under the Central Government shall report to
the State Council for approval.

Article 23

If it is necessary to use a memorial building or an ancient architectural structure owned by the state at a place designated as a
protected historical and cultural site for purposes other than the establishment of a museum, a cultural relics preservation institute
or a tourist site, the department of cultural relics administration of the people’s government that originally approved and announced
the said site shall, after obtaining the consent of the department of cultural relics administration at the next higher level, submit
for approval to the people’s government which originally approved and announced the designation of the site; if it is necessary to
use for other purposes a major historical and cultural site protected at the national level, the matter shall be submitted by the
people’s government of the province, autonomous region, or municipality directly under the Central Government to the State Council
for approval. If it is necessary to use for other purposes any unmovable cultural relics not defined as a protected historical and
cultural site, the matter shall be reported to the department of cultural relics administration of the people’s government at the
county level.

Article 24

State-owned unmovable cultural relics may not be transferred or mortgaged. A state-owned protected historical and cultural site, on
which a museum, preservation institute is established or which is used as a tourist site, may not be operated as the assets of an
enterprise.

Article 25

Non-state-owned unmovable cultural relics may not be transferred or mortgaged to foreigners.

Where any non-state-owned unmovable cultural relics are transferred, mortgaged, or the use thereof is changed, the matter shall be
submitted to the corresponding department of cultural relics administration for record; if the repairing receives financial aid from
the local people’s government, the matter shall be submitted to the corresponding department of cultural relics administration for
approval.

Article 26

Those using unmovable cultural relics must observe the principle of keeping the cultural relics in their original state, be responsible
for the safety of the buildings and of the affiliated cultural relics, and may not damage, reconstruction, extend or dismantle them.

With respect to the constructions and structures that harm the safety of protected historical and cultural sites and damage the historical
features of such sites, the local people’s government shall investigate and deal with the matter without delay, and shall remove
or dismantle the said constructions and structures if necessary.

Chapter III Archaeological Excavations

Article 27

The procedure of submitting reports for approval must be performed for all archaeological excavations; entities engaging in archaeological
excavations shall be subject to the approval of the department of cultural relics administration under the State Council.

No entity or individual may conduct excavations of cultural relics buried underground without permission.

Article 28

To conduct archaeological excavations for the purpose of scientific research, entities undertaking the excavations shall submit their
excavation plans to the department of cultural relics administration under the State Council for approval; archaeological excavation
plans which have to be carried out at major historical and cultural sites protected at the national level shall be submitted to the
department of cultural relics administration under the State Council for examination before they are forwarded to the State Council
for approval. The department of cultural relics administration under the State Council shall, before granting approval or making
examination, seek opinions from social science research institutions and other scientific research institutions and the relevant
experts.

Article 29

Before carrying out a large-scale capital construction project, the construction entity shall first request the department of cultural
relics administration of the province, autonomous region or municipality directly under the Central Government to organize entities
which engage in archaeological excavations to conduct archaeological investigation or prospecting related to cultural relics at places
where such relics may be buried underground within the area designated for the project.

If cultural relics are discovered in the course of archaeological investigation and prospecting, protective measures should be jointly
decided upon by the department of cultural relics administration of the province, autonomous region or municipality directly under
the Central Government together with the construction entity through consultation; in case of important discoveries, the department
of cultural relics administration of the province, autonomous region or municipality directly under the Central Government shall
submit timely reports for handling to the department of cultural relics administration under the State Council.

Article 30

With regard to archaeological excavations which have to be carried out along with a construction project, the department of cultural
relics administration of the province, autonomous region or municipality directly under the Central Government shall submit an excavation
plan based on the prospecting to the department of cultural relics administration under the State Council for approval. The department
of cultural relics administration under the State Council shall, before granting approval, seek opinions from social science research
institutions and other scientific research institutions and the relevant experts.

In case the time limit for completing the project is pressing or it is in danger of natural damage so that it is truly urgent to rescue
the sites of ancient culture and ancient tombs, the department of cultural relics administration of the people’s government of the
province, autonomous region or municipality directly under the Central Government may organize excavations while going through the
procedures for examination and approval.

Article 31

The expenses needed for the archaeological investigations, prospecting and excavations which have to be carried out because of capital
construction or construction for productive purposes shall be included in the project budget of the construction entity.

Article 32

In construction projects or agricultural production, any entity or individual that discovers cultural relics shall protect the scene
and immediately report the discoveries to the local department of cultural relics administration, which shall hurriedly go to the
scene upon receipt of the report if there are no special circumstances, and shall give opinions on handling within 7 days; discoveries
of important cultural relics shall be immediately reported to the department of cultural relics administration under the State Council,
which shall give opinions on handling within 15 days from the day of receipt of the report.

Cultural relics discovered pursuant to the preceding paragraph shall belong to the state, and no entity or individual may take into
its or his own possession, secretly share or hide them.

Article 33

No foreigner or foreign organization may engage in archaeological investigations, prospecting or excavations within the boundaries
of the People’s Republic of China without the special permission granted by the State Council on the basis of the report from the
department of cultural relics administration under the State Council.

Article 34

The results of archaeological investigations, prospecting or excavations shall be reported to the department of cultural relics administration
under the State Council and the departments of cultural relics administration of the people’s governments of the provinces, autonomous
regions, and municipalities directly under the Central Government

Cultural relics excavated shall be registered and appropriately kept, and be transferred to state-owned museums, libraries or other
state-owned cultural relics collection entities designated by the departments of cultural relics administration of the people’s governments
of the provinces, autonomous regions, and municipalities directly under the Central Government, or by the department of cultural
relics administration under the State Council. Upon the approval of the departments of cultural relics administration of the people’s
governments of the provinces, autonomous regions, and municipalities directly under the Central Government, or the department of
cultural relics administration under the State Council, the entities undertaking archaeological excavations may keep small amount
of unearthed cultural relics as samples for scientific research.

No entity or individual may take any of the cultural relics excavated into its or his own possession.

Article 35

With a view to ensuring the safety of cultural relics, conducting scientific research and making full use of cultural relics, the
departments of cultural relics administration of the people’s governments of the provinces, autonomous regions, and municipalities
directly under the Central Government may, upon the approval of the people’s governments at the corresponding level, transfer and
use the cultural relics unearthed within their respective administrative jurisdictions; the department of cultural relics administration
under the State Council may, upon the approval of the State Council, transfer and use major cultural relics unearthed anywhere in
the country.

Chapter IV Cultural Relics in the Institution Collection

Article 36

Museums, libraries and other institutions as well as other cultural relics collection entities must classify the cultural relics in
their collection by different grades, compile files for the relics kept thereby, establish a strict system of control and report
for record with the competent departments of cultural relics administration.

Departments of cultural relics administration of the local people’s governments at and above the county level shall compile files
for the cultural relics in the collection of cultural institutions within their respective administrative jurisdictions; the department
of cultural relics administration under the State Council shall compile files for Grade 1 cultural relics of the state and for the
cultural relics in the collection of state-owned cultural relics collection entities governed by it.

Article 37

A cultural relics collection entity may obtain culture relics through the following methods:

(1)

Purchasing;

(2)

Accepting donations;

(3)

Exchanging according to l

PROVISIONS CONCERNING THE ADMINISTRATION OF FOREIGN-FUNDED BUSINESS-STARTING INVESTMENT ENTERPRISES






The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Science and Technology, the State Administration for Industry
and Commerce, the State Administration of Taxation, the State Administration of Foreign Exchange

Decree of the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Science and Technology, the State Administration
for Industry and Commerce, the State Administration of Taxation and the State Administration of Foreign Exchange

No.2

The Provisions Concerning the Administration of Foreign-funded Business-starting Investment Enterprises were adopted at the 11th ministerial
meeting of the Ministry of Foreign Trade and Economic Cooperation. It is hereby promulgated and shall be implemented as of March
1, 2003.

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

Minister of the Ministry of Science and Technology Xu Guanhua

Director general of the State Administration for Industry and Commerce Wang Zongfu

Director general of the State Administration of Taxation Jin Renqing

Director general of the State Administration of Foreign Exchange Guo Shuqing

January 30, 2003

Provisions Concerning the Administration of Foreign-funded Business-starting Investment Enterprises

Chapter I General Provisions

Article 1

The present Provisions are formulated to encourage foreign-funded companies, enterprises and other economic organizations or individuals
(hereinafter referred to as foreign investors) to come to China to engage in business-starting investments, and to establish and
perfect the mechanism of business-starting investments in China in accordance with the Law of the People’s Republic of China on Chinese-foreign
Contractual Joint Ventures, the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures, the Law of the People’s
Republic of China on Foreign-capital Enterprises, the Company Law of the People’s Republic of China and other related laws and regulations.

Article 2

The term “foreign-funded business-starting investment enterprise ” (hereinafter referred to as FBIE” refers to the foreign-funded
investment enterprises established by foreign investors or by foreign investors jointly with companies, enterprises or other economic
organizations established and registered in China in accordance with the Chinese law (hereinafter referred to as Chinese investors).
To establish an FBIE shall be in conformity with the present Provisions. It shall mainly engage in business-starting investments.

Article 3

The term “business-starting investment” means making principal equity investments to high and new tech enterprises that haven’t been
listed in the stock market (hereinafter referred to as invested enterprises), and providing management services to them for the prospective
capital gains.

Article 4

An FBIE is allowed to take the form of the non-legal-person organization or the corporate organization.

As to a non-legal-person organization, the investors shall bear joint liabilities for its debts. The investors may also specify in
the contract of the FBIE that: When the assets of an FBIE are not enough to clear the debts of this enterprise, the indispensable
investors as stated in Article 7 shall bear joint liabilities and the other investors shall bear the liabilities to the company
within the limit of contributions made by each of them.

For a corporate-form FBIE, the investors shall bear the liabilities to the company within the limit of the amount of investment made
by each of them.

