ANNOUNCEMENT NO.38, 2006 OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

the Ministry of Commerce

Announcement No.38, 2006 of the Ministry of Commerce of the People’s Republic of China

[2006] No.38

Ministry of Commerce issued Announcement No. 34 on June 13, 2005, on starting the anti-dumping investigation on imported Wear Resistant
Overlay originating from the U.S and EU. The investigated product is listed under No. 48064000 of Customs Tariff of Import and Export
of the People’s Republic of China.

Since this case is rather complicated, Ministry of Commerce decided to postpone the investigation period for another 6 month, namely
ending on December 13, 2006, in accordance with Article 26 of Anti-dumping Regulations of People’s Republic of China.

Ministry of Commerce

May 22, 2006

the Ministry of Commerce
2006-05-22

CRITERIA ON ASSIGNMENT OF THE STATE-OWNED LAND USE RIGHT THROUGH INVITATION FOR BID, AUCTION AND HANGING OUT A SHINGLE (FOR TRIAL IMPLEMENTATION)

Criteria on Assignment of the State-owned Land Use Right Through Invitation for Bid, Auction and Hanging Out a Shingle (For Trial
Implementation)

(Promulgated by Ministry of Land and Resources of the People’s Republic of China on May 31,2006, and shall enter into force as of
August 1, 2006)

Catalogue
Foreword

1. Scope of Application

2. Quotative Criterion and Documents

3. Basis

4. General Provisions

5. Publication of Assignment Plans and Determine of Land Supply

6. Setting-down and Determine of Assignment Plans

7. Land Price Evaluation and Determine of the Base Price of Assignment

8. Setting-down of Assignment Documents

9. Release of Assignment Declarations

10. Application and Qualification Examination

11.Execution of the Policy of “Invitation for Bid, Auction and Hanging Out a Shingle” – Invitation for Bid

12. Execution of the Policy of “Invitation for Bid, Auction and Hanging Out a Shingle” – Auction

13. Execution of the Policy of “Invitation for Bid, Auction and Hanging Out a Shingle” – Hanging Out a Shingle

14.Conclusion of Assignment Contracts and Publication of Assignment Results

15.Verification and Issuance of the Land Using Permit for Construction and Delivery of Land

16.Coping with of Land Registration

17. Archival Filing of Materials

Annex A: Model Text Formatting for “Preceding Application for Assignment of the State-owned Land Use Right”

Annex B: Text Formatting for “Declaration on Assignment of the State-owned Land Use Right”

Annex C: Model Text Formatting for “Instructions on Assignment of the State-owned Land Use Right”

Annex D Model Text Formatting for “Application for Offering a Bid (Competitive Bid)”

Annex E: Model Text Formatting for “Confirmation of the Qualification for Offering a Bid (Competitive Bid)”

Annex F: Model Text Formatting for “Tender Documents on Auction-based Assignment of the State-owned Land Use Right”

Annex G: Model Text Formatting for “Quotation of Prices of Hanging Out a Shingle Assignment of the State-owned Land Use Right”

Annex H: Model Text Formatting for “Authorization Letter”

Annex I: Model Text Formatting for “Notification of Award”

Annex J: Model Text Formatting for “Sales Confirmation”
Foreword

The current Criteria are specified in accordance with Law of Land Administration of the People’s Republic of China, Law of the People’s
Republic of China on the Administration of the Urban Real Estate, Interim Regulations of the People’s Republic of China Concerning
the Assignment and Transfer of the Right to the Use of State-owned Land in Urban Areas, and Provisions on Assignment of the State-owned
Land Use Right Through Invitation for Bid, Auction and Hanging Out a Shingle in order to improve the assignment system of the state-owned
land use right, govern the assignment of the state-owned land use right and unify the relevant procedures and criteria, optimize
the allocation of land resources and propel the construction of the land market.

Annex B is the text formatting for Assignment Declarations by means of invitation for bid, auction and hanging out a shingle and Annexes
A, C, D, E, F, G, H, I and J are the model text formatting for the other documents as requested in the assignment by means of invitation
for bid, auction and hanging out a shingle.

The current Criteria shall be specified and put under charge of the Ministry of Land and Resources.

The drafting institutions of the current Criteria are: The Administrative Department of Land Utilization under the Ministry of Land
and Resources, the Land Sort-out Center under the Ministry of Land and Resources, the Department of Land and Resources of Liaoning
Province, the Department of Land and Resources of Jiangsu Province, the Department of Land and Resources of Fujian Province, the
Department of Land and Resources of Shangdong Province, the Department of Land and Resources of Guangdong Province and the Bureau
of Land and Resources and Real Estate of Shenzhen Municipality.

The chief drafting personnel of the current Criteria are: Liao Yonglin, Leng Hongzhi, Yue Xiaowu, Lei Aixian, Gao Yong, Xie Liangxiong,
Song Yubo, Huang Qicai, Pan Guangming, Tu Gaokun, Wang Lianzhu, Mou Aofeng, Ye Weidong, Zhong Songyi, Lin Lisen, Shen Liang, Chen
Meiying, Zhou Xu, Shen Fei and Zhang Fang.

The drafting personnel of the current Criteria (arranged in a sequence in terms of the number of strokes of their surnames) are: Yu
Shizhuan, Ma Shang, Wang Wei, Che Changzhi, Deng Yuefang, Ye Yuanpeng, Ye Dong, Ren Zhaohong, Guan Wenrong, Liu Xianqi, Liu Xiangyuan,
Liu Ruiping, Zhu Yude, Yan Hongxi, Yan Zheng, Wu Yonggao, Wu Di, Wu Haiyang, Zhang Wanzhong, Zhang Yingqi, Li Yanrong, Li Xiaojuan,
Li Xiaobin, Shu Kexin, Yang Yufang, Yang Jiangzheng, Xiao Jianjun, Chen Yongzhen, Chen Guoqing, Lin Junheng, Luo Yanguang, Zhu Jun,
Hu Libing, Hu Hongbing, Zhao Chunhua, Hao Jihu, Gao Zhiyun, Xu Jianshe, Qin Shuirong, Qian Yougen, Liang Hong, Huan Wenbo, Han Jianguo,
Han Hongwei, Jin Wei, Pan Honggao, Wei Cheng and Wei Lihua.

The Ministry of Land and Resources is responsible for interpreting the current Criterion.

Scope of Application

The current Criteria shall be applied to the assignment of the state-owned land use right by means of invitation for bid, auction
or hanging out a shingle within the territory of the People’s Republic of China. Where any the state-owned land use right is leased
or any other right to the stand-owned land are assigned by mean of invitation for bid, auction or hanging out a shingle, it shall
be carried out by referring to the current Criteria. Where the state-owned land use right is assigned by means of invitation for
bid, auction or hanging out a shingle or where the land use right of the peasants’ collective construction land is transferred by
means of invitation for bid, auction or hanging out a shingle in accordance with law, it shall be carried out by referring to the
current Criteria.

Quotative Criterion and Documents

The clauses as involved by the following Criteria and documents constitute an entire part of the articles of the current Criteria
because of their quotation. All the versions involved herein take effect upon promulgation of the current Criteria. All the parties
that apply the current Criteria shall use the latest versions of the following Criteria and documents.

GB / T 18508 C2001 Criteria for Urban Land Price Evaluation

Model Text Formatting for Contract for Assignment of the Right to the Use of Land (Guo Tu Zi Fa [2000] No. 303)

Classification of the National Land (Guo Tu Zi Fa [2001] No. 255)

Controlling Indicators of the Land Used for Industrial Construction Projects (Guo Tu Zi Fa [2004] No. 232)

Basis

(1)

Law of the People’s Republic of China on Land Administration

(2)

Law of the People’s Republic of China on the Administration of Urban Real Estate

(3)

Law of the People’s Republic of China on Urban Planning

(4)

Law of the People’s Republic of China on Administrative License

(5)

Law of the People’s Republic of China on Contract

(6)

Interim Regulations of the People’s Republic of China on Assignment and Transfer of the Right to the Use of State-owned Land in Urban
Areas

(7)

The Program for Setting Up and Perfecting the System of Punishing and Guard against Corruption By Paying Equal Attention to Education,
Bylaws and Supervision (Zhong Fa [2005] No. 3)

(8)

Notification of the State Council on Strengthening the Administration of State-owned Land Assets (Guo Fa [2001] No. 15)

(9)

Determine of the State Council on Deepening Reform and Intensifying Strictly Land Administration (Guo Fa [2004] No. 28)

(10)

Provisions of the Disciplinary Supervision Department of the Central Discipline Inspection Commission of the CPC and the Ministry
of Government Supervision on Treating Those Cadres who Abuse Their Powers to Meddle and Intervene in Such Market Economic Activities
as the Bidding and Tendering of Construction Projects, Operational Assignment of the Right to the Use of Land, Real Estate Development
and Operation in order to Safeguard Private Interests for Himself or His Relatives (Zhong Ji Fa [2004] No. 3)

(11)

Provisions on the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging Out a Shingle (Decree
No. 11 of the Ministry of Land and Resources)

General Provisions

4.1

Connotation of the Assignment of the State-owned Land Use Right by Means of Invitation for Bid, Auction or Hanging Out a Shingle

The term “assignment of the state-owned land use right by means of invitation for bid” means an act whereby the administrative department
of land and resources at the municipal or county level promulgates a declaration on invitation for bid or delivers an invitation
in order to invite appointed or non-appointed legal persons, natural persons or any other organizations to join the invitation for
bid of the state-owned land use right, on the basis of which a land user may be decided in accordance with the result of bidding.

