AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF COTE D’IVOIRE ON THE PROMOTION AND PROTECTION OF INVESTMENTS

AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF COTE D’IVOIRE ON THE PROMOTION
AND PROTECTION OF INVESTMENTS

The Government of the People’s Republic of China and the Government of the Republic of Cote d’Ivoire (hereinafter referred to as the
Contraction Parties);

Intending to create favorable conditions for investment by investors of one Contracting Party in the territory of the other Contracting
Party;

Recognizing that the reciprocal encouragement, promotion and protection of such investment will be conducive to stimulating initiative
of the investors and will increase prosperity in both States;

Desiring to intensify the cooperation of both States on the basis pf equality and mutual benefits;

Have agreed as follows;

Article 1

DEFINITIONS

For the purpose of this agreement,

The term “investment” means every kind of asset invested by investors of one Contracting Party in accordance with the laws and regulations
of the other Contraction Party in the territory of the latter, and in particularly, though not exclusively, includes;

(a)

movable and immovable property and other property rights such as mortgages and pledges;

(b)

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

(c)

claims to performance having an economic value associated with an investment;

(d)

intellectual property rights, in particularly copyrights, patents, trade-marks, trade-names, technical process, know-how and goodwill;

(e)

business concessions conferred by law or under contract permitted by law, including concessions to search for, cultivate, extract
or exploit natural resources.

Any change in the amount and any change in the legal form in which assets are invested or reinvested do not affect their character
as investments stipulated by this Agreement.

The term “investor” means,

(a)

in respect of the People’s Republic of China;

(1)natural persons who have nationality of the People’s Republic of China in accordance with the laws of the People’s Republic of
China;

(2)Economic entities, including companies, corporations, associations, partnerships, and other organizations, incorporated or constituted
under the laws and regulations of the People’s Republic of China, and having their seats in the territory of the People’s Republic
of China, irrespective whether or not they are for pecuniary profit or with limited liability.

(b)

in respect of the Republic of Cote d’Ivoire;

(1)natural persons who have nationality of the Republic of Cote d’Ivoire in accordance with the laws of the Republic of Cote d’Ivoire;

(2)Legal entities, including public organizations, partnerships, holding companies, company groups and subsidiary companies, irrespective
whether or not they are for pecuniary profit or with limited liability.

The term “return” means the amounts yielded from investments, including profits, dividends, interests, capital gains, royalties and
other legitimate income.

Article 2

PROMOTION AND PROTECTION OF INVESTMENT

Each Contracting Party shall encourage investors of the other Contraction Party to make investments in its territory and admit such
investments in accordance with its laws and regulations.

Investments of the investors of either Contraction Party shall enjoy the constant protection and security in the territory of the
other Contacting Party.

Without prejudice to its laws and regulations, neither Contracting Party shall take any unreasonable or discriminatory measures against
the management, maintenance, use, enjoyment and disposal of the investments by the investors of the other Contracting Party.

Subject to its laws and regulations, one Contracting Party shall provide assistance in and facilities for obtaining visas and working
permit to nationals of the other Contracting Party engaging in activities associated with investments made in the territory of that
Contracting Party.

Article 3

NATIONAL TREATMENT AND MOST FAVOURED NATIONAL TREATMENT

Investments of investors of each Contracting Party shall the time be accorded fair and equitable treatment in the territory of the
other Contracting Party.

Without prejudice to its laws and regulations, each Contracting Party shall accord to investments and activities and associated with
such investments by the investors of the other Contracting Party treatment not less favorable than that accorded to the investments
and associated activities by its own investors.

Neither Contracting Party shall subject investments and activities associated with such investments by the investors of the other
Contracting Party to treatment less favorable than that accorded to the investments and associated activities by the investors of
any third State.

The provisions of Paragraphs 1 to 3 of this Article shall not be construed so as to oblige one Contracting Party to extend to the
investors of the other Contracting Party the benefit of any treatment, preference or privilege by virtue of:

(a)

any customs union, free trade zone, economic union and any international agreement resulting in such customs union, free trade zone,
economic union;

(b)

any international agreement relating wholly or mainly to taxation;

(c)

any multilateral or bilateral agreement for facilitating frontier trade.

Article 4

EXPROPRIATION

Neither Contracting Party shall expropriate, nationalize or take other measures (hereinafter referred to as “expropriation”) against
the investments of the investors of the other Contracting Party in its territory, unless the following conditions are met:

(a)

for the public interests;

(b)

under domestic legal procedure;

(c)

without discrimination;

(d)

against compensation.

The compensation mentioned in Paragraph 1 of this Article shall be equivalent to the value of the expropriated investments immediately
before the expropriation is taken or the impending expropriation becomes public knowledge, which if earlier. The value shall be determined
in accordance with generally recognized principles of valuation. The compensation shall include interest at a normal commercial rate
from the date of expropriation until the date of payment. The compensation shall also be made without delay, be effectively realizable
and freely transferable.

Article 5

COMPENSATION FOR DAMAGES AND LOSSES

Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owning to war,
a state of national emergency, insurrection, riot or other similar events in the territory of the latter Contracting Party, shall
be accorded by the latter Contracting Party treatment, as regards restitution, indemnification, compensation and other settlements
no less favorable than that accorded to the investors of its own or any third State.

Without prejudice to Paragraph 1 of this Article, investors of one Contacting Party who in any of the situations referred to in that
Paragraph suffer losses in the territory of the other Contracting Party resulting from:

(a)

requisitioning of their property by the forces or authorities of the other Contracting Party, or

(b)

destruction of their property by the forces or authorities of the other Contracting Party, which was not caused in combat action or
was not required by the necessity of the situation,

shall be accorded restitution or reasonable compensation.

Article 6

TRANSFER OF PAYMENT AND CAPITAL

Each Contracting Party shall, subject to its laws and regulations, guarantee to the investors of the other Contracting Party the
transfer of their investments and returns held in its territory, including:

(a)

profits, dividends, interests and other legitimate income;

(b)

proceeds obtained from the total or partial sale or liquidation of investments;

(c)

payments pursuant to a loan agreement in connection with investments;

(d)

royalties in relation to the matters in Paragraph 1 (d ) of Article 1 ;

(e)

payments of technical assistance or technical service fee, management fee;

(f)

payments in connection with contracting projects;

(g)

earnings of nationals of the other Contracting Party who work in connection with an investment in its territory.

Nothing in Paragraph 1 of this Article shall affect the free transfer of compensation paid under Article 4 of this Agreement.

The transfer mentioned above shall be made in a freely convertible currency and at the prevailing market rate of exchange applicable
within the Contracting Party accepting the investments and on the date of transfer.

Article 7

SUBROGATION

If one Contracting Party or its designated agency makes a payment to its investor under an indemnity given in respect of an investment
made in the territory of the other Contracting Party, the latter Contracting Party shall recognize the assignment of all the rights
and claims of the indemnified investor to the former Contracting Party or its designated agency, by law or by legal transactions,
and the right of the former Contracting Party or its designated agency to exercise by virtue of subrogation any such right to same
extent as the investor.

Article 8

SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES

Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible,
be settled through diplomatic channel.

If a dispute cannot thus be settled within 6 months, it shall, upon the request of either Contracting Party, be submitted to an hoc
arbitral tribunal.

Such tribunal comprises of three arbitrators. Within two months of the receipt of the written notice requesting arbitration, each
Contracting Party shall appoint one arbitrator. Those two arbitrators shall, within further two months, together select a national
of a third State having diplomatic relations with both Contracting Parties as Chairman of the arbitral tribunal.

If the arbitral tribunal has not been constituted within four months from the receipt of the written notice requesting arbitration,
either Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to
make any necessary appointments. If the President is a national of either Contracting Party or is otherwise prevented from discharging
the said functions, the Member of the International Court of Justice next in seniority who is not a national of either Contracting
Party or is not otherwise prevented from discharging the said functions shall be invited to make such necessary appointments.

The arbitral tribunal shall determine its own procedure. The arbitral tribunal shall reach its award in accordance with the provisions
of this Agreement and the principles of international law recognized by both Contracting Parties.

The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties.
The arbitral tribunal shall, upon the request of either Contracting Party, explain the reasons of its award.

Each Contracting Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant
costs of the Chairman and tribunal shall be borne in equal parts by the Contracting Parties.

Article 9

SETTLEMENT OF DISPUTES BETWEEN INVESTORS AND ONE CONTRACTING PARTY

Any legal dispute between an investor of one Contracting Party and the other Contracting Party in connection with an investment in
the territory of the other Contracting Party shall, as far as possible, be settled amicably through negotiations between the parties
to the dispute.

If the dispute cannot be settled through negotiations within six months, the investor of one Contracting Party may submit the dispute
to the competent court of the other Contracting Party, or at the request of either party to:

(a)

International Center for Settlement of Investment Disputes ( ICSID ) under the convention on the Settlement of Disputes between States
and Nationals Other States, done at Washington on March 18, 1965; or

(b)

An ad hoc arbitral tribunal.

Provided that the Contracting Party involved in the dispute may require the investor concerned to exhaust the domestic administrative
review procedure specified by the laws and regulations of that Contracting Party, before submission of the dispute the aforementioned
arbitration procedure.

However, if the investor concerned has resorted to the competent court of the other Contracting Party specified in Paragraph 2 of
this Article, the provisions of this Paragraph shall not apply.

Without prejudice to Paragraph 2 of this Article, the ad hoc arbitral tribunal referred to in Paragraph 2 (b) shall be constituted
for each individual case in the following way:

Each party to the dispute shall appoint an arbitrator, and these two shall select a national of a third State which has diplomatic
relations with both Contracting Parties as the Chairman.

Either party to the dispute to the other shall appoint the first two arbitrators within two months of the written notice requesting
for arbitration and the Chairman shall be selected within four months.

If, within the period specified above, the tribunal has not been constituted, either party to the dispute may invite the Secretary
General of the International Center for Settlement of Investment Disputes to make the necessary appointments.

— The ad hoc arbitral tribunal shall determine its own procedure. However, the tribunal may, in the course of determination of the
procedure, take as guidance the Arbitration Rules of the International Center for Settlement of Investment Disputes.

— The tribunal referred to in Paragraph 3 (a) and (b) of this Article shall reach its award by a majority of votes. Such award shall
be final and binging upon both parties to the dispute.

Both Contracting Parties commit themselves to the enforcement of the award.