Article 5

The FBIEs shall abide by relevant laws and regulations of China, shall be in conformity with the policies of foreign investment industries
and shall not damage the public interests of China. The legitimate businesses and lawful rights and interests of the FBIE within
the borders of China shall be subject to the protection of Chinese law.

Chapter II Establishment and Registration

Article 6

To establish an FBIE, the following requirements shall be met:

(1)

There are more than 2 but less than 50 investors, and at least one shall be an indispensable investor as stated in Article 7 ;

(2)

The investors of a non-legal-person organization shall subscribe to a minimum total contribution in the sum of 10, 000, 000 U.S. $.
The investors of an incorporated FBIE shall subscribe to a minimum total capital in the sum of 5, 000, 000 U.S. $. Except for the
indispensable investors as provided in Article 7 , each of the other investors shall subscribe to a minimum capital contribution
no less than 1, 000, 000 yuan. Foreign investors may contribute their investments in convertible currencies and Chinese investors
may contribute their investments in Renminbi.

(3)

It shall have definite organization form;

(4)

It shall have a definite and legitimate investment direction;

(5)

Except that the operations of such an enterprise are subject to the management of a business-starting investment management company
under authorization, an FBIE shall have at least 3 professional managerial persons who have practical experience in business-starting
investment;

(6)

It shall meet the other requirements as provided in laws and administrative regulations.

Article 7

An indispensable investor shall meet the following requirements:

(1)

Business-starting investment is its main business;

(2)

The accumulative total capital managed by it in the three years before the application is not less than 100, 000, 000 U.S. dollars,
and of which no less than 50, 000, 000 U.S. dollars have been used in business-starting investment If the indispensable investor
is a Chinese investor, the accumulative total capital managed thereby in the three years before the application is submitted is not
less than 100, 000, 000 Yuan, and of which no less than 50, 000, 000 yuan have been used in business-starting investment;

(3)

It shall have at least 3 professional managerial persons who have practical experience in business-starting investment;

(4)

If the affiliated entity of an investor meets the above-mentioned requirements, the investor may apply for the status of an indispensable
investor. The term “affiliated entity” in this paragraph refers to an entity controlled by the investor, or an entity that controls
the investor, or another entity that subject to the control of the same entity that controls the investor. The term “control” in
this paragraph means that the controlling party has a voting power of more than 50 % over the controlled party.

(5)

Neither the above-mentioned indispensable investor nor its affiliated entity shall have any record of being prohibited from engaging
in business-starting investment or business of investment consultancy, or being punished for the reason of cheat, by the judicial
departments and other relevant agencies of the country where it is located;

(6)

An indispensable investor of a non-legal-person enterprise shall subscribe to and actually pay not less than 1 % of the subscribed
contributions and the actual total contributions respectively, and it shall bear joint liabilities for the debts of this enterprise.
An indispensable investor of an incorporated FBIE shall subscribe to and actually pay not less than 30% of the subscribed contributions
and the actual total contributions respectively.

Article 8

The following procedures shall be observed in the establishment of an FBIE:

(1)

The investors shall submit the establishment application and relevant documents to the administrative departments in charge of foreign
trade and economic cooperation at the provincial level of the place where the FBIE is to be established.

(2)

The administrative departments in charge of foreign trade and economic cooperation at the provincial level shall complete the original
examination and report to the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) within 15
days as of the acceptance of the above-mentioned materials.

(3)

The MOFTEC shall, with the consent of the Ministry of Science & Technology￿￿make a written decision on approval or disapproval within
45 days as of the acceptance of all the above-mentioned materials. And it shall issue a Certificate of Approval for Foreign-invested
Enterprises to the approved enterprises.

(4)

With the approved of establishing an FBIE, the applicant shall file an application for registration at the State Administration of
Industry and Commerce or at local bureaus with its authorization by presenting the Certificate of Approval for Foreign-invested Enterprise
within one month as of the acceptance of the Certificate of Approval for Foreign-invested Enterprise.

Article 9

The following documents shall be submitted to the MOFTEC when applying for the establishment of an FBIE:

(1)

an establishment application signed by the indispensable investors;

(2)

contracts and articles of association of the FBIE signed by all the investors;

(3)

a written declaration made by the indispensable investors (covering: a. the investors meet the requirements as provided in Article
7 ; b. all the materials submitted are genuine; and c. the investors will strictly abide by the present provisions and other relevant
Chinese laws and regulations);

(4)

a letter of legal advice issued by a law firm affirms that the legal indispensable investors exist and the above-mentioned declaration
has got valid authorization and has been signed;

(5)

explanations of the business-starting operations of the foreign investors, explanations of the capital managed by them of the three
years before the application is submitted, explanations of the investment made among the capital managed by them of the three years
before the application is submitted, resumes of its professional managerial persons of business-starting investment;

(6)

the registration certificate of the investors (photocopy) and the certificate of the legal representative (photocopy);

(7)

the notice of pre-approval of the name of the FBIE issued by the name registration organ;

(8)

If the qualifications of the indispensable investors are based on the requirements as provided in paragraph (4) of Article 7 , they
shall submit relevant materials of the affiliated entity that meets the requirements;

(9)

other documents related to the establishment application as required by the examination and approval authority.

Article 10

The FBIEs shall give a clear indication of “Business-starting Investment” in its name. Except for business-starting investment enterprises,
none of the other foreign investment enterprises may use the aforesaid words in their name.

Article 11

In applying for establishing an FBIE, the following documents shall be submitted to the registration organ and shall be responsible
for their authenticity and effectiveness:

(1)

registration application signed by the chairman of the board of directors or by the person-in-charge of the joint management committee;

(2)

contracts, articles of association, the documents and certificate of approval issued by the approving authorities;

(3)

legal license to do business or the certification of the ID of the investor;

(4)

credit certification of the investor;

(5)

appointment documents and the certification of the ID of the legal representative and archival documents of the directors and managers
of this enterprise;

(6)

notice of pre-approval of its name;

(7)

the certification of the address of the enterprise and the certification of its business offices.

In the case of applying for establishing a non-legal-person organization, the applicant shall submit the articles or agreement of
overseas indispensable investors besides the aforesaid materials. Where an enterprise includes investors as provided in Article 7
(4) of the present Provisions, the applicant shall submit the letter of undertaking issued by its affiliated entity, which is to
bear the joint liabilities of investments. All of the aforesaid documents should be written in Chinese. Those written in foreign
languages other than Chinese shall be accompanied by good Chinese translations.

An FBIE should apply to the original registration organ for the modification registration of its modified registration matters.

Article 12

Upon the approval of the registration organ, the incorporated FBIEs shall be issued the business license of legal entity, and the
non-legal-person FBIEs shall be issued a business license.

A business license shall clearly states the total registered capital of the investors and the names of the dispensable investors.

Chapter III Capital Contributions and Relevant Modifications

Article 13

The capital contributions made by the investors of a business-starting enterprise without qualifications of legal entity and the relevant
modifications shall be in conformity with the following:

(1)

The investors may pay the their subscribed capital by installments according to the proceedings of the business-starting investment,
but the longest term shall be no more than 5 years. The amount of capital to be invested at each stage shall be decided by the FBIE
itself according to the contract of the enterprise and the agreement concluded by it and its invested enterprise. In the contract,
the investors shall stipulate liabilities of the investors who do not pay the subscribed capital contributions and relevant measures.

(2)

During the period of the continuous existence of the FBIE, the investors generally shall not reduce their subscribed amount of capital.
Upon approval of the examination and approval organ, an investor may reduce its subscribed amount of capital if the said amount exceeds
50 % of the total provided that it has obtained the consent of the indispensable investors and the business-starting FBIE isn’t in
violation of the requirement of minimum registered capital of 1, 000, 000 U.S. $ (The present provision shall not be applicable to
a case where an investor reduces its invested amount of capital in accordance with item (5) of this Article or the FBIE reduces the
untapped capital when its term of investment expires). In this case, the investors shall stipulate the conditions, procedure and
methods for reducing the subscribed amount of capital in the contract of the FBIE;

(3)

Indispensable investors shall not withdraw from the FBIE during the period of its continuous existence. A necessary withdrawal under
a special circumstance shall be upon the consent of the investor whose investment amount exceeds 50% of the total amount, and the
relevant rights and interests shall be assigned to the new investor who satisfies the conditions as provided in Article 7 . The contract
and the articles of association of this enterprise shall be modified and shall be reported to the check and approving authority for
approval.

The transference of the other investors’ subscribed amount of capital or invested amount of capital shall be done in compliance with
the contract of the FBIE and the assignee shall meet the requirements as provided in Article 6 . All investors shall make relevant
modifications in the contract and the articles of association of the FBIE and report to the examination and approval organ for archival
purposes.

(4)

After an FBIE has been established, the investment application of new investors shall be in conformity with the present Provisions
and the stipulations in the contract, and shall be consented by the indispensable investors. Relevant modifications shall be made
in the contract and the articles of association of the FBIE and shall be reported to the examination and approval organ for archival
purposes.

(5)

Among the incomes of an FBIE arising from selling or disposing of the interests of its invested enterprise by other means, the part
equivalent to its original amount of investment may be directly allocated to all the investors. Such allocation constitutes a reduction
of the invested amount of the investors. An FBIE shall stipulate concrete methods of allocation in its contract, and at least 30
days before it makes such allocation, it shall submit an archival statement on the request of reducing the relevant invested amount
of the investors. In the said statement, it shall prove that the amount of the investments to be made by the investors and the other
capital it has at that time is at least in conformity with the investment obligations that the FBIE shall undertake at that time.
However, such allocation shall not be a plea to the litigation resulted from its violation of any of the investment obligations.

Article 14

When a non-legal-person organization files an application to the registration authority for modifying its registration, the archival
evidential documents issued by the above-mentioned examination and approval organ may replace relevant documents for examination
and approval.