The term “assignment of the state-owned land use right by means of auction” means an act whereby the administrative department of
land and resources at the municipal or county level promulgates a declaration on auction so that the buyers direct open bidding at
a designated place and time, on the basis of which a land user may be decided in accordance with the result of bidding.

The term “assignment of the state-owned land use right by means of hanging out a shingle” means an act whereby the administrative
department of land and resources at the municipal or county level promulgates a declaration on hanging out a shingle, showing the
demands for land assignment within an assigned term, on the shingles in the designated trading place of land and the prices on the
shingle shall be renewed upon acceptance of the quotation as provided by buyers, on the basis of which a land user may be decided
in accordance with the result of bidding upon expiration of the term for hanging out a shingle or the on-site bidding result.

4.2

Principles in the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging Out a Shingle

(1)

Being open, fair and impartial; and

(2)

Being Honest and Credible.

4.3

Scope of the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging Out a Shingle

(1)

In the case of such operational land for commerce, tourism, entertainment and commercial residence as well as the industrial land
requiring competition;

(2)

In the case of two or more land users who want land use upon publication of another plan of land supply;

(3)

Where the intention of the use right of any allocated land is changed and if it is clearly showed in the Determine on Assignment of
State-owned Land or in accordance with the relevant laws, regulations and administrative provisions that the land use right shall
be receded and that an assignment shall be directed by means of invitation for bid, auction or hanging out a shingle;

(4)

In the case of assignment of the use right of any allocated land and if it is clearly showed in the Determine on Assignment of the
State-owned Land or in accordance with the relevant laws, regulations and administrative provisions that the land use right shall
be receded and that an assignment shall be directed by means of invitation for bid, auction or hanging out a Shingle;

(5)

Where the intention of the use right of any assigned land is changed and if it is clearly showed in the Determine on Assignment of
the State-owned Land or in accordance with the relevant laws, regulations and administrative provisions that the land use right shall
be receded and that an assignment shall be directed by means of invitation for bid, auction or hanging out a shingle;

(6)

Under any other condition where an assignment shall be directed by means of invitation for bid, auction or hanging out a shingle in
accordance with the provisions of relevant laws, regulations and administrative provisions.

4.4

Organization and Execution of the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging
Out a Shingle

4.4.1

Subject of Execution

The assignment of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall be organized
and carried out by the administrative department of land and resources at the municipal or county level.

4.4.2

Manner of Organization

The administrative department of land and resources at the municipal or county level may, when carrying out any assignment of the
state-owned land use right by means of invitation for bid, auction or hanging out a shingle, choose any of the following ways in
accordance with the real situation:

(1)

Where the administrative department of land and resources at the municipal or county level deals with it by itself;

(2)

Where the administrative department of land and resources at the municipal or county level appoints or grants its subordinated public
institution to specifically undertake; or

(3)

Where the administrative department of land and resources at the municipal or county level takes on by agents with relevant qualification
for coping with.

4.4.3

Institution in Charge of Coordination and Decision-making

A collective decision-making system shall put the assignment of the state-owned land use right into practice. The administrative department
of land and resources at the municipal or county level may, in accordance with the real situation, set up an institution in charge
of the coordination and Decision-making of the state-owned land use right, which shall be responsible for coordinating and solving
relevant issues in assignment and decide the relevant matters in a collective manner.

4.4.4

Presider of the Invitation for Bid, Auction or Hanging Out a Shingle of Land

The assignment of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall be presided
over by a staff who meets the demands for a presider of the invitation for bid, auction or hanging out a shingle of land as assigned
by the Ministry of Land Resources and has gained the relevant qualification.

4.4.5

Procedures for Land Assignment by Means of Invitation for Bid, Auction or Hanging Out a Shingle

(1)

Publicizing the plan of assignment and deciding the way of land supply;

(2)

Organizing and deciding the plan of assignment;

(3)

Assessing the land price and deciding the base price of assignment;

(4)

Organizing the assignment documents;

(5)

Publicizing a declaration on assignment;

(6)

Application and examination of qualification;

(7)

Carrying out the invitation for bid, auction or hanging out a shingle;

(8)

Signing the assignment contract and publicizing the result of assignment;

(9)

Verifying and issuing the land using permit for construction and delivering the land;

(10)

Dealing with of the land registration; and

(11)

Placing the relevant materials on archives.

4.5

Local Supplementary Provisions

The local government may make supplementary provisions or detailed rules for the current Criteria, which shall be declared to the
administrative department of land and resources at the next higher level for archival filing.

Publication of the Assignment Plan and Determination of Land Supply

5.1

The administrative department of land and resources at the municipal or country level shall promulgate an approved assignment plan
of the state-owned land use right to the general society, and the relevant region with mature conditions may, in accordance with
the arrangement of land supply, detail the relevant assignment plan of the state-owned land use right to specific location and plots
by installments and promulgate the relevant information to the society in a timely manner. The assignment plan of the state-owned
land use right as well as the detailed in location and plots shall be promulgated on www. landchina.com at the same time.

5.2

Where the administrative department of land and resources at the municipal or county level promulgates the assignment plan of the
state-owned land use right as well as the detailed in location and plots, it shall, simultaneously, make clear the way and means
whereby a land user applies for land use, and publicly accepts applications for land use.

5.3

The entity or individual that needs land use (hereinafter referred to as the intended land user) shall, in accordance with the information
on the assignment of the state-owned land use right and the detailed information on location and plots that have been promulgated
as well as its/his own demands, files an application for land use to the administrative department of land and resources at the municipal
or county level.

5.4

Preceding Application for Land Use

In order to comprehend fully of the market demands and arrange the scale and progress of land supply in a scientific and rational
way, the relevant region with mature conditions may set up a system of preceding application for land use. The entity or individual
that has any intent to use any specific plot that has been involved into an assignment plan based on invitation for bid, auction
or hanging out a shingle may file a preceding application for land use and commit a land price it/he may offer. Where the administrative
department of land and resources at the municipal or county level deems that any land price and conditions which an entity or individual
has provided is acceptable, it may, in accordance with the plan of land assignment as well as the current land market, organize and
carry out an invitation for bid, auction or hanging out a shingle for assignment at a proper time and inform the entities or individuals
that have filed a preceding application for land use to join it. The entity or individual that has filed a preceding application
for land use shall join the tendering or bidding, wherein the price shall not be any lower than the land price it/he has promised.

5.5

In accordance with the application of the intended land user, where the demands in Provisions 4.3 for assignment of the land use right
are satisfied, the means of invitation for bid, auction or hanging out a shingle shall be used. Where it cannot be decided whether
the specific land meets the demands of Provisions 4.3, it may be proven by the institution responsible for the coordination and decision-making
of assignment of the state-owned land use right in a collective manner. For the assignment of any land use right with comprehensive
objects or specified demands for society and public welfare construction or comparatively high demands for development and construction
and if only a few entities and individuals plan to get the right, the means of invitation for bid, auction or hanging out a shingle
may be used. The assignee shall be decided in accordance with the principle of “one with most favorable conditions wins”. For the
assignment of any other land use right, the means of invitation for bid, auction or hanging out a shingle shall be adopted and an
assignee shall be decided in accordance with the principle of “one who provides the highest price wins”. Where the state-owned land
use right is assigned by means of invitation for bid, the means of an open bid invitation shall be adopted. In the case of any strict
restriction on or special demands for land users, the means of bid invitation may be adopted.

Setting-down and Determination of the Assignment Plan

6.1

Setting down the Assignment Plan Based on Invitation for Bid, Auction or Hanging Out a Shingle

The administrative department of land and resources at the municipal and country level shall, in collaboration with such relevant
departments as competent department of city planning administration, set down the assignment plan of the state-owned land use right
by means of invitation for bid, auction or hanging out a shingle in accordance with the relevant assignment plan and city planning
of the state-owned land use right.

The assignment plan of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall include:
the specific location of the to-be-assigned plot, boundaries, intention of use, area, term, demands for land use, time of land supply,
way of land supply and time of construction. For any land for comprehensive use, the specific intention of use, area as well as its
term for assignment shall be clarified. Where any real estate of different intentions of use can be divided up and if the final users
are different entities and individuals, the term for assignment shall be decided in accordance with the specific intention of land
use as involved into the intention of comprehensive land use. Where the many intentions of use are hard to be divided up and the
final user is unique, the term for assignment may be regarded as 50 years, which is the maximum term for comprehensive land use.