— The tribunal referred to in Paragraph 3 (a) and (b) of this Article shall adjudicate in accordance with the law of the Contracting
Party to the dispute having received the investment including its own rules on the conflict of laws, the provisions of this Agreement
as well as the applicable principles of international law.

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

Article 10

OTHER OBLIGATIONS

If the legislation of either Contracting Party or international obligations existing at present or established hereafter between
the Contracting Parties result in a position entitling investments by investors of the other Contracting Party to a treatment more
favorable than is provided for by the Agreement, such position shall not be affected by this Agreement.

Each Contracting Party shall observe any commitments it may have entered into with the investors of the other Contracting Party as
regards to their investments.

Article 11

APPLICATION

Without prejudice to Paragraph 1 of Article 10 , this Agreement shall apply to investments, which are made prior go or after its entry
into force by investors of either Contracting Party in accordance with the laws and regulations of the other Contracting Party in
the territory of the latter.

Article 12

RELATIONS BETWEEN CONTRACTING PARTIES

The provisions of the present Agreement shall apply irrespective of the existence of diplomatic or consular relations between the
Contracting Parties.

Article 13

CONSULTATIONS

The representatives of the Contracting Party shall hold meeting from time to time for the purpose of:

(a)

reviewing the implementation of this Agreement;

(b)

exchanging legal information and investment opportunities;

(c)

resolving disputes arising out of investments;

(d)

forwarding proposals on promotion of investment;

(e)

studying other issues in connection with investment.

Where either Contracting Party requests consultation on any matter of Paragraph 1 of this Article, the other Contracting Party shall
give prompt response and the consultation be held alternatively in Beijing and Abidjan.

Article 14

ENTRY INTO FORCE, DURATION AND TERMINATION

This Agreement shall enter into force on the first day of the following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal procedures therefore have been fulfilled and remain in force
for a period of ten years.

This Agreement shall continue in force if either Contracting Party fails to give a written notice to the other Contracting Party
to terminate this Agreement one year before the expiration of the period specified in Paragraph 1 of this Article.

After the expiration of initial ten years period, either Contracting Party may terminate at any time thereafter this Agreement by
giving at least one year’s written notice to the other Contracting Party.

With respect to investments made prior to the date of termination of this Agreement, the provisions of Article 1 to 13 shall continue
to be effective for a further period of ten years from such date of termination.

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

Done in duplicate at Abidjan, on September 30 2002, in the Chinese, French and English languages, all texts being equally authentic.
In case of divergent interpretation, the English text shall prevail.

For the Government ofFor the Government of

The People’s Republic of China The Republic of Cote d’Ivoire

H.E. Mrs. Zhao BaozhenH.E. Mr. SANGARE Abou Drahamane

Ambassador Extraordinary and Minister of State

Plenipotentiary of the People’s_ Minister of External Relations and

Republic of China in the Overseas Ivorians

Republic of Cote d’Ivoire

The Government of the People’s Republic of China
2002-09-30

CHINA’S REGULATIONS ON CONTROL OF DUAL-USE BIOLOGICAL EXPORTS

Full text of China’s regulations on control of dual-use biological exports

Beijing,October 18(chinacourt.org) Regulations of the People’s Republic of China on Export Control of Dual-Use Biological Agents and Related Equipment and Technologies

Article 1 These Regulations are formulated for the purposes of strengthening export control of dual-use biological agents and related equipment
and technologies, and safeguarding the State security and social and public interests.

Article 2 The export of dual-use biological agents and relatedequipment and technologies referred to in these Regulations means the export
for trade of dual-use biological agents and related equipment and technologies listed in the “Dual-Use Biological Agents and Related
Equipment and Technologies Export Control List”(hereinafter referred to as the Control List) attached to these Regulations, and the
exchange with, interchange with, gift to, exhibition in, assistance to, provision of service for as such andother forms of technological
transfer thereof to foreign countriesand regions.

Article 3 The export of dual-use biological agents and related equipment and technologies shall be in accordance with relevant laws, administrative
regulations of the State and these Regulations, and shall not imperil the State security and social and public interests.

Article 4 The State shall exercise strict control on the exportof dual-use biological agents and related equipment and technologies so as to
prevent dual-use biological agents and related equipment and technologies from being used for the purposeof biological weapons.

Article 5 The State shall practice a licensing system for the export of dual-use biological agents and related equipment and technologies in
the Control List. Without being licensed, no unit or individual shall export such dual-use biological agents and related equipment
and technologies.

Article 6 Exporters of dual-use biological agents and related equipment and technologies shall register themselves with the competent department
in charge of foreign economic relations and trade of the State Council (hereinafter referred to as the competent foreign economic
and trade department of the State Council). Without such registration, no unit or individual shall export dual-use biological agents
and related equipment and technologies. The specific measures for such registration shall beformulated by the competent foreign economic
and trade department of the State Council.

Article 7 The receiving party of dual-use biological agents andrelated equipment and technologies shall guarantee:

(1) not to use the imported dual-use biological agents and related equipment and technologies for the purpose of biological weapons;

(2) not to use dual-use biological agents and related equipmentand technologies supplied by China for the purposes other than thedeclared
end-use without the consent of the Chinese Government; and

(3) not to transfer dual-use biological agents and related equipment and technologies to any third party other than the declared end-user
without the consent of the Chinese Government.

Article 8 Anyone who intends to export dual-use biological agents and related equipment and technologies listed in the Control List shall apply
to the competent foreign economic and trade department of the State Council, fill in the export application form for dual-use biological
agents and related equipment and technologies (hereinafter referred to as the export application form), and submit the following
documents:

(1) identifications of the applicant’s legal representative, chief manager(s) and the person(s) handling the deal;

(2) duplicates of the contract or agreement, or other certification documents;

(3) technical specifications of the dual-use biological agents and related equipment and technologies;

(4) certificate of end-user and end-use;

(5) documents of guarantee as defined in Article 7 of these Regulations; and

(6) other documents as may be required by the competent foreigneconomic and trade department of the State Council. Article 9 An applicant
shall truthfully fill in the export application form.

Export application forms shall be uniformly produced by the competent foreign economic and trade department of the State Council.

Article 10 The competent foreign economic and trade departmentof the State Council shall, from the date of receiving the export application
form and the documents set forth in Article 8 of theseRegulations, examine the application, or examine the application jointly with
other relevant departments.

The competent foreign economic and trade department of the State Council shall, within 15 working days, make a decision of approval
or denial of the application for the export of dual-use biological agents and related equipment and technologies listed inPart I
of the Control List; the competent foreign economic and trade department of the State Council shall, within 45 working days, make
a decision of approval or denial of the application forthe export of dual-use biological agents and related equipment andtechnologies
listed in Part II of the Control List.

Article 11 Where the export of dual-use biological agents and related equipment and technologies entails significant impact on the State security
and social and public interests, the competent foreign economic and trade department of the State Council shall, jointly with relevant
departments, submit the case to the State Council for approval.

Where the export of dual-use biological agents and related equipment and technologies is submitted to the State Council for approval,
the timing restrictions set forth in Article 10 of theseRegulations shall not be applied.

Article 12 Where an application for the export of dual-use biological agents and related equipment and technologies is examined and approved,
the competent foreign economic and trade department of the State Council shall issue a licence for the export of dual-use biological
agents and related equipment and technologies (hereinafter referred to as an export licence), and notify the Customs in writing.

Article 13 An export licence holder who intends to change the dual-use biological agents and related equipment and technologies originally applied
for export shall return the original export licence and file a new application to obtain an export licence according to relevant
provisions of these Regulations.

Article 14 While exporting dual-use biological agents and related equipment and technologies, the exporter shall present theexport licence to
the Customs, complete the customs procedures andaccept supervision and control of the Customs in accordance with the provisions of
the Customs Law.

Article 15 Where the receiving party contravenes the guaranteesmade according to the provisions of Article 7 of these Regulations,or there is
a risk of proliferation of dual-use biological agents and related equipment and technologies listed in the Control List that can
be used for the purpose of biological weapons, the competent foreign economic and trade department of the State Council shall suspend
or revoke the export licence granted and notify the Customs in writing.

Article 16 Where any unit or individual knows or should know that the dual-use biological agents and related equipment and technologies to be
exported will be used by the receiving party directly for the purpose of biological weapons, it shall not export such dual-use biological
agents and related equipment and technologies, whether included in the Control List or not.

Article 17 Upon approval by the State Council, the competent foreign economic and trade department of the State Council may, jointly with relevant
departments of the State Council, temporarily decide to exercise export control on specific dual-usebiological agents and related
equipment and technologies other than those listed in the Control List in accordance with the provisions of these Regulations.

Article 18 Those who export dual-use biological agents and related equipment and technologies without being licensed or export dual-use biological
agents and related equipment and technologies beyond the scope of the export licence without authorization, shall be investigated
for criminal liability in accordance with the provisions of the criminal law on the crime ofsmuggling, the crime of illegal business
operations, the crime of divulging State secrets or other crimes; if such acts are not serious enough for criminal punishment, by
distinguishing different circumstances, they shall be punished in accordance withrelevant provisions of the Customs Law, or be given
a warning, confiscated of their illegal income, and fined not less than 50,000 yuan but not more than 250,000 yuan by the competent
foreign economic and trade department of the State Council; the competent foreign economic and trade department of the State Council
may concurrently suspend or even revoke the licensing for their foreign trade operations.

Article 19 Those who forge, alter, buy or sell the licence forthe export of dual-use biological agents and related equipment andtechnologies
shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime ofillegal business
operations or the crime of forging, altering, buying or selling official documents, certificates or seals of a State organ; if such
acts are not serious enough for criminal punishment, they shall be punished in accordance with relevant provisions of the Customs
Law, and the competent foreign economic and trade department of the State Council may concurrently revoke the licensing for their
foreign trade operations.

Article 20 Where a licence for the export of dual-use biological agents and related equipment and technologies is obtained by fraud or other
illegal means, the competent foreign economic and trade department of the State Council shall revoke such an export licence, confiscate
the illegal income, impose a fine of not less than 20,000 yuan but not more than 100,000 yuan, and suspend or even revoke the licensing
for their foreign trade operations.

Article 21 Where, in violation of the provisions of Article 6 of these Regulations, the export of dual-use biological agents andrelated equipment
and technologies is operated without registration, the competent foreign economic and trade department of the State Council shall
ban such illegal activities according to law, and relevant competent departments of the State shall impose punishment thereon in
accordance with relevant laws and administrative regulations.

