CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING THE TAX PAYMENT BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES ENGAGING IN THE BUSINESS OF FINANCIAL ASSET DISPOSITION

The State Administration of Taxation

Circular of the State Administration of Taxation on the Relevant Issues Concerning the Tax Payment by Enterprises with Foreign Investment
and Foreign Enterprises Engaging in the Business of Financial Asset Disposition

GuoShuiFa [2003] No.3

January 7, 2003

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

We hereby give our notice on the relevant issues concerning the tax payment by enterprises with foreign investment and foreign enterprises
engaging in the business of financial asset disposition as follows in accordance with the Income Tax Law of the People’s Republic
of China for Enterprises with Foreign Investment and Foreign Enterprises and the detailed rules for its implementation, as well as
the Interim Regulation of the People’s Republic of China on Business Tax and the detailed rules for its implementation:

Enterprises with foreign investment and foreign enterprises (hereinafter referred to as enterprises) shall, regarding their income
obtained in China from the business of financial asset disposition, file tax returns and pay value-added tax, business tax and enterprise
income tax in accordance with the tax laws and the present circular.

II.

The business of financial asset disposition shall mean that an enterprise obtains by means of purchase or holding shares through absorption,
etc. from a financial asset management corporation inside the territory of China the share rights, creditor’s rights and physical
assets of other enterprises inside the territory of China or the entire assets composed of the above said assets (hereinafter referred
to as replacement assets), and then dispose the above said replacement assets by means of transfer, retractation, exchange and sale,
etc., and obtain the corresponding returns.An enterprise may dispose of the financial assets by the following means:

(a)

retracting or transferring the creditor’s rights;

(b)

converting the creditor’s rights it holds into share rights;

(c)

disposing of the physical assets it has right to control;

(d)

selling or transferring the share rights it holds;

(e)

returning its replacement assets;

(f)

disposing of the replacement assets by other means.

III.

An enterprise shall, when obtaining replacement assets, regard the price when the assets were actually purchased or when it held the
shares through absorption as the original price. The classification of replacement assets shall be based on the pricing object when
the said assets are obtained, which may be one share right of an enterprise of sole pricing, or the single item of asset in the form
of creditor’s right or physical asset, or the combined assets uniformly priced with several items of assets being bound.For the re-classification
and re-combination of all or part of the replacement assets obtained by an enterprise, the original price of the single item of or
the combined replacement assets may be determined after the re-classification and re-combination, provided that the original price
of the replacement assets after the re-classification and re-combination shall not exceed the original price at the time when the
enterprise obtained the replacement assets.

IV.

An enterprise shall, when disposing of the replacement assets, be exempted from the business tax and value-added tax in accordance
with the following provisions:

(a)

no business tax shall be levied on an enterprise that disposes of replacement assets of creditor’s right;

(b)

no business tax shall be levied on an enterprise for the income which it obtains from disposition of replacement assets of share right
(including disposition by means of debt to equity);

(c)

business tax shall be levied on an enterprise for the income which it obtains from disposition of its own physical replacement assets
if such assets are real estates; while if such assets are goods, value-added tax shall be levied in accordance with the regulations
on value-added tax and the relevant provisions.

With respect to the income obtained by an enterprise from its disposition of replacement assets, enterprise income tax shall be calculated
and paid on the basis of the net proceeds after the original price, expenses and losses of the relevant assets are deducted.Where
an enterprise disposes of its replacement assets by stages or by installments, the part exceeding the original price shall, when
the income from its disposition of assets exceeds the original price of replacement assets in the form of single item of or combined
assets, be calculated into the present taxable income of the enterprise, and then enterprise income tax shall be calculated and levied.The
losses occurred due to an enterprise’s disposition of a single item of or combined replacement assets, may be deducted from the present
taxable income of the enterprise. For the combined assets, the losses shall be calculated after the disposition of combined assets
has been totally finalized.

VI.

A foreign enterprise that has not set up an office or a site inside the territory of China shall, either by itself or by authorizing
its agent inside the territory of China, file tax returns and pay its payable tax amount. Its payable enterprise income tax may be
paid at the locality of the enterprise to which one item of the replacement assets belongs; while the place for the payment of its
payable business tax or value-added tax shall be determined in accordance with the relevant provisions.

The State Administration of Taxation
2003-01-07

LETTER OF THE MINISTRY OF COMMERCE ABOUT REINFORCING THE PROTECTION OF INTELLECTUAL PROPERTY WHEN ATTENDING OR ORGANIZING OVERSEAS EXHIBITIONS

Letter of the Ministry of Commerce about Reinforcing the Protection of Intellectual Property When Attending or Organizing Overseas
Exhibitions

Shang Fa Han [2007] No.16

The people’s governments of all provinces, autonomous regions, municipalities directly under the Central Government, the cities specifically
designated in the state plan and Xinjiang Production and Construction Corporations.:

During these years, the Chinese enterprises have been involved in more and more disputes on intellectual property when attended overseas
exhibitions. On CPHL Worldwide 2006 which was held in France, the Chinese enterprise exhibitors were suspected of infringement on
intellectual property, which leaded to ill consequences, for example, some related personnel were detained and some exhibits were
confiscated. The same thing happened in March 2007 on CeBIT, which was held in Hanoverian, Germany. The repetitive occurrence of
such incidents shows that some Chinese enterprises are short of the awareness of protecting intellectual property and fail to place
enough emphasis on the protection of intellectual property when preparing to go abroad to attend exhibitions. Such incidents have
not only impaired China’s overseas good image in the facet of protection of intellectual property, but also resulted in great damage
to the reputation and interests of those enterprise exhibitors themselves and even endangered the personal safety of some individuals.

