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MEASURES FOR THE ADMINISTRATION OF THE LANDING OF OVERSEAS SATELLITE TELEVISION CHANNELS

State Administration of Radio, Film and Television

Order of the State Administration of Radio, Film and Television

No.22

The Measures for the Administration of the Landing of Overseas Satellite Television Channels, which were approved by the executive
meeting of this Administration on November 14, 2003, are hereby issued and shall go into effect on January 10, 2004.

Xu Guangchun, the Director of the State Administration of Radio, Film and Television

December 4, 2003

Measures for the Administration of the Landing of Overseas Satellite Television Channels

Article 1

The present Measures are formulated with a view of strengthening the administration of the landing of overseas satellite television
channels.

Article 2

The present Measures shall be applicable to the administration of the landing of overseas satellite television channels within the
People’s Republic of China through satellite transmission.

Article 3

The State Administration of Radio, Film and Television (hereinafter referred to as SARFT) shall be in charge of the centralized administration
of the landing of overseas television channels, and implement the system of examination and approval to the landing of foreign satellite
television channels.

Article 4

Overseas satellite television channels may, upon approval of SARFT, land within the prescribed range, such as foreign-related hotels
at the three-star level or above, and the foreign-related flats especially provided to foreigners as office or residence, and other
specific ranges.

Article 5

an overseas satellite television channel to be landed in China shall satisfy the requirements as follows:

1)

The contents played shall not infringe the provisions of the laws, regulations and rules of China;

2)

The applicant is a legal television media in its home country (region);

3)

The applicant shall have the comprehensive strength to conduct mutually beneficial cooperation with the radio and television stations
of China, and make an commitment and actively assist in the landing abroad of China’s radio and television programs;

4)

The channel applying for landing and the institutions directly related thereto are friendly to China, and have established long and
friendly exchange and cooperation relationship with China in the field of radio and television;

5)

The applicant shall agree that the programs of its channel should be transmitted by the institution designated by SARFT (hereinafter
referred to as designated institution) in a unified way, and make an commitment not to land those programs within China through any
other means;

6)

The applicant shall agree to entrust the designated institution to act as its agent to handle all the matters related to the landing
within China.

Article 6

SARFT will make the examination and approval of the applications for landing of overseas satellite television channels once a year,
between July and September.

Article 7

In principle, only one channel for each foreign satellite television institution may be permitted to land within the specific range.
No news-oriented overseas satellite television channel shall be approved to land within China as a general principle. And no satellite
television channel that is launched or jointly operated abroad by any domestic radio and television institution or any other relevant
departments, organizations, enterprises or individuals shall be approved to land within China. For any special circumstances, the
application shall be submitted to SARFT for special approval.

Article 8

To apply for the landing of a foreign satellite television channel, the applicant must first submit the application to the designated
institution, fill in the Memorandum of Satellite Television Channels according to the requirements, and submit the certificates prescribed
in Articles 5 and 7 herein and the reception devices such as decoders, etc. If the application documents are incomplete, the applicant
shall supplement the lacking part within 14 days from the day of receiving the relevant notice, and shall be deemed as waiving the
application automatically if failing to make supplementation within the said time limit. The designated institution shall, after
receiving all of the application documents, submit the application to SARFT for the landing within China of the overseas satellite
television channel for which it acts as an agent.

Article 9

In the case that SARFT approve the designated institution to negotiate with the overseas satellite television channel on the agency
of the landing of its channel, if that overseas satellite television channel applies for landing for the first time, it shall negotiate
on the relevant cooperation matters with the designated institution within 60 days; if it obtained the landing qualification in the
last year, it shall make the negotiation within 45 days. If it fails to make the negotiation within the said deadline, it shall be
deemed as waiving the application automatically.

SARFT shall grant approval for the landing of the foreign satellite television channel, if it satisfies the provisions in Articles
5 and 7 hereof.

Article 10

An overseas satellite television channel approved to land must comply with the relevant provisions of China on the administration
of overseas satellite television.

Article 11

An overseas satellite television channel approved to land shall adjust the coverage of the original satellite signals in accordance
with the requirements of the designated institution; perform the agreement signed with the designated institution; and may not carry
out within China any promotion activities for the television channel, the brand thereof, and the relevant reception devices without
permission.

Article 12

It is not permitted for an overseas satellite television channel approved to land to play any program containing any of the following
contents:

1)

Those imperiling the unification of the state and the integrity of the sovereignty and territory of China;

2)

Those imperiling the state security of China, impairing the honor and interest of China, and divulging the state secrets of China;

3)

Those stirring up the splitting of nationalities, hatred and discrimination among the nationalities, undermining the solidarity of
the nationalities, and infringing upon the customs and habits of the nationalities of China;

4)

Those endangering the social stability of China, advocating obscenity, violence, superstition, evil religions, and instigating commitment
of crimes;

5)

Those defaming or insulting others and infringing upon the legal rights and interests of others;

6)

Those endangering the public morality of China and defaming the excellent cultural traditions of China; and

7)

Other contents that infringe the laws, regulations, and rules of China.

Article 13

Any of the following alterations to a foreign satellite television channel approved to land must be notified to and negotiate with
the designated institution beforehand, and the designated institution shall report to SARTF:

1)

Alterations of the shareholding structure, management power, investors, and principal managers of the channel and the institutions
directly related thereto;

2)

Alterations of the important matters specified in the Memorandum of Satellite Television Channels, such as the name of the channel,
the type of the channel, the constitution of the program, the broadcasting languages, and the subpost_titles, etc.;

3)

Alterations of relevant technical parameters, such as whether the broadcasting signals are coded or not, the transmitting satellites
and the coverage thereof, etc.

4)

Alterations of any of the contents involved in Articles 5 and 7 hereof.

If SARFT deems that a channel approved to land no longer satisfies the requirements provided for herein due to any of the alterations
mentioned above, it may deal with the channel correspondingly or even disqualify that channel from landing.

Article 14

The administrative departments of radio and television at various levels shall administer the reception of relevant overseas satellite
television channels in accordance with the Provisions on the Administration of Earth Reception Facilities for Satellite Television
and Radio Programs (Order 129 of the State Council) and the relevant provisions.

Article 15

The designated institution shall assist the administrative department of radio and television to supervise the relevant acts and the
contents played by the foreign satellite television channel for which it acts as an agent by taking necessary prevention and treatment
measures, cooperate with SARFT in the relevant handling, and report in good time any problems that have been identified.

In the case that an overseas satellite television channel approved to land plays any contents that infringe Article 12 hereof, the
designated institution shall immediately stop the transmission of the rule-breaking contents.

Article 16

In the case that an overseas satellite television channel approved to land infringes any provisions hereof, if the offence is minor,
SARFT shall give it a warning and demand it to state the situation and make correction; if the offence is serious, SARFT shall suspend
the transmission of the specific contents, and suspend or revoke the landing qualification of the relevant channel.