Article 15

Having made investments according to the proceedings of business-starting investments and upon relevant capital verification report,
the investors of the FBIE shall file an application to the original registration organ for handling the archival procedures for their
investments. The registration organ shall fill up the number of its actual amount of capital behind the item of “Capital Amount”
on its Business License.

Where an FBIE makes no investment or fails to make the total investment, it shall be subject to penalties imposed by the registration
organ in accordance with the existing regulations.

Article 16

The investors of an FBIE shall make investments and relevant modifications in accordance with the existing regulations.

Chapter IV Institutional Structure

Article 17

An FBIE in the form of non-legal-person organization shall establish a joint management committee. An FBIE in the form of company
shall establish a board of directors. The investors shall stipulate on how to organize the joint management committee or the board
of directors in the contract and in the articles of association of the FBIE. The joint management committee and the board of directors
shall manage the enterprise on behalf of its investors.

Article 18

The subordinate administrative departments of the joint management committee and the board of directors shall, in accordance with
the power as specified in the contract and the articles of association of the FBIE, take charge of the routine managerial work and
execute the investment decisions made by the joint management committee and the board of directors.

Article 19

The person-in-charge of an administrative department shall satisfy the following conditions:

(1)

shall have full capacity for civil conduct;

(2)

shall have no record of criminal offence;

(3)

shall have no record of bad operations;

(4)

shall be experienced in business-starting investments and have no record of illegal practices.

(5)

shall meet the other requirements of the examination and approval organ.

Article 20

The administrative departments shall regularly report the following to the joint management committee and the board of directors:

(1)

significant investments under authorization;

(2)

metaphase & annual performance reports and financial statements;

(3)

other matters as provided in laws and regulations;

(4)

relevant matters as stipulated in the contract and in the articles of association of the FBIE.

Article 21

The joint management committee and the board of directors may grant the power of routine administration to a business-investment management
enterprise or another FBIE rather than establish administrative departments. The business-investment management enterprise may be
a domestically-funded business-starting investment enterprise or a foreign-funded one or an overseas enterprise. In this case, the
business-starting investment enterprise and the business-starting investment management enterprise shall conclude a managerial contract,
stipulating respective rights and interests. Such a contract shall not come into effect until it has been agreed by all the investors
and has been approved by the examination and approval organ.

Article 22

The investors of an FBIE may, by reference to the international practices, stipulate interior system for income allocations and incentive
mechanism in the business-starting investment contract.

Chapter V Business-Starting Investment Management Enterprise

Article 23

An entrusted business-starting investment management enterprise shall meet the following conditions:

(1)

To accept the entrustment of the FBIEs and to manage the investments made by them shall be its main business;

(2)

It shall have at least 3 professional managerial persons who have at least three years of practical experience in business-starting
investment;

(3)

Its registered capital or its total investments shall not be less than 1, 000, 000 yuan or equivalent foreign exchange;

(4)

It shall have a perfect interior control system.

Article 24

A business-starting investment management enterprise is allowed to take the form of the corporate organization or the partnership
organization.

Article 25

A business-starting investment management enterprise may be entrusted to manage different FBIEs.

Article 26

A business-starting investment management enterprise shall report the matters as listed in Article 20 to the joint management committee
and the board of directors of the entrusting party.

Article 27

The establishment of a foreign-funded business-starting investment management enterprise shall be in conformity with the conditions
as provided in Article 23 and shall be reported to the examination and approval organ for approval via the administrative departments
of foreign trade and economic cooperation at the provincial level where the company to be established is located. The examination
and approval organ shall make a written decision on whether to approve or not within 45 days as of the acceptance of the complete
set of the above-mentioned documents. It shall issue a Certificate of Approval for Foreign-invested Enterprises to the approved enterprises,
which shall file an application to the registration organ by holding the Certificate within a month as of their acceptance of the
Certificate.

Article 28

The following documents shall be submitted to the examination and approval organ in applying for the establishment of a foreign-invested
business-starting investment management company:

(1)

establishment application;

(2)

contract and articles of association of foreign-funded business-starting investment management company;

(3)

the investors’ registration certificate (photocopy) and the certificate of the legal representative (photocopy);

(4)

relevant documents required by the examination and approval organ;

Article 29

A foreign-invested business-starting investment management enterprise shall give a clear indication of “INVESTMENT MANAGEMENT” in
its name. Except for the foreign-invested business-starting investment management enterprises any other foreign-funded enterprises
shall not do so.

Article 30

An overseas business-starting investment management enterprise, which has acquired the approval of engaging in business-starting investment
management under the authorization of FBIEs, shall file an application to the registration organ to handle the business registration
procedures within 30 days as of the approval day of the management contract.

An applicant shall submit the following documents to the business registration organ and shall be responsible for their authenticity
and effectiveness:

(1)

an application for registration signed by the chairman of the board of directors of the overseas business-starting investment management
enterprise, or by a competent person;

(2)

a management contract and the approval documents of the examination and approval organ;

(3)

articles of association or partnership agreement of the overseas business-starting investment management enterprise;

(4)

the overseas business-starting investment management enterprise’ legal license to do business;

(5)

the credit certification of the overseas business-starting investment management enterprise;

(6)

the power of attorney, resume and the certification of the identification of the person-in-charge of the Chinese project appointed
by the overseas business-starting investment management enterprise;

(7)

the certification of its business offices in China; All of the aforesaid documents should be written in Chinese, those written in
foreign languages other than Chinese shall be accompanied by good Chinese translations

Chapter VI Business Management

Article 31

An FBIE may engage in the following businesses:

(1)

It may make equity investments with all of its own capital through establishing new enterprises, or investing into an established
enterprise, or accepting the stock equities transferred by the investors of an established enterprise, or through other means as
permitted in the laws and regulations of the state;

(2)

It may offer business-starting investment consultancy services;

(3)

It may offer management consultancy to the invested enterprises;

(4)

It may engage in other businesses as approved by the examination and approval organ. The capital of an FBIE may be largely used to
make equity investments into its invested enterprise.

Article 32

A business-starting enterprise shall not engage in the following activities:

(1)

It shall not make investments into the areas in which foreign investments are prohibited by the state;

(2)

It shall not make direct or indirect investments into the listed securities and bonds of an enterprise, but after the invested enterprise
is listed, the shares held by the FBIE shall be an exception.

(3)

It shall not make direct or indirect investments into real property not for its own use;

(4)

It shall not make investments by way of loans;

(5)

It shall not make investments by embezzling the capital not in its ownership;

(6)

It shall not provide a loan or guaranty to others, but the bonds with a term of more than 1 year issued by its invested enterprise
and the investments in the nature of bonds that may be converted into equity investments to the invested enterprise shall be excluded
(this paragraph doesn’t concern whether the invested enterprise is enpost_titled to issue such bonds or not);

(7)

It shall not engage in other activities as prohibited in the law and regulations and the contract of the FBIE.

Article 33

The investors shall stipulate a term for foreign investments in the contract of the FBIE.

Article 34

The incomes of an FBIE shall be generated largely from selling the stock equities it holds in the invested enterprise or from disposing
of the stock equities by other means. When an FBIE sell the stock equities it holds in the invested enterprise or dispose of the
stock equities by other means, it may, in accordance with the law, choose one of the following available methods of withdrawing:

(1)

It may transfer part of or all of the stock equities it holds to other investors;

(2)

It may sign an agreement of stock equity counter-purchase with the invested enterprise, which may counter-purchase the stock equities
held by the business-starting investment enterprise under certain circumstances;

(3)

Where the invested enterprise satisfies the conditions of listing as provided by laws and administrative regulations, it may apply
for listing in the securities markets of home and abroad. In accordance with the law, the FBIE may transfer the shares it holds in
the invested enterprise through the securities markets;

(4)

The other methods that are allowed by the laws and administrative regulations of China. The concrete regulatory measures concerning
the invested enterprise’ counter-purchase of the stock equities held by the FBIE shall be separately formulated by the examination
organ jointly with the registration organ.

Article 35

An FBIE shall make tax declaration in accordance with the tax laws of the state. As to a non-legal-person organization, in accordance
with the law, it may request all the investing parties to file returns for enterprise income taxes on their own, or file an application
by itself, after the application has been approved, it shall, in accordance with the law, calculate and pay the enterprise income
tax in a consolidated way.

The concrete regulatory measures concerning the levy of enterprise income tax upon the non-legal-person FBIEs shall be promulgated
separately by the State Administration of Taxation.

Article 36

Where the profit or other income obtained by a foreign investor from an FBIE is to be remitted abroad, it shall be paid from the foreign
currency account of the FBIE, or shall be remitted through an entrusted bank with the foreign currencies purchased from the bank.
Such payment or remittance shall be made on the basis of the allocation decision made by the joint management committee or the board
of directors, the audit report issued by an accountant office, the certification of inflow of foreign investments and the report
on the verification of capital, the certification of tax payment and the tax return (where an enterprise enjoys tax concession, it
shall present the evidential documents of tax concession issued by the tax authorities).

In accordance with the law, a foreign investor may request to purchase foreign currencies to remit the investments withdrawn from
the FBIE. As to an FBIE in the form of company, the opening and access of foreign currency account, changes of capital and other
matters involving the incomes and expenses of foreign currencies shall be handled pursuant to the existing regulations concerning
the administration of foreign exchange. But relevant regulations on the non-legal-person FBIEs shall be formulated separately by
the State Administration of Foreign Exchange.

Article 37

The investors shall stipulate the business term of the FBIE i

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON STRENGTHENING THE WORKS RELATING TO WITHHOLDING AND PAYMENT OF THE INDIVIDUAL INCOME TAX FROM INTERESTS OF ENTERPRISES BOND

The State Administration of Taxation

Circular of the State Administration of Taxation on Strengthening the Works Relating to Withholding and Payment of the Individual
Income Tax from Interests of Enterprises Bond

GuoShuiHan [2003] No.612

June 6, 2003

Local tax bureaus of the provinces, autonomous regions and municipalities directly under the Central Government and municipalities
separately listed on the state plan:

In order to further strengthening the management of the levy and collection of the individual income tax from interests of enterprises
bonds, and safeguard the timely entry of full tax into the state treasury, the issues on the management of levy of the income tax
from interests of enterprises bonds are notified as follows through research and investigation:

I.