Article 22 Where the State functionaries in charge of control on the export of dual-use biological agents and related equipment and technologies
abuse their powers, neglect their duties or extort or accept money or properties from others by taking advantage of their positions,
they shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of abuse of
power, the crime of neglect of duties, the crime of accepting bribes and other crimes; if suchacts are not serious enough for criminal
punishment, they shall begiven administrative sanctions according to law.

Article 23 In light of actual situations, the competent foreign economic and trade department of the State Council may, jointly with relevant
departments, amend the Control List and submit it to the State Council for approval before implementation.

Article 24 In the case of the re-export of dual-use biological agents and related equipment and technologies after import, these Regulations
shall apply.

Article 25 These Regulations shall be effective as of December 1, 2002.

Source:Xinhuanet

EDITOR:Victor

MEASURES FOR THE QUARANTINE AND ADMINISTRATION OF HEREDITARY SUBSTANCE OF ENTRY ANIMALS

The State Administration of Quality Supervision, Inspection and Quarantine

Decree of the State Administration of Quality Supervision, Inspection and Quarantine

No. 47

The Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals, which were examined and adopted at the
administration affairs meeting of the State Administration of Quality Supervision, Inspection and Quarantine on April 3, 2003, are
hereby promulgated, and shall come into force on July 1, 2003.

Director General Li Changjiang

May 14, 2003

Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals

Chapter I General Provisions

Article 1

The present Measures are formulated in accordance with the Law of the Peoples Republic of China on Quarantine of Entry and Exit
Animals and Plants and the Regulation for the Implementation thereof as well as other laws and regulations with a view to regulating
the quarantine, supervision and administration of hereditary substance of entry animals, and protecting the production safety of
the animal husbandry in China.

Article 2

The present Measures shall be applicable to the quarantine, supervision and administration of hereditary substances of entry animals.

Article 3

Hereditary substances of animals mentioned in the present Measures means the semen, embryos and egg cells of mammals.

Article 4

The State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the SAQSIQ) shall be uniformly
responsible for the quarantine, supervision and administration of hereditary substance of entry animals nationwide.

The entry and exit inspection and quarantine institutions set up by the SAQSIQ in all places (hereinafter referred to as the inspection
and quarantine institutions) shall be responsible for the quarantine, supervision and administration of hereditary substance of entry
animals within their respective jurisdictions.

Article 5

The SAQSIQ shall apply risk analysis administration to the hereditary substance of entry animals. On the basis of the result from
risk analysis, the SAQSIQ may conclude a bilateral quarantine agreement (including agreement, protocol, or memorandum, etc.) with
the relevant competent institution of the government of the country or region from which the hereditary substance of animals is to
be exported to China.

Chapter II Quarantine Examination and Approval

Article 6

Whoever intends to import hereditary substance of animals must go through the formalities of quarantine approval in advance, obtain
the Permit of the People Republic of China on Quarantine of Entry Animals and Plants (hereinafter referred to as the Quarantine Permit,
and stipulate in the trade contract or the relevant agreement the quarantine requirements of China.

Article 7

Whoever intends to apply for the examination and approval of quarantine of hereditary substance of animals shall submit the following
materials to the local inspection and quarantine administration directly under the SAQSIQ:

(1)

The Application Form for the Permit of the People Republic of China on Quarantine of Entry Animals and Plants;

(2)

For hereditary substance of animals imported by agency, a photocopy of the contract or agreement with the consignor for import by
agency shall be provided.

Article 8

The inspection and quarantine administration directly under the SAQSIQ shall finish the preliminary examination within the time prescribed
by the SAQSIQ. If the hereditary substance of animals is preliminarily examined as qualified, it shall be submitted to the SAQSIQ
for verification, and the SAQSIQ shall finish the verification within the prescribed time. If it is verified as qualified, the Quarantine
Permit shall be issued; if it is verified as unqualified, the Notice on Failure of the Application to be approved for the Permit
of the People Republic of China on Quarantine of Entry Animals and Plants shall be issued.

Chapter III Entry Quarantine

Article 9

Before the hereditary substance of animals is imported, the SAQSIQ may, on the basis of the needs in quarantine, send quarantine officers
to go to the exporting country or region to carry out pre-inspection of the place of origin of the hereditary substance of animals.

Article 10

The SAQSIQ shall apply quarantine registration to the foreign producers which export hereditary substance of animals to China, and
shall send quarantine officers either regularly or irregularly to appraise the registered foreign producers.

Article 11

Imported hereditary substances of animals shall enter the territory via the port designated by the Quarantine Permit.

Article 12

The consignor of hereditary substance of animals or his agent shall bring the Quarantine Permit, the trade contract or agreement,
the letter of credit, the invoices and other effective documents to report to the inspection and quarantine institution at the port
of entry for inspection before the hereditary substance of animals enters the territory; and shall, when the hereditary substance
of animals enters the territory, submit to the inspection and quarantine institution at the port of entry the original of the quarantine
certificate issued by the governmental quarantine institution of the exporting country or region.

Article 13

If, with respect to some certain hereditary substance of entry animals, there is no effective quarantine certificate issued by the
governmental quarantine institution of the exporting country or region, or the formalities for quarantine approval have not been
gone through, the inspection and quarantine institution at the port of entry may, in light of the specific situation, return or destroy
the said substance.

Article 14

When the imported hereditary substance of animals is carried to the port, the quarantine officers shall carry out the on-the-spot
quarantine:

(1)

Inspecting whether the quarantine certificate conforms to the Quarantine Permit and the requirements in the bilateral quarantine agreement
between China and the exporting country or region;

(2)

Checking whether the goods and the certificate are in conformity with each other;

(3)

Inspecting the packing and preservation of the goods.

Article 15

If the hereditary substance of animals is quarantined on the spot as qualified, the inspection and quarantine institution at the port
of entry shall issue the List for Customs Release of Entry Goods, and transfer the said substance to the place designated by the
Quarantine Permit carry out quarantine.

Article 16

If the hereditary substance of animals needs to be taken away from the port of entry, the consignor or his agent shall declare to
the inspection and quarantine institution at the destination, and provide the photocopies of the documents prescribed in Article
12 of the present Measures and the List for Customs Release of Entry Goods?issued by the inspection and quarantine institution
at the port of entry.

Article 17

The inspection and quarantine institution shall make quarantine as required by the Quarantine Permit. The hereditary substance of
animals quarantined as qualified shall be under the lawful quarantine supervision and administration of the inspection and quarantine
institution; while the one quarantined as unqualified shall be returned or destroyed under the supervision of the inspection and
quarantine institution.

Chapter IV Supervision of Quarantine

Article 18

The inspection and quarantine institution shall conduct quarantine supervision and administration on the processing, deposition and
use of the hereditary substance of entry animals (hereinafter uniformly referred to as use); and shall record the first generation
of descendents of the hereditary substance of animals.

Article 19

The entity using the hereditary substance of entry animals shall go to the inspection and quarantine administration directly under
the SAQSIQ at its locality to make the record

Article 20

The using entity shall fill out the Form on Record of the Entity Using Hereditary Substance of Entry Animals (Attachment 1), and provide
the following statement documents:

(1)

A photocopy of the document on proof of the entity status as a legal person;

(2)

Document stating that it has professionals familiar with the preservation, transport and use of the hereditary substance of animals;

(3)

Document stating that it has special depositary of hereditary substance of entry animals and other necessary facilities;

(4)

The relevant systems on administering the use of hereditary substance of entry animals.

Article 21

The inspection and quarantine administration directly under the SAQSIQ shall report to the SAQSIQ the using entities that have made
the record.

Article 22

The using entity shall fill out the File on Quarantine and Supervision of Hereditary Substance of Entry Animals (Attachment 2), and
accept the supervision of the inspection and quarantine institution; and shall, after the end of use of each batch of hereditary
substance of entry animals, submit the File on Quarantine and Supervision of Hereditary Substance of Entry Animals to the inspection
and quarantine institution for record.

Article 23

The inspection and quarantine institution may, when necessary, monitor the health of the descendents of the hereditary substance of
entry animals, and the relevant entities shall cooperate with the institution.

Chapter V Supplementary Provisions

Article 24

Whoever violates the present Measures shall be punished by the inspection and quarantine institution in accordance with the relevant
laws and regulations.

Article 25

The responsibility to interpret the present Measures shall remain with the SAQSIQ.

Article 26

The present Measures shall come into force on July 1, 2003.

htm/e03153.htmAttachment 1

Attachment 1:

Form on Filing of the Entity Using Hereditary Substance of Entry Animals

Applying unit
Address:
Legal representative		Legal person code
Tel:		Fax:	Email:
Nature of the unit	sp; State-owned enterprise titutional unit nt venture sp;Foreign-invested enterprise vate enterprise ers
According to the Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals, our unit is here to apply to use hereditary substances of entry animals. Our unit will in strict accordance with the Law of Entry and Exit Quarantine of Animals and Plants and the Regulation for the Implementation thereof as well as other laws and regulations accept supervision and instruction of the inspection and quarantine institutions, thus performing duties as stipulated in Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals. Applying unitseal Legal representative (signature) Date:
Review opinions of the inspection and quarantine institutions: Responsible personsignature Date:

Formulated under supervision of the Administration of the Peoples Republic of China on Inspection and Quarantine of Entry and Exit.

Attachment 2:

File on Quarantine and Supervision of Hereditary Substance of Entry Animals

Filled by:

Filling dateFrom to

Formulated under supervision of the Administration of the Peoples Republic of China on Inspection and Quarantine of Entry and Exit.

Basic Situation of Hereditary Substance of Entry Animals

Used by		Contact person and telephone
Address		Legal representative and telephone
License of inspection and quarantine	Variety of hereditary substance	Exporting country
Import quality	Entry date	Entry port
Hereditary substance logo/quality

Service Condition of Hereditary Substance of Entry Animals

Used by (individual)

Address

Legal representative

Legal person code
(ID card)

Contact telephone

Service Condition

Hereditary substance logo

Time of use

Receptor logo

Effect of use

Birth date of descendant

Descendant logo

Descendant gender

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING GFI BROKERS LIMITED TO ESTABLISH SHANGHAI REPRESENTATIVE OFFICE

Letter of China Banking Regulatory Commission concerning Approving GFI Brokers Limited to Establish Shanghai Representative Office

GFI Brokers Limited,

The letter which was signed by Mr. Steve McMillan, the chief executive officer of your company, and was addressed to this Commission
about the application for the establishing Shanghai Representative Office has been received.