Article 17

In the case that an overseas satellite television channel approved to land has caused any negative effect, it shall, apart from accepting
the corresponding treatments, eliminate such negative effect within the same dissemination range in accordance with the requirements
of SARFT.

Article 18

The present Measures shall be referred to with respect to the administration of the overseas satellite television channels approved
by SARFT to land within the specified areas within China.

Article 19

The present Measures shall go into effect on January 10, 2004. The Interim Measures for the Administration of the Examination and
Approval of the Landing of Foreign Satellite Television Channels (Order No.8 of SARFT) shall be abolished at the same time.



 
State Administration of Radio, Film and Television
2003-12-04

 






PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF BONDED WAREHOUSES AND THE GOODS STORED THEREIN

Customs General Administration

Order of the General Administration of Customs of the People’s Republic of China

No.105

The Provisions of the Customs of the People’s Republic of China on the Administration of Bonded Warehouses and the Goods Stored Therein,
which were deliberated and adopted at the executive meeting of this Administration on November 19th, 2003, are hereby promulgated
and shall be implemented on February 1st, 2004. The Provisions of the Customs of the People’s Republic of China on the Administration
of Bonded Warehouses and the Goods Stored Therein implemented as of May 1st, 1988 (ShuHuoZi [88] No. 375) shall be abrogated simultaneously.

Mou Xinsheng, Director of the General Administration

December 5th, 2003

Provisions of the Customs of the People’s Republic of China on the Administration of Bonded Warehouses and the Goods Stored Therein

Chapter I General Provisions

Article 1

With a view to strengthening the customs control of bonded warehouses and the goods stored therein, to regulating the operation and
management of bonded warehouses, and to promoting foreign trade and economic development, the present Provisions are formulated in
accordance with the Customs Law of the People’s Republic of China and the relevant laws and administrative regulations of the state.

Article 2

The term “bonded warehouses” as mentioned in the present Provisions refers to the warehouses that are established upon approval of
the customs for exclusive keeping of bonded goods and other goods that have not gone through customs clearance.

Article 3

Bonded warehouses are, on the basis of different objects stored, divided into public bonded warehouses and self-use bonded warehouses.

Public bonded warehouses are operated by the independent domestic enterprise legal persons that engage primarily in warehouse storage
business in China, and shall especially provide bonded storage services to the general public.

Self-use bonded warehouses are operated by specific independent domestic enterprise legal persons in China, and shall only store the
bonded goods of such enterprises for self use.

Article 4

The bonded warehouses that are used exclusively for keeping commodities of special usage or special types are called as special bonded
warehouses.

Special bonded warehouses comprise bonded warehouses for liquid dangerous goods, bonded warehouses for stock materials, bonded warehouses
for consignment and maintenance, and other special bonded warehouses.

The term “bonded warehouses for liquid dangerous goods” refers to the bonded warehouses that are consistent with the provisions of
the state on storage of dangerous chemicals and that exclusively provide bonded storage services of oil, product oil or other liquid
dangerous goods in bulk.

The term “bonded warehouses of stock” refers to the bonded warehouses that processing trade enterprises use to keep the raw materials,
equipment and the spare parts thereof imported for re-exporting, and the goods stored shall be limited to supply to such enterprises
themselves.

The term “bonded warehouses for consignment and maintenance” refers to the bonded warehouses that specially store the consigned spare
parts imported for the maintenance of foreign products.

Article 5

The following goods may be stored in bonded warehouses upon approval of the customs office:

1)

Imported goods for processing trade;

2)

Transit goods;

3)

Oil, materials and maintenance spare parts for vessels and aircrafts engaged in international voyages or flights;

4)

Imported consignments of spare parts for maintenance of foreign products;

5)

Goods temporarily stored by foreign businesspeople;

6)

Ordinary trade goods that have not gone through customs clearance; and

7)

Other goods that have not gone through customs clearance and that are approved by the customs office.

Bonded warehouses shall, according to the range of goods and categories of commodities that the customs offices approve for storage,
carry out the business of bonded storage .

Article 6

No bonded warehouses may store any goods that are prohibited by the state from entering China, or the unapproved goods that affect
public security, public sanitation or health, public morality order and that are restricted from entering China, as well as other
goods that may not be stored in bonded warehouses.

Chapter II Establishment of Bonded Warehouses

Article 7

Bonded warehouses shall be set up in the areas where there are customs offices and that are convenient for customs control.

Article 8

An enterprise shall meet the following conditions to operate a bonded warehouse:

1)

Possessing registered with the department of industry and commerce administration and possessing the status of enterprise legal person;

2)

Possessing a minimum registered capital of RMB 3 million Yuan;

3)

Being able to pay taxes to the customs office;

4)

Possessing special business venue for storage of bonded goods;

5)

If engaging in storage of commodities subject to special license, possessing the prescribed special license;

6)

With regard to a processing trade enterprise engaging in operation of bonded warehouses of stock materials, possessing a minimum export
volume of 10 million US dollars; and

7)

Other conditions provided for by the laws, administrative regulations and customs rules.

Article 9

A bonded warehouse shall meet the following conditions:

1)

Meeting the requirements of the customs office on the layout of bonded warehouses;

2)

Possessing the safety segregation facilities and control facilities that meet the requirements of customs control and other facilities
necessary for business operations;

3)

Possessing the computer management systems of bonded warehouse that meet the requirements of customs control and that are connected
with the customs office;

4)

Possessing the management systems of bonded warehouse that meet the requirements of custom control and the accounting systems that
meet the requirements of the accounting law;

5)

Conforming to the laws, administrative regulations and relevant provisions of the state on land administration, planning, transportation,
fire control, safety, quality inspection, and environmental protection, etc;

6)

With regard to a public bonded warehouse, possessing a minimum area of 2,000 square meters;

7)

With regard to a bonded warehouse of liquid dangerous goods, possessing a minimum volume of 5,000 steres;

8)

With regard to a bonded warehouse for consignment and maintenance, possessing a minimum area of 2,000 square meters; and

9)

Other conditions provided for by laws, administrative regulations and customs rules.

Article 10

A bonded warehouse shall be subject to the examination and approval of the customs office directly affiliated to the Customs General
Administration and be archived at the Customs General Administration.

Article 11

Where an enterprise files an application for establishing a bonded warehouse, it shall file an written application with the competent
customs office of the place where the warehouse is to be located, and submit the relevant certificates prescribed in Articles 8 and
9 of the present Provisions.

The competent customs office shall accept the application if the application materials are complete and valid. In case the application
materials are incomplete or inconsistent with the statutory forms, the customs office shall, within 5 working days, notify the applicant
of all the contents that need to be supplemented. The customs office shall, within 20 days as of the date of acceptance of the application,
present the opinions of preliminary examination and submit the relevant materials to the customs office directly under the Customs
General Administration for examination and approval.