The individual income tax from interests of enterprise bonds shall be uniformly withheld and paid by the conversion institutions when
converting and paying the interests to the holders of bonds, which shall be directly entered into the state treasury. The conversion
and paying institutions shall do well in the works relating to the withholding and payment of the individual income tax according
to the relevant provisions of the individual income tax law.

II.

Various levels of tax administration shall strengthen the management on the work of the conversion and paying institutions relating
to withholding and payment of the individual income tax.

III.

The Circular shall be implemented as of the date of the delivery.

 
The State Administration of Taxation
2003-06-06

 




RULES FOR THE IMPLEMENTATION OF THE ADMINISTRATION OF IMPORT QUOTAS FOR MACHINERY AND ELECTRONIC PRODUCTS

e00514

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

Order of the Ministry of Foreign Trade and Economic Cooperation and the General Administration of Customs

No.23

The “Rules for the Implementation of the Administration of Import Quotas for Machinery and Electronic Products”, which were, in accordance
with the “Foreign Trade Law of the People’s Republic of China”, the “Regulations of the People’s Republic of China on the Administration
of Import and Export of Goods” and the “Measures on the Administration of Import of Machinery and Electronic Products”, discussed
and adopted at the 10th minister’s working meeting of the Ministry of Foreign Trade and Economic Cooperation in 2001, and which have
been consented by the General Administration of Customs with whom these Detailed Rules were negotiated, are hereby promulgated, and
shall come into force on January 1, 2002. The “Import Quota Attestations” issued by the Ministry of Foreign Trade and Economic Cooperation
before January 1, 2002 shall continue to be valid within the validity period, and shall be invalidated after the expiry as the validity
period shall not be extended.

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

December 20, 2001

Rules for the Implementation of the Administration of Import Quotas for Machinery and Electronic Products

Article 1

These Detailed Rules are enacted in accordance with the “Regulations of the People’s Republic of China on the Administration of Import
and Export of Goods” and the “Measures on the Administration of Import of Machinery and Electronic Products” in order to regulate
the administration of the import quotas for machinery and electronic products.

Article 2

These Detailed Rules shall be applicable to the import by importing entities of machinery and electronic products under quotas inside
the customs territory of the People’s Republic of China.

Article 3

The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as “the MOFTEC”)
shall be responsible for enacting, adjusting and promulgating jointly with the General Administration of Customs the catalogue of
import quotas for machinery and electronic products, as well as working out the annual plans on national import quotas for machinery
and electronic products and organizing the implementation.

Article 4

The MOFTEC shall, through electronic network system or by other means, carry out exchanges, checks and feedbacks of data with the
customs and other relevant administrative departments, and shall be responsible for inspecting and supervising the implementation
of the import quotas for the machinery and electronic products all over the country.

The institution in charge of foreign trade and economic cooperation of each province, autonomous region, municipality directly under
the Central Government, municipality separately listed on the State plan, coastal city open to the world and special economic zone,
as well as the office for the import and export of machinery and electronic products of each relevant department under the State
Council (hereinafter respectively referred to as “the local institution in charge of foreign trade and economic cooperation” and
“the departmental office of machinery and electronic products”), shall be responsible for inspecting and supervising the implementation
of the import quotas for the machinery and electronic products in its own area or department, and shall report the situation to the
MOFTEC.

Article 5

The MOFTEC shall, before July 31 of each year, promulgate the total quantity of the import quotas of the next year for the machinery
and electronic products all over the country.

The MOFTEC may, on the basis of its needs, adjust the total quantity of the annual quotas for machinery and electronic products, and
shall promulgate such adjustment 21 days before its enforcement.

Article 6

The qualifications and conditions for applying for import quotas for machinery and electronic products are as follows:

(1)

The entity applying for import shall have no such acts in violation of laws or regulations within the latest three years as evasion
of exchange, arbitrage of exchange, fraudulently obtaining tax refund for exports, smuggling, etc.;

(2)

The entity applying for import shall be enpost_titled to operate the products under the quotas in application;

(3)

The entity applying for import shall have the actual effective performance of importing and selling the products under the quotas
in application for a consecutive period of three years;

(4)

The entity applying for import shall have the capabilities of manufacture, sale, maintenance, provision of services and supply of
fittings, which are suitable for the quantity of the quotas in application;

(5)

The entity applying for import shall be in a good financial status;

(6)

Newly increased entities applying for import do not have to fulfill the conditions provided for in Item (3) of this Article;

(7)

An applicant who applies for import quotas for its own use does not have to fulfill the qualifications and conditions provided for
in Items (2), (3), (4) and (5) of this Article, provided that it shall submit a justifiable reason for application and appropriate
quantity of quotas in application.

Article 7

The time for applying for and distributing the import quotas is as follows:

(1)

The entity applying for import shall, during the period from August 1 to August 31 of each year, submit to the MOFTEC the application
for import quotas of the next year for machinery and electronic products, which shall not be accepted after the expiry;

(2)

The MOFTEC shall, before October 31 of each year, distribute the quotas, and issue the “Attestations on Import Quotas for Machinery
and Electronic Products” to the entities applying for import who have obtained the quotas.

Article 8

The time for re-distributing the import quotas is as follows:

(1)

The importing entities holding quotas shall, no later than September 1 of each year, return the quota licenses which cannot be used
up in the present year to the MOFTEC;

(2)

The MOFTEC shall, within 10 working days as of September 1 of each year, re-distribute the quotas stated in the returned quota licenses.

Article 9

The principles for distributing the import quotas are as follows:

(1)

To guarantee the needs in scientific research, education, culture, hygiene and other commonweal careers if the goods are imported
for the importer’s own use;

(2)

To give priority to considering the applications of the importing entities with strong capability of manufacture, sale and provision
of services;

(3)

To consider the actual effective performance of the entities applying for import in respect of the import of products under the quotas
in the latest three years;

(4)

To consider distributing a certain proportion of the total quantity of annual quotas to the newly increased entities applying for
import;

(5)

To properly increase the quantity of quotas of the next year upon request if the quotas of the last year have been used up; or

To deduct the quantity of quotas of the next year if the quotas of the last year have not been used up and the remaining quotas are
not returned within the provided time limit;

(6)

Some certain import quotas shall be distributed in a method of bidding, and the specific measures for administration shall be enacted
and promulgated by the MOFTEC.

Article 10

The procedures for applying for the “Attestation on Import Quotas for Machinery and Electronic Products” are as follows: An entity
applying for import shall, when importing machinery and electronic products subject to quota administration, truthfully fill out
the “Application Form for Import of Machinery and Electronic Products” in duplicate, and provide the application report and other
relevant documents, as well as go through the verification formalities in the relevant local institution in charge of foreign trade
and economic cooperation and the departmental office of machinery and electronic products. If no office of machinery and electronic
products is established in the department, the entity applying for import shall go through the verification formalities in the institution
in charge of foreign trade and economic cooperation located in the place of its industrial and commercial registration or legal person
registration.

Upon verification by the relevant local institution in charge of foreign trade and economic cooperation and the departmental office
of machinery and electronic products, an entity applying for import shall, within the provided time limit for applying for quotas,
apply for and obtain the “Attestation on Import Quotas for Machinery and Electronic Products” from the MOFTEC with the relevant documents
and the “Application Form for Import of Machinery and Electronic Products”.

Article 11

The importing entity shall apply for and obtain the “Import Quota License” with the “Attestation on Import Quotas for Machinery and
Electronic Products” issued by the MOFTEC. The validity period for the application and obtaining shall be the year when the “Attestation
on Import Quotas for Machinery and Electronic Products” is issued. Where the “Import Quota License” is not applied for or obtained
within the validity period, the “Attestation on Import Quotas for Machinery and Electronic Products” shall be invalidated.

Article 12

The “Attestation on Import Quotas for Machinery and Electronic Products” shall be in quintuplicate with five sheets. The first sheet
(blue, with anti-counterfeiting shading) shall be the document for applying for and obtaining the “Import Quota License”; the second
sheet (green, with white shading) shall be the document for order of goods; the third sheet (red, with anti-counterfeiting shading)
shall be the document kept in the customs for record; the fourth sheet (red, with white shading) shall be the banking document for
the purchase of and payment in foreign exchange; and the fifth sheet (black, with white shading) shall be kept in the quota administration
organ for file.

Article 13

Where, after obtaining the “Attestation on Import Quotas for Machinery and Electronic Products”, the importing entity needs to modify
any content in such items in the “Attestation on Import Quotas for Machinery and Electronic Products” as the importing entity, mode
of trade, uses of products, name, quantity or amount of products (with the range of change exceeding 10%) and performance of equipment,
etc. within the validity period due to a particular reason, it shall go through the formalities of modifying or changing the attestation
in the original organ which issued the attestation with the original “Attestation on Import Quotas for Machinery and Electronic Products”;
the original organ which issued the attestation shall take back the old attestation, and shall print the characters of “(change of
certificates)” in the remark column of the newly issued attestation. Where the amount of actually used exchange does not exceed 10
% of the planned amount, the “Attestation on Import Quotas for Machinery and Electronic Products” does not need to be modified, and
the importing entity shall not, when applying for and obtaining the “Import Quotas License” with the “Attestation on Import Quotas
for Machinery and Electronic Products”, modify any content in such items in the “Attestation on Import Quotas for Machinery and Electronic
Products” as the importing entity, mode of trade, uses of products, name, quantity or amount of products (with the range of change
exceeding 10%) and performance of equipment, etc..

Article 14

Where the “Attestation on Import Quotas for Machinery and Electronic Products” is lost, the importing entity shall immediately report
the loss to the original import quota administration organ, the original license administration organ and the customs at the port
of declaration. If no bad consequence occurs, the importing entity may apply to the MOFTEC for re-issuance.