You are hereby approved to establish a representative office in Shanghai, whose Chinese name is “ڹ޹˾”
and whose English name is ” GFI Brokers Limited Shanghai Representative Office ” and whose address is HSBC Tower, No. 101 Yincheng
Road (E), Pudong New Area, Shanghai according to the Measures on the Administration of Foreign-funded Financial Institutions’ Representative
Offices in China (Order No. 8, 2002 of the People’s Bank of China) (hereinafter referred to as these Measures), This Representative
Office is limited to deal with consultation, liaison, market investigation and other non-business activities concerning the monetary
brokerage business within China standing for GFI Brokers Limited.

According to Article 10 of these Measures, upon approval, Mr. Ding Junyi is granted to have the qualifications as the chief representative
of this Representative Office.

China Banking Regulatory Commission

February 28, 2006

China Banking Regulatory Commission
2006-02-28

CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON RELEVANT ISSUES CONCERNING THE MARKET ACCESS OF FOREIGN-FUNDED FINANCIAL INSTITUTIONS AFTER THE PROMULGATION OF THE DETAILED RULES FOR THE IMPLEMENTATION OF THE REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF FOREIGN-FUNDED FINANCIAL INSTITUTIONS

20041217

The People’s Bank of China

Circular of the People’s Bank of China on Relevant Issues Concerning the Market Access of Foreign-funded Financial Institutions after
the Promulgation of the Detailed Rules for the Implementation of the Regulations of the People’s Republic of China on the Administration
of Foreign-funded Financial Institutions

YiFa [2002] No.22

January 29, 2002

The branch banks and business management departments of the People’s Bank of China:

The Regulations of the People’s Republic of China on the Administration of Foreign-funded Financial Institutions (hereinafter referred
to as the Regulations) have been promulgated by the State Council and shall come into force on February 1, 2002. The Detailed Rules
for the Implementation of the Regulations of the People’s Republic of China on the Administration of Foreign-funded Financial Institutions
(hereinafter referred to as the Detailed Rules) revised and promulgated by this bank shall also come into force soon. The relevant
issues concerning the market access of foreign-funded financial institutions after the implementation of the Detailed Rules are hereby
notified as follows:

Issues concerning the change of license for operation of financial business and the supplement of capital or operation fund

Where the application of the Regulations results in the change of business scope of foreign-funded financial institutions, all the
business foreign-funded financial institutions shall, according to the provisions of the Regulations and the Detailed Rules, take
the following documents to change the licenses for operation of financial business at the head office of the People’s Republic of
China: an application letter (indicating the changed matters) to the president of the People’s Bank of China signed by the board
chairman or president (general manager) of the foreign-funded institution with legal person status, the president (general manager)
of the branch of the foreign bank, an introduction letter issued by the branch of the People’s Republic of China of the place where
that institution is located, the duplicate of the license for operation of financial business of that institution, and the relevant
documents of approval of the People’s Bank of China (for alteration of registered capital or operation fund, business scope, etc.).
And after changing the license for operation of financial business, the institution shall make the registration of alteration with
the department of industry and commerce administration, and make public announcement according to the requirements.

Considering the different situations of foreign-funded financial institutions, the change of the license for operation of financial
business may be handled in the following ways:

For those that keep the current partial foreign exchange business and don’t expand the objects of the foreign exchange services, the
following way shall apply:

Solely foreign-funded and joint venture financial companies, and solely foreign-funded and joint venture banks shall, according to
Article 5 of the Regulations, namely “the registered capital shall be the paid-in capital”, adjust the paid-in capital to meet the
registered capital.

a. The institutions of which the paid-in capital has met the minimum limit for registered capital as provided for in Article 5 of
the Regulations and Article 31 of the Detailed Rules shall handle the matters such as changing the licenses and making the industry
and commerce registration, etc. before June 1, 2002.

b. The institutions of which the paid-in capital fails to meet the minimum limit for registered capital as provided for in Article
5 of the Regulations and Article 31 of the Detailed Rules shall, according to the relevant provisions of the Detailed Rules on
the change of capital, apply for increasing the capital to meet the registered capital and handle the matters such as changing the
licenses and making the industry and commerce registration, etc. before August 1, 2002.

The branches of foreign banks and the branches of solely foreign-funded and joint venture banks shall handle the matters such as changing
the licenses and making the industry and commerce registration, etc. before June 1, 2002.

For the foreign-funded financial institutions that expand their current partial foreign exchange business to comprehensive foreign
exchange business, they may not operate the comprehensive foreign exchange business until applying for increasing the capital and
completing the change of licenses and the procedures for industry and commerce registration, and:

a. The foreign-funded financial institutions that have already met the minimum limit of the operation fund or registered capital for
operating comprehensive foreign exchange business as provided for by Article 32 of the Detailed Rules shall complete the matters
such as changing the licenses and making the industry and commerce registration, etc. before June 1, 2002.

b. The foreign-funded financial institutions that fail to meet minimum limit of the operation fund or registered capital for operating
comprehensive foreign exchange business as provided for by Article 32 of the Detailed Rules shall, according to the relevant provisions
of the Detailed Rules on the alteration of capital or operation fund, apply for increasing the capital or operation fund and complete
the matters such as changing the licenses and making the industry and commerce registration, etc. before August 1, 2002.

For those that keep the current partial foreign exchange business and the partial Renmingbi business, the following way shall apply:

The foreign-funded financial institutions that have already met the minimum limit of registered capital or operation fund as provided
for by Article 33 of the Detailed Rules shall complete the matters such as changing the licenses and making the industry and commerce
registration, etc. before June 1, 2002.

The foreign-funded financial institutions that fail to meet the minimum limit of registered capital or operation fund as provided
for in Article 33 of the Detailed Rules shall, according to the relevant provisions of the Detailed Rules on alteration of capital,
apply for increasing the capital or operation fund and complete the matters such as changing the licenses and making the industry
and commerce registration, etc. before Aug.1, 2002.

For the foreign-funded financial institutions that expand their current partial foreign exchange business to comprehensive foreign
exchange business and keep the current partial Renmingbi business may operate the comprehensive business only after applying for
increasing the capital and completing the matters such as changing the licenses and making the industry and commerce registration,
etc. and:

a. The foreign-funded financial institutions that have already met the minimum limit of registered capital or operation fund as provided
for by Article 34 of the Detailed Rules shall complete the matters such as changing the licenses and making the industry and commerce
registration, etc. before June 1, 2002.

b. The foreign-funded financial institutions that fail to meet the minimum limit of registered capital or operation fund as provided
for by Article 34 of the Detailed Rules shall, according to the relevant provision of the Detailed Rules on alteration of capital,
apply for increasing the capital or operation fund and complete the matters such as changing the licenses and making the industry
and commerce registration, etc. before August 1, 2002.

The foreign-funded financial institutions wishing to apply for operating Remingbi business shall complete the matters such as changing
the licenses and making the industry and commerce registration, etc. before August 1, 2002.

II.

Issues concerning applying for the establishment of foreign-funded financial institution:

The application documents already submitted by the foreign-funded financial institutions shall still be valid. The relevant branches
and business management departments shall notify the foreign-funded financial institutions within their respective jurisdictions
that have submitted applications to adjust and supplement the application documents according to the relevant provisions of the Regulations
and the Detailed Rules and submit them to the head office of the People’s Bank of China, and to send copies to the branches of the
People’s Bank of China of their locations.

From Feb.1, 2002, the applicants that wish to apply for the establishment of foreign-funded financial institution shall, according
to the relevant provisions of the Regulations and the Detailed Rules, submit the relevant materials to the branches of the People’s
Bank of China of their locations, and those materials shall be submitted level by level to the head office of the People’s Bank of
China for examination and approval after passing the preliminary examination conducted by the branches of the People’s Bank of China
of their locations.

III.

Issues concerning the requirements for the report of the business types and the products and services thereof

Foreign-funded financial institutions shall, before May 1, 2002, report the business types they have already launched, and the names
and brief introductions of the products and services under the types to the branches of the People’s Bank of China of their locations.

The branches of the People’s Bank of China of their locations shall be responsible for gathering the documents reported by the foreign-funded
financial institutions within their respective jurisdictions and submitting those documents level by level to the head office of
the People’s Bank of China before June 1, 2002.

IV.

Issues concerning the grace period for meeting the relevant provisions of the Regulations and the Detailed Rules

The People’s Bank of China shall give a grace period of 6 months to the foreign-funded financial institutions that fail to meet the
relevant provisions of the Regulations and the Detailed Rules. The foreign-funded financial institutions shall meet the relevant
provisions before August 1, 2002. The foreign funded financial institutions that fail to meet the requirements of relevant provisions
before August 1, 2002 shall apply to the branches of the People’s Bank of China of their locations, explain the reasons for failing
to meet the requirements and estimate the time limit to meet the requirements.

The branches of the People’s Bank of China of their locations shall, after the preliminary examination, submit the applications to
the head office of the People’s Bank of China for examination and approval. For those that fail to meet the requirements as provided
for by the Regulations and the Detailed Rules and fail to file formal applications, the People’s Bank of China shall, regarding the
seriousness of the circumstances, take the supervision and control measures according to the relevant provisions of the Regulations.

Please transmit the aforesaid circular to the central branch banks of the People’s Bank of China within your respective jurisdictions,
and notify the business foreign-funded financial institutions within your respective jurisdictions about the relevant information.
As the Regulations and the Detailed Rules involve many fields and are so influential, the branches of the People’s Bank of China
shall report the problems encountered in the execution to the head office without delay.