The customs office directly under the Customs General Administration shall finish the examination within 20 workdays as of the date
of receipt of the materials, and shall issue the document of approval if the conditions are met, the valid term of the document of
approval is one year; in case the conditions are not met, the applicant shall be notified in writing form of the reasons.

Article 12

An enterprise that files an application for establishing a bonded warehouse shall apply to the customs office for inspection and acceptance
of the bonded warehouse within one year from the day on which the customs office issues the document of approval for the bonded warehouse,
and the customs office directly under the Customs General Administration shall make the examination for acceptance pursuant to Articles
8 and 9 of the present Provisions. Where the applicant enterprise fails to file an application for examination and acceptance within
the time limit without justified reasons or the bonded warehouse fails to pass the examination for acceptance, the document of approval
for that bonded warehouse shall be invalidated automatically.

Article 13

After passing the examination for acceptance, a bonded warehouse may be put into operation only after being registered with the customs
office and being issued the Registration Certificate of Customs Bonded Warehouses of the People’s Republic of China (hereinafter
referred to as Registration Certificate).

Chapter III Management of Bonded Warehouses

Article 14

No bonded warehouse may be rent or lent to others for operation, neither may any sub-warehouse be set up.

Article 15

Customs offices shall adopt the computer network management of bonded warehouses, and may at any moment assign any person to enter
the bonded warehouses to check the receipt, delivery, and storage of the goods and the relevant account books. Where the customs
office believes it necessary, it may, along with the enterprise operating the bonded warehouse, fix a lock to the bonded warehouse
or directly assign personnel to the warehouse for monitoring, the enterprise operating the bonded warehouse shall provide the customs
office with the office place and necessary office conditions.

Article 16

Customs offices shall apply categorized management and annual examination system to bonded warehouses, and the specific measures shall
be formulated by the Customs General Administration separately.

Article 17

The principal of an enterprise operating a bonded warehouse and the managerial personnel of the bonded warehouse shall be familiar
with the relevant laws and regulations on customs control, comply with the provisions on customs control, and receive customs-related
training.

Article 18

An enterprise operating a bonded warehouse shall fill in the relevant documents and warehouse account books in accordance with the
facts, truly record and fully reflect the business operations and financial status, prepare the monthly receipt, delivery, and storage
statements and the annual financial accounting reports, and submit them to the competent customs office in the form of electronic
data and in written form.

Article 19

Where an enterprise operating a bonded warehouse needs to alter its name, registered capital, organizational form, or legal representative,
etc., it shall file a written application with the customs office directly under the Customs General Administration prior to the
alteration to explain the alterations, reasons and time of alteration; and the customs office shall, after the alteration, make the
examination again according to Article 8 of the present Provisions.

Where a bonded warehouse needs to alter its name, address, storage area (volume), range of goods and categories of commodities to
be stored, etc., the alteration shall be subject to the approval of the customs office directly under the Customs General Administration.

The customs office directly under the Customs General Administration shall put on record with the Customs General Administration the
alterations of the enterprise operating the bonded warehouse and those of the bonded warehouse.

Article 20

Where a bonded warehouse stops the operation of bonded storage business for six consecutive months without justified reasons, the
enterprise operating that bonded warehouse shall file an application to the customs office for terminating the bonded storage business.
Where the operating enterprise fails to make the application, the customs office shall write off its registration and withdraw the
Registration Certificate.

Where a bonded warehouse fails to participate in the annual examination or fails the annual examination, the customs office shall
write off its registration and withdraw its Registration Certificate.

Where a bonded warehouse discontinues the bonded storage business because of any other reasons, the enterprise operating that bonded
warehouse shall file a written application, and upon examination by the customs office, return the Registration Certificate and handle
the formalities for deregistration.

Chapter IV Management of Goods Stored in Bonded Warehouses

Article 21

Upon goods’ entry into a bonded warehouses, the consignee or consignor or the agent thereof shall handle the customs declaration and
warehouse entry formalities with the customs office upon the strength of the relevant documents, and the customs office shall examine
the types, quantities and value of the goods declared for entry in accordance with the range of goods and categories of commodities
of the goods that can be stored in the bonded warehouses, and shall verify and register the entry goods.

Where the import port of the goods entering into a bonded warehouse is not under the jurisdiction of the customs office in charge
of the bonded warehouse, the relevant formalities may, upon approval of the customs office, be processed according to the provisions
on customs transit or with the customs office of the import port.

Article 22

The goods stored in a bonded warehouse may go through simple processing, such as packaging, grading and classification, adding shipping
marks, dismantling, and assembling, etc., but no substantial processing may go through.

Without approval of the customs office, the goods stored in a bonded warehouse may not be sold, transferred, mortgaged, pledged, kept
as lien, used for any other purpose, or disposed of otherwise.

Article 23

The following goods stored in a bonded warehouse shall, when leaving the warehouse, be exempted from tariff and import link tax pursuant
to law:

1)

Spare parts that are used for free maintenance of relevant foreign products within the guaranteed period and that are consistent with
the relevant provisions on non-compensated goods;

2)

Oil and materials used in vessels and aircrafts engaging in international voyages and flights; and

3)

Other tax-free goods provided for by the State.

Article 24

The storage period of the goods stored in a bonded warehouse is one year. The period may be extended if there are really justified
reasons; but the extension may not exceed one year except under special circumstances.

Article 25

The goods stored in a bonded warehouse under any of the following circumstances may go through the formalities for warehouse exit
upon approval of the customs office, and the customs office shall carry out administration and examination prior to clearance according
to the corresponding provisions:

1)

To be transported abroad;

2)

To be transported to any bonded area or processing area in China or be allocated to any other bonded warehouse for further control;

3)

To become imported goods for processing trade;

4)

To be sold on the domestic market; or

5)

Any other circumstances provided for by the customs offices.

Article 26

Where the goods stored in a bonded warehouse is to leave the warehouse and to be transported to any other place in China, the consignor
or consignee or the agent thereof shall fill in the import declaration, and shall make the declaration with the customs office with
the relevant documents such as the warehouse exit instrument, etc., the bonded warehouse shall go through the warehouse exit formalities
with the customs office and discharge the goods upon the strength of the declaration signed by the customs office for clearance.

Where any goods shall be taken out of a bonded warehouse in a different place, the goods may be declared with the customs office in
charge of that bonded warehouse, or go through the formalities for transit according to the provisions on customs control.

Where goods stored in a bonded warehouse are to leave in small quantities but in frequent internals, a concentrated customs declaration
may be handled upon approval of the customs office.

Article 27

Where the goods stored in a bonded warehouse are to leave the warehouse and to be re-transported abroad, the consignor or the agent
thereof shall fill in the export declaration, and make the declaration with the customs office on the basis of the relevant documents
such as the warehouse exit instrument, etc., the bonded warehouse shall handle the formalities for warehouse exit with the customs
office and discharge the goods on the strength of the declaration form signed by the customs office for clearance.