Article 15

For any entity who concludes contracts with foreign parties before applying for the “Attestation on Import Quotas for Machinery and
Electronic Products” and the “Import Quotas License” in accordance with the provisions in these Detailed Rules, the MOFTEC shall
not re-issue the import quota attestation, and the customs and other administrative department shall deal with the matter in accordance
with the relevant laws and administrative regulations.

Article 16

These Detailed Rules shall also be applicable in any of the following circumstances:

(1)

The imported parts of the products under quotas constitute the feature of a whole machine;

(2)

The products under quotas are imported in processing trade for manufacturing products of domestic sale or for the importer’s own use;

(3)

The products under quotas are imported by enterprises with foreign investment for manufacturing products of domestic sale or for their
own use;

(4)

The products under quotas are imported in such modes of trade as leasing trade, compensation trade, etc.;

(5)

The products under quotas are imported in such manners as gratis aid, donation or present in economic exchanges, etc.;

(6)

The products under quotas, which are purchased outside the territory by Chinese institutions abroad or Chinese enterprises carrying
out construction projects outside the territory, need to be moved back to China for their own use;

(7)

Other circumstances separately provided for in laws and administrative regulations.

Article 17

These Detailed Rules shall not be applicable in any of the following circumstances:

(1)

The products imported in processing trade are re-exported;

(2)

The products under quotas are imported into China’s bonded zones or export processing zones for re-export;

(3)

The products under quotas are temporarily imported under the supervision and administration of the customs;

(4)

The products under quotas are imported by enterprises with foreign investment for investment or for their own use;

(5)

Other circumstances separately provided for in laws and administrative regulations.

Article 18

The power to interpret the present Detailed Rules shall remain with the MOFTEC. In case of any previous relevant provision inconsistent
with these Detailed Rules, these Detailed Rules shall prevail.

Article 19

These Detailed Rules shall enter into force on January 1, 2002.

 
The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs
2001-12-20

 




INTERIM RULES ON PLACING CASES ON FILE FOR INVESTIGATION FOR TAKING SAFEGUARD MEASURES

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Trade and Economic Cooperation

No.9

The Interim Rules on Placing Cases on File for Investigation for Taking Safeguard Measures has been adopted at the executive meeting
of the Ministry on February 10, 2002 and is hereby promulgated for implementation as of March 13, 2002.

Shi Guangsheng, Minister of the MOFTEC

February 10, 2002

Interim Rules on Placing Cases on File for Investigation for Taking Safeguard Measures

Chapter I General Provisions

Article 1

The present Rules have been formulated on the basis of the Regulation of the People’s Republic of China for standardizing the procedures
of applying for and placing cases on files for investigation for taking safeguard measures.

Article 2

The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) designates the Fair Import and Export
Trade Bureau to implement the present Rules.

Article 3

The MOFTEC may, upon the application of the applicant, decide to place a case on file or decide to place a case on file upon its own
initiative for investigation for taking safeguard measures.

Chapter II Application

Article 4

The natural persons, legal persons or other organizations (hereinafter referred to as the applicant) that are connected with the domestic
industry may apply to the MOFTEC for investigation for taking safeguard measures.

Article 5

An application for investigation for taking safeguard measures shall be made in written form. The application shall clearly state
the will of formally applying to the MOFTEC for placing a case on file for investigation for taking safeguard measures, and shall
be sealed or signed by the applicant or any person legally authorized thereby.

Article 6

An application shall include the following contents:

1.

An account of the information about the applicant;

2.

An account of the imported products, similar domestic products or directly competing products applied for investigation;

3.

Information about the known country (region) of export, the exporter, producer and importer of the imported product that have already
been applied for investigation;

4.

An account of the domestic industry;

5.

An account of the increase in quantity of the imported product that is applied for investigation;

6.

An account of the damages suffered;

7.

An account of the causal relationship between the increase of import and the damages suffered;

8.

Pleadings;

9.

Other issues that the applicant believes necessary to make an account of.

Article 7

With regard to the information about the applicant, the applicant shall provide the following materials:

The name, legal representative, address, telephone number, zip code, fax number, person-to-contact, etc. of the applicant.

Where the applicant has entrusted an agent, such information as the name and identification of the agent shall be stated and a letter
of authorization shall be submitted.

Article 8

With regard to the imported product, similar domestic product or directly competing product, the applicant shall provide the following
evidential materials:

1.

A detailed account of the name, type, specifications, purposes of use, market situation, etc. of the imported product that is applied
for investigation and the docket number of the import tariff policy of the People’s Republic of China;

2.

The name, type, specifications, purpose of use, market situation, etc. of the similar domestic products or directly competing products;

3.

A comparison of the differences and similarities between the imported product that is applied for investigation and the similar domestic
products or directly competing products, including the physical features, chemical features, production techniques, purpose of use,
and substitutability, etc.

4.

Other evidential materials that the MOFTEC believes of necessity to be submitted.

Article 9

The applicant shall provide the names of the country (region) of export, the country (region) of origin of the imported product that
is applied for investigation, the name, address and contact information of the known exporters, producers and importers of the imported
products that have already been applied for investigation.

Article 10

With regard to the information about the domestic industry, the applicant shall provide the following evidential materials:

1.

The names, addresses and contact information of the known domestic producers and relevant societies and chambers of commerce;

2.

The annual total amount of domestic production of the similar or directly competing products produced by all the producers within
the whole country within the 5 years prior to the filing of the application;

3.

The annual amount of production of the similar or directly competing products produced by the applicant each year and the shares in
the total domestic amount within the 5 years prior to the filing of the applicant;

4.

Other evidential materials that the MOFTEC believes of necessity to be provided.

Article 11

With regard to the increase of amount of the imported product that is applied for investigation, the applicant shall provide the following
evidential materials:

1.

The amount and value of the product imported each year within at least 5 years prior to the filing of application, which shall be
illustrated by flow curve charts;

2.

The absolute amount of export of all countries (regions) of export of the imported product that is applied for investigation within
at least 5 years prior to the filing of the application and the percentage of the export amount of all countries (regions) within
the total import of the imported product that is applied for investigation;

3.

The shares of the imported product that is applied for investigation and the similar domestic products or directly competing products
within their respective domestic consumptions in terms of amount and value within at least 5 years prior to the filing of the application;

4.

An analysis of reasons of the increase of import, including such considerations as but not limited to the rate of import tariff levied
on the product with the recent 5 years, materials about the deductions or preferential treatment that may have been enjoyed by the
import product that is applied for investigation, and the export prices of the imported product that is applied for investigation,
etc;

5.

Other evidential materials that the MOFTEC believes of necessity to be provided.

Article 12

Where an application is filed on the ground that the increase of import has caused serious damages to the domestic industry, the applicant
shall provide the following evidential materials:

1.

All the relevant objective or quantifiable elements or indicators that affect the situation of the domestic market. Particularly,
they are: the rate and amount of the increase of import calculated on the basis of the absolute value and relative value of the imported
product that is applied for investigation, the shares of the increased import in the domestic market, and the changes in sales, production
amount, production rate, use rate of the equipments, profits and losses as well as employment;

2.

Evidential materials concerning the effects of the prices of the imported product that is applied for investigation upon the prices
of the similar domestic products or directly competing products;

3.

Other evidential materials that the MOFTEC believes of necessity to be provided.

Article 13

Where an application is filed on the ground that the increase of import is in the threat of causing serious damages to the domestic
industry, the applicant shall provide the following evidential materials:

1.

The export capacity, repertory of the country of export of the imported product that is applied for investigation and evidential materials
about the possibility that the import may continue to increase;

2.

The trend of changes of obvious approaching of the elements or indicators as mentioned in Article 12 (1) of the present Rules.

Article 14

When the applicant claims that the imported product applied for investigation affect the domestic industry and provides evidential
materials, he shall make separate decisions about the production of the similar domestic products or directly competing products;
where it is impossible to make separate decisions about the similar domestic products or directly competing products, he shall decide
according to the production of the narrowest product group or scope that includes the similar domestic products or directly competing
products.

Article 15

With regard to the causal relationship between the increase of import and the damages, the applicant shall analyze the above-mentioned
materials, stating the causal relationship between the increase of import and the damages to the domestic industry.

When proving the causal relationship between the increase of import and the damages to the domestic industry, any of the known elements
other than the increase in import that concurrently cause damages to the industry shall be analyzed, including but not limited to
the deduction of demand or the changes in consumption modes, the restrictive trade practices of the foreign and domestic producers
and the competition between them, the development of technology and the export performance and productivity of the domestic industry.
If the applicant believes any of the above-mentioned element is inapplicable, he shall make an account thereof.

Article 16

The applicant shall specify his pleadings for taking safeguard measures in the application; he may specify the form of safeguard measures
to be adopted, the concrete content, time limit and reasons thereof.

Article 17

Where the applicant pleads for taking interim safeguard measures at the same time, he shall provide evidences that prove the increase
in import has caused serious damages to or is threatening to cause serious damages to the domestic industry, and any delay in taking
such measures will lead to irremediable damages, and shall specify the rate of the tariffs to be increased.

Article 18

The applicant shall, when providing the evidential materials as mentioned in this chapter, specify the sources of the evidences.

Article 19

If an application involves any confidential materials, the applicant shall apply for keeping secret. With regard to the confidential
materials, the applicant shall provide a non-confidential summary which may help the interested parties of the case involved to have
a reasonable knowledge of the confidential materials. If the applicant fails to provide a non-confidential summary, he shall state
the reasons.

Article 20

The application for investigation for taking safeguard measures and the relevant evidential materials shall be submitted in print
hand of simplified Chinese characters. Where there are uniform technical jargons, such standardized language shall be used.

If the evidential materials provided by the applicant are in any foreign language, the applicant shall provide the foreign-language
full text of the said materials, and provide Chinese translation to the relevant parts.

