MEASURES FOR THE ADMINISTRATION ON POLLUTION CONTROL OF ELECTRONIC INFORMATION PRODUCTS

Ministry of Information Industry, SDRC, MOFCOM, GAC,SAIC, State Administration of Quality Supervision, Inspection and Quarantine,
State Environmental Protection Administration

Order of the Ministry of Information Industry

No. 39

The “Measures for the Administration on Pollution Control of Electronic Information Products” are hereby promulgated, and shall come
into force on March 1, 2007.

Minister of Information Industry, Wang Xudong

Director General of the State Development and Reform Commission, Ma Kai

Minister of Commerce, Bo Xilai

Director General of the General Administration of Customs, Mu Xinsheng

Director General of the State Administration for Industry and Commerce, Wang Zhongfu

Director General of the State Administration of Quality Supervision, Inspection and Quarantine, Li Changjiang

Director General of the State Environmental Protection Administration, Zhou Shengxian

February 28, 2006

Measures for the Administration on Pollution Control of Electronic Information Products

Chapter I General Provisions

Article 1

The present Measures are formulated in accordance with the “Law of the People’s Republic of China on Promoting Clean Production”,
the “Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes” as well as other
laws and administrative regulations for the purpose of controlling and reducing the pollution caused by the wasted electronic information
products to the environment, promoting the production and sale of low-pollution electronic information products, and protecting the
environment and human health.

Article 2

Except for the production for export products, the control and reduction of the pollution and other public hazards caused by electronic
information products to the environment during the procedure of production, sale and import of electronic information products within
the territory of the People’s Republic of China shall be governed by the present Measures.

Article 3

In the present Measures, the following terms shall have their respective meanings as follows:

(1)

The term “electronic information products” shall refer to the products produced with electronic information technologies, including
electronic radar products, electronic communication products, radio and television products, computer products, home electronic products,
electronic measurement devices products, special electronic products, electronic element and component products, electronic application
products, electronic material products, etc., as well as the parts and components thereof.

(2)

The term “pollution of electronic information products” shall refer to the destructions, damages, wastes or other bad effects caused
to the environment, resources, human body, life or health, or the property safety due to the toxic or noxious substances or elements
contained in electronic information products, or due to the toxic or noxious substances or elements contained in electronic information
products which exceed the national standards or industrial standards.

(3)

The term ” pollution control of electronic information products” shall refer to the following measures adopted to reduce or eliminate
the toxic or noxious substances or elements contained in electronic information products:

the technical measures of changing the research and design scheme, adjusting the technological process , replacing the materials or
renovating the method of production, etc. in the process of design or production;

the measures of indicating the names and contents of toxic or noxious substances or elements, indicating the environmental protection
use term of the electronic information products, etc. in the process of design, production, sale or import;

the measures such as rigidly limiting the purchasing avenues, or refusing to sell the electronic information products which do not
meet the national or industrial standards for the control of toxic or noxious substances or elements of electronic information products
in the process of sale;

prohibiting the import of electronic information products which do not meet the national or industrial standards for the control of
toxic or noxious substances or elements of electronic information products;

other pollution control measures prescribed in the present Measures.

(4)

The term “toxic or noxious substances or elements” shall refer to the following substances or elements contained in electronic information
products:

lead;

hydrargyrum;

cadmium;

HexChrome;

PBB;

PBDE;

other toxic or noxious substances or elements prescribed by the state.

(5)

The term “environmental protection use term of electronic information products” shall refer to the time period within which the toxic
or noxious substances or elements contained in electronic information products will not leak or suddenly change, and the users of
the electronic information products will not cause serious pollution to the environment or serious personal or property damages.

Article 4

The Ministry of Information Industry of the People’s Republic of China (hereinafter referred to as “MII”), the State Development and
Reform Commission of the People’s Republic of China (hereinafter referred to as “SDRC”), the Ministry of Commerce of the People’s
Republic of China (hereinafter referred to as “MOC”), the General Administration of Customs of the People’s Republic of China (hereinafter
referred to as “the General Administration of Customs”), the State Administration for Industry and Commerce (hereinafter referred
to as “SAIC”), the State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as “SAQSIQ”),
and the State Environmental Protection Administration (hereinafter referred to as “SEPA”) shall, within the scope of their respective
duties, administer and supervise the pollution control of the electronic information products. The above relevant competent departments
shall, when necessary, set up a work coordination mechanism to resolve the major matters and problems in the pollution control of
electronic information products.

Article 5

MII shall, in consultation with the relevant competent department of the State Council, formulate measures favorable to the pollution
control of electronic information products.

MII and the relevant competent departments of the State Council shall, within the scope of their respective duties, promote the technologies
on the pollution control of electronic information products and the comprehensive utilization of resources, etc., encourage and support
the scientific research, technological development and international cooperation on the pollution control of electronic information
products, and ensure the implementation of the relevant provisions on the pollution control of electronic information products.

Article 6

MII may provide certain support to the organizations and individuals who actively develop, research and manufacture new environmental
protection electronic information products.

Article 7

The competent departments of information industry, development and reform, commerce, customs, industry and commerce, quality inspection,
environmental protection, etc. of each province, autonomous region, or municipality directly under the Central Government shall,
within the scope of their respective duties, supervise and administer the control of pollution caused from production, sale and import
of electronic information products, and shall, when necessary, set up a work coordination mechanism for regional control of pollution
from electronic information products, uniformly coordinate their work and assume their respective responsibilities.

Article 8

The competent department of information industry of each province, autonomous region, or municipality directly under the Central Government
may commend and award the organizations and individuals that have made prominent achievements in the pollution control of electronic
information products and other relevant activities.

Chapter II Pollution Control of Electronic Information Products

Article 9

An electronic information product designer shall, when designing electronic information products, meet the national or industrial
standards for control of toxic or noxious substances or elements of electronic information products, and shall, on the premise of
satisfying the technique requirements, adopt a non-toxic and innoxious or a low-toxicity and low-noxiousness solution in which the
said substances or elements are easy to be degraded or convenient for recovery and utilization.

Article 10

An producer of electronic information products shall, when producing or manufacturing electronic information products, meet the national
or industrial standards for control of toxic or noxious substances or elements of electronic information products, and use the materials,
technologies and techniques with high resource utilization rate, easy for recycling and treatment, and beneficial to environmental
protection.

Article 11

The environmental protection use term of electronic information products shall be determined by the producer or importer of electronic
information products itself. The producer or importer of electronic information products shall mark the environmental protection
use term on the electronic information products it produces or imports, or shall, if the said use term cannot be labeled on the
products due to the limited product size or function, indicate it in the product specification.

The labeling specimen and the way of indication, which are prescribed in the preceding paragraph, shall be uniformly prescribed by
MII in consultation with the relevant competent department of the State Council. The labeling specimen and the way of indication
shall meet the national or industrial standards for control of toxic or noxious substances or elements of electronic information
products.

The relevant industrial organizations may, according to the technical development level, formulate guidelines on the environmental
protection use term of relevant electronic information products.

Article 12

MII encourages the relevant industrial organizations to submit their guidelines on the environmental protection use term of their
electronic information products to MII.

Article 13

A producer or importer of electronic information products shall mark the toxic or noxious substances or elements contained in the
electronic information products it launches to the market, indicating the name, content and the components contained of toxic or
noxious substances or elements, , and whether they may be recycled for utilization, etc, or shall, if such information cannot be
labeled on the products due to the limited product size or function, indicate it in the product specification.

The labeling specimen and the way of indication, which are prescribed in the preceding paragraph, shall be uniformly prescribed by
MII in consultation with the relevant competent department of the State Council, and shall meet the national or industrial standards
on the control of toxic or noxious substances or elements contained in electronic information products.

Article 14

A producer or importer of electronic information products shall, when making and using the packages of electronic information products,
use the non-toxic and innoxious materials which are easy to be degraded or convenient for recovery and utilization by following
the national or industrial standards for control of toxic or noxious substances or elements of electronic information products.

A producer or importer of electronic information products shall mark the name of the package material on the package of the electronic
information products it has produced or imported; or shall, if it cannot be labeled due to the limited product size or exterior surface,
indicate it in the product specification.