Where the export port of outward goods is not under the jurisdiction of customs office in charge of the bonded warehouse, the relevant
formalities may, upon approval of the customs office, be handled at the customs office of the export port, or the formalities for
transit may be handled according to the relevant provisions on customs control.

Chapter V Legal Liabilities

Article 28

Where the goods stored in a bonded warehouse are damaged or lost during the storage period, the bonded warehouse shall, except that
the damages or loss are caused by force majeure, pay the taxes for the damaged or lost goods to the customs office and assume the
corresponding legal liabilities.

Article 29

Upon expiration of the storage period of the goods stored in a bonded warehouse, if no application is made for extending the period
with the customs office in a timely manner or the goods are not re-transported to abroad or imported upon expiration of the extended
period, the customs office shall deal with the case in accordance with Article 5 of the Measures of the Customs of the People’s
Republic of China on the Disposition of the Import Goods Undeclared within the Time Limit, the Inward Goods Discharged by Mistake
or Over-discharged, and the Goods Waiving Import.

Article 30

After the establishment, alteration or written-off of a bonded warehouse, in case the customs office finds the original application
materials are incomplete or inaccurate, it shall order the operating enterprise to make correction within the prescribed time limit,
and if the customs office finds the enterprise has concealed the truth, provided falsified materials or otherwise violated the law,
it shall punish that enterprise pursuant to the law.

Article 31

Where an enterprise operating a bonded warehouse commits any of the following acts, the customs office shall order it to get right,
and may give it a warning or impose on it a fine of not more than RMB 10,000 Yuan; and in case there are any legal gains, a fine
of less than 3 times the legal gains shall be imposed, however, the maximum amount shall not be more than RMB 30,000 Yuan:

1)

Storing non-bonded goods in the bonded warehouse without the approval of the customs office;

2)

Setting up any sub-warehouse under the bonded warehouse without authorization;

3)

Managing the bonded goods poorly with unclear account books; or

4)

Failing to process the customs formalities according to Article 19 in the event of any alteration of the business items.

Article 32

For any illegal act in violation of the present Provisions, the customs office shall punish the offender in accordance with the Customs
Law of the People’s Republic of China and the Implementing Rules for Administrative Punishments of the Customs Law of the People’s
Republic of China. The offender shall be subject to criminal liabilities if a crime has been constituted.

Chapter VI Supplementary Provisions

Article 33

The responsibility to interpret the present Provisions shall remain with the Customs General Administration.

Article 34

The present Provisions shall be implemented on February 1st, 2004. The Measures of the Customs of the People’s Republic of China for
the Administration of Bonded Warehouses and the Goods Stored Therein which came into force on May 1st, 1988 shall be repealed simultaneously.



 
Customs General Administration
2003-12-05

 






SUPPLEMENTARY PROVISIONS ON THE INTERIM MEASURES FOR THE ESTABLISHMENT OF SINO-FOREIGN JOINT VENTURE FOREIGN TRADE COMPANIES

e03032

Ministry of Commerce

Decree of the Ministry of Commerce of the People’s Republic of China

No. 10

With a view to promoting Hong Kong and Macao to establish a closer economic and trade relationship with the Mainland, the Supplementary
Provisions on the Interim Measures for the Establishment of Sino-foreign Joint Venture Foreign Trade Companies, which were adopted
at the 8th executive meeting of the Ministry of Commerce on December 7th, 2003, are hereby promulgated, and shall be implemented
as of January 1st, 2004.

Lv Fuyuan, Minister of the Ministry of Commerce

December 7th, 2003

Supplementary Provisions on the Interim Measures for the Establishment of Sino-foreign Joint Venture Foreign Trade Companies

With a view to promoting Hong Kong and Macao to establish a closer economic and trade relationship with the Mainland, encouraging
service providers from Hong Kong and Macao to establish within the Mainland enterprises engaging in foreign trade business, we have
hereby made the following special provisions on the Interim Measures for the Establishment of Sino-Foreign Joint Venture Foreign
Trade Companies (WaiJingMaoBu [2003] Order No. 1) in accordance with the Mainland and Hong Kong Closer Economic Partnership Arrangement
and the Mainland and Macao Closer Economic Partnership Arrangement approved by the State Council:

I.

As of January 1st, 2004, service providers from Hong Kong and Macao shall be permitted to establish foreign trade companies within
the Mainland by means of joint venture, cooperative or solely funded enterprise.

II.

For the establishment of a foreign trade company, the average trade amount with the Mainland by a service provider from Hong Kong
or Macao during the three years prior to the application shall be no less than US$10 million. For the establishment of a foreign
trade company in the central and western regions of the Mainland, the average trade amount with the Mainland by a service provider
from Hong Kong or Macao during the three years prior to the application shall be no less than US$5 million.

III.

Where a service provider from Hong Kong or Macao files an application to establish a foreign trade company, the registered capital
of the foreign trade company shall be no less than RMB20 million Yuan; if the service provider establishes a foreign trade company
in the central and western regions, such registered capital shall be no less than RMB10 million Yuan.

IV.

With regard to other matters for service providers from Hong Kong and Macao to invest in the Mainland to establish foreign trade companies,
the Interim Measures on Establishing Sino-foreign Joint Venture Foreign Trade Companies shall still be applied.

V.

The service providers from Hong Kong and Macao mentioned in the present Supplementary Provisions shall respectively meet the requirements
in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement
on the definition of “service provider”, and in other relevant provisions, as well.

VI.

The power to interpret the present Supplementary Provisions shall remain with the Ministry of Commerce.

VII.

The present Supplementary Provisions shall be implemented as of January 1st, 2004.



 
Ministry of Commerce
2003-12-07

 






SUPPLEMENTARY PROVISIONS ON THE MEASURES FOR THE ADMINISTRATION OF FOREIGN-FUNDED INTERNATIONAL FREIGHT AGENCY ENTERPRISES

20051211

Ministry of Commerce

Order of the Ministry of Commerce of the People’s Republic of China

No. 12

With a view to promoting Hong Kong and Macao to establish closer economic and trade relationship with the Mainland, the Supplementary
Provisions on the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises, which were adopted
at the 8th executive meeting of the Ministry of Commerce on December 7th, 2003, are hereby promulgated, and shall be implemented
on January 1st, 2004.

Lv Fuyuan, Minister of the Ministry of Commerce

December 7th, 2003

Supplementary Provisions on the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises

With a view to promoting Hong Kong and Macao to establish closer economic and trade relationship with the Mainland, encouraging service
providers from Hong Kong and Macao to establish within the Mainland enterprises engaging in international freight agency, we have
hereby made the following supplementary provisions on the Measures for the Administration of Foreign-Funded International Freight
Agency Enterprises (Order No. 36 [2002] of the Ministry of Foreign Trade and Economic Cooperation) pursuant to the Mainland and Hong
Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement approved by the State
Council:

I.