Article 21

The application and the attached evidential materials shall include a confidential version (where the applicant pleads for keeping
secret) and a public version. Apart from a set of the original confidential version and 6 duplicates thereof, a set of the original
public version and 6 duplicates thereof, the applicant shall provide duplicates according to the number of the countries (regions)
of export of the imported product that is applied for investigation. If there are too many countries (regions) of export of the imported
product that is applied for investigation, the number of duplicates may be appropriately reduced, but no less than 5 duplicates.

Article 22

The applicant shall provide the electronic data version of the application and the evidential materials according to the computer
programs required by the Fair Import and Export Trade Bureau.

Article 23

The applicant shall submit the application and the evidential materials to the Fair Import and Export Trade Bureau by way of post
or direct service.

Article 24

The official application and the evidential materials submitted by the applicant shall be signed to acknowledgment of receipt by the
Fair Import and Export Trade Bureau. The day of signing shall be the day when the Fair Import and Export Trade Bureau receives the
application and relevant evidential materials.

Article 25

Before placing a case on file and making a public announcement, the MOFTEC shall keep the materials submitted by the applicant as
secret.

Chapter III Placing a Case on File

Article 26

The Fair Import and Export Trade Bureau may investigate the issues of the application and the evidential materials including the qualifications
of the applicant, the imported product that is applied for investigation by way of questionnaires and on-spot verifications, etc.

Article 27

The MOFTEC shall, as a general rule, decide whether to place the case on file within 60 days after receiving the written application
for taking safeguard measures. Where the circumstances are especially complicated, the time period for examination may be appropriately
extended.

Article 28

The Fair Import and Export Bureau may, within the time period as prescribed in Article 27 of the present Rules, request the applicant
to make readjustments or supplements to the application for investigation for taking safeguard measures. Where the applicant refuses
to make readjustments or supplements or fails to make the readjustments or supplements as requested, the application of the applicant
may be rejected and the applicant shall be informed.

Article 29

Where the MOFTEC decides to place a case on file, it shall inform the applicant of the decision not to place the case on file together
with the reasons thereof.

Article 30

Where the MOFTEC decides to place the case on file, it shall make a public announcement.

The public announcement shall clearly specify the following contents:

1.

The name and specifications of the imported product that is applied for investigation;

2.

The country (region) of the imported product that is applied for investigation;

3.

A summary account of the materials on which the place of the case on file is based;

4.

The date when the investigation for taking safeguard measures is initiated;

5.

The time limit of investigation for taking safeguard measures;

6.

The time limit for the interested parties to make comments;

7.

The contact information of the investigation organs.

Article 31

The MOFTEC shall inform the Committee for Safeguard Measures of the WTO within 7 working days after deciding to place the case on
file for investigations.

Article 32

The day when the case is place on file for investigation for taking safeguard measures shall be the day when the decision to place
the case on file is publicized.

Chapter IV Placing Cases on File by the MOFTEC on Its Own Initiatives

Article 33

Where the MOFTEC does not receive any written application for taking safeguard measures but has sufficient evidences to believe that
the increase in amount of the imported product causes serious damages to threatens to cause serious damages to the domestic industry,
it may decide to place the case on file on its own initiatives, and make investigations for taking safeguard measures.

Article 34

Where the MOFTEC places a case on file on its own initiative and makes investigations for taking safeguard measures, the evidential
materials that it obtains shall conform to the relevant provisions as mentioned in chapter II of the present Rules.

Chapter V Supplementary Provisions

Article 35

The power to interpret the present Rules shall remain with the MOFTEC.

Article 36

The present Rules shall enter into force as of March 13, 2002.

 
The Ministry of Foreign Trade and Economic Cooperation
2002-02-10

 




ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS ON AMENDING ARTICLE 2 OF THE MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR SUPERVISION OVER GOODS TRANSFERRED BETWEEN CUSTOMS

The General Customs Administration

Announcement of the General Administration of Customs on Amending Article 2 of the Measures of the Customs of the People’s Republic
of China for Supervision over Goods Transferred Between Customs

[2002] No.7

April 17, 2002

Pursuant to the Measures of the Customs of the People’s Republic of China for Supervision over Goods Transferred Between Customs (hereinafter
referred to as the Supervision Measures), imports and exports transferred between customs should bear the seal of the customs. After
the nationwide introduction of the fast customs clearance system for transfer between customs, goods transferred between customs
by various means and transit goods shall all bear the customs seal in going through relevant transfer procedures. Taking into consideration
the strict time requirement for the departure of shipping vehicles and the low transport risk of goods transference or transit by
inland feeder vessels or by train, all customs bureaus have provided facilitation and streamlined procedures to various degrees.
In order to ensure a uniformed law enforcement and to improve the efficiency of customs clearance by streamlining all the procedures
that can be streamlined without adversely affecting the supervision efficiency, it has been decided after careful study that the
seal requirement on cargo transfer or transit in container between customs by inland feeder vessels or by train shall be relaxed.
Article 2 of the Supervision Measures is amended as follows:

I.

The customs seal is not required under the condition that the commercial seal remains intact for containerized cargo transfer or transit
by inland feeder vessels or by train.

II.

In order to ensure efficient supervision, the customs shall handle cargo transfer between customs with no customs seal requirement
according to the following instructions:

1.

The number of the commercial seal shall be entered into the transfer declaration from under the item of “customs locking number.”

2.

The entry customs and the shipment customs shall, based on the manifest and the bill of railway freight, decide upon a certain proportion
and sample the cargo accordingly to see whether the commercial seals remain intact. The destination customs and the departure customs
shall check the commercial seal with the computerized transfer declaration and the manifest or the bill of railway freight, and then
handle relevant customs procedures accordingly.

3.

The Supervision Measures remains valid except for conditions specified hereinabove.

III.

For cargos transferred between customs that have been unsealed for checking or reshipped in other containers, the customs seal is
required, according to relevant stipulations, for going through relevant procedures for customs transfer.

The Announcement will enter into force as of April 25, 2002.

This is hereby notified.



 
The General Customs Administration
2002-04-17

 







CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) AND THE CHINA INSURANCE REGULATORY COMMISSION (CIRC) ON DISTRIBUTING THE PROVISIONAL RULES ON FOREIGN EXCHANGE ADMINISTRATION OF INSURANCE BUSINESS

The State Administration of Foreign Exchange, the China Insurance Regulatory Commission

Circular of the State Administration of Foreign Exchange (SAFE) and the China Insurance Regulatory Commission (CIRC) on Distributing
the Provisional Rules on Foreign Exchange Administration of Insurance Business

HuiFa [2002] No.95

September 24, 2002

SAFE branches in all provinces, autonomous regions, and municipalities directly under the Central Government, exchange administration
offices, and SAFE branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, branches of the CIRC, all insurance companies
and designated foreign exchange banks:

The SAFE and the CIRC have jointly formulated the Provisional Rules on Foreign Exchange Administration of Insurance Business (hereinafter
referred to as the Rules) with a view to promoting the development of Chinese insurance market, and normalizing the foreign exchange
receipts and payments of the insurance industry. The Rules shall be officially implemented as from November 1, 2002.

The Rules is hereby distributed to you. SAFE branches are requested to transmit it to the sub-branches, designated foreign exchange
banks (foreign-funded banks included) under their jurisdiction; CIRC branches are requested to transmit it to the insurance companies
and relevant institutions under their jurisdiction; and insurance companies and designated Chinese-funded foreign exchange banks
are requested to transmit it to their branches and sub-branches for implementation.

Attachment: Provisional Rules on Foreign Exchange Administration of Insurance Business Attachment:Provisional Rules on Foreign Exchange Administration of Insurance Business

Chapter I General Provisions

Article 1

Pursuant to the Insurance Law of the People’s Republic of China (the PRC), Regulations on the Exchange System of the PRC, and Regulations
of the PRC on Foreign-funded Insurance Companies, this Rules is enacted with a view to regulating foreign exchange insurance activities
within the territory of the PRC, and perfecting foreign exchange administration of the insurance business.

Article 2

Foreign exchange insurance stated in this Rules refers to commercial insurance whereby the payment of insurance premium, indemnity
or the payment of insurance benefits shall be priced and settled in foreign exchange as agreed upon in the insurance contract. Foreign
exchange insurance includes foreign exchange property insurance, foreign exchange life and health insurance, and foreign exchange
reinsurance.

Article 3

Foreign exchange insurance operations within the territory of the PRC, foreign exchange receipts and payments, sale and purchase of
foreign exchange, opening and use of foreign exchange account under the item of insurance shall be governed by this Rules.

Article 4

When conducting foreign exchange insurance business, insurance companies and their branches and sub-branches (hereinafter referred
to as insurers) shall use foreign exchange in collecting the insurance premium from the applicants and indemnifying or paying the
insurance benefits to the insured (or beneficiaries), and settling insurance contracts.

Article 5

The SAFE and its branches and sub-branches (hereinafter referred to as SAFE offices) are responsible for examining and approving the
qualifications of insurers for foreign exchange business, supervising foreign exchange receipts and payments, sale and purchase of
foreign exchange, and foreign exchange account under the item of insurance in accordance with this Rules.

The CIRC and its branches (hereinafter referred to as CIRC offices) are responsible for supervising the operations of foreign exchange
insurance by insurers in accordance with the Insurance Law of the PRC and other relevant regulations.

Article 6

Foreign exchange insurance activities within the territory of the PRC shall abide by relevant laws and rules of China, as well as
relevant regulations of the CIRC offices and the SAFE offices.

Chapter II Entry into and Termination of Foreign Exchange Business of Insurers

Article 7

For handling foreign exchange insurance business, an insurer shall apply to the SAFE office concerned for approval and acquire the
Foreign Exchange Business License.

The insurer shall carry on business activities within the approved scope, and shall not do foreign exchange business without approval
or beyond the scope approved.