The labeling specimen and the way of indication, which are prescribed in the preceding paragraph, shall be uniformly prescribed by
MII in consultation with the relevant competent department of the State Council, and shall meet the national or industrial standards
for the control of toxic or noxious substances or elements of electronic information products.

Article 15

A seller of electronic information products shall rigidly limit the purchasing channels, and shall not be permit to sell any electronic
information product not meeting the national or industrial standards for control of toxic or noxious substances or elements of electronic
information products.

Article 16

The imported electronic information products shall meet the national or industrial standards for the control of toxic or noxious substances
or elements of electronic information products.

Article 17

MII shall, in consultation with SEPA, formulate industrial standards for control of toxic or noxious substances or elements of electronic
information products.

MII shall, in consultation with the National Standardization Commission of China, draft national standards for control of toxic or
noxious substances or elements of electronic information products.

Article 18

MII shall, in consultation with the SDRC, MOC, the General Administration of Customs, SAIC, SAQSIQ and SEPA, work out and adjust the
catalogue subject to the key point management for pollution control of electronic information products.

The catalogue subject to the key point management for pollution control of electronic information products shall be composed of
the categories of electronic information products, the kinds of toxic or noxious substances or elements restricted to use, and the
limited use term thereof, and shall be adjusted year by year in light of the actual situation and the requirement of scientific
and technological development level.

Article 19

The Certification and Accreditation Administration of China shall lawfully implement compulsory product certification administration
to the electronic information products included into the catalogue subject to the key point management for pollution control of
electronic information products.

The entry and exit inspection and quarantine institution shall implement the port verification and arrival-based inspection on the
imported electronic information products. The customs shall handle the inspection release procedures upon the strength of the “List
of Customs Clearance of Inward Goods” issued by the entry and exit inspection and quarantine institution.

Article 20

The electronic information products included into the catalogue subject to the key point management for pollution control of electronic
information products shall, in addition to conforming to the relevant provisions in the present Measures on the pollution control
of electronic information products, meet the requirements for key point pollution control prescribed in the catalogue subject to
the key point management for pollution control of electronic information products .

The electronic information products not included into the catalogue subject to the key point management for pollution control of
electronic information products shall conform to other provisions in the present Measures on the pollution control of electronic
information products.

Article 21

MII shall, in consultation with the SDRC, MOC, the General Administration of Customs, SAIC, SAQSIQ and SEPA, and in light of the actual
situation on industrial development, promulgate the implementation time limit that the toxic or noxious substances or elements shall
not be permitted to be contained in the electronic information products listed into the catalogue subject to the key point management
for pollution control of electronic information products.

Chapter III Penalty Provisions

Article 22

Whoever violates the present Measures and is under any of the following circumstances shall be penalized by the customs, the administrative
departments of industrial and commerce, quality inspection, environmental protection, etc. within the scope of their respective duties:

(1)

A producer of electronic information products violates Article 10 of the present Measures because the materials, technologies or
techniques it adopts do not meet the national or industrial standards for the control of toxic or noxious substances or elements
of electronic information products;

(2)

A producer or importer of electronic information products violates Paragraph 1 of Article 14 of the present Measures because the
electronic information product packages it makes or uses do not meet the national or industrial standards for the control of toxic
or noxious substances or elements of electronic information products;

(3)

A seller of electronic information products violates Article 15 of the present Measures by selling electronic information products
that fail to meet the national or industrial standards for the control of toxic or noxious substances or elements of electronic information
products;

(4)

An importer of electronic information products violates Article 16 of the present Measures because the electronic information products
it imports do not meet the national or industrial standards for the control of toxic or noxious substances or elements of electronic
information products;

(5)

A producer, seller or importer of electronic information products violates Article 21 of the present Measures by still producing,
selling or importing electronic information products whose content of toxic or noxious substances or elements exceeds the national
or industrial standards for the control of toxic or noxious substances or elements of electronic information products as of the starting
date of the implementation time limit that the toxic or noxious substances or elements shall not be permitted to be contained in
the electronic information products listed into the catalogue subject to the key point management for pollution control of electronic
information products ; or

(6)

An importer of electronic information products violates the provisions in the present Measures on import administration to import
electronic information products.

Article 23

Whoever violates the present Measures and is under any of the following circumstances shall be penalized by the administrative departments
for industry and commerce, quality inspection, and environmental protection, etc. within the scope of their respective duties:

(1)

A producer or importer of electronic information products violates Article 11 of the present Measures by failing to explicitly mark
the environmental protection use term of its electronic information products;

(2)

A producer or importer of electronic information products violates Article 13 of the present Measures by failing to explicitly mark
the name, content, the components contained of the toxic or noxious substances or elements of its electronic information products,
or whether they may be recycled for utilization; or

(3)

A producer or importer of electronic information products violates Paragraph 2 of Article 14 of the present Measures by failing to
explicitly mark the components of the materials of the packages of its electronic information products.

Article 24

Where any government functionary abuses his power, practices favoritism for himself or his relative, connives at or harbors the acts
of violating the present Measures, or helps the party who violates the present Measures in avoiding investigation and punishment,
he shall be given administrative sanctions in accordance with the law.

Chapter IV Supplementary Provisions

Article 25

Any organization or individual may reveal to MII or to the competent department of information industry of the local province, autonomous
region, or municipality directly under the Central Government the designers, producers, importers and sellers who cause any pollution
bypollution by electronic information products.

Article 26

The power and responsibility to interpret the present Measures shall remain with MII in consultation with SDRC, MOC, the General Administration
of Customs, SAIC, SAQSIQ and SEPA.

Article 27

The present Measures shall come into force on March 1, 2007.

Ministry of Information Industry, SDRC, MOFCOM, GAC,SAIC, State Administration of Quality Supervision, Inspection and
Quarantine, State Environmental Protection Administration
2006-02-28

ANNOUNCEMENT OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON 2002 IMPORT QUOTA LEVEL OF THE ELECTROMECHANICAL PRODUCTS AND OTHER RELEVANT ISSUES

The Ministry of Foreign Trade and Economic Cooperation

Announcement of the Ministry of Foreign Trade and Economic Cooperation on 2002 Import Quota Level of the Electromechanical Products
and Other Relevant Issues

[2002] No.7

January 31, 2002

In line with Decree [2001] No.10 of the Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs
and the State Quality Supervision Administration of the People’s Republic of China, 2002 import quota level of the electromechanical
products and other relevant issues are hereby publicized as follows:

2002 import quota level of electromechanical products:

cars and their key components: US$79.35 billion

motorcycles and their key components: US$380 million

car lifts and chassis: US$120 million

cameras: US$133 million

watches: US$482 million

See the Catalogue of Electromechanical Product Import Quota for the Specific Tax Items of the above Products.

II.

The time period for accepting application for 2002 electromechanical product import quota is from February 1, 2002 to February 28,
2002.

III.

The units accepting the application for 2002 electromechanical product import quota are the Ministry of Foreign Trade and Economic
Cooperation and its authorized institutions.

IV.

See Decree No.23, 2001 of the Ministry of Foreign Trade and Economic Cooperation and the General Administration of Customs of the
People’s Republic of China for the application procedures and distribution principles of electromechanical product import quota.

The announcement is hereby specially given.

The Ministry of Foreign Trade and Economic Cooperation
2002-01-31

CIRCULAR OF THE MINISTRY OF FINANCE (MOF) AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON FURTHER STRENGTHENING THE VERIFICATION OF PAYMENT OF LEGAL CAPITAL BY INVESTORS OF ENTERPRISES WITH FOREIGN INVESTMENT AND PERFECTING FOREIGN EXCHANGE REGISTRATION OF FOREIGN DIRECT INVESTMENT (FDI)

The Ministry of Finance, the State Administration of Foreign Exchange

Circular of the Ministry of Finance (MOF) and the State Administration of Foreign Exchange (SAFE) on Further Strengthening the Verification
of Payment of Legal Capital by Investors of Enterprises with Foreign Investment and Perfecting Foreign Exchange Registration of
Foreign Direct Investment (FDI)

CaiKuai [2002] No.1017

March 15, 2002

Financial departments in all provinces, autonomous regions, municipalities directly under the Central Government, SAFE branches in
all provinces, autonomous regions, and municipalities directly under the Central Government, exchange administration offices, SAFE
branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, all designated Chinese-funded foreign exchange banks:

In order to further strengthen the verification of payment of legal capital by investors of enterprises with foreign investment, perfect
foreign exchange registration of FDI, ensure rational and sound foreign exchange flows, and promote healthy development of FDI, a
circular is hereby given on issues related to the procedure of the verification of foreign investor’s payment of legal capital and
involved foreign exchange registration of FDI.