Since January 1st, 2004, service providers from Hong Kong and Macao are permitted to establish international freight agency enterprises
within the Mainland by means of joint venture, cooperation or solely-funded enterprise.

II.

The minimum amount of the registered capital of a qualified service provider from Hong Kong or Macao that invests in the Mainland
to establish an international freight agency enterprise shall meet the following requirements:

(1)

Where he/it runs maritime international freight agency, the minimum amount of his/its registered capital shall be 5 million Yuan;

(2)

Where he/it runs aerial international freight agency, the minimum amount of his/its registered capital shall be 3 million Yuan;

(3)

Where he/it runs overland international freight agency or international express delivery, the minimum amount of his/its registered
capital shall be 2 million Yuan.

Where he/it runs two or more items of business in the preceding paragraph, the minimum amount of his/its registered capital shall
be the minimum amount of the higher/highest one.

An international freight agency enterprise shall, for each branch engaging in international freight agency that it intends to establish,
add 500,000 Yuan of registered capital.

III.

As for other matters for service providers from Hong Kong and Macao to apply in the Mainland for establishing international freight
agency enterprises, the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises shall still be
followed.

IV.

The service providers from Hong Kong and Macao as mentioned in the present Supplementary Provisions shall separately meet the requirements
in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement
on the definition of service providers, and in other relevant provisions, as well.

V.

The power to interpret the present Supplementary Provisions shall remain with the Ministry of Commerce.

VI.

The present Supplementary Provisions shall be implemented on January 1st, 2004.



 
Ministry of Commerce
2003-12-07

 






MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN COOPERATIVE DISTRIBUTION ENTERPRISES

e02176

Ministry of Culture, Ministry of Commerce

Order of Ministry of Culture, Ministry of Commerce of the People’s Republic of China

No. 28

Measures for Administration of Chinese-foreign Cooperative Audio-video Product Distribution Enterprises are hereby promulgated and
shall come into force as of January 1, 2004. Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises
promulgated on December 10, 2001 shall be repealed concurrently.

Sun JiaZheng, Minister of Ministry of Culture

Lu FuYuan, Minister of Ministry of Commerce

December 8th, 2003

Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises

Article 1

The present Measures are hereby formulated in accordance with the law of the People’s Republic of China on Chinese-foreign Cooperative
Enterprises, the Regulations on the Administration of Audio-video Products and other laws and regulations for the purpose of enlarging
foreign culture exchange and economic cooperation as well as strengthening the administration on Chinese-foreign Cooperative Audio-video
products distribution enterprises.

Article 2

The present Measures shall be applicable to the Chinese-foreign cooperative audio-video product distribution enterprises established
in the territory of china.

The term of Chinese-foreign cooperative audio-video product enterprise refers to, in light of the principles of equality and mutual
benefits, upon the approval of relevant departments of the Chinese government, foreign enterprises and other economic organizations
or individuals (hereinafter referred to as the foreign cooperator) cooperatively established inside the territory of the People’s
Republic of China with Chinese enterprises and other economic organizations (hereinafter referred to as the Chinese cooperators)to
engage in the business of wholesale, retail and lease of the audio-video products.

The term “the audio-video products” refers to audio tapes, video tapes, gramophone records, laser audio discs, and laser video discs,
etc. on which contents are recorded.

Article 3

The Chinese-foreign cooperative audio-video product distribution enterprise must abide by the related laws and regulations, and disperse
thoughts, ethics, science and technology, cultural knowledge that are beneficial to the development of economy and the social progress.

Article 4

The legitimate business activities of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises and the legitimate
rights and interests of the cooperators shall be subject to the protection of Chinese law.

Article 5

Ministry of Culture and Ministry of Commerce, as well as their authorized competent departments of culture and commerce at the provincial
level shall be responsible for the examination and approval of and supervision over the Chinese-foreign cooperative audio-video product
distribution enterprises.

The responsible departments of culture and the responsible departments of commerce of the local people’s governments at the county
level or above shall, in accordance with separate functions and duties, be responsible for the everyday supervision and administration
for the Chinese-foreign cooperative audio-video product distribution enterprises within their own administrative regions.

Article 6

The establishment and development of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises shall follow the
development planning of the market of the audio-video market.

Article 7

The Chinese cooperator and foreign cooperator applying for establishing a Chinese-foreign cooperative audio-video product distribution
enterprises shall have the corresponding capacity for establishing the audio-video product distribution enterprises; and shall be
capable for bearing the civil responsibility independently and have no illegal records during the three consecutive years before
the application.

Article 8

The Chinese-foreign cooperative audio-video product distribution enterprises shall meet the following conditions:

(1)

Having independent status as a legal person;

(2)

Meeting the requirements of the state on the establishment of the audio-video product distribution enterprises;

(3)

Having funds adequate to its operation scale;

(4)

The equity owned by the Chinese cooperator is no less than 51 percent; and

(5)

The term of cooperation shall not exceed 15 years.

Article 9

Where Chinese-foreign cooperative audio-video product distribution enterprises apply for engaging in the chain operation of the audio-video
products or for operating the audio-video products by using the information in network, it shall go through the procedures for examination
and approval in accordance with the provisions of the state on the chain operation of the audio-video products and on operating the
audio-video products by using the information in network.

Article 10

Where a Chinese cooperator takes the stated owned assets as cooperated term, it shall get the approval of the superior state-owned
assets supervision and administration departments, in accordance with the related provisions of the evaluation and administration
for the stated-owned assets, and the evaluation institution specified by the state-owned assets supervision and administration departments
shall valuate for the stated-owned assets as the cooperated term. The valuation result shall be defined by the corresponding state-owned
assets supervision and administration departments in accordance with the provisions of the administration of state-owned assets.

Article 11

The establishment of the Chinese-foreign cooperative audio-video product distribution enterprises of audio-video products engaging
in the wholesale business of the audio-video products shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the province, autonomous regions and municipalities
directly under the Central Government where the distribution Chinese-foreign cooperative Audio-video Product Distribution Enterprises
of audio-video products to be established, and the mentioned above departments shall submit to Ministry of Commerce for making program,
examination and approval. Ministry of Culture shall make the decision of approval or not within 30 working days; the reason thereof
shall be stated in writing if the application is not approved.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by Ministry of Culture, apply
to the competent departments of commerce of the province, autonomous regions and municipalities directly under the Central Government
where the audio-video product distribution enterprises to be established is located for the establishment of such an enterprise.
The mentioned above departments shall submit to Ministry of Commerce for examination and approval after its check and approval. Ministry
of Commerce shall make a decision of approval or not within 30 working days. Upon the approval, an Approval Certificate for Enterprise
with Foreign Investment shall be issued to the applicant. If not, the reasons thereof shall be stated in writing.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprise with Foreign Investment
issued by the Ministry of Commerce, apply to the Ministry of Culture on behalf of the Chinese-foreign cooperative audio-video product
distribution enterprises to be established for the Operation Permit for Audio-video Products upon strength of the approval documents
on project initiation issued by the Ministry of Culture and the Approval Certificate for Enterprises with Foreign Investment issued
by the Ministry of Commerce.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by Ministry
of Culture, and upon strength of the Operation Permit for Audio-video Products and the Approval Certificate for Enterprise with Foreign
Investment, go through the registration procedures and obtain the Business License of an Enterprise Legal Person in compliance with
the provisions of the administration for industry and commerce.