6.2

Submitting for Approval of the Assignment Plan by Means of Invitation for Bid, Auction or Hanging Out a Shingle

The assignment plan of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall be submitted
for approval of the people’s government at the municipal or county level in accordance with the relevant provisions.

Land Price Evaluation and Determination of the Base Price

7.1

Land Price Evaluation

The administrative department of land and resources at the municipal or county level shall, in accordance with the conditions of the
to-be-assigned plot and the situation of the current land market, organize an evaluation on the to-be-assigned plot in order to obtain
the normal land market price thereof in accordance with the Criteria for Urban Land Evaluation.

A land price evaluation shall be implemented by the administrative department of land and resources at the municipal or county level
or any other subordinated public institution thereof and, when it so requires, an institution with the qualification may be entrusted
to implement a price evaluation on the land or real estate.

7.2

Determination of the Base Price

Where any assignment is based on a base price, the administrative department of land and resources at the municipal or county level
or the institution responsible for the coordination and decision-making of the assignment of the state-owned land use right shall,
in accordance with the result of land price evaluation, industrial policies and the current land market, make a collective decision
on deciding the base price and the deposits for invitation for bid and purchase in a comprehensive manner. Where any assignment is
directed by invitation for bid, the base price for a tender shall be decided simultaneously. Where any assignment is directed by
means of auction or hanging out a shingle, the initial price or starting price shall be decided simultaneously.

Where a base price for a tender or a base price is decided, it shall be remained confidential before the assignment is ended, and
shall not be divulged by any entity or individual.

Setting-down of Assignment Documents

The administrative department of land and resources at the municipal or county level shall, in accordance with the plan of assignment
by means of invitation for bid, auction or hanging out a shingle approved to set down documents of assignment of the state-owned
land use right by using invitation for bid, auction or hanging out a shingle.

8.1

The documents of assignment based on invitation for bid shall cover:

(1)

The declaration on assignment by means of invitation for bid or bid invitation;

(2)

Instructions on the assignment based on invitation for bid;

(3)

Tender document;

(4)

The application for bidding;

(5)

The boundary map of the land;

(6)

Demands of the land planning indicators;

(7)

Notification of award

(8)

Contract of Assignment of the State-owned Land Use Right; and

(9)

ANNOUNCEMENT NO.34, 2006 OF GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.34, 2006 of General Administration of Customs of the People’s Republic of China

In accordance with Anti-dumping Regulations of the People’s Republic of China and results of anti-dumping investigation on imported
wear resistant overlay originating from the United States and European Union, Ministry of Commerce decided carry out provisional
anti-dumping measures on imported wear resistant overlay originating from the United States and European Union and released Announcement
No.45, 2006 of Ministry of Commerce (please refer to Appendix No.1). Related matters are announced as follows:

As from Jun 16, 2006, besides Customs duties and value-added tax of in the linkage of import in line with the current regulations,
related departments will impose anti-dumping deposits on imported wear resistant overlay originating from the United States and European
Union in line with rates of anti-dumping deposits (please refer to Appendix 2 for details), different suppliers with different rates
of anti-dumping deposits:

Anti-dumping deposit = (price after customs duty * rate of anti-dumping deposit)*(1+ rate of value-added tax in the linkage of import)

Under item 48064000, all commodities with alumina are under the investigation of the said anti-dumping case; please refer to Appendix
No.1 for detailed description. In implementation of import declaration, the commodity code of above commodities is “4806400010” while
that of other commodities under item 48064000 shall be “4806400090”.

Importers must provide certificate of origin to Customs for import of wear resistant overlay; in case the commodities are from the
United States or European Union, commercial invoices from the original manufacturers are required as well. For those cannot provide
the certificate of origin, the Customs will impose an anti-dumping deposit in accordance with the highest rate of anti-dumping deposit
listed in Appendix 2 when failing to assure that the commodities are from the United States or European Union after investigation.
In case the commodities are from the United States or European Union, but import operators cannot provide commercial invoices from
the original manufacturers, the Customs will levy an anti-dumping deposit in accordance with rate of anti-dumping deposit of other
companies of relevant countries listed in Appendix 2.

Related issues on anti-dumping deposits on wear resistant overlay originating from the United States and European Union of processing
trade bonded import are subject to Announcement No.9, 2001 of General Administration of Customs of the People’s Republic of China
and Decree No.111 of General Administration of Customs of the People’s Republic of China.

General Administration of Customs will separately release announcement on disposal of anti-dumping deposits in accordance with arbitration
results.

During valid period of the provisional anti-dumping measures of the imported wear resistant overlay, if encounter the same or similar
commodities which the Customs cannot make sure whether to impose an anti-dumping deposit on or not, please apply to Ministry of Commerce
for judgment. The Customs will act in accordance with judgment of Ministry of Commerce.

Appendix:

Announcement No.45, 2006 of Ministry of Commerce of the People’s Republic of China (omitted)

Form of Rate of Anti-dumping deposit of Wear Resistant Overlay (omitted)

General Administration of Customs

Jun 15, 2006

General Administration of Customs
2006-06-15

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE STANDARD OF THE TAXABLE AMOUNT OF COAL RESOURCE TAX OF LIAONING PROVINCE

Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Standard of the Taxable Amount of Coal
Resource Tax of Liaoning Province

Cai Shui [2006] No.138

The public finance department and the local taxation bureau of Liaoning Province:

It is decided upon deliberation that the standard of the taxable amount of coal resource tax of your province will be uniformly increased
to as 2.8 yuan per ton as of September 1, 2006.

Please abide hereby.

Ministry of Finance

State Administration of Taxation

September 8, 2006

Ministry of Finance, State Administration of Taxation
2006-09-08

THE INTERIM MEASURES FOR THE ADMINISTRATION OF THE EXPORT OF TEXTILE PRODUCTS

Decree of the Ministry of Commerce

No. 21

The Interim Measures for the Administration of the Export of Textile Products have been deliberated and approved by the Ministry of
Commerce and agreed by the General Administration of Customs, General Administration of Quality Supervision , Inspection and Quarantine
and are hereby promulgated and shall come into effect as of the date of promulgation. The quotas of interim export of textile products
in 2006 shall be implemented in accordance with the Interim Measures for the Administration of Textile Products (Decree of the Ministry
of Commerce [2005] No.20). The Interim Measures for the Administration of Textile Products (the Ministry of Commerce shall be annulled
as of January 1, 2007.
Minister of the Ministry of Commerce: Bo Xilai

September 18, 2006

The Interim Measures for the Administration of the Export of Textile Products

Article 1

For the purpose of standardizing the export and operation order of textile products, the Measures herein are hereby formulated in
accordance with the Foreign Trade Law of the People’s Republic of China and the Administrative License Law of the People’s Republic
of China.

Article 2

The Ministry of Commerce shall be responsible for administrating of the export of national textiles and for cooperating with the
General Administration of Customs, the General Administration of Quality Supervision, Inspection and Quarantine to formulate and
adjusting the Catalogue of Commodities Subject to Interim Administration of the Export of Textile Products (hereinafter referred
to as “the Catalogue of Commodities Subject to Administration”).

The Catalogue of Commodities Subject to Administration shall be released by means of an announcement, and shall cover such contents
as the type, the number of tax regulations, and the country or region concerned, the time limit for the implementation, and the overall
licensed quantity of the products hereof.

Article 3

The Ministry of Commerce shall authorize the authority in charge of commerce of all provinces, autonomous regions, municipalities
directly under the Central Government, cities specifically designated in the state plan, Xinjiang Production and Construction Corps,
Harbin, Changchun, Shenyang, Nanjing, Wuhan, Chengdu, Guangzhou, and Xi’an (hereinafter referred to as “the local authorities in
charge of commerce”) to be responsible for administrating the interim export license of textile products).

The General Administration of Quality Supervision, Inspection and Quarantine shall, by referring to the advice of the Ministry of
Commerce, provisionally authorize the aforesaid authorities to be responsible for issuing the certification of the place of origin
of the textile products listed in the Catalogue of Commodities Subject to Administration.

Article 4

The export destination countries as mentioned herein refers to the ultimate destination countries (regions), and the countries involved
in processed trade export refers to the actual export countries with declaration. And the administration of entrepot trade shall
not be governed by the Measures herein.

Article 5

The Measures herein shall be applicable to the license administration of general trade, barter trade, processing and assembling trade,
bonded factory and other means of textile products export.

Where the textile products enter such special supervision zones of customs and bonded place as bonded area and export processing zone
from the outside zone within the territory of the People’s Republic of China and fall under the textile products listed in the Catalogue
of Commodities Subject to Supervision, the customs shall not examine and check the license hereof.

Where the textile products listed in the Catalogue of Commodities Subject to Administration are to be exported via the warehouses
under export supervision (export distribution warehouses), the customs shall check the license when the products are entered in the
warehouse and within the time limit (departure from the territory of the People’s Republic of China) as specified in the license,
the products shall be exported to the countries(regions) designated in the Catalogue of Commodities Subject to Administration and
shall not be remained within the territory of the People’s Republic of China.