To respect and protect intellectual property is not only a requirement for the development of enterprises themselves, a requirement
for the development of national economy and science and technology, but also a requirement for promoting the sound development of
Chinese-foreign trade and economic relations. Therefore we should make continuous efforts to enhance enterprises’ understanding of
protecting intellectual property. For the purpose of guiding enterprises going abroad to attend exhibitions to do well the protection
of intellectual property, we hereby inform the related issues as follows:

Great emphasis shall be laid on the protection of intellectual property in attending overseas exhibitions. More efforts in guiding
and supervising the related local functional management shall be made. And an effective work mechanism to avoid the occurrence of
infringements in overseas exhibitions shall be set up.

The circumstances about the protection of intellectual property in the process of attending overseas exhibitions by local enterprises
shall be sorted out and analyzed. The administration of enterprises attending overseas exhibitions and entities organizing overseas
exhibitions shall be further reinforced. The examination and verification of the protection of intellectual property shall be taken
as an importance task.

A responsibility system for infringements on intellectual property shall be set up. Those domestic enterprises that attend overseas
exhibitions or entities organizing overseas exhibitions which lead to serious consequences because of their infringement upon intellectual
property shall be imposed upon necessary punishment according to the actual circumstances.

Enterprises attending overseas exhibitions or entities organizing overseas exhibitions shall be trained in terms of intellectual property
to improve their awareness of protecting intellectual property. They shall not only protect their own intellectual property but respect
others’ legitimate rights and interests.

All regions shall actively conduct China’s business councils in foreign countries to hear the related suggestions when organizing
overseas exhibitions.

Each region shall contact the Department of Treaty and Law of the Ministry of Commerce in the case of any complaint or suggestion
in conducting the related work.