Article 12

the Chinese cooperator shall submit the following documents to Ministry of Culture while proposing the application for project initiation:

(1)

The application for project initiation which shall specify the name, address, scope of business, the source of the invested funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals and feasibility study report programmed and admitted commonly by both/all cooperator;

(3)

The business license or certification of registration, certification of qualification by every cooperated cooperator and the valid
certification of the legal representatives;

(4)

The appraisal and confirming documents issued by the state-owned assets administration departments of the state-owned assets to be
invested by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation); and

(5)

Other documents as required by Ministry of Culture.

Article 13

the Chinese cooperator shall submit the following documents to Ministry of Commerce while proposing the application for establishing
the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment;

(2)

A project proposals or feasibility study report programmed and admitted commonly by every cooperated cooperator, and approved by Ministry
of Culture;

(3)

The approval documents for project initiation of the cooperation project issued by Ministry of Culture

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established
signed by the representatives authorized by both/all cooperators;

(5)

The confirming documents issued by the state-owned assets administration departments of the state-owned assets on appraising report
of the state-owned assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets
as a means of cooperation);

(6)

The cooperators￿￿ business license or certification of registration, credit certificates and the valid certificates of the legal representatives;

(7)

The notice of pre-approval for the name of the cooperative enterprise to be established;

(8)

The name list of the chairman, vice chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprises, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by Ministry of Commerce.

Article 14

In case of any major change of Chinese-foreign cooperative audio-video product distribution enterprises, such as change of the investors,
adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change of scope
of business, change of operational period, or change of establishment of the branches, the enterprise shall go through the procedures
for approval in accordance with Article 11 of the present Measures.

Other changes of the Chinese-foreign cooperative audio-video product distribution enterprises shall, in accordance with related provisions
of the foreign investment enterprises, be submitted to the Ministry of Commerce for approval or record. In the case of the change
of legal address, legal representative, the main responsible person and termination of the business activity due to expiry of operational
period, the Chinese-foreign cooperative audio-video product distribution enterprises shall also report to Ministry of Culture for
record within 30 days.

Article 15

The establishment of a Chinese-foreign cooperative audio-video product distribution enterprises that engages in the retail and leasing
business, shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the level of province where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located, and then the competent departments of culture shall make
the decision on whether to approve the project initiation within 30 working days; if the application is rejected, the reasons for
it shall be stated in writing.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by the competent departments
of culture at provincial level, apply to the competent departments of commerce at provincial level where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located for the establishment of such an enterprise, and then the
competent departments of commerce at provincial level shall, within 30 working days, make a decision on whether to approve or not;
the reason for it shall be stated in writing explanation if the application is rejected.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprises with Foreign Investment
issued by the competent departments of Commerce at the provincial level, apply to the competent department of culture at the provincial
level on behalf of the Chinese-foreign cooperative audio-video product distribution enterprise to be established for the Operation
Permit for Audio-video Products upon strength of the approval documents on project initiation issued by the competent department
of culture at the provincial level and the Approval Certificate for Enterprises with Foreign Investment issued by the competent department
of commerce at the provincial level.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by the
competent departments of culture at provincial level, and upon strength of the Operation Permit for Audio-video Products and the
Approval Certificate for Enterprises with Foreign Investment, go through the registration procedures and obtain the Business License
of an Enterprise Legal Person in compliance with the provisions on the industry and commerce administration,

Article 16

The Chinese cooperator shall submit the following documents to the competent departments of culture at the provincial level while
proposing the application for project initiation:

(1)

The application for project initiation, which shall specify the name, address, scope of business, the source of the investment funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals or feasibility study report worked out or recognized by both/all cooperators;

(3)

The business license or certificates of registration, credit certificates of every cooperator and the valid certificates of the legal
representatives;

(4)

The confirmation documents issued by the administrative departments of the state-owned assets on the appraising report of state-owned
assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation);
and

(5)

Other documents as required by the competent departments of culture at the provincial level.

Article 17

The Chinese cooperator shall submit the following documents to the competent departments of commerce at provincial level while proposing
the application for establishing the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment:

(2)

A project proposals and feasibility study report worked out and recognized by both/all cooperators, and approved by the competent
departments of commerce at the provincial level;

(3)

The approval documents on project initiation under cooperation issued by the competent departments of commerce at the provincial level;

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established,
which are executed by the representatives authorized by both/all cooperators.

(5)

The confirmation documents issued by the state-owned assets administration departments on the appraising report and the state-owned
assets to be used as a means of investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a
means of investment);

(6)

The business license or registration certificates, credit certificates of the cooperators and the valid certificates of the legal
representative;

(7)

The notice of pre-approval for the name of the cooperative enterprises to be established;

(8)

The name list of the chairmen, vice-chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprise, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by the competent departments of commerce at the level of province.

Article 18

In case of any major change in a Chinese-foreign cooperative audio-video product retail or leasing enterprises, including change of
any investor, adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change
of the business scope, change of the operational period or the establishment of the branches, the enterprise shall go through the
procedures for approval in accordance with article 15 of the Measures hereby.

In the case of other changes of the Chinese-foreign cooperative audio-video product distribution enterprises, the enterprise shall,
in accordance with related provisions of the enterprises with foreign investment, report to the competent departments of commerce
at the provincial level for approval or record.

In the case of the change of legal address, legal representative, the main responsible person and termination of the business activity
due to expiry of operational period, the Chinese-foreign cooperative audio-video product distribution enterprises shall report to
the competent departments of culture at the provincial level for putting on records within 30 days.

Article 19

The Chinese-foreign cooperative audio-video product distribution enterprises shall engage in the business activities of audio-video
products within the approved scope of business.

Article 20

No Chinese-foreign cooperative audio-video product distribution enterprises may operate any audio-video products, which contains any
contents prohibited by the state from being dispersed; or which is published by non audio-video publishing entities or reproduced
by non audio-video product reproducing entities; or which is imported without the approval of Ministry of Culture; or which infringes
on the copyright of others.

Article 21

No Chinese-foreign cooperative audio-video product distribution enterprises may engage in the business of importing the audio-video
products

Article 22

Whoever, without the approval of the Ministry of Culture and the Ministry of Commerce and without authorization, establishes Chinese-foreign
cooperative audio-video product distribution enterprises, or engages in the business of distributing audio-video products with foreign
investment without approval, shall be punished by related departments of the state according to law. And the relevant person liable
shall be prosecuted for liabilities.