When verifying the payment of legal capital by investors of enterprises with foreign investment, the certified public accountant (CPA)
shall abide by the Independent Audit Practice Announcement No.1-Verification of Legal Capital Payment and the Operational Norm Guidance
for Chinese CPAs No.3-Verification of Legal Capital Payment (Experimental), and follow methods listed below in accordance with specific
conditions:

1.1

If a foreign investor pays legal capital in foreign exchange, the CPA shall check the Certificate of Foreign Exchange Registration
of the invested enterprise with foreign investment to see whether foreign exchange funds have been entered in the paid-in legal capital
account which had been opened upon the approval of a SAFE branch, subbranch or exchange administration office (hereinafter referred
to as SAFE office for all). The CPA shall also mail to in quire the account opening bank.

1.2

Under any of the following circumstances, the CPA shall check the original of Certificate of Approval of the SAFE for Foreign Exchange
Business under Capital Account presented by the enterprise to see whether its behavior is in accordance with the approval of the
SAFE office;

1.2.1

A foreign investor pays legal capital with cash from net profit of another domestic enterprise with foreign investment, and proceeds
from domestic liquidation, share transfer, recoup of previous investment ahead of other investors, and withdrawal of previous investment;

1.2.2

An enterprise with foreign investment pays its legal capital with its capital provisions, earning provisions, retained earnings, registered
external debt and payable dividend;

1.2.3

The foreign investor reduces payment of legal capital;

1.2.4

Other kinds of payment which shall be reported to the SAFE office for approval in accordance with legal provisions.

1.3

If a foreign investor makes payment in kind, the CPA shall check the customs declaration form of import to see whether subject goods
are shipped from overseas.

1.4

In the case of the enterprises with foreign investment whose foreign investor makes payment by means listed from Clause 1.1 to 1.3,
the CPA shall send a letter of inquiry to the local SAFE office in the locality where the enterprises with foreign investment resides,
enclose the duplicate of bank’s reply to inquiry, certificate of approval for foreign exchange business under capital account, or
customs declaration form of import, in accordance with foreign investor’s mode of payment, to verify whether the documents are authentic
and legitimate.

In case a foreign investor makes payment in foreign exchange with domestic foreign exchange transfer involved, the CPA shall check
whether the transfer has been approved by the SAFE office.

All designated foreign exchange banks shall vigorously cooperate with CPAs. After receiving a letter of inquiry, the bank shall check
related data, make clear comments, affix a valid seal to the letter, and send it back to the CPA within 5 working days after receiving
the inquiry.

If the CPA directly goes to the designated foreign exchange bank to inquire, the latter shall make a reply on the same day.

After receiving a letter of inquiry about foreign investor’s payment of legal capital, the SAFE office shall verify the authenticity
and legitimacy of attached documents in accordance with relevant regulations.

If attached documents are authentic and legitimate, the SAFE office shall register subject FDI in accordance with Article 6 of this
circular, write off subject customs declaration form of import from the network, and fill in the reply to inquiry with a serial number
of foreign exchange registration of FDI. If attached documents are false or illegal, the SAFE office shall not register subject FDI,
and give an explanation in the reply to inquiry.

The SAFE office shall affix the special seal for foreign exchange business under capital account to the reply to inquiry, and send
the reply to the CPA within 5 working days after receiving the inquiry.

Only after receiving the reply to inquiry, can the CPA issue a verification report of payment of legal capital upon the reply where
a serial number of foreign exchange registration is clearly recorded. The CPA shall send a duplicate of the reply to the enterprise
for record.

In case the SAFE office indicates the attached documents are false and illegal, the CPA shall not issue a verification report of payment
of legal capital.

If the CPA does not issue a verification report of payment of legal capital due to some change of circumstances after receiving a
reply to inquiry clearly indicating a serial number of foreign exchange registration, he/she shall inform the SAFE office of the
change in written form. The SAFE office shall then write off the serial number in good time.

When handling foreign exchange business at the SAFE office and designated foreign exchange bank or being inspected, the enterprise
with foreign investment shall present the verification report of payment of legal capital and the duplicate of the reply to Inquiry
about the payment of legal capital in accordance with legal provisions.

The SAFE office shall book the foreign exchange registration of FDI, record the enterprise name, times of payment, serial number of
foreign exchange registration of FDI, means of payment, amount, and date of payment in accordance with the letter of inquiry, and
file the duplicate of the reply to inquiry and attached documents.

SAFE offices shall check the circumstances of foreign exchange registration of FDI in the previous year through the annual joint inspection
on enterprises with foreign investment.

Financial departments and SAFE offices at all levels shall strengthen the regulation of the work related to verification of payment
of legal capital carried out by accountant firms and CPAs, and of foreign exchange registration of FDI in accordance with their respective
duty and authority. An accountant firm or a CPA that issues a false verification report of payment of legal capital against operational
norms and relevant regulations, or an enterprise that has acquired registration by presenting false documents or by other fraudulent
means shall be punished in accordance with relevant laws and regulations.

If a designated foreign exchange bank or a SAFE office fails to reply the letter of inquiry in accordance with this circular, the
CPA may report it to the SAFE or the relevant SAFE branch or sub-branch, or to the Association of CPAs.

10.

This circular shall enter into force as of May 1, 2002.

Attachment:

1. Letter of Inquiry to Bank (omitted)

2. Letter of Inquiry about Foreign Investor’s Payment of Legal Capital (omitted)

3. Certificate of Approval by the SAFE for Foreign Exchange Business under Capital Account (omitted)

The Ministry of Finance, the State Administration of Foreign Exchange
2002-03-15

SUPPLEMENTARY CIRCULAR ON CARRYING OUT THE BUSINESS OF MAILING ENTRY AND EXIT LETTERS AND ARTICLES WITH THE NATURE OF LETTERS

The Ministry of Information Industry, the Ministry of Foreign Trade and Economic Cooperation, the State Post Bureau

Supplementary Circular on Carrying out the Business of Mailing Entry and Exit Letters and Articles with the Nature of Letters

GuoYouLian [2002] No.472

September 5, 2002

The post bureaus, departments (commissions, bureaus) of foreign trade and economic cooperation of all provinces, autonomous regions,
municipalities directly under the Central Government, Shenzhen City Traffic Bureau:

In order to better implement the relevant spirit in the Circular of the Ministry of Information Industry, the Ministry of Foreign
Trade and Economic Cooperation and the State Post Bureau on Entrusted Administration of the Business of Mailing Entry and Exit Letters
and Articles with the Nature of Letters (GuoYouLian [2001] No.629, hereinafter referred to as the “Circular”), we hereby give our
supplementary circular with regard to the relevant issues as follows:

Upon the entrustment by the post department, an international freight agency enterprise may engage in the business of mailing entry
and exit letters and articles with the nature of letters, but the private letters and the official documents of the Party, government
or army organs at the county level or above shall be excluded.

II.

Where an international freight agency enterprise that was established upon the approval by the Ministry of Foreign Trade and Economic
Cooperation prior to the distribution of the “Circular” applies to operate the business of mailing entry and exit letters and articles
with the nature of letters, it may, with the documents required by the “Circular”, directly go through the entrustment formalities
in the provincial-level post department at its locality or in the State Post Bureau; each branch of the enterprise may, by directly
bringing the “Postal Entrustment Certificate” which has been obtained by the general company (headquarter) and the documents which
prove its subordinacy to the enterprise, obtain its own “Postal Entrustment Certificate” in the provincial-level post department
at its locality.

III.

An international freight agency enterprise applying for the entrustment operation of the business of mailing entry and exit letters
and articles with the nature of letters shall, within 60 days as of the distribution of the present circular, go through the entrustment
formalities in the post department, and shall not, if failing to go through the entrustment formalities within the time limit, go
on operating the business of mailing entry and exit letters and articles with the nature of letters.