Article 6

The textile products listed in the Catalogue of Commodities Subject to Administration shall be subject to interim export administration.
The Ministry of Commerce shall authorize the Quota & License Administrative Bureau to be responsible for consolidated administration
and guidance of the License of Interim Export of Textile Products( hereinafter referred to as “the License”) of the local authorities
in charge of commerce. The name list of the certificate authority, the form of the license and the stamp for special use shall be
otherwise promulgated by the Ministry of Commerce, the General Administration of Customs, and the General Administration of Quality
Supervision, Inspection and Quarantine.

Article 7

The foreign trade operators (hereinafter referred to as “the operators”) shall, prior to the export of the textile products listed
in the Catalogue of Commodities Subject to Supervision, handle the examination and approval procedures of interim export license
and withdraw the license in the local authorities in charge of commerce and handle the procedures of customs declaration, examination
and clearance formalities on the strength of the license.

Article 8

The commodities shall be listed in the Catalogue of Commodities Subject to Supervision in any of the following circumstances.

(1)

The relevant countries and regions set limit upon the textile products of the People’s Republic of China;

(2)

The textile products needed to be subject to the interim quantitative administration in accordance with the agreement made through
bilateral agreement.

Article 9

The interim export licensed quantity of the textile products listed in the Catalogue of the Commodities Subject to Administration
shall be allocated to all the operations by means of achievement distribution, the agreement of bid invitation. The detailed types
and quantity shall be otherwise promulgated by the Ministry of Commerce.

The achievement distribution shall be implemented in accordance with the Measures herein. The specific rules about the agreement of
bid invitation shall be otherwise announced by the Ministry of Commerce under the Measures herein.

Where such special situations occurs as volatile market change, the excessively low use rate of export licensed quantity or the chaotic
export order, the Ministry of Commerce may, in accordance with the proposal of textile export industry, adopt the interim measures
except Article 1 herein to restore the normal export order.

Article 10

The operation shall, in accordance with the relevant national labor, safety, and environmental protection laws and rules, conduct
the operational activities.

As for the operators confirmed by the relevant sectors and yet fail to fulfill the obligations of labor, security and environmental
protection, the Ministry of Commerce may abrogate the qualification the interim export licensed quantity herein obtained in accordance
with Article 9 herein and withdraw all the licensed quantity.

Article 11

The achievement distribution part shall be based upon the actual export achievement of the relevant commodities, and the applicable
amount with the interim export license (hereinafter referred to as “the applicable volume”) subject to the actual achievement of
customs export shall be determined in accordance with the following formula:

STc70%1/M1+30%2/M2

Where

(1)

S stands for the applicable volume;

(2)

T stands for the confirmed national total volume of temporary export licenses;

(3)

Q1 stands for the export performance of an operator to a restricting country (region). Q2 stands for the export performance of an
operator to all other countries and regions except the restricted ones (Q1);

(4)

M1 stands for the export performance of all operators of the country to the restricting countries (regions); M2 stands for the export
performance of all operators to the whole world (Q1except the restricted countries(regions);

(5)

The minimum applicable amount of all types of commodities shall be otherwise promulgated by the Ministry of Commerce. Where the applicable
amount calculated in accordance with the aforesaid formula is lower than the minimum applicable amount, the applicable amount of
the operator shall be zero;

(6)

The surplus amount lower than the minimum amount shall be allocated completely in accordance with the principle of priority of achievement.

Article 12

The Ministry of Commerce shall, in accordance with the following principles, determine the export achievement of the relevant commodities:

(1)

The export statistics subject to the 10-digit tariff line of China’s customs;

(2)

The time of statistics is the 12 months prior to the interim export license amount;

(3)

The export achievement of general trade, processing trade shall be calculated pursuant to 100% of the statistic export sum of China’s
customs;

(4)

The export achievement of the enterprises in western region of China shall be calculated in accordance with 150% of the statistical
export volume of China’s customs, the middle region and the enterprises in the northeast old industrial base shall be calculated
in accordance with 130% of the statistical export volume of Chinese customs;

(5)

The group enterprises with many subsidiaries and branches or holding company shall, in accordance with the actual amount of the operators
(the code of customs enterprises) and the amount of interim export license shall be calculated under the name of various operators.

Article 13

The Ministry of Commerce shall, in accordance with the aforesaid distribution principle, determine the types and amounts of the applicable
amount of various operators and distribute to the local authorities in charge of commerce by means of batches and the electronic
form and publish it in the website of the Ministry of Commerce.

Article 14

The operators shall, within the applicable types and amounts delivered by the Ministry of Commerce, raise the license amount application
with the local authorities in charge of commerce.

Article 15

The local authorities in charge of commerce shall, within 15 days as of the receipt of the applicable amount, summarize the application
of the local operators and submit them attached by the electronic data to the Ministry of Commerce.

The Ministry of Commerce shall, within 15 days as of the receipt of the application report from the local authorities in charge of
commerce, determine to deliver the distribution amount of interim export of the national operators.

Article 16

The licensed amount of interim export of textile products shall be allowed to be transferred. The transferor and the receiver may
log in the website of the interim export licensed amount of textile products http:\xk.ec.com.cnand transact it directly, the
transferor in some region may also have its technology transfer conducted by the regional authority in charge of commerce. The receiver
shall register in the industrial and commercial administrative authority, record and register in the authority in charge of foreign
trade and fulfill such obligations as labor, safety, and environmental protection.

Article 17

The temporary export licenses of textile product shall be subject to the system of “one license valid for one batch of products”
and “one license valid only for one customs authority clearance”. The licenses herein shall be effective within a calendar year and
the validity period shall be 6 months.

Where the textile products herein are not exported within the prescribed time limit, the holders of temporary export licenses of textile
products may go to the original license issuing authority to handle the extension procedures within at most three months. Where the
license is delayed or altered, the new one shall replace the original one.

Article 18

Where the operator who has obtained the interim export license amount does not completely use the quantity of the interim export
license, the operator shall hand the remaining part to the Ministry of Commerce via local authorities in charge of commerce.

Article 19

The amount which is handed over, fails to be applied for or relinquished shall be calculated in the remaining amount of interim export
of textile products of that year. The remaining overall amount shall be continuously distributed by the Ministry of Commerce in accordance
with Article 11 and shall complete the distribution hereof prior to at least 75 days as of the completion f the licensing year.

Article 20

Where the operator who has obtained the interim export licensed amount of textile products has used more than 20% yet no more than
30% of the achievement distribution within the effective time limit, the Ministry of Commerce shall deduct it from the equal amount
in the distribution amount of the next year. Where the unused amount exceeds 30% of the achievement performance within the effective
time limit, the Ministry of Commerce shall deduct it doubly from the distribution amount of the next year.

Article 21

Where the operator who has obtained the interim export license amount applies for and withdraws the license, the operator shall fill
in the Application Form for License and seal the seal of the unit. Where the operator applies via Internet, the operator shall faithfully
fill in the relevant electronic form and deliver it to the relevant license issuing authority.

Where the operator conducts the application in written form or via the Internet, the operator shall deliver the copy of the relevant
export contract to the license issuing authority at the same time.

Article 22

Every license issuing authority shall, after having received the substantially faithful and formally complete and effective application
of the license amount hereof, issue the license within three working days in accordance with the approved document of interim export
quantity and the relevant electronic data distributed by the local authority in charge of commerce with the authorization of the
Ministry of Commerce.

Article 23

As for the commodities subject to the interim export license administration, the operator shall, after having conducted the interim
export license, apply for and withdraw the certificate of the original place of textile products from the interim certificate issuing
authority authorized by the General Administration of Quality Supervision , Inspection and Quarantine. The certificate issuing authority
shall issue the certificate of the original place of textile products pursuant to the license.

The certificate of the original place shall be identity with such content as the quantity and sum in the license.

Article 24

The operator shall handle the export declaration procedure on the basis of the licenses stamped with the special seal for textiles
license; the commodities shall be cleared on the strength of the electronic data and written licenses from the Ministry of Commerce
and the certificate of original place of issued by competent issuing authorities.

Article 25

In the course of handling textiles export relevant procedures, the customs shall inspect and verify the licenses stamped with the
special seal for textile licenses. As for the textile products subject to legitimate inspection, the customs shall also handle the
clearance procedures on the strength of the Clearance Note of Entry Goods issued by the inspection and quarantine authorities.

The Ministry of Commerce as well as the General Customs Administration shall verify the license via Internet. The administration about
electronic check mechanism and the relevant inspection and verification shall be promulgated otherwise.

Article 26

The interim export license of textile products shall not be forged and altered. Where the export license approval document or the
export license are forged or altered, the parties involved in shall be given the relevant punishment in accordance with the Foreign
Trade Law of the People’s Republic of China, the Customs Law of the People’s Republic of China, Regulations of the People’s Republic
of China on the Administration of Import and Export Commodities and Measures Governing Goods Subject to Export Licenses.