Article 23

Where the investors of Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan of China establish
the distribution Chinese-foreign cooperative audio-video product distribution enterprises of the audio-video products within other
provinces, autonomous regions and municipalities directly under the Central Government, it shall implement by reference to the present
measures hereby.

Article 24

The power to interpret the present measures remains with the Ministry of Commerce and Ministry of Culture.

Article 25

The present measures and the annexes shall be effective as of the date of January 1, 2004; The administrative measures of Chinese-foreign
cooperative audio-video product distribution enterprises promulgated on December 10, 2001 by Ministry of Culture and Ministry of
Foreign Trade and Economic Cooperation shall be repealed simultaneously.

Annex:

In order to promote closer economic and trade relations between Hong Kong, Macao and the mainland, and encourage the service providers
in Hong Kong and Macao to establish the audio-video product distribution enterprises in the mainland, in accordance with the arrange
on establishing closer economic and trade relations between Hong Kong and the mainland, as well as the arrange on establishing closer
economic and trade relations between Macao and the mainland upon the approval of the State Council, the following special provisions
shall be made hereby on the related issues that the service providers in Hong Kong and Macao to establish the audio-video product
distribution enterprises prescribed by measures for administration of distribution Chinese-foreign cooperative audio-video product
distribution enterprises.

1.

From the date of January 1, 2004, the providers with service in Hong Kong and Macao are permitted to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the form of equity joint ventures in the mainland.

2.

The providers with service in Hong Kong and Macao may possess the majority of the shareholders, but not more than 70 percent.

3.

The providers with service in Hong Kong and Macao may possess the proportion of rights and interests not more than 70 percent in the
contractual joint ventures.

4.

Other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign cooperative audio-video product
distribution enterprises in the mainland shall be governed by administrative measures of Chinese-foreign cooperative audio-video
product distribution enterprises. While other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the mainland shall be implemented by reference to administrative measures
of Chinese-foreign cooperative audio-video product distribution enterprises.

5.

The service providers in Hong Kong and Macao defined in the provisions shall comply with the requests of related provisions and the
definition specified by the arrange on establishing closer economic and trade relations between Hong Kong and the mainland, as well
as the arrange on establishing closer economic and trade relations between Macao and the mainland separately.

6.

The present provisions shall be interpreted by Ministry of Commerce and Ministry of Culture in accordance with respective functions.



 
Ministry of Culture, Ministry of Commerce
2003-12-08

 






MEASURES FOR THE ADMINISTRATION OF THE INVESTMENT AND SHAREHOLDING IN CHINESE-FUNDED FINANCIAL INSTITUTIONS BY OVERSEAS FINANCIAL INSTITUTIONS

China Banking Regulatory Commission

Order of the China Banking Regulatory Commission

No.6

The Measures for the Administration of the Investment and Shareholding in Chinese-funded Financial Institutions by Overseas Financial
Institutions have been approved by the State Council and are hereby issued.

Liu Mingkang, the Chairman of the China Banking Regulatory Commission

December 8, 2003

Measures for the Administration of the Investment and Shareholding in Chinese-funded Financial Institutions by Overseas Financial
Institutions

Article 1

The present Measures are formulated with a view of regulating the overseas financial institutions’ investment and shareholding in
Chinese-funded financial institutions, and optimizing the capital structure of Chinese-funded financial institutions.

Article 2

The present Measures shall be applicable to the overseas financial institutions investing and holding shares in Chinese-funded financial
institutions.

The term “overseas financial institutions” as used herein include international financial institutions and financial institutions
of overseas countries. The term “international financial institutions” refers to the World Bank and the affiliated agencies thereof,
other intergovernmental development financial institutions, and other international financial institutions recognized by the China
Bank Regulatory Commission (hereinafter referred to as CBRC); the term “financial institutions of overseas countries” refers to the
financial holding companies, commercial banks, securities companies, insurance companies, and funds that are registered in overseas
countries, and other overseas financial institutions recognized by CBRC.

The term “Chinese-funded financial institutions” as used herein refers to the Chinese-funded commercial banks, urban credit cooperatives,
rural credit cooperatives, trust and investment companies, enterprise group finance companies, and financial leasing companies that
are set up within China in the light with law, and other Chinese-funded financial institutions that are set up upon approval of CBRC.

The term “proportion of the investment or shareholding” as used herein refers to the share that the capital contributed or the shares
held account for in the paid-in total capital or total shares of the Chinese-funded financial institution.

Article 3

CBRC shall be responsible for supervising and administering the overseas financial institutions’ investment and shareholding in Chinese-funded
financial institutions in the light with law.

Article 4

A overseas financial institution shall obtain the approval of CBRC so as to make investment or hold shares in a Chinese-funded financial
institution.

Article 5

An overseas financial institution shall, when making investment or holding shares in a Chinese-funded financial institution, do so
on the basis of good credit and with the goal of medium-and long-term investment.

Article 6

An overseas financial institution shall, when making investment or holding shares in a Chinese-funded financial institution, make
the capital contribution in money.

Article 7

In order to invest or hold shares in Chinese-funded financial institutions, an overseas financial institution shall meet the conditions
as follows:

1)

In a general principle, for making investment or holding shares in a Chinese-funded commercial bank, the total assets of the overseas
financial institution at the end of the last year shall, as, be no less than 10 billion US dollars; for making investment or holding
shares in a Chinese-funded urban credit cooperative or rural credit cooperative, the total assets at the end of the last year shall
be no less than 1 billion US dollars; for making investment or holding shares in a Chinese-funded non-bank financial institution,
the total assets at the end of the last year shall be no less than 1 billion US dollars;

2)

The long-term credit rank given by an international ranking institution recognized by CBRC for that overseas financial institution
is good;

3)

The overseas financial institution has made profit for two consecutive fiscal years;

4)

If the overseas financial institution is a commercial bank, the capital adequacy rate shall be no less than 8%; if it is a non-bank
financial institution, the total amount of capital shall be no less than 10% of the total amount of the risk-weighted assets;

5)

The overseas financial institution has sound internal control system;

6)

The place of registration of the overseas financial institution has sound supervision and administration system;

7)

The home country (region) of the overseas financial institution has satisfactory economic status; and

8)

Other prudential conditions required by CBRC.

In the light with the risk status of the financial industry and the needs of regulation, CBRC may adjust the qualification requirements
for overseas financial institutions, which intend to make investment and hold shares in Chinese-funded financial institutions.

Article 8

The proportion of the investment or shareholding in a Chinese-funded financial institution by a single overseas financial institution
may be no more than 20%.

Article 9

If the total proportion of the investment or shareholding in a non-listed Chinese-funded financial institution by several overseas
financial institutions reaches or exceeds 25%, that non-listed financial institution shall be considered an overseas-funded financial
institution in the supervision and administration.