The People’s Bank of China
2002-01-29

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING TAX REFUND OF ENTERPRISES WITH FOREIGN INVESTMENT PURCHASING DOMESTIC EQUIPMENTS

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning Tax Refund of Enterprises with Foreign Investment Purchasing Domestic
Equipments

GuoShuiHan [2002] No.97

March 11, 2002

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

Recently, Letter Concerning Issues of Solving Value-added Tax Refund of Enterprises with Foreign Investment Purchasing Domestic Equipments
issued by the Ministry of Foreign Trade and Economic Cooperation (WaiJingMao ZiZongHan [2001] No.983 ) was received. It reflects
that during the course of handling tax refund procedures, some enterprises with foreign investment can not register for handling
tax refund because they can not provide the Copy of Project Approval Paper of the Ministry of Foreign Trade and Economic Cooperation.
It is known that according to the relevant laws and regulations, local competent departments in charge of foreign trade and economy
may examine and approve investment projects of enterprises with foreign investment except the circumstance that the Ministry of Foreign
Trade and Economic Cooperation examines and approves directly. Whereas the circumstances stated above, in order to facilitate handling
tax refund of purchasing equipments made in China of enterprises with foreign investment, the 5th Paragraph of Article 6 of Chapter
3 of the Circular of the State Administration of Taxation Concerning Printing and Distributing Measures for Trial Implementation
of Management of Tax Refund of Enterprises with Foreign Investment Purchasing Domestic Equipments (GuoShuiFa [1997] No.171), “Copy
of Project Approval Paper of the Ministry of Foreign Trade and Economic Cooperation”, is amended to be “Copy of Project Approval
Paper of the Ministry of Foreign Trade and Economic Cooperation or the Authorized Competent Departments thereof”, while other contents
remain the same.

Please implement as stated above.

The State Administration of Taxation
2002-03-11

(INTERIM) MEASURES ON THE ADMINISTRATION OF THE BUSINESS REGISTRATION FOR THE EXPORT OF GUIDED MISSILES AND RELATED ITEMS AND TECHNOLOGIES

20021112

The Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China

No.29

According to the Regulation of the People’s Republic of China on Controlling the Export of Guide Missiles and Related Items and Technologies,
the (Interim) Measures of the People’s Republic of China on the Administration of the Business Registration for the Export of Guided
Missiles and Related Items and Technologies are hereby promulgated for taking effect as of the day of promulgation.

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

September 2, 2002

(Interim) Measures on the Administration of the Business Registration for the Export of Guided Missiles and Related Items and Technologies

Article 1

The present Measures have been formulated on the basis of the Regulation of the People’s Republic of China on Controlling the Export
of Guided Missiles and Related Items and Technologies for the purpose of regulating the business management order for the export
of guided missiles and related items and technologies and strengthening the administration of the export of guided missiles and related
items and technologies.

Article 2

Any business operator who is engaged in the export guided missiles and related items and technologies (hereafter “business operators”)
shall file an application to the Ministry of Foreign Trade and Economic Cooperation (hereafter “MOFTEC”) for registration according
to the provisions of the present Measures. No entity or individual may, without being registered, be engaged in the export of guided
missiles and related items and technologies.

Article 3

Any business operator that has met the conditions as listed below may file an application to the Department of Scientific and Technologic
Development and Technologic Export (hereafter “Department of Technology”) of the MOFTEC for registration.

Having obtained the approval of the MOFTEC and a qualifications certificate as an import and export enterprise or a certificate of
approval as an enterprise with foreign investment, and having obtained the business license issued by the administrative department
of commerce and industry;

Having passed the annual inspections of the administrative department of industry and commerce and the administrative department of
foreign trade and economic cooperation;

Having no record of criminal punishment imposed by the state or administrative punishment imposed by relevant departments for illegal
business activities during the recent three years;

Having knowledge of the performances, indicators and major purposes of use of the items and technologies under request;

Having a department or organ to be responsible for export and after-sales services.

Article 4

When applying for registration, the business operator shall fill in the application form true to the fact and submit the following
materials:

Application Form of the Registration for the Export Business Qulifications of Guided Missiles and Related Items and Technologies of
the People’s Republic of China (see Attachment I);

Business License of the Legal Person of an Enterprise (in photocopy);

Qualifications Certificate of the Import and Export Enterprise (in photocopy) or Approval Certificate of Enterprises with Foreign
Investment (in photocopy).

Article 5

The Department of Technology of the MOFTEC shall, within 10 workdays after receiving the registration application, decide whether
it shall be registered or not. If the application is registered, a Registration Certificate for the Export Business Qulifications
of Guided Missiles and Related Items and Technologies of the People’s Republic of China (hereafter “Registration Certificate”, see
Attachment II), on which the cachet “Special Cachet of the People’s Republic of China for Export Control” shall be affixed.

If the materials submitted by the business operator are not complete and supplements needed to be made, the limit of workdays for
registration shall be calculated as of the day when the materials are made complete.

Article 6

The Registration Certificate shall be valid to the registered business operators only, and it may not be forged, altered, lent, leased
or transferred.

Article 7

The Registration Certificate shall be valid for three years. If the business operator needs to continue to engage in the export of
guided missiles and related items and technologies, it shall have completed the change of Registration Certificates one month prior
to the expiration of the Registration Certificate.

Article 8

Where a business operator changes its name or an enterprise is merged or split, it shall inform the Department of Technology of the
MOFTEC in good time and return the original Registration Certificate. If it needs to continue to engage in the export of Guided Missiles
and Related Items and Technologies, it shall go through the registration formalities anew and obtain a new Registration Certificate.

Article 9

Where the Registration Certificate is damaged or lost, the business operator shall inform the Department of Technology of the MOFTEC
in good time and give a written explanation. If it needs to continue to engage in the export of guided missiles and related items
and technologies, it shall go through registration formalities anew and obtain a new Registration Certificate.

Article 10

When applying for certificates of approval for exporting guided missiles and related items and technologies, the business operator
shall present its Registration Certificate.

Article 11

In the export of guided missiles and related items and technologies, the registered business operator must rigidly abide by the relevant
laws, regulations and ministerial rules of the state concerning export control, and shall voluntarily accept the administration of
the MOFTEC.

Article 12

Any business operator who is unlawfully engaged in the export of guided missiles and related items and technologies without being
registered shall be dealt with according to the Regulation of the People’s Republic of China on Controlling the Export of Guided
Missiles and Related Items and Technologies as well as other relevant laws and regulations.

Article 13

If any business operator who intentionally conceals true facts or submits false information in the process of applying for registration
or obtains its Registration Certificate by other unfair means, the MOFTEC shall write off the Registration Certificate thereof and
impose a punishment of warning upon it.

Article 14

If any registered business operator violates any of the laws, regulations or ministerial rules of the state concerning export control
in the process of exporting guided missiles and related items and technologies, it may be punished according to relevant statutory
provisions and, at the same time, the MOFTEC may write off the registration thereof. After the registration is written off, the business
operator may not engage in the export of guided missiles and related items and technologies until it has gone through the formalities
of registration anew.

Article 15

The word “photocopy” as mentioned in the present Measures refers to the photocopy of the certificates to which the cachet of the issuing
authorities has been affixed.

Article 16

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

Article 17

The present Measures shall enter into force as of the day of promulgation.

Annex:

I. Application Form of the Registration for the Export Business Qulifications of Guided Missiles and Related Items and Technologies
of the People’s Republic of China (omitted)

II. Registration Certificate for the Export Business Qulifications of Guided Missiles and Related Items and Technologies of the People’s
Republic of China (omitted)

The Ministry of Foreign Trade and Economic Cooperation
2002-09-02

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SORTING OUT AND CHECKING THE PREFERENTIAL POLICIES ON ENTERPRISE INCOME TAX AND THE IMPLEMENTATION THEREOF

The State Administration of Taxation

Circular of the State Administration of Taxation on Sorting out and Checking the Preferential Policies on Enterprise Income Tax and
the Implementation Thereof

GuoShuiFa [2002] No.127

September 30, 2002

In order to implement the requirements of the National Conference for Revenue Increase and Expenditure Reduction, carry out the uniform
deployment of the State Administration of Taxation and strengthen the administration on the collection of enterprise income tax,
we have decided to sort out and check the preferential policies on enterprise income tax and the implementation thereof. We hereby
give our notice as follows regarding the relevant work requirements:

The Significance to Fully Recognize the Sorting out and Checking of the Preferential Policies on Enterprise Income Tax and the Implementation
Thereof

The preferential policies on enterprise income tax are the incentive taxation measures made by the state according to the needs in
the continuing, healthy and stable development of national economy as well as the overall target of macro-economic control. To earnestly
implement the preferential policies on enterprise income tax, regulate and carry out the procedures for each link of the administration
of the preferential policies on enterprise income tax are the inevitable requirements for doing well in the administration of enterprise
income tax, guaranteeing the state macro-control policy to play its role, and promoting the continuing, healthy and stable development
of the national economy under new conditions. At present, the overall situation for the tax authorities at all levels to implement
the preferential policies on enterprise income tax is good. Basically, as required by the principle of administering tax by law,
they can earnestly ensure the uniform implementation of the preferential policies on enterprise income tax, resist the act of unauthorizedly
making preferential policies in violation of the uniform provisions, and continuously regulate the implementation procedures. However,
there are also some problems in the implementation of the policies. For example, unauthorized preferential policies on enterprise
income tax are make in some regions by exceeding of power, and in some regions the ascertainment of the qualification for a taxpayer
to enjoy the preferential policies are not strictly controlled, the approval procedures are not normative, and the follow-up administration
is not well done, and so on. Such problems have objectively led to the inconformity of the preferential policies on enterprise income
tax with the standard of implementation, and impacted the active functions of the state macro-control policy.

In order to follow the principle of administering tax by law, rectify and regulate the taxation order, ensure the reform of the system
for sharing revenue from income tax, and adapt to the needs in China’s accession to the WTO, the tax authorities at all levels must
adhere to the principle of administering tax by law, maintain the uniformity and the taxation policies and the regularity of implementation
of the policies. Meanwhile, they shall earnestly implement the requirements of the National Conference for Revenue Increase and Expenditure
Reduction, further strengthen their administration on tax collection, and guarantee the completion of the taxation task of the whole
year. To meet the above requirements, it is indeed necessary to carry out the work of sorting out and checking the preferential policies
on enterprise income tax, verify the taxpayers’ qualifications to enjoy the preferential policies, stop the income tax reduction
or exemption in excess of power, and regulate the procedures to implement the preferential policies. It is also an urgent task, therefore
the tax authorities at all levels shall undertake this task from the point of view of politics and overall situation, and earnestly
make achievements.

II.