IV.

The international freight agency enterprises that operate the business of mailing entry and exit letters and articles with the nature
of letters shall abide by the relevant laws of the People’s Republic of China, maintain and respect the lawful rights and interests
of the operators in the same industry and of the consumers, as well as maintain and respect the equal competition.

The present supplementary circular shall come into force as of its distribution. In case any document distributed by the relevant
department prior to the distribution of the present supplementary circular is inconsistent with the present supplementary circular,
the latter shall prevail.

The Ministry of Information Industry, the Ministry of Foreign Trade and Economic Cooperation, the State Post Bureau
2002-09-05

MEASURES FOR THE ADMINISTRATION OF REGISTRATION OF HAZARDOUS CHEMICALS

The State Economic and Trade Commission

Order of the State Economic and Trade Commission of the People’s Republic of China

No.35

The Measures for the Administration of Registration of Hazardous Chemicals, which were adopted at the director executive meeting of
the State Economic and Trade Commission, are hereby promulgated and shall enter into force on November 15, 2002.

Director of the State Economic and Trade Commission Li Rongrong

October 8, 2002

Measures for the Administration of Registration of Hazardous Chemicals

Chapter I General Rules

Article 1

In order to strengthen the safety administration of hazardous chemicals, to prevent chemical accidents and to provide technology and
information support for emergent rescue, the present Measures are formulated in accordance with the Regulations on the Safety Administration
of Hazardous Chemicals.

Article 2

The present Measures shall apply to the entities that produce or store hazardous chemicals and those that use highly toxic chemicals
or use other hazardous chemicals the quantities of which constitute major hazard sources within the People’s Republic of China (hereinafter
referred to as register entities).

Article 3

Scope of the registration of hazardous chemicals:

Hazardous chemicals included in the standard Name List of Hazardous Chemicals (GB 12268) of the state;

Other hazardous chemicals that are determined and promulgated by the State Administration of Safe Production Supervision in conjunction
with the departments of public security, environment protection, health, quality control and communication under the State Council,
but not included in the Name List of Hazardous Chemicals.

The State Bureau of Safe Production Supervision and Administration shall summarize and promulgate the Catalog of Hazardous Chemicals
according to the hazardous chemicals determined in Items 1) and 2).

The register entities of hazardous chemicals are: the entities that produce and store hazardous chemicals (hereinafter referred to
as production entities and storage entities), and the entities that use highly toxic chemicals and use other hazardous chemicals
the quantities of which constitute major hazard sources (hereinafter referred to as use entities).

The production entities, storage entities and use entities shall refer to the legal persons or non-legal persons that have made registration
with the industry and commerce authorities.

Article 4

The State Bureau of Safe Production Supervision and Administration shall be in charge of the supervision and administration of the
registration of hazardous chemicals of the whole country.

The bodies of safe production supervision and administration of the provinces, autonomous regions and municipalities directly under
the Central Government shall be in charge of the supervision and administration of the registration of hazardous chemicals within
their respective administrative areas.

Chapter II Registration Bodies

Article 5

The state shall establish the National Chemical Registration Center (hereinafter referred to as Registration Center) to undertake
the specific work and technical management of the registration of hazardous chemicals of the whole country.

The provinces, autonomous regions and municipalities directly under the Central Government shall establish chemical registration offices
(hereinafter referred to as registration offices) to undertake the specific work and technical management of the registration of
hazardous chemicals of their respective areas.

Article 6

The State Bureau of Safe Production Supervision and Administration shall supervise and administer the Registration Center; and the
bodies of safe production supervision and administration of the provinces, autonomous regions and municipalities directly under the
Central Government shall supervise and administer the registration offices under their respective jurisdiction.

Article 7

The Registration Center shall perform the following duties:

Organizing, coordinating and directing the registration of hazardous chemicals of the whole country;

Being responsible for the issuance of registration certificates of hazardous chemicals and the management of registration numbers
of the whole country;

Establishing and maintaining the national hazardous chemical registration administration database and the dynamic statistics and analysis
information system;

Setting up the state emergent consultation phone for chemical accidents, and establishing the emergent rescue information networks
jointly with the registration offices of the localities to provide chemical accident emergent consultation services;

Organizing evaluations of the hazardous nature of new chemicals; and classifying the unclassified chemicals by their hazardous nature
in a unified way;

Being responsible for the training of registration personnel of hazardous chemicals of the whole country.

Article 8

The registration offices shall perform the following duties:

Organizing the registration of hazardous chemicals of their respective areas;

Verifying the matters applied for registration by the register entities;

Examining the normalization and consistency of the chemical safety technical specifications and chemical safety labels drawn up by
the production entities;

Establishing hazardous chemicals registration administration databases and dynamic statistics and analysis information systems of
their respective areas;

Providing chemical accident emergent consultation services.

Article 9

Staff members of the Registration Center and registration offices that engage in the registration of hazardous chemicals (hereinafter
referred to as registration staff) must go through the unified training, pass the examinations given by the State Bureau of Safe
Production Supervision and Administration and draw the Post Certificate of Hazardous Chemical Registration Staff (hereinafter referred
to as Registration Post Certificate) before they may assume their posts.

Article 10

The Registration Center shall have more than 10 registration staff with the Registration Post Certificate, and each registration office
shall have more than 3 registration staff with the Registration Post Certificate.

Article 11

The Registration Center and registration offices shall formulate strict work rules and procedures, provide satisfactory services to
the register entities and keep the commercial secrets of the register entities.

Article 12

The Registration Center shall report, in written form, on the registration of hazardous chemicals of the whole country to the State
Bureau of Safe Production Supervision and Administration every year; and each registration office shall report, in written form,
on the registration of hazardous chemicals of its area to the body of safe production supervision and administration of the province,
autonomous region or municipality directly under the Central Government every year. Copies of the reports of the local registration
offices shall be sent to the Registration Center at the same time.

Chapter III Time, Matters and Procedures of the Registration

Article 13

The register entities shall go through the formalities for registration of hazardous chemicals within 6 months from the day of promulgation
of the Catalog of Hazardous Chemicals.

With respect to the hazardous chemicals of which the hazardous natures are unclear, the production entity shall, within 1 year from
the day of implementation of the present Measures, entrust the professional technical agencies recognized by the State Bureau of
Safe Production Supervision and Administration to appraise and evaluate their hazardous natures, and shall go through the registration
formalities on the basis of the appraise and evaluation reports.

With respect to new chemicals, the production entity shall, within 1 year before the new chemicals are put into production, entrust
the professional technical agencies recognized by the State Bureau of Safe Production Supervision and Administration to appraise
and evaluate their hazardous natures, and shall go through the registration formalities on the basis of the appraise and evaluation
reports.

A newly established production entity shall go through the formalities for registration of hazardous chemicals before starting production.

In case of major changes in the production scale or in the product categories as well as in the physical and chemical characteristics
of the products, the register entities that have made the registration shall, within 3 months, make a new registration of the major
changes.

Article 14

The matters that a production entity shall register include:

Basic information of the production entity;

Production capacity, quantities needed annually, maximum storage quantities of the hazard chemicals;

Product standards of the hazard chemicals;

Appraisal and evaluation reports on hazardous natures of new chemicals and the chemicals with unclear hazardous natures;

Chemical safety technical specifications and chemical safety labels;

Emergent consultation service telephone.

Article 15

The matters that a storage entity or use entity shall register include:

Basic information of the storage entity or use entity;

Categories and quantities of the hazard chemicals stored or used;

Safety technical specifications and safety labels of the hazard chemicals stored or used.

Article 16

Registration procedures:

The register entity shall draw the Hazardous Chemical Registration Form from the registration office of the province, autonomous region
or municipality directly under the Central Government where it is located, and faithfully fill out the form according to the requirements.

The register entity shall provide the registration materials to the registration office by written documents and electronic documents.

The registration office shall examine the hazardous chemical registration files submitted by the register entity within 20 days from
the day of submission, and may conduct on-spot verification if necessary, register the hazardous chemicals and the register entities
that meet the requirements, record the relevant data into the hazardous chemical administration database of the area and submit the
registration materials to the Registration Center.