If the total proportion of the investment or shareholding in a listed Chinese-funded financial institution by several overseas financial
institutions reaches or exceeds 25%, that listed financial institution shall still be considered a Chinese-funded financial institution
in the supervision and administration.

Article 10

In the case that an overseas financial institution intends to make investment or hold shares in a Chinese-funded financial institution,
the Chinese-funded financial institution that absorbs the investment shall act as the applicant and submit the application to CBRC:

1)

In the case that a commercial bank solely funded by the state, or a joint stock commercial bank, or any other non-bank financial institution
directly under the control of CBRC absorbs the investment of an overseas financial institution, the applicant shall directly submit
the application to CBRC for approval;

2)

In the case that any Chinese-funded financial institution other than those provided for in Item 1) of this Article absorbs the investment
of an overseas financial institution, the applicant shall submit the application to the provincial agency of CBRC of the place where
it is located, and the agency shall submit the application to CBRC for approval after examination.

Article 11

A Chinese-funded financial institution shall submit the following documents when submitting the application to CBRC for absorbing
overseas investment:

1)

Application form of the Chinese-funded financial institution for absorbing overseas investment;

2)

Resolution of the shareholders’ meeting or the board of directors of the Chinese-funded financial institution on agreement with the
absorption of investment or the document of approval of the competent authority at the higher level;

3)

Resolution of the shareholders’ meeting or the board of directors of the overseas financial institution on agreement with investing
and holding shares in the Chinese-funded financial institution;

4)

Agreement of intent signed by the two parties;

5)

Annual reports, or audited balance sheets, statements of profits, and other financial statements of the overseas financial institution
for the last three years;

6)

Information about the source of fund and the business operations of the overseas financial institution, etc.; and

7)

Other relevant documents required by CBRC.

In the case that the investor is an overseas financial institution, the Chinese-funded financial institution shall also submit the
ranking reports of that overseas financial institution for the last two years made by an international ranking institution recognized
by CBRC, and the documents of approval of the financial authority of the place of registration of that overseas financial institution.

Article 12

CBRC shall, within 3 months from receiving the complete set of application documents, make the decision on whether or not to grant
the approval; and if it decides not to grant the approval, it shall notify the applicant in writing and explain the reasons.

Article 13

An overseas financial institution shall, within 60 workdays from receiving the decision of approval of CBRC, transfer the capital
in full amount to the account of the Chinese-funded financial institution, and the amount of the capital shall be validated by an
accounting firm recognized by CBRC.

Article 14

In the case that a Chinese-funded financial institution makes any alteration of its registered capital or shareholding structure as
a result of the investment or shareholding by any overseas financial institution, it shall carry out alteration formalities in accordance
with the relevant provisions.

Article 15

In the case that a Chinese-funded financial institution, in violation hereof, changes the shareholders or adjusts the shareholding
structure without permission, CBRC shall punish it in the light with the relevant provisions.

Article 16

In the case that an overseas financial institution that has already invested or held shares in a Chinese-funded financial institution
increases its proportion of shareholding, the relevant provisions hereof shall be applicable.

Article 17

The present Measures shall be applicable to the investment and shareholding in Chinese-funded financial institutions by financial
institutions from Hong Kong, Macao and Taiwan area; and if the State Council has otherwise provisions, such provisions shall be applicable.

Article 18

The present Measures shall not apply to the purchase of negotiable shares of listed Chinese-funded financial institutions by qualified
overseas institutional investors.

Article 19

Investment and shareholding in automobile financial companies shall be administrated by the relevant provisions of the Measures for
the Administration of Automobile Financial Companies.

Article 20

The authorization to interpret the present Measures shall remain with CBRC.

Article 21

The present Measures shall go into effect on December 31, 2003. In the case that any relevant documents issued prior to the implementation
hereof conflict with the present Measures, the latter shall prevail.



 
China Banking Regulatory Commission
2003-12-08

 






NOTICE OF THE MINISTRY OF CIVIL AFFAIRS ON THE ISSUES CONCERNING THE REGISTRATION OF SINO-FOREIGN COOPERATIVE EDUCATIONAL INSTITUTIONS

Ministry of Civil Affairs

Notice of the Ministry of Civil Affairs on the Issues concerning the Registration of Sino-foreign Cooperative Educational Institutions

Ministry of Civil Affairs

December 12, 2003

The departments (bureaus) of civil affairs of all provinces, autonomous regions and municipalities directly under the jurisdiction
of the Central Government, the bureaus of civil affairs of the cities directly under state planning and the Bureau of Civil Affairs
of Xinjiang Production and Construction Corps:

The Regulations of the People’s Republic of China on Chinese-foreign Cooperative Education promulgated by the State Council (hereinafter
referred to as the Regulations) have come into force on September 1 of this year. In order to regulate the administration on the
registration of Sino-foreign cooperative educational institutions, we inform you of the relevant issues as follows:

I.

The Sino-foreign cooperative educational institutions that apply for being registered as private non-enterprise entities may, after
obtaining the licenses of Sino-foreign cooperative education, be registered as private non-enterprise entities in the light with
Article 20 of the Regulations and Article 12 of the Interim Regulations on the Administration of Registration of Private Non-enterprise
Entities.

II.

The application for being registered as a private non-enterprise entity submitted by a Sino-foreign cooperative institution shall
be handled by the department of civil affairs of the same level as the administrative department of education of the government and
the administrative department of labor of the government that have issued the license of Sino-foreign cooperative education. If the
license of Sino-foreign cooperative education is issued by the people’s government of a province, autonomous region or municipality
directly under the jurisdiction of the Central Government upon examination and approval, the application shall be handled by the
department of civil affairs of the people’s government of the province, autonomous region and municipality directly under the jurisdiction
of the Central Government.

III.

In the case that a Sino-foreign cooperative institution applies for being registered as a private non-enterprise entity, the fund,
the practicality, the intellectual property and other properties shall be regarded as non-state-owned assets. The share of non-state-owned
capital and assets in the registered capital contributions shall not be less than two thirds of the total capital and assets.

IV.

A Sino-foreign cooperative education institution that applies for being registered as a private enterprise entity shall use the Private
Non-enterprise Entity (juridical person) Registration Certificate. According to the Regulations, the Private Non-enterprise Entity
(Partnership) Registration Certificate may be used for establishing Sino-foreign cooperative institutions without juridical person
qualification.

V.

In the case that any educational institutions in Hong Kong Special Administrative Region, Macao Special Administrative Region and
Taiwan cooperate with the educational institutions in the Mainland of China, the provisions mentioned above shall be referred to.

In view of the strict policy and difficulties of Sino-foreign cooperative education, the administration shall be strengthened practically
in handling the applications for being registered as private non-enterprise entities filed by Sino-foreign cooperative educational
institutions. Any new circumstance and problems occurring at the work shall be reported to the department of the administration of
non-governmental organizations of the Ministry of Civil Affairs so as to be solved in time.



 
Ministry of Civil Affairs
2003-12-12

 






CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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