Key Contents for Sorting out and Checking the Preferential Policies on Enterprise Income Tax and the Implementation Thereof

The main task is to sort out the regional preferential policies on enterprise income tax which are discretionally made in all places
out of the uniform taxation policies of the state, and to check whether the qualifications for the enterprise income tax payers to
enjoy the preferential policies and the procedures for the administration of tax reduction or exemption conform to the relevant provisions.
The main contents are as follows:

(a)

New- and high-tech enterprises. Whether the enterprises enjoying the preferences on tax reduction or exemption meet the conditions
for new- and high-tech enterprises, and whether they have passed the annual inspection according to the relevant provisions; whether
the new- and high-tech enterprises out of a national new- and high-tech industry development zone are enjoying the preferential policies
by taking the opportunity; whether the non-new- and high-tech enterprises within a national new- and high-tech industry development
zone are enjoying the income tax reduction or exemption; whether the period for tax reduction or exemption conforms to the relevant
provisions; whether the tax rates are implemented in accordance with the relevant provisions; and so on.

Whether the software enterprises hold the certifications issued by the relevant department; whether the tax authorities have participated
in the annual inspection; whether the proportion of technical professionals and that of sales income in the software enterprises
meet the stipulated conditions; whether the profit years of the software enterprises have been verified; whether the software enterprises
were established after July 1, 2000.

(b)

Newly-established enterprises of the tertiary industry. Whether the enterprises of the tertiary industry which enjoy the preferential
policies on income tax meet the standards on newly-established enterprises; whether the newly-established financial, insurance and
real estate enterprises are included in the scope of tax exemption; whether the income from the operation of the means of production
in the agricultural production and service industry is under reduction or exemption of tax; whether the income of scientific research
entities or universities and colleges from technical consulting, development, service or transfer of technologies meet the policy
standards, and whether they are under the management by technology market; whether the income of the scientific research entities
or universities and colleges not meeting the conditions on preferences is under tax reduction or exemption; whether non-consulting
enterprises enjoy reduction of income tax in contrast with consulting enterprises; whether the period for tax reduction or exemption
conform to the relevant provisions; and so on.

(c)

Employment service enterprises. Whether the proportion of people given new jobs conforms to the relevant provisions; whether the above
said people exceed the scope stipulated in the present policies; whether any of the employment service employees holds his post in
more than one enterprise; whether the period for tax reduction or exemption conform to the relevant provisions; whether there is
any enterprise of false cessation of business or false new establishment enjoying repeated preferential policies; and so on.

(d)

School-run enterprises. Whether the enterprises enjoying income tax preferences meet the conditions for school-run enterprises; whether
they are invested and run by the school or affiliated to other enterprises or associated with other enterprises or individuals; whether
they are subject to contracted, leased or transferred operation; whether the schools are directly responsible for the operation and
management; how the income from operation is distributed; whether they are school-run plants or farms; whether income tax is reduced
or exempted from the income of the school publishing houses, stores or construction companies; whether the schools establishing the
enterprises are regular schools set up by the educational department; whether the ascertainment and annual inspection on the preferential
policies are regular, and whether the tax authority has participated in the annual inspection, and so on.

(e)

Enterprises of social welfare. Whether the proportion of disabled people given jobs conforms to the relevant provisions; whether the
disabled employees have their proper work positions; whether any of the disabled employees concurrently holds posts in more than
one enterprise; whether the name list of enterprise employees, the table of wages, the table of posts held by the disabled employees,
the appraisal of disability and the table on the use and distribution of profits and taxes are set up; whether they have been annually
inspected, and so on.

(f)

Other relevant preferential policies. It is emphasized to sort out and check the conditions for enjoying the preferential policies.

(g)

Whether the administration of tax reduction or exemption is included in the regular administration of income tax; whether the procedure
and scope of power for the administration of tax reduction or exemption conform to the relevant provisions in the Measures on the
Administration of Reduction or Exemption of Enterprise Income Tax (GuoShuiFa [1997] No.99); whether the statistics on tax reduction
or exemption in all places have been timely submitted; whether the income tax of the newly-established enterprises in former revolutionary
base areas, in areas of minority nationalities, in remote and border areas and poverty-stricken areas and that of the enterprises
established by the Central Government which enjoy tax reduction or exemption due to heavy natural disasters are reported to the State
Administration of Taxation pursuant to the scope of the approval power.

All provinces, autonomous regions, municipalities directly under the Central Governments and municipalities separately listed on the
State plan may, in combination with their respective local situations, increase and detail the above said key contents for sorting
out and checking the preferential policies.

III.

Overall Requirements for Sorting out and Checking the Preferential Policies on Enterprise Income Tax and the Implementation Thereof

(a)

The tax authorities shall strictly implement the state’s uniform preferential policies on enterprise income tax. The preferential
policies on income tax which are discretionally made by any local government in excess of its power and in violation of the state’s
uniform policies shall be immediately ceased from implementation, and the discretionally made preferential policies on income tax
which were cancelled in the last year shall not be recovered. The tax authorities shall, through normal avenues, request the local
governments to correct their discretionally made preferential policies on income tax. In case such policies cannot be corrected,
the tax authorities shall report to the financial and taxation departments under the State Council level by level. Any local government
that does not cease implementing its discretionally made preferential policies on income tax after the receipt of the present notice
shall be imposed on a circularized criticism and the persons involved shall be punished in accordance with the relevant provisions.

(b)

The leaders of the tax authorities at all levels shall pay sufficient attention to sorting out and checking the preferential policies
on enterprise income tax and the implementation thereof, and shall make uniform arrangements and considerate deployment as well as
take prompt measures and select excellent functionaries to do well in the relevant work. The tax authorities at all levels shall
earnestly undertake their responsibilities and carry out the whole-process administration, improve revenue by sorting out and checking
the preferential policies, and timely arrange the tax amount to be put into the state treasury. They shall also timely report the
problems in sorting out and checking the preferential policies to the State Administration of Taxation.

(c)

When sorting out and checking the preferential policies, the tax authorities shall strictly follow the principles of administering
tax by law and seeking truth from facts, and regard the present uniform policies and presently stipulated procedures as the basis.
The tax authorities shall guarantee the implementation of the preferential policies on income tax stipulated by the state, reduce
and exempt taxes in accordance with the law, and guarantee the taxpayers’ lawful rights and interests in respect of taxation. With
respect to the enterprises which are enjoying the preferential policies on income tax, the tax authorities shall strictly verify
one by one whether they meet the conditions for enjoying the income tax preferences, and shall cancel the qualification of those
unqualified to enjoy the preferential policies on income tax, and levy the reduced and exempted tax as well.

(d)

The work of sorting out and checking the preferential policies will be started in October and ended in the middle of December. After
the end of this work, the tax authorities shall carefully review the work they have done and make written reports, stating the measures
they have taken, the previous preferential policies on enterprise income tax, the problems existing in the implementation, methods
for improvement, and the actual effects they have made, and shall fill out the Statistics on Sorting out and Checking the Preferential
Policies on Enterprise Income Tax and the Implementation Thereof, which is attached to the present notice. The tax authorities shall,
by the end of December, submit the review reports and the statistics to the State Administration of Taxation in the form of official
documents.

Attachment:

Statistics on Sorting out and Checking the Preferential Policies on Enterprise Income Tax and the Implementation Thereof(Omitted)

The State Administration of Taxation
2002-09-30

THE NOTICE OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE NATIONAL BUREAU OF STATISTICS ON PRINTING AND ISSUING STATISTICAL SYSTEM OF DIRECT OVERSEAS INVESTMENT