The Registration Center shall, within 10 days from receiving the registration materials submitted by the registration office, make
necessary examination and record the relevant data into the national hazardous chemical administration database before issuing the
hazardous chemical registration certificate and registration number to the register entity through the registration office.

The registration office shall, within 5 days from receiving the registration certificate and registration number, serve the certificate
and number to the register entity or notify the register entity to draw them.

Article 17

When making registration, a production entity shall submit the following materials to the registration office of the province, autonomous
region or municipality directly under the Central Government where it is located:

Hazardous Chemical Registration Form in triplication and one piece of the electronic version thereof;

Two copies of the business license;

Reports on the appraisal, classification and evaluation of the chemicals with unclear hazardous natures or of the new chemicals, three
pieces of each;

Chemical safety technical specification and chemical safety label, three pieces and one electronic version of each;

Emergent consultation service telephone number. If a relevant agency has been entrusted to set up the emergent consultation service
telephone, the trust deed for emergent services shall be provided;

Product standards of the hazardous chemicals to be registered (if the state standards or industrial standards are adopted, the standard
numbers shall be provided).

A storage entity or use entity shall submit the materials provided for in Items 1), 2) and 4) above mentioned.

Article 18

The valid term of a registration certification of hazardous chemicals is 3 years. The register entity shall, within 3 months prior
to the expiration of the valid term, go through the review with the registration office of the province, autonomous region or municipality
directly under the Central Government where it is located. The contents to be reviewed shall include: alteration of the basic information
of the production entity, storage entity or use entity, and updates of the safety technical specification and safety label etc.

Article 19

A register entity shall perform the following obligations:

Making general examinations of its hazardous chemicals and establish the administration archives of hazardous chemicals;

Faithfully filling out the registration materials of hazardous chemicals;

Appraising, classifying and evaluating the chemicals with unclear hazardous natures or the new chemicals produced by the entity;

A production entity shall correctly draw up the chemical technical specifications according to the national standard and provide the
specifications to the users, hang or stick the chemical safety labels onto the packaging of the products, provide accurate and reliable
data and be responsible for the authenticity of the data;

A storage entity or use entity of hazardous chemicals shall ask for the safety technical specifications from the entity supplying
the products;

A production entity must provide the users with the chemical accident emergent consultation services, and provide technical directions
and necessary assistance for emergent rescue in chemical accidents;

Assisting the registration staff to make verification of the hazardous chemical registration of the entity when necessary.

Article 20

When a production entity terminates the production of hazardous chemicals, it shall go through the formalities for writing off the
registration within 3 months from the termination of production.

Where a use entity terminates the use of hazardous chemicals, it shall go through the formalities for writing off the registration
within 3 months from the termination of use.

Chapter IV Penalty provisions

Article 21

If a production entity, storage entity or use entity is in any of the following situations, the body of safety production supervision
and administration at or above the county level shall order it to correct its behavior and impose on it a fine of less than 30,000
yuan regarding the seriousness of the circumstances:

Failing to make the registration of hazardous chemicals pursuant to the provisions, or failing to make the registration within 6 months
from the day of receipt of the notification for registration;

Failing to provide the emergent consultation services to the users;

Transferring, renting or forging the registration certificate;

A register entity that has made the registration failing to go through the registration formalities anew pursuant to the provisions
in case of major changes in the production scale, or the product categories, or the physical and chemical characteristics of the
products;

Failing to apply for review pursuant to the provisions after the hazard chemical registration certificate expires;

A production entity or use entity failing to go through the formalities for writing off the registration in time pursuant to the provisions
in case of termination of the production or termination of use of hazardous chemicals.

Article 22

If the staff of the Registration Center or registration office operate against the rules, conduct fraudulent acts, overissue the certificates,
or fail to make the registration within the prescribed time limit without due cases and give no clear answer, or disclose the commercial
secrets of the register entities, the body of safe production supervision and administration at or above the provincial level shall
order them to correct their behaviors, and shall give administrative punishments to the relevant responsible personnel, and shall
investigate for the responsibilities of the principal of the Registration Center or registration office.

Chapter V Supplementary Rules

Article 23

The hazard chemical registration forms, the hazard chemical registration certificates and the post certificates of hazard chemical
registration staff shall be uniformly printed by the State Bureau of Safe Production Supervision and Administration.

Article 24

The power to interpret the present Measures shall be authorized to the State Bureau of Safe Production Supervision and Administration.

Article 25

The present Measures shall enter into force on November 15, 2002, and the Provisions on the Administration of Registration of Hazards
Chemicals promulgated by the State Economic and Trade Commission on September 11, 2000 shall be abolished simultaneously.

The State Economic and Trade Commission
2002-10-08

MEASURES ON ADMINISTRATION OF FOREIGN-FUNDED INTERNATIONAL FREIGHT AGENCY ENTERPRISES

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

No.36

In order to perform the relevant commitments of China’s accession to WTO and to further promote the development of international freight
agency in China, the Measures of the People’s Republic of China on Administration of Foreign-funded International Freight Agency
Enterprises were adopted at the 11th executive meeting of ministers of the Ministry of Foreign Trade and Cooperation and are hereby
promulgated. These Measures shall come into force on the 30th day after the day of promulgation, the former Decree No.31 of 2001
shall be nullified at the same time.
Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangshen

December 11, 2002

Measures on Administration of Foreign-funded International Freight Agency Enterprises

Article 1

In order to promote the healthy development of international freight agency in China and to regulate the establishment and operation
of foreign-funded international freight agency enterprises, these Measures are enacted in accordance with the relevant state laws
and regulations on foreign-funded enterprises and the Provisions of the People’s Republic of China for the Administration of International
Freight Agency Industry.

Article 2

Foreign-funded international freight agency enterprises as used in these provisions refer to the enterprises with foreign investment
that are established by foreign investors in the form of Chinese-foreign equity joint venture, Chinese-foreign contractual joint
venture or sole foreign proprietorship, and that deal with international freight and relevant businesses for the trustor in the trustor’s
name or the enterprise’s own name upon commission of the consignee or consigner of import or export goods, and collect remuneration
(hereinafter referred to as foreign-funded international freight agency enterprises).

Article 3

The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as MOFTEC) and
the bodies authorized thereby are in charge of the approval and administration of foreign-funded international freight agency enterprises.

Article 4

Foreign investors may establish foreign-funded international freight agency enterprises within China in the form of Chinese-foreign
equity joint venture, Chinese-foreign contractual joint venture or sole foreign proprietorship.

In a Chinese-foreign equity or contractual joint international freight agency enterprise established by foreign investors, the capital
contribution of the Chinese party shall not be lower than 25%; the specific time for acceptance of applications for solely foreign-funded
international freight agency enterprises shall be promulgated by MOFTEC separately.

Foreign investors may purchase established foreign-funded international freight agency enterprises by purchasing stock equity, however,
the equity ratio and investors’ qualification must meet the requirements of these provisions, where state-owned assets are involved,
the relevant laws and regulations shall be followed.

Article 5

The Chinese and foreign parties applying for establishment of a foreign-funded international freight agency enterprise must meet
the following conditions:

At least one Chinese party is an international freight agency enterprise undertaking international freight agency business, or an
import and export enterprise, or an enterprise engaging in relevant transport or storage business, the Chinese party meeting the
aforesaid conditions shall be the largest shareholder among the Chinese parties;

At least one foreign party is an enterprise that has dealt with international freight agency for 3 years or more, and the foreign
party meeting the aforesaid conditions shall be the largest shareholder among the foreign parties;

None of the Chinese and foreign parties has any record of violation of the industry rules in the 3 years prior to the day of application.

Article 6

If an international freight agency enterprise established within China by one foreign party has been in operation for less that 2
years, the said foreign party may not invest to establish a second international freight agency enterprise.

Article 7

For establishment of a foreign-funded international freight agency enterprise, the following requirements must be met:

Having a registered capital of at least 1 million US dollars;

Having at least 5 personnel who have engaged in international freight agency for 3 years or more or who have obtained the corresponding
qualification certificates;

Having a fixed business site;

Having necessary business facilities, such as communication, transport, loading and packaging etc.