The Foreign Exchange Business License is the legal certificate for the insurer to handle foreign exchange business according to law,
which is printed exclusively by the SAFE. The term of validity of the Foreign Exchange Business License is 3 years.

Article 8

With the approval of the SAFE office concerned, the insurer may handle part or all of the following foreign exchange business:

(1)

Foreign exchange property insurance;

(2)

Foreign exchange life and health insurance;

(3)

Foreign exchange reinsurance;

(4)

Foreign exchange maritime guarantee;

(5)

Foreign exchange investment;

(6)

Investigation of creditworthiness, consulting; and

(7)

Other foreign exchange business approved by the SAFE.

Foreign exchange property insurance, foreign exchange life and health insurance and foreign exchange reinsurance handled by the insurer
shall be confined within the insurance products approved by the CIRC office concerned; foreign exchange investment shall be handled
by the insurer through the investment channels approved by the financial supervision and control department of the State Council.

Article 9

An insurance company that meets the following requirements may apply for the foreign exchange business:

(1)

Having been approved by a CIRC office to handle insurance business;

(2)

Having the required amount of paid-up capital or operating funds in foreign exchange;

An insurance company with corporate capacity that possesses paid-up capital of more than RMB500 million (RMB500 million included)
shall have paid-up capital of at least US$5 million or the equivalent in other foreign currency; that possesses paid-up capital of
less than RMB500 million shall have paid-up capital of at least US$2 million or the equivalent in other foreign currency.

The branch of foreign insurance company that possesses operating funds of more than RMB500 million (RMB500 million included) shall
have paid-up operating funds of at least US$5 million or the equivalent in other foreign currency; that possesses operating funds
of less than RMB500 million shall have paid-up operating funds of at least US$2 million or the equivalent in other foreign currency.

(3)

Having perfect systems for internal control and financial management;

(4)

Having managers for foreign exchange business whose qualifications have been endorsed by the SAFE office concerned;

(5)

Having abided by laws and regulations of the State and relevant foreign exchange regulations, and having no major malfeasance; and

(6)

Other requirements set by the SAFE.

Article 10

An insurance company shall apply to the SAFE office in its locality for foreign exchange business with documents and materials listed
below; the local SAFE office shall, after preliminary examination, submit the application that is deemed qualified level-by-level
to the SAFE for approval. The SAFE will issue a Foreign Exchange Business License to the qualified insurance company:

(1)

A written application and feasibility study for foreign exchange business;

(2)

A photocopy each of the original and the duplicate of the Insurance Business License issued by the CIRC office concerned;

(3)

Articles of association approved by the CIRC office concerned (in case of a branch of foreign insurance company, the articles of association
of its head office shall be presented instead);

(4)

Verification report on foreign exchange capital or operating funds issued by an accounting firm (the original);

(5)

Names and curricula vitae of the managers for foreign exchange business and their certificates of occupational competence issued by
the SAFE office concerned;

(6)

The systems for internal control and financial management relevant to the application for foreign exchange business; and

(7)

Other documents and materials required by the SAFE.

An insurance company that has acquired the Foreign Exchange Business License issued by the SAFE may authorize its branches and sub-branches
to apply to the SAFE offices in their localities for foreign exchange business.

Article 11

A branch or sub-branch of an insurance company shall apply to the SAFE office in its locality for foreign exchange business by presenting
documents and materials listed below; the local SAFE office shall, after preliminary examination, submit the application that is
deemed qualified to its superior SAFE branch for approval, and the latter shall issue the Foreign Exchange Business License to the
applicant. The branch that has made the approval shall report to the SAFE for record the name of the approved applicant within 1
month after the approval is granted:

(1)

The authorization by its head office to handle foreign exchange business;

(2)

A written application for foreign exchange business (including the information on business needs, personnel disposition, business
place and other facilities relevant to the business);

(3)

A photocopy each of the original and the duplicate of the Insurance Business License and Foreign Exchange Business License of its
head office;

(4)

Names and curricula vitae of the managers for foreign exchange business and their certificates of occupational competence issued by
the SAFE office concerned;

(5)

The systems for internal control and financial management relevant to the application for foreign exchange business; and

(6)

Other documents and materials required by the SAFE office concerned.

Article 12

The insurer may apply to the SAFE office concerned for expanding the scope of its foreign exchange business in light of its business
development in accordance with the procedure stipulated in article 10 or article 11 of this Rules by presenting the documents and
materials listed below:

(1)

A written application and feasibility study for expanding the scope of foreign exchange business;

(2)

A report on foreign exchange business operations and financial conditions during the valid period of the Foreign Exchange Business
License;

(3)

A photocopy each of the original and the duplicate of the Foreign Exchange Business License;

(4)

Names and curricula vitae of the managers for the new foreign exchange business and their certificates of occupational competence
issued by the SAFE office concerned;

(5)

The systems for internal control and financial management relevant to the application for foreign exchange business; and

(6)

Other documents and materials required by the SAFE office concerned.

Article 13

If the insurer wants to continue its foreign exchange business after its Foreign Exchange Business License expires, it shall apply
to the SAFE office concerned 3 months before the expiry date in accordance with the procedure stipulated in article 10 or article
11 of this Rules by presenting the documents and materials listed below:

(1)

A written application for continuation of foreign exchange business;

(2)

A report on foreign exchange business operations and financial conditions during the last 3 years;

(3)

The auditing report on paid-up capital or operating funds in foreign exchange issued by an accounting firm (the original);

(4)

A photocopy each of the original and the duplicate of the expiring Foreign Exchange Business License; and

(5)

Other documents and materials required by the SAFE office concerned.

A branch or sub-branch of an insurance company may replace the auditing report stated in item (3) with the written authorization of
its head office for its continuation of foreign exchange business.

Article 14

For terminating foreign exchange business, the insurer shall apply with the documents and materials listed below to the SAFE office
concerned in accordance with the procedure stipulated in article 10 or article 11 of this Rules:

(1)

A written application for terminating its foreign exchange business;

(2)

A detailed explanation of the termination (including the cause of termination, and measures and steps for liquidation of its claims
and liabilities after the termination);

(3)

A photocopy each of the original and the duplicate of the valid Foreign Exchange Business License;

(4)

Balance sheets in renminbi and foreign currency or other financial statements for the last 3 years audited by an accounting firm;

(5)

Document signed by its board of directors or its superior office approving the termination of its foreign exchange business; and

(6)

Other documents and materials required by the SAFE office concerned.

Article 15

If an insurer has any of the following circumstances, the SAFE office concerned shall terminate its foreign exchange business, cancel
or withdraw its Foreign Exchange Business License:

(1)

Being dissolved due to split, merger or the emergence of the causes for dissolution prescribed in its articles of association;

(2)

The Insurance Business License having been withdrawn and cancelled by the CIRC office concerned;

(3)

Having been declared bankrupt by the People’s Court according to law; and

(4)

Other conditions prescribed by laws and regulations of the State.

Article 16

Within 3 months from the date of receipt of the insurer’s full set of application documents and materials for the launch, or expansion
of foreign exchange business or for the renewal of approval thereto related, the SAFE office concerned shall make a decision on approving
or rejecting the application, and inform the applicant in written form.

The approved insurer shall ask for the Foreign Exchange Business License from the SAFE or its branch concerned within 1 month from
the date of receipt of the approval document. If the insurer failed to ask for the said license in time, the approval document shall
cease to be valid automatically.

The insurer whose application for foreign exchange business has been turned down shall not apply again within 1 year from the date
being rejected.

The insurer who has been approved to terminate its foreign exchange business by the SAFE office concerned shall hand back its Foreign
Exchange Business License to the issuing office within 1 month from the date receiving the approval document.

Chapter III Administration on Foreign Exchange Business of Insurers

Article 17

An insurance company shall adequately allocate in due time various reserve funds for foreign exchange insurance in accordance with
the Insurance Law of the PRC and other regulations of the CIRC, and abide by the solvency supervisory indicators and asset investment
indicators prescribed by the CIRC.

Article 18

An insurance company shall confine its investment of foreign exchange to the modes of fund use set by the State Council, and apply
to the SAFE for the special foreign exchange account for investment.

Article 19

An insurance company shall abide by relevant regulations of the State on external guarantee when conducting foreign exchange maritime
guarantee.

Article 20

The insurer approved to conduct foreign exchange business may open the foreign exchange operating accounts in domestic banks, and
shall report the accounts to the local SAFE office for record within 10 working days after the opening.

For opening overseas foreign exchange accounts to meet the needs of foreign exchange business, the insurance company shall obtain
the approval from the SAFE office that has issued the Foreign Exchange Business License. A branch or sub-branch of an insurance company
shall not open overseas foreign exchange accounts.

Article 21

The limit for the use of foreign exchange operating account is as follows:

(1)

Receipt and payment of insurance premium in foreign exchange;

(2)

Receipt and payment of indemnity or insurance benefits in foreign exchange;

(3)

Receipt and payment of premium and handling charges of foreign exchange reinsurance;

(4)

Receipt and payment of indemnity or insurance benefits under the item of foreign exchange reinsurance; and

(5)

Other foreign exchange receipt and payment under current account and approved capital account.

Article 22

The domestic transfer of foreign exchange between the accounts of an insurance company and its branches, and that between different
accounts of an insurer, may be made directly through the banks, provided that it tallies with the stated receipt-and-payment scope
of such accounts.

Article 23

The conversion of capital or operating funds in foreign exchange into renminbi by an insurance company, or vice versa, shall be approved
by the SAFE.

If an insurance company’s paid-up capital in foreign exchange falls below the required amount due to operating losses, the company
may purchase foreign exchange with its paid-up capital in renminbi to make up the deficiency on a fiscal year basis with the approval
of the SAFE. If its branch’s operating funds in foreign exchange falls below the required amount due to operating losses, the deficiency
shall be made up by its head office on a fiscal year basis with the approval of the SAFE.

If an insurer has terminated its foreign exchange business and liquidated the claims and liabilities related to the business according
to law, the remaining foreign exchange shall be sold to a designated foreign exchange bank.