2002120420030101The Ministry of Foreign Trade and Economic Cooperation, the National Bureau of Statisticsepdf/e03121.pdfA5direct overseas investment, investment, statistics, scope of statistics, statistical data, statistical institute, statistician, form
of statistical statemente03121The Notice of the Ministry of Foreign Trade and Economic Cooperation and the National Bureau of Statistics on Printing and Issuing
Statistical System of Direct Overseas InvestmentWai Jing Mao He Fa [2002] No. 549December 4, 2002The Foreign Trade and Economic Commission and the Bureau of Statistics of every province, autonomous region and municipality directly
under the Central Government and cities specifically designated in the state plan, the enterprises under the Central Government:In order to scientifically and efficiently organizing the statistical work of the direct overseas investment nationwide, accurately,
timely and entirely reflecting the actual conditions of the direct overseas investment of our country, and to ensure accurate, timely
and entire of the statistical information and to strengthen the overseas investment of our enterprises through macro-dynamic supervision,
to provide with a basis for the administrations of governments at all levels to control the conditions, make the policy, guide the
work and establish the mechanism of alarm beforehand to the items of capital of our country, Statistical System of Direct Overseas
Investment formulated by the Ministry of Foreign Trade and Economic Cooperation and the National Bureau of Statistics are hereby
printing and issuing, please carry out graveness.Informs specially.Appendix: Statistical System of Direct Overseas InvestmentThe Ministry of Foreign Trade and Economic CooperationThe National Bureau of StatisticsDecember 4, 2002Appendix:Statistical System of Direct Overseas InvestmentPart I General InstructionChapter I General ProvisionsArticle 1 This system is formulated in accordance with the Statistical Law Of the People’s Republic of China and the regulations on the implementation
of this law for the purpose of accurately, timely and entirely reflecting the actual conditions of the direct overseas investment
of our country, scientifically and efficiently organizing the statistical work of the direct overseas investment nationwide, and
fully exerting the function through enquiry and supervision.Article 2 “The direct overseas investment” mentioned in this system refers to the economic activities which is embodied by the investment made
by the domestic enterprises (hereinafter referred to as the domestic investing entities) in cash, or in the form of material objects
or intangible capital, etc in a foreign country or in the regions of Taiwan, Hong Kong and Macao, and which is centered on the operation
and management power of the foreign (or overseas) enterprises.Article 3 The basic mission of statistics of the direct overseas investment is to provide an comprehensive picture of the direct overseas investment
of our country entirely, accurately and timely through statistical investigation, statistical analysis and offering of statistical
data, so as to prepare basis on which cadres of different levels and relevant organs may get a knowledge of the statistics, make
policies and establish a nationwide pre-warning system of capital project.Article 4 This system is applicable to administrative departments engaged in the direct overseas investment of China, and to the domestic investing
entities engaged in the direct overseas investment ratified (or filed for record) by the State Council or by departments authorized
by the State Council.Article 5 The statistics of direct overseas investment shall be subject to a unified leadership, administration at different levels, and level-by-level-up
submission.1)The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as MOFTEC) as required by the National Bureau of Statistics
of China, shall be responsible for the statistics of the direct overseas investment throughout the country, for the administration
of the statistics of the direct overseas investment made by the foreign economic and trade commissions (or departments, or bureaus)
(hereinafter referred to as the administrative departments of foreign economic and trade at the provincial level) of provinces, autonomous
regions, municipalities under the Central Government, and municipalities separately listed on the State plan, and by the enterprises
managed by the Central Government, for the drawing up and collection of statistical data on the direct overseas investment throughout
the country.2)Administrative departments of the foreign economic and trade at the provincial levels shall be responsible for the statistics of the
direct overseas investment in the corresponding administrative regions, for the administration of the statistics of the direct overseas
investment made by the domestic investing entities (excluding the enterprises managed by the Central Government in the corresponding
administrative regions, same below) in the corresponding administrative regions, for the drawing up and collection of statistical
data on the direct overseas investment in the corresponding administrative regions and submit them to MOFTEC.3)Domestic investing entities shall be responsible for the management of the statistics of the direct overseas investment made by their
units, for the collection of the statistical data on the enterprises which they directly invest in accordance with the format regulated
by this system, and for the drawing up and collection of statistical data of their units to be submitted to the administrative departments
of foreign economic and trade at the provincial level and to MOFTEC.Chapter II Scopes of Statistics and Its Main ContentsArticle 6 Scopes of the statistics of direct overseas investment mainly involve the foreign corporate enterprises and non-corporate enterprises
(hereinafter referred to as foreign enterprises) established by domestic investing entities through direct overseas investment.Foreign Enterprises, according to the way they are established, mainly fall into the following types: subsidiary companies, affiliated
companies and branches.Article 7 Contents covered in the statistics of the direct overseas investment are mainly as follows: basic conditions of the domestic investing
entities; major economic activities of the foreign enterprises; conditions of the proportions of the investment, income distribution
and exchanges in other forms between the investing entities at home and foreign enterprises; and main economic exchange between the
foreign enterprises and the inside part of China, etc.Article 8 Indicators covered in the statistics of direct overseas investment are as follows: amount of contractual investment capital; actual
investment capital; amount of capital directly invested abroad; investment income; total capital; total indebtedness; rights and
interests of the owners; paid-up capital; income out of sales (operations); total amount of benefits; capital counter-invested into
the domestic investing entities by the foreign enterprises; and capital invested by the foreign enterprises in the enterprises within
the territory of PRC.Other norms include the following: total values of the freights imported from China; total values of the freights exported by China;
total values of the materials, products and technology provided by foreign enterprises to the domestic investing entities; total
values of the materials, products and technology provided by the domestic investing entities to the foreign enterprises; quantities
of resource products returned to China; exports enacted by the direct overseas investment; and the number of the personnel by the
end of the fiscal year, etc.Chapter III Submission, Management and Issuance of Statistical DataArticle 9 Statistical data is a general term of the statistical information indicating the development of the direct overseas investment obtained
through statistical methods and in the form of figures, including figures of statistics, statements of statistics and reports of
analysis, etc.Article 10 This system searches and collects, and sorts out statistical data by means of filling in statistical statements regularly. Investigation
reports are divided into yearly statements and seasonal statements.Article 11 Channels for submission of the statements of the direct overseas investment:1)Domestic investing entities managed by the Central Government shall submit the statistical statements directly to MOFTEC;2)Other domestic investing entities shall submit the statistical statements to the administrative department of the foreign economic
and trade at the provincial level;3)Administrative departments of the foreign economic and trade at the provincial level shall collect the statistical statements of the
corresponding administrative regions and report to MOFTEC, and meanwhile send the statistical statements to the statistical departments
at the same level; and4)MOFTEC shall, after collecting the statistical statements of the direct overseas investment throughout the country, send the statistical
statements to the National Bureau of Statistics.Article 12 Basic units shall establish and improve the system of underwriting the statistical data. Statistical statements shall not be sent
out until they are signed by the person held responsible and the tabulator of the units and are sealed by the units.Article 13 Units shall, in accordance with law, establish a system for the examination and verification, enquiry, secrecy, transmission, and
filing, etc of the statistical documents, and shall inspect the quality of the statistical data, so as to avoid re-statistics, lack
of statistics, or false statistics. In case of errors in the statistics, they shall be timely reported in a written form to the next
higher statistical administrative departments for correctness.Article 14 Statistics data used in the management of business and made publicly known shall be based on the statistical data issued by MOFTEC
and National Bureau of Statistics of China.Article 15 Statistical data classified, as “confidential” State secrets shall be kept secret. Statistical institutions and statistical workers
shall not disclose the business secrets of the units under investigation, which they learn in the statistical investigation.Chapter IV Statistical Institutions and StatisticiansArticle 16 Units shall, in accordance with the needs of the missions of statistical investigation and the amount of the statistics, design statistical
institutions, designate persons responsible for the statistics, and prepare full-time statisticians or appoint part-time statisticians.Article 17 Units shall stabilize their statistical departments and statisticians. Where statisticians shift to other work units or resign shall
undergo procedures for the transference of their work under the supervision by the person held responsible of the statistical institutions.Article 18 Main functions and responsibilities of the statistical institutions are as follows:1)Organizing, collaborating the statistics of the corresponding units and all the other units in the corresponding administrative region,
fulfilling the statistical investigation missions of the corresponding units, searching and collecting, arranging, and timely and
accurately providing statistical data;2)Conducting statistical analysis on the conditions of the direct overseas investment made by the corresponding units and the corresponding
administrative region, and exercising supervision over statistics;3)Being in charge of the training of the statisticians of the corresponding units and the corresponding administrative regions; and4)Managing the statistical data of the corresponding units.Article 19 Statisticians shall be armed with the professional knowledge needed for the statistical work.Article 20 Statistical institutions, persons in charge and statisticians of the statistical institutions shall enjoy the rights and bear the
obligations as stipulated by the Statistical Law of PRC and the regulations on the implementation of this law.Chapter V Rewards and PenaltiesArticle 21 Each institution shall regularly offer encouragements and rewards to the units and individuals who have made outstanding achievements
in the statistics of the direct overseas investment; whereas each institution shall criticize and assist the units and individuals
whose achievements in the statistics of the direct overseas investment are not satisfactory, and if the case is serious, administrative
sanctions shall be held for the persons in charge.Article 22 Any statistical institutions or statisticians that meet one of the following circumstances shall be rewarded:1)Excelling in fulfilling the statistical missions, and in guaranteeing the accuracy and timeliness of the statistical data;2)Making great achievements in statistical analysis, statistical prediction, and statistical supervision;3)Sticking to seeking truth from facts, performing the work lawfully, and combating against the actions which are in violation of the
statistical system; and4)Revealing and reporting actions which are in violation of the rules and regulations on statistics.Article 23 Any institutions or statisticians that meet one of the following circumstances shall be given administrative sanctions:1)Making false statistical entries or hiding the truth in the statistical entries;2)Forging or juggling the statistical entries; and3)Refusing to submit or repeatedly delaying the statistical data.Article 24 If any person held responsible of each unit incites or forcibly order the statistical institutions or statisticians to juggle or make
up forged statistical data; he shall be given administrative sanctions.If any person held responsible of each unit retaliates against the statisticians who refuse to prepare counterfeited statistical data
or resist doing so, he shall be given administrative sanctions.Article 25 Any statistician who steals or reveals the statistical data classified as “confidential” State secret, he shall be handled according
to the relevant laws.Chapter VI Supplementary ProvisionsArticle 26 Each unit may, in accordance with the prescription of this system, formulate rules for its implementation, and submit them to the
Ministry of Foreign and Trade for records.Article 27 If the expiration date occurs to be the national holiday, the time period for the presentation of the statistical statements shall
be extended accordingly.Article 28 Statistical codes of countries (or regions) used in this system shall be based on the Statistical Codes of Countries (or Regions)
drawn up by the General Customs Administration.Codes of units as a legal person shall be filled up and reported on the basis of the Certificate of Codes of Units as a Legal Person
issued by technology supervising departments at various levels.Classification of trades to which domestic investing entities belong shall be determined according to the prescription of the Classification
of the National Economic Trades ( GB/T 4754-2002); classification of trade of foreign enterprises shall be determined in light of
the above stipulation.Article 29 This system shall be subject to the interpretation of MOFTEC.Article 30 This system shall enter into force as of January 1, 2003.Part II Forms of Statistical Statementshtm/e03121.htm

No.

post_titles of statements

Periodicals of statements

Scopes of investigation

Submitting date and submitting methods

Submitting units

1.Comprehensive statements

FDI201

Statements of the basic conditions of domestic investing entities

Yearly

Basic conditions of domestic investing entities owning overseas enterprises within the administrative regions

Reported to Ministry of Foreign Economic and Trade by the end of June after a fiscal year; conveyed online

To the administrative departments of foreign economic and trade at the provincial levels

FDI202

Statements of basic conditions and operation activities of the overseas enterprises

Yearly

Basic conditions and operation activities of overseas enterprises owned by the domestic investing entities

Ditto

FDI203

Statements of basic conditions of proportions of the investment, income distribution and exchanges in other forms between the investing
entities at home and enterprises abroad

Yearly

Basic conditions of the proportion of the investment, income distribution and other economicexchanges between the domestic investing
entities in the administrative region and each overseas enterprise owned by the said domestic investing entities

Ditto

FDI204

Statements of basic conditions of the economic exchange between the overseas enterprises and China

Yearly

Basic conditions of the exchange between each overseas enterprise owned by the domestic investing entities and the inside part of
China

Ditto

FDI205

Seasonal statements of the statistics of the direct overseas investment

Seasonal

(contractual or actual) conditions of investment by each overseas enterprise owned by the domestic investing entities in the administrative
region

Submitted to Ministry of Foreign Economic and Trade; conveyed online

Ditto

2. Statements of units at the basic level

FDI301

Statements of basic conditions of the domestic investing entities

Yearly

Basic conditions of the domestic investing entities which own overseas enterprises

Submitted to the administrative departments of foreign economic and trade at the provincial level or to the Ministry of Foreign Economic
and Trade prior to 20 June after the fiscal year; conveyed online

The domestic investing entities

FDI302

Statements of basic conditions and operation activities of the overseas enterprises

Yearly

Basic conditions and operating activities of each overseas enterprise owned by the domestic investing entities

Ditto

FDI303

Statements of basic conditions of proportions of the investment, income distribution and exchanges in other forms between the investing
entities at home and enterprises abroad