Article 8

A foreign-funded international freight agency enterprise may deal with part or all of the following business upon approval:

Booking (ship leasing, air chartering and cabin chartering), consigning, storing and packaging;

Supervision of loading and unloading of goods, consolidating and devanning, distribution, transferring and relevant short-distance
transport services;

Acting as an agent to make customs declarations, check and inspection, and to purchase insurance;

Preparing the relevant documents, paying for the freight, settling and paying the miscellaneous expenses;

Freight agency of international exhibits, personal articles and goods in transit;

International multimode transport and container shipping (including consolidation);

International express (excluding delivery of personal letters and official documents of party, political and military bodies at and
above the county level);

Consulting and other international freight agency business.

Enterprises undertaking international express delivery of letters or articles with the nature of a letter (excluding delivery of personal
letters and official documents of party, political and military bodies at and above the county level) must, upon approval of the
departments of foreign trade and economic cooperation, make the post trust certificate with the post department.

Article 9

To establish a foreign-funded international freight agency enterprise, the party shall file an application with MOFTEC pursuant to
the procedures provided for in the existing state laws and regulations on foreign-funded enterprises, MOFTEC and the department authorized
thereby are in charge of examining and approving the establishment of the enterprise, and issuing of the Foreign-funded Enterprise
Approval Certificate and International Freight Agency Enterprise Approval Certificate. The following documents shall be provided
for the establishment of a foreign-funded international freight agency enterprise:

Application form;

Feasibility study report;

Contract and articles of association;

Name list and resumes of the directors and major managerial personnel;

Notice for advance approval of enterprise name issued by the industry and commerce department;

Registration certifications and credit certifications in the countries or regions where the investors are located;

Qualification certifications of the major investors;

Certifications of the enterprise’s business site;

Other documents to be provided as required by the examination and approval body.

Article 10

The operation duration of a foreign-funded international freight agency enterprise shall not exceed 20 years as a general principle.

Article 11

If it has been one year or more since a foreign-funded international freight agency enterprise started business and the capital contributions
have all been made by the parties, the enterprise may apply for setting up branches in other places of China.The business scope of
a branch shall fall within that of the head company. The civil liabilities of the branch shall be borne by the head company. The
registered capital of a foreign-funded international freight agency enterprise shall be subject to a 120, 000-US-dollars increase
for each branch it sets up to operate as an international freight agency. For those cheating the examination and approval body for
approval for establishment of branch by making false capital contribution or withdrawing registered capital etc, the examination
and approval body will cancel the International Freight Agency Enterprise Approval Certificate of the branch, aside from giving punishment
pursuant to the relevant regulations.

To apply for setting up a branch, the party shall file an application with the MOFTEC, and the MOFTEC or the department authorized
thereby will decide whether to approve after seeking opinions from the department of foreign trade and economic cooperation of the
place where the branch is to be set up. The following documents need to be provided for setting up a branch by a foreign-funded international
freight agency enterprise:

Letter of opinions of the department of foreign trade and economic cooperation of the place where the branch is to be set up;

Resolution of the board of directors on setting up the branch, increasing the capital or modifying the articles of association;

Agreement on modifying the contract and articles of association with respect to increase of capital;

Report on the enterprise’s business operations, reasons for setting up the branch and feasibility study analysis;

Report on the verification of capital;

Certifications of the personnel and business site of the branch;

Other documents to be provided as required by the examination and approval body.

Article 12

Foreign-funded international freight agency enterprises shall strictly abide by the relevant laws and regulations of the state on
foreign investment and the Provisions of the People’s Republic of China on Administration of International Freight Agency Industry
and the implementation rules thereof, and the relevant departments will punish any law-breaking or rule-breaking acts pursuant to
the relevant laws and regulations.

Article 13

Foreign-funded international freight agency enterprises are encouraged to join in the civil organizations and trade guilds, such
as China International Freight Forwarders Association, China Association of Enterprises with Foreign Investment etc, and voluntarily
subject themselves to industry supervision and direction.

Article 14

These measures shall be referred to for the establishment of international freight agency enterprises in the mainland of China by
companies, enterprises, other economic organizations and individuals from Hong Kong, Macao and Taiwan area.

Article 15

These Measures shall enter into force on the 30th day after the day of promulgation, the former Provisions on Administration of Foreign-funded
International Freight Agency Enterprises shall be nullified at the same time.

This is hereby the notification.

The Ministry of Foreign Trade and Economic Cooperation
2002-12-11

CIRCULAR ON TAX PAID BY FOREIGN INVESTORS MERGING THE STOCK EQUITY OF CHINESE ENTERPRISES

The State Administration of Taxation

Circular on Tax Paid by Foreign Investors Merging the Stock Equity of Chinese Enterprises

GuoShuiFa [2003] No. 60

May 28, 2003

In order to promote and regulate the investment launched by foreign investors in China, introduce foreign advanced technology and
management experiences, raise China’s level of utilizing foreign capital and realize reasonable allocation of resources, the former
Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State Administration
of Foreign Exchange and the State Administration of Taxation jointly promulgated the Interim Regulations Concerning the Issue that
Foreign Investor Merge Enterprises Within the Territory of China (hereinafter referred to as Interim Regulations) in March of 2003,
which allows foreign investors to merge the stock equity of enterprises without foreign investment within the territory of China
(hereinafter referred to as enterprises within the territory). Concerning the tax issue involved in the merger, it is hereby informed
as follows:

Foreign investors enable enterprises within the territory to become enterprises with foreign investment through purchasing the stock
equity of their shareholders or subscribe their increased capital (hereinafter referred to as stock equity purchase). If foreign
investors have more than 25% of the total shares, the enterprise may pay various taxes according to tax laws and regulations suitable
to enterprises with foreign investment.

II.

For the enterprises with foreign investment changed into from an enterprise within the territory through stock equity purchase, if
they meet the relevant conditions stipulated by the Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises (hereinafter referred to as Tax Law) and its detailed rules, they could enjoy preferential tax
treatment made by Tax Law and other relevant provisions. The preferential tax should be calculated according to the following provisions:

(I)

The beginning of business and operation period. The day when an industrial and commercial organ approves and issues business license
means an enterprise with foreign investment changed into from an enterprise within the territory through stock equity purchase begins
its business. From the beginning day to the business maturity date set by industrial and commercial registration is operation period.

(II)

The settlement of pre-establishment loss. The total business loss that has not been made up before an enterprise with foreign investment
established may be covered by the enterprise with foreign investment changed into from an enterprise within the territory through
stock equity purchase in the rest years of covering loss stipulated by Article 11 of Tax Law.

(III)

Identification of profit-making year. Profit-making year refers to the year when an enterprise with foreign investment changed into
from an enterprise within the territory through stock equity purchase is established and it still makes profit after making up loss
of the years before. In the profit-making year, if the production period is less than 6 months, the enterprise may choose the beginning
year of tax reduction and remission according to Article 77 of detailed rules of Tax Law.

III.

The Circular shall enter into force as of January 1, 2003. The enterprises with foreign investment changed from enterprises within
the territory through stock equity purchase established before the promulgation of the circular should adhere to the circular if
they meet the conditions of Interim Regulations and the circular.

The State Administration of Taxation
2003-05-28

MOFCOM, NDRC, GAC, GAQSIQ AND CAA OF THE PEOPLE’S REPUBLIC OF CHINA ANNOUNCEMENT NO.14, 2006

Ministry of Commerce, National Development and Reform Commission, General Administration of the Customs, General Administration of
Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration

MOFCOM, NDRC, GAC, GAQSIQ and CAA of the People’s Republic of China Announcement No.14, 2006

[ 2006] No.14

In accordance with Circular on Regulating Export Order of Motorcycle Products (No.699, 2005) and Supplementary Circular on Regulating
Export Order of Motorcycle Products (No.44, 2006), here announce the List of Finished Motorcycle Producing Enterprises with Export
Qualifications and Export Operation Enterprises with Authorization, List of ATV Producing Enterprises with Export Qualifications
and Export Operation Enterprises with their Authorization, and List of Off-road Motorcycle Producing Enterprises with Export Qualifications
and Export Operation Enterprises with their Authorization of 2006.