Article 27

The exported sample products may be exempted from obtaining export licenses in cases where the quantity of each batch of exported
commodities does not exceed 50 pieces (including sets, pairs, kilograms or other commodities unit, excluding dozen, double ,dozen,
dozen set, ton); where the products are subject to license administration by the customs authority of the importing country, the
operators shall apply to the issuing bodies for licenses within the quota of license for the enterprise.

Article 28

The export of articles for overseas exhibition and articles for sales shall be handled in accordance with the relevant provisions
of the Measures for the Administration of Goods Subject to Export Licenses; where the goods are allowed for clearance in accordance
with the requirement of customs of the import country (region), it shall be handled in accordance with the Measures herein.

Article 29

Where the operator evades the Measures herein to transit the commodities produced in China to the countries (regions) prescribed
in the Catalogue of Commodities subject to Administration, the Ministry of Commerce shall render the relevant punishment hereto,
and prohibit the operator from being involved in the export operational activities within one year as of the date when the relevant
administrative punishment comes into effect.

Article 30

The inspection upon the issue of the license, the investigation of the law enforcement body, the verification upon the certificate
issuing authority as well as the punishment upon the certificate issuing authority in violation of the Measures herein and upon the
operators who forge or alter the license shall be handled in accordance with the Measures for the Administration of the License of
Exported Goods, unless otherwise prescribed.

Article 31

Such textile products as are processed in the mainland of China and yet its original place is outside the mainland shall not be applicable
to the Measures herein.

Article 32

The Ministry of Commerce shall be responsible for interpreting the Measures herein.

Article 33

The Measures herein shall come into effect as of the date of its promulgation.

Ministry of Commerce
2006-09-18

NOTICE OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE RULES FOR THE BID INVITATION OF ACCOUNTING FIRMS FOR THE AUDIT ENTRUSTMENT

the Ministry of Finance

Notice of the Ministry of Finance on Printing and Distributing the Rules for the Bid Invitation of Accounting Firms for the Audit
Entrustment

Cai Hui [2006] No.2

To the departments (bureaus) of finance of all provinces, autonomous regions and municipalities directly under the Central Government,
Shenzhen City Bureau of Finance, relevant ministries, commissions of and institutions directly under the State Council and enterprises
under central administration,

For the purpose of regulating the activities relating to the bid invitation of accounting firms for the audit entrustment, promoting
the fair competition in the industry of certified public accountants and protecting the lawful rights and interests of tenderees
and bidding firms, the Ministry of Finance has formulate the Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment,
which are now printed and distributed to you. The Rules shall come into force as of the date of March 1, 2006.

Annex: Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment

Ministry of Finance (Seal)

January 1, 2006 Annex:Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment

Article 1

For the purpose of regulating the activities relating to the bid invitation of accounting firms (hereinafter referred to as the firms)
for the audit entrustment, promoting the fair competition in the industry of certified public accountants and protecting the lawful
rights and interests of tenderees and bidding firms, these Rules are formulated according to the Bidding Law of the People’s Republic
of China, the Law of the People’s Republic of China on Certified Public Accountants and other relevant laws.

Article 2

The tenderees shall abide by the Bidding Law of the People’s Republic of China for the audit entrustment of firms by way of bid invitation,
which shall conform to these Rules.

Article 3

The principles of openness, fairness, equity and good faith shall be followed for the bidding activities.

No entity or individual may violate the laws or administrative regulations, restrict or exclude firms from participating in the bidding
or illegally interpose the bidding in any form.

When undertaking and conducting the audit work by way of bidding, a firm shall abide by the audit rules and professional ethics, fulfill
obligations and accomplish the bid winning project in strict accordance with the agreement on the audit work.

Article 4

The following procedures shall be observed when conducting the bid invitation of firms for the entrustment of audit work:

(1)

Bid invitation, which includes the determination of the way of bid invitation, the issuance of bid invitation announcements (in the
case of public bid invitation) or issuance of bid invitation letters (in the case of selective bid invitation), the formulation of
bid invitation documents and the delivery of bid invitation documents to potential bidding firms;

(2)

Bid opening;

(3)

Bid evaluation; and

(4)

Determination of the bid winning firm, issuance of the bid winning notice and conclusion of the agreement on the audit work with the
bid winning firm.

Article 5

Generally, a tenderee shall entrust a firm by way of public bid invitation.

If a bid invitation project is under any of the following circumstances, the method of selective bid invitation may be adopted:

(1)

There is particularity , meaning the firm can only be chosen from a limited scope; or

(2)

There is an emergency, meaning the entrustment cannot be accomplished by the way of public bid invitation within the prescribed time
limit.

Article 6

Where the way of public bid invitation is adopted, a bid invitation announcement shall be publicized. Where the way of selective bid
invitation is adopted, the bid invitation letters shall be sent out to at least three firms.

The bid invitation announcement and the bid invitation letters shall state the name and address of the tenderee, the quality, quantity,
implementation site and time of the bid invitation project as well as the measures for obtaining bid invitation documents, etc.

Article 7

A tenderee may request the potential firms to provide relevant qualification certificates and performance conditions in the bid invitation
announcement or the bid invitation letters, and carry out the qualification examination of potential bidding firms according to the
requirements of the project for bid invitation.

A tenderee shall make full use of the industrial information as publicized by the fiscal department and the association of certified
public accountants, and implement the provisions of the Ministry of Finance on the audit administration during the process of qualification
examination,.

Article 8

A tenderee shall formulate bid invitation documents according to the characteristics of bid invitation project and the requirements.
The bid invitation documents shall include:

(1)

The introduction of the bid invitation project;

(2)

The standards for the qualification examination of bidding firms;

(3)

The requirements on the quotes for bidding;

(4)

The standards for bid evaluation; and

(5)

The main articles of the agreement on the audit work to be concluded.

Article 9

A tenderee shall make explicit disclosure of the information about the bid invitation project in the bid invitation documents in order
to facilitate the determination of the workload, the formulation of the work schemes, the presentation of reasonable quotes and the
formulation of bidding documents by the bidding firms, which shall include the organizational structure, industry, operational type,
distribution and financial information (such as the assets scale and structure, debts, annual revenues and other relevant financial
indicators) of the entities to be audited.

Article 10

A tenderee shall conform to the requirements of the bid invitation project and reasonably determine the evaluation items, set down
the standards for evaluation and design the weight of the score of each evaluation item in the total score by the way of comprehensively
considering the work schemes, personnel situation, relevant work experiences, records of professional ethics and quality control
level, degree of commercial responses and quotes of bidding firms. The weight of the score as reported by any bidding firm shall
not be more than 20%.

The specific design of bid evaluation standards may be determined by referring to the attached Reference Table for the Evaluation
Items and the Design of their Weights.

Article 11

Where the time limit to complete the corresponding work for a bid invitation project needs to be determined, the tenderee shall reasonably
determine the time limit by taking into account the particularity of the industrial services of certified public accountants, and
state it in the bid invitation documents.

Article 12

A tenderee may organize the potential bidding firms for discussions and answering questions according to the specific conditions of
the bid invitation project. Where the potential bidding firms need to consult the detailed materials about the bid invitation project,
the tenderee shall offer convenience if possible.

Article 13

A tenderee shall consider the particularity of the industrial services of certified public accountants when determining the time limit
for the bidding firms to formulate bidding documents, and the time limit shall generally be not less than 20 days from the day when
the bid invitation documents are sent out to the expiry date for the bidding firms to submit bidding documents.

Article 14

A tenderee shall open the bids publicly and invite all the bidding firms to participate in the bid opening.

Article 15

A tenderee shall organize a bid appraisal committee to be responsible for bid appraisal.

The bid appraisal committee shall be composed of representatives of the tenderee and experts familiar with the industry of certified
public accountants Anyone that has interests with a tenderer shall not be a member of the bid appraisal committee for the relevant
project.

The members of a bid appraisal committee (hereinafter referred to as the judges) shall be an odd number of 5 persons or more, of which
the experts familiar with the industry of certified public accountants shall be no less than two thirds of all the members generally.

The name list of judges shall be kept unannounced before the bid winning results are determined.

Article 16

A tenderee shall take measures necessary to guarantee that the bids are evaluated under a strictly confidential circumstance. No entity
or individual may illegally intervene in or influence the process or result of bid appraisal.

Article 17

The judges shall give scores for bidding firms according to the standards for bid appraisal.

The bid appraisal committee shall rank all the bidding firms according to their scores and recommend the bid winning candidate firms
according to the ranking.

Article 18

The bid appraisal committee shall work out a written bid appraisal report to the tenderee after completing the bid appraisal,.

The tenderee shall determine the bid winning firm according to the written bid appraisal report as worked out and the bid winning
candidate firms as recommended by the bid appraisal committee, or may authorize the bid appraisal committee to directly determine
the bid winning firm.

Article 19

After the bid winning firm is determined, the tenderee shall send out a bid winning notice to the bid winning firm, and notify the
bid winning result to all the bidding firms that fail the bidding.

Article 20

A tenderee shall conclude an agreement on the audit work with the bid winning firm on the basis of the bid invitation documents and
the bidding documents of the bid winning firm within 30 days after the bid winning notice is sent out.