Yearly

Basic conditions of proportions of investment, income distribution, and other economicexchanges between the domestic investing entities
and each overseas enterprise owned by the said domestic investing entities

Ditto

FDI304

Statements of basic conditions of the economic exchange between the overseas enterprises and China

Yearly

Basic conditions of the exchange between each overseas enterprise owned by the domestic investing entity and the inside part of China

Ditto

FDI305

Seasonal statements of the statistics of the direct overseas investment

Seasonal

(contractual or actual) conditions of investment by each overseas enterprise owned by the domestic investing entities

CIRCULAR OF THE MINISTRY OF FINANCE ON DISTRIBUTING THE INTERIM MEASURES FOR ACCOUNTING PROCESS OF TAKING UP BUSINESSES RELATED TO FINANCING OF RECEIVABLE CREDITOR’S RIGHTS BETWEEN ENTERPRISES AND FINANCIAL ORGANIZATIONS LIKE BANKS

The Ministry of Finance

Circular of the Ministry of Finance on Distributing the Interim Measures for Accounting Process of Taking up Businesses Related to
Financing of Receivable Creditor’s Rights between Enterprises and Financial Organizations like Banks

CaiKuai [2003] No. 14

May 15, 2003

Financial Offices (Bureaus) of Provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan, relevant ministries and commissions of the State Council and relevant enterprises:

In order to regulate the accounting process of financing businesses between enterprises and financial organizations like banks, Interim
Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between Enterprises
and Financial Organizations like Banks has been printed and now is distributed to you. Please do comply with it. Please feed back
the problems presented in the implementation to the Ministry of Finance as soon as possible.

Attachment: Interim Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between
Enterprises and Financial Organizations like Banks is enclosed Attachment:Interim Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between Enterprises
and Financial Organizations like Banks

To regulate the accounting process of financial businesses between enterprises and financial organizations like banks, provisions
on accounting process of associated businesses are enacted herein:

The accounting principles of financing of receivable creditor’s rights

Enterprises sell to financial organizations like banks receivable creditor’s rights generating from sale contracts for providing services.
The principle that quality overweighs form should be taken into account for accounting, the economic nature of business being fully
considered. The selling of receivable creditor’s rights is valid and related profit and loss must be confirmed when there is clear-cut
evidence seeing associated dealing actually meets the requirements of confirming sale. For instance, when the risk and payment related
to receivable creditor’s rights in effect has been transferred. Otherwise, it should be regarded as the loan with a pledge of receivable
creditor’s rights and correspondent accounting treatment should be complied with.

II.

Accounting treatments of the loan with a pledge of receivable creditor’s rights

If enterprises give banks receivable creditor’s rights generating from sale contracts for providing services as a pledge for the loan,
the risk and payment associated with receivable creditor’s rights are not transferred. Under this circumstance, it is still the enterprise
that owns receivable creditor’s rights and it is responsible for gathering payment from customers and bears the possible risks of
receivable creditor’s rights. Meanwhile, the enterprise should regularly pay the loan as well as its interest back to the financial
organizations like banks.

When the loan is obtained with a pledge of receivable creditor’s rights, the enterprise should debit the received payment against
the item of bank account, the actually paying commission charge against the item of financial expense and credit the principles and
interest to items of short-term loan etc.

When receiving the payment from customers, the enterprise should debit the payment against the items such as cash and bank account
and credit to the item of receivable account.

As for the interest of loan generating in the enterprise and the accounting treatments of the principles and interest of the loan
paid by the enterprise to financial organizations like banks, the associated regulations of loan in Enterprise Accounting System
should be complied with.

Since the above-mentioned risk and payment related to receivable creditor’s rights as a pledge do not change substantially, the enterprise
should consider the situation of the debtor and reasonably withdraw bad debt reserves of receivable creditor’s rights as the pledge
in accordance with the provisions in Enterprise Accounting System. The selling withdrawal, selling discount and bad debt associated
with receivable creditor’s rights as the pledge should be dealt with in accordance with the provisions in Enterprise Accounting System.

The enterprise should have record books for future reference. All the issues such as account value, pledge term and payment of receivable
creditor’s rights as the pledge should be particularly recorded.

III.

Accounting treatment related to the selling of receivable creditor’s rights.

(I)

Accounting treatments concerning the selling of receivable creditor’s rights un-attached right of recourse

Enterprises sell to financial organizations like banks receivable creditor’s rights generating from sale contracts for providing services.
If no right of recourse is validly mentioned in the contract signed between the enterprises, debtors and banks, that is to say, financial
organizations are not enpost_titled to seek for compensation from the enterprise that sold receivable creditor’s rights when the withdrawal
of the creditor’s receivables cannot be fulfilled at term, the risk in the selling of receivable creditor’s rights is totally undertaken
by financial organizations like banks. Under that circumstance, the accounting treatment should comply with the following provisions.

An enterprise should, in accordance with the contract signed between the enterprise and a financial organization like bank, debit
the received amount against the item of bank account, the predicted sum of selling withdrawal and selling discount (including cash
discount, the same below) presented in the contract against the item of other account receivables, the withdrawn bad debt reserve
of receivable creditor’s rights against the item of bad debt reserve, the amount of related due commission charge against the item
of financial expense, and credit the account value of selling receivable creditor’s rights to the item of account receivables while
debit the balance against the item of extra expense—the financing loss of receivable creditor’s rights or credit the item of extra
income—the financial proceeds of receivable creditor’s rights.

When the practically-generating selling withdrawal and selling discount associated with the selling of receivable creditor’s rights
equals to the amount that have been booked in the item of other receivables, the enterprise should debit the practical amounts of
selling withdrawal and selling discount against the items such as major business income (cash discount should be debit against the
item of financial expense, the same below), value-added tax which can be reduces or charged against the item of paying tax—paying
value-added tax (sale tax ) and credit the predicted selling withdrawal and selling discount associated with the sold creditor’s
rights of receivables that have been booked in the item of other account receivables to the item of other receivables. If there is
balance between the amounts of selling withdrawal and selling discount that practically generated and are related to receivable creditor’s
rights as well as the amounts booked in the item of other account receivables, the accounting treatments should be adopted in accordance
with the above provisions. What’s more, the amounts of selling withdrawal and selling discount paid to the financial organizations
like banks as the counterbalance should be booked in the items such as other account receivables or bank account and the amounts
of selling withdrawal and selling discount obtained from the financial organizations like banks should be booked in the items like
other account receivables or bank account.

The provisions in Enterprise Accounting System and other related rules of accounting should be complied with when the above selling
withdrawal and selling discount of the enterprise belong to the future item in balance sheet.

(II)

Accounting treatments related to the selling of receivable creditor’s rights attached right of recourse

If right of recourse is validly mentioned in the selling process of receivable creditor’s rights, that is, financial organizations
have the right to seek for compensation from the enterprise that sold receivable creditor’s rights or the enterprise is obliged to
buy back from the financial organizations like banks a portion of receivable creditor’s rights at an agreed price in accordance with
the agreement when the withdrawal of the creditor’s receivables cannot be fulfilled at term, the risk in the selling of receivable
creditor’s rights is totally undertaken by the enterprise that sold receivable creditor’s rights. Under that circumstance, the accounting
treatment about the loan obtained with the pledge of receivable creditor’s rights in the provision should be complied with.

IV.

Accounting treatments on discount of receivable creditor’s rights

According to the agreement signed between an enterprise and a financial organization like a bank, if the discount of receivable creditor’s
rights is actually in effect, its accounting treatment should comply with the relevant provisions on the discount of notes receivable
in Enterprise Accounting System.

The exposure of the selling and financing businesses based on receivable creditor’s rights

An enterprise should expose the details of these businesses in the annotations of the accounting report forms if the above-mentioned
businesses such as selling business and financing business are based on receivable creditor’s rights. The details include:

(I)

The main contents of the selling and financing agreements signed between the enterprise and the financial organization like a bank.

(II)

The basic situations of receivable creditor’s rights concerning the selling and financing business, including amount, term, and distilled
bad debt reserve.

(III)

The details of the loan obtained with receivable creditor’s rights as the pledge, such as the amount of the loan, interest rate, term,
the account value of receivable creditor’s rights as the pledge and etc.

(IV)

The amounts of current net profit and loss influenced by the selling of receivable creditor’s rights

(V)

The account value, the received amounts after discount and the discount term of the discounted creditor’s rights of receivables.

The Ministry of Finance
2003-05-15

1...101112 Page 11 of 12

Divorce

THE PROVISIONS OF THE GENERAL ADMINISTRATION OF CUSTOMS OF PEOPLE’S REPUBLIC OF CHINA ON IMPLEMENTING THE RULES OF ORIGIN...

INTERIM PROVISIONS ON THE ESTABLISHMENT OF PRINTING ENTERPRISES WITH FOREIGN INVESTMENT

AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF COTE D’IVOIRE ON THE PROMOTION AND PROTECTION OF INVESTMENTS

CHINA’S REGULATIONS ON CONTROL OF DUAL-USE BIOLOGICAL EXPORTS

MEASURES FOR THE QUARANTINE AND ADMINISTRATION OF HEREDITARY SUBSTANCE OF ENTRY ANIMALS

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING GFI BROKERS LIMITED TO ESTABLISH SHANGHAI REPRESENTATIVE OFFICE

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING TAX REFUND OF ENTERPRISES WITH FOREIGN INVESTMENT PURCHASING DOMESTIC EQUIPMENTS

(INTERIM) MEASURES ON THE ADMINISTRATION OF THE BUSINESS REGISTRATION FOR THE EXPORT OF GUIDED MISSILES AND RELATED ITEMS AND TECHNOLOGIES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SORTING OUT AND CHECKING THE PREFERENTIAL POLICIES ON ENTERPRISE INCOME TAX AND THE IMPLEMENTATION THEREOF

THE NOTICE OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE NATIONAL BUREAU OF STATISTICS ON PRINTING AND ISSUING STATISTICAL SYSTEM OF DIRECT OVERSEAS INVESTMENT

CIRCULAR OF THE MINISTRY OF FINANCE ON DISTRIBUTING THE INTERIM MEASURES FOR ACCOUNTING PROCESS OF TAKING UP BUSINESSES RELATED TO FINANCING OF RECEIVABLE CREDITOR’S RIGHTS BETWEEN ENTERPRISES AND FINANCIAL ORGANIZATIONS LIKE BANKS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7