Ministry of Commerce

National Development and Reform Commission

General Administration of the Customs

General Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration

Feb 28, 2006

Ministry of Commerce, National Development and Reform Commission, General Administration of the Customs, General Administration
of Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration
2006-02-28

PROCEDURES ON THE BOOK-ENTRY GOVERNMENT BONDS TRADING OVER THE COUNTER OF COMMERCIAL BANKS

The People’s Bank of China

Order of the People’s Bank of China

No.2

To regulate the book-entry government bonds trading over the counter of commercial banks and encourage healthy development of bond
market, the People’s Bank of China stipulated the Administration Rules on the Book-entry Government Bonds Trading over the Counter
of Commercial Banks. Now it enters into force after the passage by the Executive Meeting of the People’s Bank of China.

The People’s Bank of China

January 31, 2002

Procedures on the Book-entry Government Bonds Trading over the Counter of Commercial Banks

Chapter I General Provisions

Article 1

To regulate book-entry government bonds trading over the counter of commercial banks, facilitate investor’s trading activities and
protect their legal rights and encourage the healthy development of the bond market, the People’s Bank of China stipulated the Procedures
in accordance with relevant laws and regulations.

Article 2

The book-entry government bonds (hereinafter referred to as bonds) defined herein refer to bonds designated by the Ministry of Finance
and approved by the People’s Bank of China to be traded over the counter of commercial banks.

Article 3

Bond trading over the counter of commercial banks (hereinafter referred to as over-the-counter bond trading) defined herein refers
to trading activities conducted by commercial banks through their outlets with government bond investors, including bond custody
and settlement.

Article 4

After consulting with the Ministry of Finance, the People’s Bank of China can approve qualified commercial banks to undertake over-the-counter
bond trading.(hereinafter referred to as undertaking banks)

Article 5

Investors hereof are individuals or enterprises who trade bonds with commercial banks through commercial banks’ outlets. Financial
institutions shall not buy or sell bonds through commercial banks’ outlets.

Article 6

Over-the-counter bond trading shall follow the principle of fairness and integrity. Investors shall take the relevant risks alone.

Article 7

Over-the-counter traded bonds have a two-tier custody system: the Central Government Bond Registration and Clearing Corporation Ltd.
(Hereinafter referred to as Central Clearing Co.) is the primary custodian designated by the People’s Bank of China, while the undertaking
banks are the secondary custodian.

The bond custody account adopts the real name system.

Article 8

The Central Clearing Co. shall stipulate business standards for over-the-counter bond tradings in accordance with the Rules and regulate
the exchange of relevant data.

Article 9

The People’s Bank of China is the competent authority for the supervision of over-the-counter trading activities. Branches of the
People’s Bank of China conduct daily supervision on over-the counter trading activities of the commercial banks in their jurisdiction.

Chapter II Undertaking Banks

Article 10

A commercial bank applying to be an undertaking bank shall satisfy the following conditions:

(1)

The applicant should have unified, safe and stable computerized business processing system;

(2)

The applicant should have sound internal control system and risk prevention mechanism;

(3)

The applicant should have a special division to be responsible for over-the-counter trading activities and qualified full-time staff;

(4)

The applicant should actively participate in the inter-bank bond market and the total bond trading volume two years prior to the application
should rank higher;

(5)

The applicant should have been a member of the underwriter group of government bonds for three consecutive years before application;

(6)

The applicant should have no serious violation records two years prior to application in the inter-bank bond market; and

(7)

Other conditions required by the People’s Bank of China.

Article 11

A commercial bank that applies for being an undertaking bank shall provide the People’s Bank of China with the following materials:

(1)

An Application Letter;

(2)

A business plan for over-the-counter trading;

(3)

An organizational structure and staff arrangement plan for over-the-counter trading;

(4)

An internal control system and implementation rules worked out in accordance with the Rules;

(5)

The current situation of computer-based business processing system and a development plan of the business processing system for conducting
over-the-counter bond trading business; and

(6)

Other relevant materials required by the People’s Bank of China.

Article 12

The Provincial branches of an undertaking bank who apply for over-the-counter trading business shall get the approval by the People’s
Bank of China having consulted with the Ministry of Finance. The undertaking bank shall submit the name list of the outlets that
are to launch over-the-counter trading business to local branches of the People’s Bank of China and local fiscal agencies for record,
and shall publish the information through China Bond Information Network or other relevant media.

Article 13

An undertaking bank shall separate the over-the-counter trading business with other bond businesses in the inter-bank bond market.
Its responsible units, staffs and relevant accounts shall be managed separately.

Article 14

An undertaking bank can conduct the following businesses:

(1)

Buying and selling bonds with investors as a self-managing dealers and providing two-way quotation;

(2)

Opening custody accounts for bond investors and conducting custody, settlement and other relevant businesses;

(3)

Selling bonds and servicing bond principle and interest through their outlets; and

(4)

Handling the bond registration as collateral for investors.

Article 15

An undertaking bank has the following rights:

(1)

Requiring investors provide real and effective identification documents; and

(2)

Providing bid and offer prices with discretion within the established spreads.

Article 16

An undertaking bank’s commitments include:

(1)

Opening and maintaining accounts for investors and providing account requiring, information and consulting services;

(2)

Publishing price quotations for over-the-counter trading in accordance with the Rules;

(3)

Accurately and continuously keeping record of investor’s bonds transactions and balances, and transmitting daily over-the-counter
trading data in required forms and types to the Central Clearing Co.;

(4)

Keeping investor’s account information confidential; and

(5)

Reporting to the People’s Bank of China the information about over-the-counter trading business, serious events being reported to
both the People’s Bank of China and the Ministry of Finance.

Chapter III Trading and Settlement

Article 17

Over-the-counter trading shall be conducted through the over-the-counter trading business processing system (hereinafter referred
to as trading system) of the undertaking bank.

Article 18

Business day for over-the-counter trading is any day from Monday to Friday, except legal holidays. An undertaking bank shall not stop
over-the-counter trading without approval by the People’s Bank of China.

Article 19

Investors shall open bond custody accounts in their real names, and open or designate a corresponding capital account according to
the requirement of the undertaking bank.

Article 20

Investors shall provide the undertaking bank with written orders in buying or selling bonds. The undertaking bank shall maintain complete
record of investors’ orders in its trading system and provide investors with complete record of delivery as requested.

Article 21

The spread between the bid and offer prices made by an undertaking bank shall not be higher than the price difference set up or adjusted
jointly by the People’s Bank of China and the Ministry of Finance with consideration of market situation and discussion with the
undertaking banks.

Article 22

Within business hours, undertaking banks shall quote unified bid and offer prices and reference yield to maturity in all their outlets
undertaking over-the-counter trading business, at the same time, disclose the information to public. They shall not unquote prices
at their wills; And they have the discretion to adjust their quotations according to market conditions.

Article 23

Undertaking banks shall present the following notice prominently in all their undertaking outlets: “The prices are given according
to market changes, investors shall buy or sell bonds at their own risks.”

Article 24

Undertaking banks shall buy or sell bonds at the disclosed prices. Were there some temporary shortage of certain kind of bond, the
relevant undertaking bank may suspend selling the bond and put a report to the People’s Bank of China for record. The bank shall
replenish supply of the bond within two business days and resume its selling.

Article 25

The quotation unit of over-the-counter bond trading is in RMB hundred yuan, and so is the trading unit. The unit for settlement is
yuan with two decimals.

Article 26

Over-the-counter trading adopts the real time settlement for delivery and payment. Undertaking banks shall conduct capital and bond
settlement for investors timely, and when the trading is concluded, transfer the relevant data and settlement orders to the Central
Clearing Co. as required.

The Central Clearing Co. shall, in accordance with the data and settlement orders received, finish the bond settlement between the
undertaking banks’ own accounts and their general broker’s accounts before the start of the next business day.

Chapter IV Bond Custody and Redemption

Article 27

The Central Clearing Co. shall open dealer’s accounts and general broker’s accounts for undertaking banks, and record their own bonds
and their clients’ bonds respectively. The Central Clearing Co. shall be responsible for the authenticity, accuracy and integrity
of the first-grade custodian accounts.

Article 28

An undertaking bank shall open bond custodian account for investors to record their bonds. After the Central Clearing Corporation’s
examination and verification, the outstanding balance recorded by the undertaking bank in the second-grade custodian accounts should
be the quantity of bonds held by investors. The undertaking bank shall be responsible for the authenticity, accuracy, integrity and
safety of the second-grade custodian accounts.