Article 24

An insurance company shall, after making up operating losses and allocating accumulated fund, sell the remaining foreign exchange
net profit to a designated foreign exchange bank within 4 months from the end of a fiscal year, or within 10 working days from the
date when its board of directors approves the distribution of profit, and have it recorded by the SAFE within 5 working days after
the sale.

Profits distributed to the foreign investors of a foreign-funded insurance company in accordance with the resolution of its board
of directors and the approval of the CIRC may, with the approval of the local SAFE office, be remitted abroad. Their renminbi proceeds
from the distribution may, with approval of the local SAFE office, be converted to foreign exchange for outward remittance.

Article 25

Financial management of an insurer for foreign exchange business shall abide by relevant regulations of the State. A perfect system
of internal control over foreign exchange business, foreign exchange fund management and foreign exchange financial management, and
separate foreign exchange ledgers shall be established.

An insurance company shall report to the SAFE and the CIRC a consolidated balance sheet in foreign currency and other financial statements
within 4 months from the end of every fiscal year.

Article 26

The insurer shall conduct balance of payment (BOP) statistical reporting according to relevant regulations.

Article 27

A SAFE office may conduct, by itself, or by designating an accounting firm or audit firm, on-spot or off-spot inspection on the foreign
exchange business of an insurer, an insurance agent or an insurance broker. The inspected insurer, insurance agent or insurance broker
shall accept and support such inspection.

Article 28

The insurer shall provide relevant information and materials authentically, completely, and in time as required by the CIRC office
and the SAFE office concerned.

Chapter IV Administration on Foreign Exchange Receipt and Payment of Insurance Agents and Brokers

Article 29

An insurance agent or insurance broker authorized by a CIRC office to conduct insurance intermediary business may engage in the intermediary
business of foreign exchange insurance.

Article 30

An insurance agent shall price and settle in renminbi its commission and other proceeds acquired from the factorage business under
foreign exchange insurance within the territory of the PRC; and shall not collect insurance premium in foreign exchange without the
approval of the SAFE office concerned.

Article 31

An insurance broker may pay the insurance premium, indemnity or insurance benefits under foreign exchange insurance on behalf of its
clients, but shall not purchase foreign exchange on behalf of its clients to make the aforesaid payment.

An insurance broker shall sell its foreign exchange profit from the brokerage business under foreign exchange insurance to a designated
foreign exchange bank within 3 months from the end of a fiscal year, or within 10 working days after its board of directors’ approval
for the current year’s profit distribution, and have it recorded by the local SAFE office within 5 working days after the sale.

Article 32

With the approval of the SAFE office in its locality, an insurance broker may open a special foreign exchange account, whose scope
of receipt and payment shall be:

(1)

Transit receipt of insurance premium from an applicant, insurer, or an overseas insurance company;

(2)

Transit receipt of indemnity from an insurer or an overseas insurance company;

(3)

Transit payment of insurance premium to an insurer or an overseas insurance company;

(4)

Transit payment of indemnity to the insured or beneficiary, an insurer, or an overseas insurance company; and

(5)

Sale of brokerage commission in foreign exchange to a designated foreign exchange bank.

Chapter V Administration on Sale, Purchase and Payment of Foreign Exchange under Insurance Activities

Article 33

For property insurance satisfying one of the following requirements, the receipt of insurance premium, payment of indemnity or insurance
benefits, and settlement of insurance contracts may be made in foreign exchange:

(1)

The insurable object moves between inside and outside of the territory of the PRC;

(2)

The insurable object exists or has been realized outside the territory of the PRC;

(3)

The insurable object exists or has been realized inside the territory of the PRC through international leasing, international syndicate
loan, or other kinds of international finance; and

(4)

Both the applicant and the beneficiary are overseas legal persons or natural persons.

Article 34

For life and health insurance satisfying one of the following requirements, the receipt of premium, payment of indemnity or insurance
benefits, and settlement of insurance contracts may be made in foreign exchange:

(1)

The applicant is an overseas legal person or a foreign establishment in China, and the beneficiary is an overseas natural person;

(2)

A domestic resident individual’s overseas casualties insurance and medical insurance.

Article 35

Foreign exchange property insurance and foreign exchange life and health insurance satisfying the requirements stipulated in article
33 and 34 may be re-insured in foreign exchange within the territory of the PRC.

For other insurance that fails to satisfy the requirements stipulated in article 33 , article 34 , and paragraph 1 of this article,
the receipt of premium, payment of indemnity or insurance benefits, and settlement of insurance contracts shall be made in renminbi
within the territory of the PRC.

Article 36

An applicant shall pay foreign exchange premium to the insurer under the item of foreign exchange insurance from his or her foreign
exchange account or with foreign exchange purchased from a designated foreign exchange bank by presenting related insurance contracts,
advice of payment from the insurer. If the applicant is an overseas legal person, natural person, or a foreign establishment in China,
purchase of foreign exchange for the payment of insurance premium is prohibited.

The insurer shall pay indemnity or insurance benefits to the insured (or the beneficiary) under foreign exchange insurance from its
foreign exchange account by presenting the insurance contracts and form of computation of claim.

Article 37

If the beneficiary is a legal person or other economic organization, the indemnity or insurance benefits under foreign exchange insurance
may either be deposited in its foreign exchange account under current account, or be sold to a bank, but shall be sold to a bank
if the beneficiary has no foreign exchange account under current account or the amount overshoots the balance ceiling of its foreign
exchange account under current account.

If the beneficiary is a natural person, the indemnity or insurance benefits under foreign exchange insurance may be held in cash,
deposited with a financial institution handling the business of foreign exchange deposit, or sold to a bank.

Article 38

Under the item of reinsurance the insurer ceding a foreign exchange insurance shall pay the premium for the reinsurance from its foreign
exchange account by presenting the contract of reinsurance and the list of payment.

The insurer ceding an insurance contract that is settled in renminbi within the territory of the PRC may apply to the SAFE for approval
to purchase foreign exchange and pay the premium for the reinsurance.

The insurer shall repatriate in time to its domestic foreign exchange account the shared-back indemnity or insurance benefits and
related commissions under foreign exchange reinsurance.

Article 39

Under the item of reinsurance the insurer assuming a foreign exchange insurance shall repatriate in time to its domestic foreign exchange
account the premium for reinsurance.

The insurer shall make payment of indemnity and related charges for assumed foreign exchange reinsurance from its foreign exchange
account by presenting the contract of reinsurance and list of payment.

Article 40

The insurer shall make payment in foreign exchange of the premium, indemnity or insurance benefits, and related fees involving insurance
pool and coinsurance from its foreign exchange account by presenting the articles of association of the insurance pool, the agreement
of coinsurance, and the advice of payment.

Article 41

The insurer shall make payment for the cancellation of a contract of foreign exchange insurance from its foreign exchange account
by presenting the insurance contract and agreement on cancellation.

Article 42

Purchase of and payment in foreign exchange for foreign exchange insurance conducted through a domestic insurance broker shall be
made according to the rules below:

(1)

The applicant shall make payment of the premium to an insurance broker from his foreign exchange account or with foreign exchange
purchased from a designated foreign exchange bank by presenting related insurance contracts, authorization of insurance broker and
advice of payment. The insurance broker shall make payment of the premium to the insurer from its foreign exchange account by presenting
related insurance contracts, authorization of insurance broker and advice of payment.

Payment of indemnity or insurance benefits by the insurer via an insurance broker to the insured or the beneficiary shall be made
through their foreign exchange accounts by presenting related insurance contracts, form of computation of claim, and authorization
of insurance broker.

(2)

Payment of reinsurance premium by the insurer that has ceded a foreign exchange reinsurance to an insurance broker and payment of
the reinsurance premium by the insurance broker to the insurer that has assumed the foreign exchange reinsurance shall be made from
the foreign exchange account of the broker by presenting related contracts of reinsurance, authorization of insurance broker and
list of payment.

Payment of shared-back indemnity or insurance benefits and related commissions by the insurer that has assumed the foreign exchange
reinsurance to the insurer that has ceded the reinsurance via an insurance broker shall be made from their foreign exchange accounts
by presenting related contracts of reinsurance, list of payment, and authorization of insurance broker.

(3)

Payment for cancellation of foreign exchange insurance by the insurer to the applicant via an insurance broker shall be made from
the foreign exchange account of the broker by presenting related contract of insurance, agreement on cancellation of the foreign
exchange insurance, and authorization of insurance broker.

Article 43

When going through the procedure of the receipt and payment of, or sale and purchase of foreign exchange for the premium, indemnity
or insurance benefits related to foreign exchange insurance, the designated foreign exchange bank shall strictly examine corresponding
valid documents and commercial vouchers, and keep them for 5 years for future check.

Chapter VI Legal Responsibilities

Article 44

If the insurer operates foreign exchange business without approval, the SAFE office concerned shall order it to terminate such operations
and return collected premiums, confiscate the illegal income that has been gained and additionally impose a fine above RMB 100,000
but below RMB500,000. If the offense constitutes a crime, criminal responsibility shall be investigated according to law.

Where the insurer that operates foreign exchange business exceeds its approved scope of business without authorization, or continues
to operate that part of foreign exchange business that has been terminated or suspended by the SAFE office concerned, the SAFE office
concerned shall order it to rectify the case and return the collected premiums, confiscate the illegal income that has been gained,
and additionally impose a fine above RMB 100,000 but below RMB500,000. Where the circumstances are serious, or rectification is not
carried out within the time limit, the SAFE office concerned shall suspend or revoke its foreign exchange business license. If the
offense constitutes a crime, criminal responsibility shall be investigated according to law.

Article 45

Where the insurer violates the provisions of this Rules by collecting premium, paying indemnity or insurance benefits, and settling
insurance contracts in foreign exchange without authorization for insurance contracts that do not meet the requirements in this Rules,
the SAFE office concerned shall order its rectification, confisca

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...