The tenderee shall not require the bid winning firm to alter the substantial contents of the bid invitation project, enhance the technical
requirements of the bid invitation project, reduce the fees for the entrusted matter or seek for commissions from the bid winning
firm for any excuse.

The tenderee shall not conclude any other agreement with the bid winning firm that is contrary to the substantial contents of the
agreement on the audit work.

Article 21

The Ministry of Finance and the fiscal departments of all the provinces, autonomous regions and municipalities directly under the
Central Government shall supervise the audit-related bidding activities and deter and deal with illegal and irregular acts during
the course of audit-related bidding activities according to the law.

Article 22

The entrustment of firms for other authentication and relevant services by the tenderees by way of bid invitation shall be conducted
by reference to these Rules.

Article 23

The power to interpret these Rules shall remain with the Ministry of Finance.

Article 24

These Rules shall come into force as of March 1, 2006.

Annex: Reference Table for the Appraisal Items and the Design of Their Weights htm/e04794.htmAnnex

Annex:

Reference Table for the Appraisal Items and the Design of Their Weights

Appraisal Items	Weight Scope
Work Plan	20%-30%
Personnel Situation	20%-30%
Relevant Work Experiences	15%-25%
Records of Professional Ethics and Quality Control Level	10%-15%
Degree of Commercial Responses	5%
Quote	10%-20%

Annotation: As to the appraisal of quotes, the standards for appraisal shall be the absolute value of the discrepancy between the
quote and average quote, and the lower the absolute value of the discrepancy is, the higher the score will be.

ANNOUNCEMENT NO.5, 2006 OF MINISTRY OF COMMERCE, ON STARTING ANTI-DUMPING INTERIM REVIEW ON IMPORTED ETHANOLAMINE

Ministry of Commerce

Announcement No.5, 2006 of Ministry of Commerce, on Starting Anti-dumping Interim Review on Imported Ethanolamine

[2006] No.5

The Ministry of Commerce issued Announce No.57 of 2004 on November 14, 2004 to start levying anti-dumping duties on imported Ethanolamine
(hereinafter referred to as investigated product) originating in Japan, the U.S., Iran, Malaysia, Taiwan Region and Mexico. Among
the related enterprises, the anti-dumping duties rate on Ethanolamine from Optimal Chemicals (Malaysia) Sdn. Bhd. was 9%.

The above-mentioned enterprise applied to Ministry of Commerce for a dumping and dumping margins judicial review on the anti-dumping
measures implemented to the enterprise and raised petition for amending the anti-dumping duty rate correspondingly.

In respond to the application, Ministry of Commerce made an examination on related issues and decided to start a judicial review,
as of the date when this announcement is issued, on the anti-dumping measures implemented on the investigated product from the above-mentioned
enterprise during a period from January 1, 2005 to December 31, 2005.

The investigated product is listed under No. 29221100, 29221200 in Import and Export Tariffs of the General Administration of Customs
of the People’s Republic of China.

Interested parties can apply in written forms to respond to charges in the interim review within 20 days as of the date the Announcement
is issued.

To get the necessary information for the investigation, Ministry of Commerce will send out questionnaire to the interested parties
accordingly, the answer sheet of which shall be submitted within 37 days as of the date of issuance of the questionnaire.

The interested parties could raise written petition for holding a hearing, which could also be held initiatively by Ministry of Commerce
when necessary.

Ministry of Commerce could, when necessary, send out staff to relate countries for field examination and verification, before which
the countries and enterprises will get notice in advance.

Any form of obstruction against the investigation may result in an arbitration based on the available fact and information.

Address: No. 2, DongChangAn St., Beijing

Postcode: 100731

Bureau of Fair Trade for Imports and Exports, Ministry of Commerce

Tel: 86-10-65198924;65198915

Fax: 86-10-65198915;65198172

Ministry of Commerce

February 10, 2006

Ministry of Commerce
2006-02-10

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 11 – SHARE-BASED PAYMENTS

The Ministry of Finance

Accounting Standards for Enterprises No. 11 – Share-based Payments

Cai Kuai [2006] No.3

February 15, 2006

Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the recognition, and measurement of share-based payments, and the disclosure of relevant information. .

Article 2

The term “share-based payment” refers to a transaction in which an enterprise grants equity instruments or undertakes equity-instrument-based
liabilities in return for services from employee or other parties.

The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based payments.

The term “equity-settled share-based payment” refers to a transaction in which an enterprise grants shares or other equity instruments
as a consideration in return for services.

The term “cash-settled share-based payment” refers to a transaction of payment of cash or any other asset obligation calculated and
determined on the basis of shares or other equity instruments undertaken by the enterprise in return for services.

The term “equity instrument” as mentioned in these Standards refers to the equity instruments of the enterprise’s own.

Article 3

The following items shall be governed by other accounting standards:

(1)

The Accounting Standards for Enterprises No. 20 – Business Combination shall apply to a transaction in which an enterprise issue the
equity instrument and obtains the net assets of another enterprise in a business combination.

(2)

The Accounting Standards for Enterprises No. 22 – Recognition and Measurement of Financial Instruments, shall apply to a transaction
in which equity instruments are granted as a consideration for other financial instruments.

Chapter II The Equity-settled Share-based Payments

Article 4

The equity-settled share-based payment in return for employee services shall be measured at the fair value of the equity instruments
granted to the employees.

The fair value of the equity instruments shall be confirmed in accordance with Accounting Standards for Enterprises No. 22 – Recognition
and Measurement of Financial Instruments.

Article 5

As to an equity-settled share-based payment in return for services of employees, if the right may be exercised immediately after the
grant, the fair value of the equity instruments shall, on the date of the grant, be included in the relevant cost or expense and
the capital reserves shall be increased accordingly.

The “grant date” refers to the date on which the share-based payment agreement is approved.

Article 6

As to a equity-settled share-based payment in return for employee services, if the right cannot be exercised until the vesting period
comes to an end or until the prescribed performance conditions are met, then on each balance sheet date within the vesting period,
the services obtained in the current period shall, based on the best estimate of the number of vested equity instruments, be included
in the relevant costs or expenses and the capital reserves at the fair value of the equities instruments on the date of the grant.

If, on the balance sheet date, the subsequent information indicates that the number of vested equity instruments is different from
the previous estimate, an adjustment shall be made and on the vesting date, the estimate shall be adjusted to equal the number of
the actually vested equity instruments.

The ” vesting period” refers to the period during which the specified vesting conditions are to be satisfied.

As to a share-based payment with a specified service period as the vesting condition, the vesting period shall be from the grant date
to the vesting date. As to a share-based payment with specified performances as the vesting condition, the length of the vesting
period shall be estimated in accordance with the most likely performance outcome.

The “vesting date” refers to the date on which the vesting conditions are met and the employees and other parties have the right to
obtain the equity instruments or cash from an enterprise.

Article 7

An enterprise shall, after the vesting date, make no adjustment to the relevant costs or expenses as well as the total amount of the
owner’s equities which have been confirmed.

Article 8

An equity-settled share-based payment in return for the service of any other party shall be conducted in accordance with the following
circumstances, respectively:

(1)

If the fair value of the service of any other party can be measured in a reliable way, the fair value of the service on the acquisition
date by any other service party shall be included in the relevant costs or expenses, and the owner’s equities shall be increased
accordingly.

(2)

If the fair value of the service of any other party can not be measured in a reliable way, but the fair value of the equity instruments
can be measured in a reliable way, the fair value of the equity instruments on date of the service acquisition shall be included
in the relevant costs or expenses, and the owner’s equities shall be increased accordingly.

Article 9

On the vesting date, an enterprise shall, based on the number of the equity instruments of which the right is actually exercised,
calculate and confirm the amount of the paid-in capital or capital stock to be transferred in, and transfer it in the paid-in capital
or stock capital.

The “vesting date” refers to the date on which the employees and other parties exercise the right, acquire cash or equity instruments.

Chapter III The Cash-settled Share-based Payments

Article 10

A cash-settled share-based payment shall be measured in accordance with the fair value of liability calculated and confirmed based
on the shares or other equity instruments undertaken by an enterprise. .

Article 11

As to a cash-settled share-based payment instruments, if the right may be exercised immediately after the grant, the fair value of
the liability undertaken by the enterprise shall, on the date of the grant, be included in the relevant costs or expenses, and the
liabilities shall be increased accordingly.

Article 12

As to a cash-settled share-based payment, if the right may not be exercised until the vesting period comes to an end or until the
specified performance conditions are met, on each balance sheet date within the vesting period, the services obtained in the current
period shall, based on the best estimate of the information about the exercisable right, be included in the relevant costs or expenses
and the corresponding liabilities at the fair value of the liability undertaken by the enterprise.

If, on the balance sheet date, the subsequent information indicates that fair value of the current liability undertaken by the enterprise
are different from the previous estimates, an adjustment shall be made and on the vesting date the estimate shall be adjusted to
equal the actually exercisable right.