Article 29

Undertaking banks and the Central Clearing Corporation may charge service fees for providing custody and other relevant services.

Article 30

Undertaking banks shall strictly separate their own bonds with their investors’ bonds, and shall not misappropriate investors’ bonds.

Article 31

Investors may make recustody of their bonds among different undertaking banks.

Article 32

Issuers shall transfer the redeemed interest or principal to the fund account designated by the Central Clearing Corporation at least
one workday before the interest-payment day or the maturity day. The Central Clearing Corporation shall after receipt transfer the
above mentioned money to the undertaking bank one business day in advance, the latter shall transfer the total amount of money to
the fund accounts of investors on the interest payment day or redemption day.

Chapter V Inquiry and Supervision

Article 33

Undertaking banks shall establish account information inquiry systems for over-the-counter bonds trading, while the Central Clearing
Corporation shall establish an account information reviewing system. An investor may inquire about the transaction volume and outstanding
balance of his or her bonds from the undertaking bank or require that the Central Clearing Corporation review his or her outstanding
balance through the reviewing system. Were there any doubts, the investor may ask the undertaking bank to explain, and even report
that to the local People’s Bank of China branch if unsolved.

Article 34

Undertaking banks shall as stipulated transfer their over-the-counter trading data to the Central Clearing Corporation, and the latter
shall check relevant accounts against the data received. The Central Clearing Corporation shall check any wrong information with
the undertaking bank concerned. If the check cannot be finished before the next business day, the Central Clearing Corporation shall
suspend part or all of transactions of the undertaking bank with the approval by the People’s Bank of China.

Article 35

The Central Clearing Corporation shall publish the quotation information provided by undertaking banks to the public through China
Bond Information web-site or the media designated by the People’s Bank of China.

Article 36

With the authorization of the People’s Bank of China, the Central Clearing Corporation may examine the second-grade custodian accounts
of an undertaking bank.

Article 37

Undertaking banks and the Central Clearing Corporation shall report periodically to the People’s Bank of China on over-the-counter
trading and subject themselves to the inspection and supervision by the People’s Bank of China.

Chapter VI Penalty Provisions

Article 38

A commercial bank that has committed any of the following offences shall, according to the seriousness of the offence, be punished
by the People’s Bank of China in the formality of circulating a notice of criticism, giving a disciplinary warning, suspending or
revoking its trading status, plus a fine of no more than RMB30,000 yuan. Both the senior manager and the directly responsible personnel
shall be given disciplinary punishment by their regulatory authorities. Offences against the People’s Bank of China management rules
governing the competence for posts on Senior Management of Financial Institutions will be punished according to the rules.

(1)

Conducting over-the-counter trading business without approval;

(2)

Not publishing two-way quotations as stipulated by the rules;

(3)

Short-selling bonds;

(4)

Conducting over-the-counter trading business out of the trading system;

(5)

Not satisfying the need of investors according to the quoted prices;

(6)

Suspending trading activities without proper causes;

(7)

Misappropriating investors’ bonds;

(8)

Fabricating bond accounts’ records;

(9)

Change Custody for investors without following the relevant rules;

(10)

Issuing false bond custody certification;

(11)

Divulging investors’ account secret information; and

(12)

Other offences against the Rules.

Article 39

The Central Clearing Corporation shall be punished by the People’s Bank of China circulating a notice of criticism or giving a disciplinary
warning plus a fine of no more than RMB30000 yuan for any of the following offences. Both the senior manager and the directly responsible
person shall be given a disciplinary punishment by their supervisory authorities.

(1)

Causing serious losses to undertaking banks or investors because of its dereliction of duty;

(2)

Publishing false information or divulging non-public information;

(3)

Inducing investors and resulting in their losses;

(4)

Facilitating the malicious manipulation of the market or various activities against the Rules by undertaking banks;

(5)

Divulging secrets of undertaking banks and investors; and

(6)

Other offences against the Rules.

Chapter VII Supplementary Provisions

Article 40

The People’s Bank of China shall be responsible for the interpretation of the Rules.

Article 41

The Rules shall enter into force as of the date of its promulgation.

The People’s Bank of China
2002-01-31

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON INFORMING THE SUPPLEMENTARY SCHEME OF THE PASSIVE QUOTA DISTRIBUTION SCHEME 2002 ON SOME CATEGORIES OF TEXTILES FOR TEXTILE-PRODUCING ENTERPRISES EXPORTING BY THEMSELVES

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Informing the Supplementary Scheme of the Passive Quota Distribution
Scheme 2002 on Some Categories of Textiles for Textile-producing Enterprises Exporting by Themselves

WaiJingMaoMaoHan [2002] No.204

March 18, 2002

The departments (commissions, bureaus) of foreign trade and economic cooperation in Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu,
Zejiang, Ningbo, Anhui, Fujian, Shandong, Qingdao, Henan, Hubei, Hunan, Guangdong, Shenzhen, Sichuang, Shanxi, Ningxia and Xinjiang,
each enterprise directly under the Central Government, the Bureau of Quota and License Administration and the EDI Center of the Ministry:

In order to continue to support the textile-producing enterprises doing export by themselves (hereinafter referred to as manufacturing
enterprises) to expand their export, the Supplementary Scheme of the Passive Quota Distribution Scheme 2002 on Some Categories of
Textiles for the Textile-producing Enterprises Exporting by Themselves (see Attachment) is hereby distributed to you. Relevant details
are as follows:

The quota categories in this Supplementary Scheme are 3/4A, 5, 5A, 7/8A and 43 which are exported to Canada and Category 659-s for
the US market. Year 2002 agreement quota levels for these categories are provided in this Supplementary Scheme, as they are not included
in the Circular on Informing the Supplementary Scheme of the Passive Quota Distribution Scheme 2002 on Some Categories of Textiles
for the Textile-producing Enterprises Exporting by Themselves (WaiJingMaoMaoFangHan [2002] No.3).

II.

The 2002 quota level of each of the above-mentioned categories for the manufacturing enterprise is 30% respectively of the total distributable
level of each category of the same the year.

III.

The State Economic and Trade Commission is responsible for working out the 2002 list of manufacturing enterprises and the specific
quota distribution scheme.

IV.

The quota distribution scheme of each local enterprise is to be delivered by electronic means. The quota distribution scheme of enterprises
administrated by the Central Government and the distribution scheme of Changchun is to be offered in written forms. Meanwhile, the
Changchun’s scheme will be sent to the export license issuing authority by electronic means.

All local commissions (departments/bureaus) of foreign trade and economic cooperation shall transmit this Circular and the quota distribution
scheme to the relevant local manufacturing enterprises as soon as possible and issue the textile export licenses to the relevant
enterprises strictly in accordance with the distribution scheme.

VI.

All local commissions (departments/bureaus) of foreign trade and economic cooperation shall, as specific steps to seriously carry
out the strategy of “Broadly-Based Foreign Trade and Economic Cooperation”, bring manufacturing enterprises under unified passive
textile quota control, strengthen the guidance and training of them in quota utilization and timely resolve the problems in the process
of textile export so as to help and supervise these manufacturing enterprises to make better use of the textile quota.

VII.

The EDI Center of the Ministry is requested to tabulate, according to this Supplementary Scheme, the quota level of each category
distributed to the local manufacturing enterprises and send the data to all export license issuing unit for reference. In order to
reduce the data input workload, the EDI Center of the Ministry is also requested to work out and release the data of quota level
of local subsidiary enterprises provided in the Supplementary Scheme.

The Circular is hereby given for strict implementation.

Attachment: The Supplementary Scheme 2002 of the Passive Textile Quota Distribution Scheme for the Textile-producing Enterprises Exporting
by Themselves (omitted)

The Ministry of Foreign Trade and Economic Cooperation
2002-03-18

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CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON INFORMING THE SUPPLEMENTARY SCHEME OF THE PASSIVE QUOTA DISTRIBUTION SCHEME 2002 ON SOME CATEGORIES OF TEXTILES FOR TEXTILE-PRODUCING ENTERPRISES EXPORTING BY THEMSELVES

CONSTITUTION ACT, 1982 – page 22

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