Article 13

An enterprise shall, on each balance sheet date and on each account date prior to the settlement of the relevant liabilities, re-measure
the fair values of the liabilities and include the changes in the current profits and losses.

Chapter IV Disclosure

Article 14

An enterprise shall, in the notes, disclose the information related to the cash-settled share-based payments as follows:

(1)

The total amounts of the equity instruments that are granted, exercised and invalidated in the current period;

(2)

The range of the vesting prices for the share options or other equity instruments issued outward at the end of period, and the remainder
of the contractual period;

(3)

The weighted average prices of the share options or other equity instruments exercised in the current period which are calculated
based on the vesting date prices; and

(4)

The measures for the confirmation of the fair value of the equity instruments.

The enterprise may disclose the information of homogeneous share-based payments on a consolidated basis.

Article 15

An enterprise shall, in its notes, disclose the effects of the share-based payment transactions on the current financial status and
operating outcomes, which shall at least include the information as follows:

(1)

The total amount of the expenses as result of equity-settled share-based payments, which is recognized in the current period;

(2)

The total amount of the expenses as a result of cash-settled share-based payments, which is recognized in the current period; and

(3)

The total amount of the employee services and other party services as a result of the share-based payments in the current period
.

The Ministry of Finance
2006-02-15

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 26 – REINSURANCE CONTRACTS

the Ministry of Finance

Accounting Standards for Enterprises No. 26 – Reinsurance Contracts

No. 3 [2006] of the Ministry of Finance

February 15, 2006

Chapter I General Principles

Article 1

With a view to regulating the recognition and measurement of reinsurance contracts, and the presentation of relevant information,
the present Standards is formulated according to the Accounting Standards for Enterprises – Basic Standards .

Article 2

The term “reinsurance contract” refers to an insurance contract under which the insurer (reinsurance cedant) cedes a certain portion
of a premium to another insurer (reinsurance acceptor) and the reinsurance acceptor makes compensation to the cedant for the compensation
cost and other relevant expenses arising from the original insurance contract.

Article 3

The present Standards shall apply to the reinsurance contracts issued and held by insurers.

A sub-reinsurance contract under which an insurer cedes a reinsurance business which is ceded to it to another insurer shall be subject
to the present Standards .

Article 4

The original insurance contracts issued by insurers shall be subject to the Accounting Standards for Enterprises No. 25 – Original
Insurance Contracts.

Chapter II Accounting Treatment of Ceded-out Business

Article 5

No cedant may countervail the liabilities formed by relevant original insurance contracts with the assets formed by reinsurance contracts
against.

No cedant may countervail the expenses or incomes formed by the relevant original insurance contracts with the incomes or expenses
formed by the reinsurance contracts.

Article 6

A cedant shall, in the current period of recognition of the premium income of an original insurance contract, calculate and determine
the ceded premium in light of the reinsurance contract and record it into the profits and losses of the current period. Meanwhile,
if the original insurance contract is a non-life original insurance contract, the cedant shall, according to relevant provisions
of the reinsurance contract, calculate and recognize the receivable reinsurance unearned premium reserve as an asset and countervail
with it the undue premium reserve.

When the cedant adjusts the balance of the unearned premium reserve of the original insurance contract on the balance sheet date,
it shall adjust the amount of the receivable reinsurance unearned premium reserve accordingly.

Article 7

A cedant shall, in the current period of recognition of the premium income of the original insurance contract, calculate and determine
the reinsurance expenses which shall be recovered from the reinsurance acceptor and record them into the profits and losses of the
current period.

Article 8

A cedant shall, in the current period of drawing the reserve for unearned premium, reserve for life insurance liabilities or reserve
for long-term health insurance liabilities of an original insurance contract, calculate and determine the corresponding reserves
that shall be recovered from the reinsurance acceptor according to the provisions of the relevant reinsurance contract, and shall
recognize the corresponding reinsurance reserve receivable as an asset.

Article 9

A cedant shall, in the current period of determining and offsetting the amount of an indemnity payment or the expenses actually incurred
for the settlement of a claim against the balance of the corresponding reserve on the original insurance contract, offset it against
the balance of the corresponding receivable reinsurance reserve. Meanwhile, it shall, according to the provisions of the re-insurance
contracts, calculate and determine the compensation cost that shall be recovered from the reinsurance acceptor, and record it into
the profits and losses of the current period.

Article 10

A cedant shall, in the current period of the canceling of an original insurance contract ahead of schedule, calculate and determine
the amount of adjustment to the ceded premium or the recovered reinsurance expenses according to the provisions of the relevant reinsurance
contract, and record it into the profits and losses of the current period. Meanwhile, it shall write off the amount of the relevant
reinsurance reserves receivable.

Article 11

A cedant shall, in the current period of making an adjustment to the compensation cost of an original insurance contract because of
the obtainment or disposal of any post-loss goods, or recognition and receipt of any subrogation recourse fee, calculate and determine
the amount of adjustment to the to-be-recovered compensation cost according to the provisions of the relevant reinsurance contract,
and record it into the profits and losses of the current period.

Article 12

When a cedant issues a reinsurance bill, it shall recognize the reinsurance guarantee deposited in the current period as described
in the bill as the deposited-in reinsurance guarantee. Meanwhile, it shall write off the relevant deposited-in reinsurance guarantee
in light of the refund of the deposited-in reinsurance guarantee of the previous period as described in the bill.

The cedant shall, according to the relevant reinsurance contract, calculate the interest on the deposited-in reinsurance guarantee
of each period and record it into the profits and losses of the current period.

Article 13

A cedant shall, when being able to calculate and determine the net profit commissions which it shall charge from the reinsurance acceptor,
treat the profit commission as a recovered reinsurance expense according to the provisions of the relevant reinsurance contracts,
and record it into the profits and losses of the current period.

Article 14

As for a excess of loss reinsurance or any other non-proportional reinsurance contract, the cedant shall, according to the provisions
of the reinsurance contract, calculate and determine the premium to be ceded out, and record it into the profits and losses of the
current period.

A cedant shall, when making an adjustment to the premium, record the amount of adjustment into the profits and losses of the current
period.

A cedant shall, when being able to calculate and determine the compensation cost that shall be recovered from the reinsurance acceptor,
record the to-be-recovered compensation cost into the profits and losses of the current period.

Chapter III Accounting Treatment of Ceded-in Business

Article 15

No reinsurance premium income may be recognized unless it can simultaneously satisfy the following conditions:

(1)

The reinsurance contract is established and assumes relevant insurance liabilities;

(2)

The economic benefits related to the reinsurance contract are likely to flow in;

(3)

The economic benefits related to the reinsurance contract can be measured reliably.

The reinsurance acceptor shall, according to the provisions of the relevant reinsurance contracts, calculate and determine the amount
of reinsurance premium income.

Article 16

The reinsurance acceptor shall, in the current period of recognizing a reinsurance premium income, calculate and determine the reinsurance
expenses according to the provisions of the relevant reinsurance contracts, and record them into the profits and losses of the current
period.

Article 17

The reinsurance acceptor shall, when being able to calculate and determine the net profit commissions that it shall pay to the cedant,
treat the profit commissions as a reinsurance expense according to the provisions of the relevant reinsurance contracts, and record
it into the profits and losses of the current period.

Article 18

The reinsurance acceptor shall, when receiving a reinsurance bill, make an adjustment to the relevant premium income and premium expenses
in light of the amount as specified in the bill, and record the amount of adjustment into the profits and losses of the current period.

Article 19

The reinsurance acceptor shall accord with the relevant provisions of the Accounting Standards for Enterprises No. 25 – Original Insurance
Contracts when it draws reserves for unearned reinsurance premiums, outstanding reinsurance claims, reinsurance life insurance liabilities
and the reinsurance of long-term health care insurance liabilities, and tests the adequacy of the relevant reserves.

Article 20

The reinsurance acceptor shall, in the current period of receipt of a reinsurance bill, treat the amount of the reinsurance indemnity
payment as described in the said bill as the reinsurance compensation cost and record it into the profits and losses of the current
period.

Meanwhile, it shall offset it against the balance of the reinsurance reserve.

Article 21

The reinsurance acceptor shall, when receiving a reinsurance bill, shall recognize the reinsurance guarantee to be deposited in the
current period as stated in the bill as the deposited-out reinsurance guarantee. Meanwhile, it shall write off the relevant deposited
reinsurance guarantee in light of the refund of the deposit-out reinsurance guarantee of the previous period as stated in the bill.

The reinsurance acceptor shall, according to the provisions of the reinsurance contract, calculate the interest on the deposit-out
reinsurance guarantee of each period and record it into the profits and losses of the current period.

Chapter IV Presentation

Article 22

An insurer shall, in its balance sheets, separately present the following items related to the reinsurance contract:

(1)

the receivable reinsurance;

(2)

the receivable unearned reinsurance premium reserve;

(3)

the receivable reserve for outstanding reinsurance claims;

(4)

the receivable reserve for reinsurance life insurance liabilities;

(5)

the receivable reserve for the reinsurance of long-term health insurance liabilities; and

(6)

the payable reinsurance.

Article 23

An insurer shall, in its profit statements, separately present the following items related to the reinsurance contract:

(1)

the reinsurance premium income;

(2)

the ceded-out premium;

(3)

the recovered reinsurance expense;

(4)

the reinsurance expense;

(5)

the recovered compensation cost;

(6)

the reinsurance compensation cost;

(7)

the recovered reinsurance compensation cost;

(8)

the recovered reserve for life insurance liabilities; and

(9)

the recovered reserve for long-term health insurance liabilities.

Article 24

An insurer shall, in its notes, discover the following information related to the reinsurance contract:

(1)

the information on the increase and decrease of reinsurance reserves for the ceded-in business.

(2)

the main actuarial assumptions and methods for making reinsurance reserves and testing the adequacy of the reinsurance reserves for
the ceded-in business.

the Ministry of Finance
2006-02-15

ANNOUNCEMENT OF SEPA, SDRC, MOFCOM, GAC AND AQSIQ ON THE ISSUANCE OF GUIDING RULES FOR IDENTIFYING SOLID WASTES” (FOR TRIAL IMPLEMENTATION)

the State Environmental Protection Administration, the State Development and Reform Commission, the Ministry of Commerce, the General
Administration of Customs, and the State Administration of Quality Supervision, Inspection and Quarantine

Announcement of SEPA, SDRC, MOFCOM, GAC and AQSIQ on the Issuance of Guiding Rules for Identifying Solid Wastes” (for Trial Implementation)

[2006] No. 11

For the purpose of implementing the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution
by Solid Wastes and strengthening the environmental administration of solid wastes, we hereby promulgate the Guiding Rules for Identifying
Solid Wastes (for Trial Implementation), which shall come into force as of the date of April 1, 2006.

Annex: Guiding Rules for Identifying Solid Wastes (for Trial Implementation)

State Environmental Protection Administration

State Development and Reform Commission

Ministry of Commerce

General Administration of Customs

State Administration of Quality Supervision, Inspection and Quarantine

March 9, 2006 Annex:Guiding Rules for Identifying Solid Wastes (for Trial Implementation)

The present Guiding Rules shall be applicable for the identification of the solid wastes and non-solid wastes as defined in the Law
of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes, but shall not be applicable
for determining their HS codes. For the sake of discriminating solid wastes from non-solid wastes, a judgment shall be made based
on the definition in the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid
Wastes at first; and the scope of solid wastes listed in the present Guiding Rules may be referred to in a second place. In case
it is still hard to make a judgment after referring to the foregoing definition and the scope of solid wastes, a judgment may accord
Part III of the present Guiding Rules.

In case of any dispute over the identification result on whether a certain substance, article or material belongs to solid wastes
or non-solid wastes, the national environmental protection administrative department shall organize and convene an experts conference
to identify it and make a judgment jointly with the relevant departments. If, at the import stage, any importer is dissatisfied with
the customs’ decision on including the imported goods into the management scope of solid wastes, it may apply for administrative
reconsideration in accordance with the law or bring an administrative lawsuit to the people’s court in accordance with Article 26
of the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes.

Definition of Solid Wastes

The term “solid wastes” shall refer to the articles and substances in solid, semi-solid state or gas in containers that are produced
in the production, living and other activities and have lost their original use values or are discarded or abandoned, as well as
the articles and substances that are included into the management scope of solid wastes as required by any law or administrative
regulation.

II.

Scope of Solid Wastes

The substances or articles listed in II (I) but not included in II (II) are solid wastes. Any substance or article included in II
(II) is not a solid waste.

(I)

Solid wastes shall include (but not be limited to) the following substances, articles or materials:

(1)

Garbage gathered from household;

(2)

Abandoned substances and discarded products from production;

(3)

Abandoned substances from laboratories;

(4)

Abandoned substances from office work;

(5)

Sludge from urban sewage treatment plants, residues from domestic garbage plants;

(6)

Other garbage, residues and sludge from pollution control facilities;

(7)

Sludge from dredging of urban riverways;

(8)

Products failing to conform to the standards or norms, excluding those used continuously for the original purpose;

(9)

Shoddy and inferior products;

(10)

Substances or articles declared by the owner or its representative as wastes;

(11)

Polluted materials (such as oil polluted by polychlorinated biphenyls [PCBs]);

(12)

Any material, substance or article prohibited by law from use; and

(13)

Substances or articles declared by the environmental protection administrative department of the State Council as solid wastes.

(II)

Solid wastes shall not include the following substances or articles:

(1)

Radioactive wastes;

(2)

Substances or articles directly returning to the original production process or the occurrence process on site without being stored;

(3)

Any substance or article used for its original purpose;

(4)

Samples for laboratory use; and

(5)

Other substances or articles that need not be managed as solid wastes upon approval of the environmental protection administrative
department of the State Council.

III.

Identification of Solid Wastes and Non-solid Wastes

(I)

Judging them according to the working methods and the reasons of the wastes

Judging them according to the working methods listed in Table 1 and the reasons listed in Table 2. If a substance, article or material
has to be treated in a working method listed in Table 1, and satisfies one or more reasons listed in Table 2, it may be judged as
a solid waste. Table 1 and Table 2 must be used in combination, and neither may be used separately for the identification of solid
wastes.

Table 1 Working Methods (Omitted)

Table 2 Reasons why the wastes must be comprehensively utilized or be stored or disposed of / Categories of wastes (omitted)

(II)

Judging them according to the features and impacts

To assess whether a substance, article or material (hereinafter referred to as substance) belongs to solid wastes, the following factors
shall be took into consideration:

(1)

General consideration, which includes: whether the substance is produced intentionally, whether it is manufactured to meet the market
demands, whether its economic value is negative, and whether it is a part of the chain of normal commercial circulation or use.

(2)

Features, which includes: whether the production of the substance is under quality control, and whether it meets nationally or internationally
acknowledged norms/ standards.

(3)

Environmental impact, which includes: whether the use of the substance is harmless to the environment when compared with primary products;
whether the use of the substance increases risks to human health or the environment in the process of production when compared with
corresponding raw materials; whether it causes greater risks to human health or to the environment; whether the substance contains
any ingredients harmful to the environment, and such ingredients are not found to be utilizable or re-utilizable in an effective
way in the process of re-circulation in the substituted raw materials or products.

(4)

Use and destination, which includes: whether the substance needs to be further processed before it is put into use; whether it may
be directly applied in production or commerce; whether it may be put into use after a simple repair; whether it is still suitable
for its original purpose; whether it may be used as a substitute for other purposes; whether it is actually applied in production;
whether it has a fixed use; whether it may be utilized in the existing form or without being treated through any working method listed
in Table 1; whether it may not be utilized until treated through a working method listed in Table 1.

To assess whether a substance is a solid waste, all the abovementioned factors shall be comprehensively considered.

The factors to be focused on are also different in light of different objects to be evaluated. The following flow charts may be used
as a reference for identifying solid wastes from non-solid wastes, but at the time of specific application, the identification shall
be made according to the features and impacts of the substance.

Flow Chart on Discriminating Solid Wastes from Non-solid Wastes (Omitted)

the State Environmental Protection Administration, the State Development and Reform Commission, the Ministry of Commerce,
the General Administration of Customs, and the State Administration of Quality Supervision, Inspection and Quarantine
2006-03-09

1...91011...25 Page 10 of 25

Probate

INTERIM PROVISIONS ON ADMINISTRATION OF THE EXPORT OF PRECURSOR CHEMICALS TO PARTICULAR COUNTRIES (REGIONS)

DETAILED RULES FOR THE IMPLEMENTATION OF THE REGULATION ON THE ADMINISTRATION OF COMMERCIAL PERFORMANCE

ANNOUNCEMENT NO.38, 2006 OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

CRITERIA ON ASSIGNMENT OF THE STATE-OWNED LAND USE RIGHT THROUGH INVITATION FOR BID, AUCTION AND HANGING OUT A SHINGLE (FOR TRIAL IMPLEMENTATION)

ANNOUNCEMENT NO.34, 2006 OF GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE STANDARD OF THE TAXABLE AMOUNT OF COAL RESOURCE TAX OF LIAONING PROVINCE

THE INTERIM MEASURES FOR THE ADMINISTRATION OF THE EXPORT OF TEXTILE PRODUCTS

NOTICE OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE RULES FOR THE BID INVITATION OF ACCOUNTING FIRMS FOR THE AUDIT ENTRUSTMENT

ANNOUNCEMENT NO.5, 2006 OF MINISTRY OF COMMERCE, ON STARTING ANTI-DUMPING INTERIM REVIEW ON IMPORTED ETHANOLAMINE

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 11 – SHARE-BASED PAYMENTS

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 26 – REINSURANCE CONTRACTS

ANNOUNCEMENT OF SEPA, SDRC, MOFCOM, GAC AND AQSIQ ON THE ISSUANCE OF GUIDING RULES FOR IDENTIFYING SOLID WASTES” (FOR TRIAL IMPLEMENTATION)

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7