Contact person: Yang Hanhui, Chen Fuli

Tel: 65198154/8761

Ministry of Commerce

April 30, 2007

Ministry of Commerce
2007-04-30

MEASURES FOR THE ADMINISTRATION OF INFORMATION DISCLOSURE OF COMMERCIAL FRANCHISES

Decree No.16 of the Ministry of Commerce of the People’s Republic of China No.16

Measures for the Administration of Information Disclosure of Commercial Franchises have been discussed and adopted at the 6th executive
meeting of the Ministry of Commerce on April 6 2007. They are hereby promulgated and shall come into effect as of May 1, 2007. Minister Bo Xilai April 30, 2007 Measures for the Administration of Information Disclosure of Commercial Franchises Article 1 For the purpose of safeguarding the legitimate rights and interests of franchisers and franchisees, these Measure are formulated under
the Regulations for the Administration of Commercial Franchises (hereinafter referred to as the Regulations) Article 2 These Measures apply to commercial franchise activities within the territory of the People’s Republic of China. Article 3 The associated company herein refers to the parent company of the franchiser, subsidiary company which the franchiser owns directly
or indirectly all or the controlling interest thereof, company which the same owner owns all or the controlling interest with the
franchiser directly or indirectly. Article 4 The franchiser shall disclose the information as stipulated in Article Five in writing to the franchisee within at least 30 days before
the day the franchise contract is signed based on the requirement of the Regulations, and provide the franchise contract. Article 5 The information disclosed by the franchiser shall include the following: 1. The basic information on the franchiser and franchise activities (1) Franchiser’s name, address, contact details, legal representative, general manager, registered capital, scope of business, and the
number of regular chains as well as their addresses and phone numbers. (2) A brief introduction to the commercial franchise activities of the franchiser. (3) Basic information on archival filing of the franchiser. (4) If the franchiser’s associated company provides products and services to the franchisee, the associated company’s basic information
shall be disclosed. (5) Information on the bankruptcy and application for bankruptcy of the franchiser or of its associated company in the latest five years. 2. The basic information on the business resources of the franchiser (1) Provide the franchisee with the information on business resources available such as registered trademark, enterprise symbol, patent,
proprietary technology, and business mode, etc. (2) If the owner of the above-mentioned business resources is the associated company of the franchiser, then the basic information of
the associated company shall be disclosed, and the franchiser shall also explain how to handle the franchise system once the concession
contract is rescind. (3) The information about business resources of the franchiser (or its associated company) involving in litigation or arbitration, such
as the registered trademark, enterprise symbol, patent, and proprietary technology, etc. 3. Basic information on the franchise expenditure (1) If the types, amount, criteria and payment mode of the fees collected by the franchiser or on behalf of the third party cannot be
disclosed, then the franchiser shall explain the reason; if the standards to collect fees are not consistent, then the franchiser
shall disclose the maximum and minimum standards, and explain the reason. (2) The collection, return conditions, return time, and return mode of the margin. (3) If the franchisee is required to pay the fee before the franchise contract is made, then the franchiser shall explain in writing to
the franchisee the use of the fee and the conditions and mode to return the fee. 4. Information on prices and conditions of the products, services and equipment provide for the franchisee. (1) Whether the franchisee must purchase products, services or equipment from the franchiser (or its associated company), as well as the
prices and conditions. (2) Whether the franchisee must purchase products, services or equipment from the suppliers appointed or approved by the franchiser. (3) Whether the franchisee can choose other suppliers and the conditions that the suppliers must be equipped with. 5. Information on providing continuous services to the franchisee. (1) Detailed content, way of provision and implementation plans for professional training, including the location, approach and length
of the training. (2) Detailed content of the technical support, the catalogue of operation manual of franchise, and the number of pages. 6. The methods and content of guidance and supervision over the franchise activities of the franchisee. (1) The franchiser’s methods and content of guidance and supervision over the franchise activities of the franchisee, the franchisee’s
obligations, and the consequences of failure to fulfill them. (2) Whether the franchiser shall shoulder joint liability for the complaints and compensations of the consumers, and how to take the liability. 7. Information on investment budget of the franchise network (1) Expenditure on the investment budget may include the following: initial fee; training fee; real estate and decoration fee, procurement
fee of equipment, office supplies, furniture, etc; initial inventory; water, electricity and gas fees; fees needed to obtain license
and other government approvals; and working capital. (2) The statistical source and basis for estimation of the above-mentioned fees 8. Information on the franchisee within the territory of China. (1) Information on the present and estimated number of franchisees, geographical distribution, scope of license, whether or not having
exclusive license region (if yes, the estimated detailed scope shall be explained) (2) Information on the evaluation of performance of the franchisee, the franchiser shall disclose information on the actual or estimated
average sales volume, cost, gross profit, and net profit of the franchisee, and shall explain the source of the above-mentioned information,
length and franchise network involved, if the information is estimated, then the franchiser shall explain the basis for estimation,
and point out that the actual performance of the franchisee may be different from the estimation. 9. Abstracts of the franchiser’s financial and accounting reports and of the audit reports in the last two years audited by the accounting
firms or auditing firms. 10. Information on major litigation and arbitration concerning franchises of the franchiser in the latest five years. (1) Major litigation and arbitration refer to litigation and arbitration involving litigation fare of more than RMB 500, 000 (2) The basic information, location of the litigation and the results shall be disclosed. 11. Information on the record of major illegal operation of the franchiser and its legal representative, records of major illegal operation. (1) Where the fine imposed by the competent administrative law enforcement department is not less than 300, 000 but more than 500, 000. (2) Where the franchiser and its legal representative have been sentenced to criminal responsibility. 12. Franchise Contract (1) Sample franchise contract (2) If the franchiser requires franchisee to sign with the franchiser (or the associated company) other franchise contracts, this type
of sample contract shall be provided at the same time. Article 6 The franchiser may not have any cheating and misleading practices in the promotion activities, and the advertisement may not include
the content about the individual franchisee’s profit from the franchise activities. Article 7 Before the franchiser discloses information to the franchisee, the former has the right to require the latter to sign Non-Disclosure
Agreement. Article 8 After the franchiser discloses information to the franchisee, the franchisee shall provide the franchiser with a return receipt in
duplicate, after the franchisee signs the receipt, each party retains one copy. Article 9 If the franchiser hides the information that shall be disclosed or discloses false information, the franchisee may rescind the franchise
contract. Article 10 If the franchiser violates these Measures, the franchisee has the right to report to the commerce authority, if the case is confirmed
after investigation, the commerce authority shall order the franchiser to make rectification, and impose a fine no less than RMB
10, 000 but no more than RMB 50,000; if the circumstances are serious, the fine shall be no less than RMB 50, 000 but no more than
RMB 10, 000, and a public announcement shall be made. Article 11 The power to interpret these Measures shall remain with the Ministry of Commerce. Article 12 These Measures shall come into effect as of May 1 2007.

The Ministry of Commerce
2007-04-30

CIRCULAR OF THE GENERAL OFFICE OF CHINA BANKING REGULATORY COMMISSION ON REGULATING THE OVERSEAS INVESTMENT SCOPE FOR COMMERCIAL BANKS TO PROVIDE OVERSEAS FINANCIAL MANAGEMENT SERVICES ON BEHALF OF CLIENTS

Circular of the General Office of China Banking Regulatory Commission on Regulating the Overseas Investment Scope for Commercial Banks
to Provide Overseas Financial Management Services on Behalf of Clients

Yin Jian Ban Fa [2007] No. 114

All banking regulatory administrations, all state-owned commercial banks and joint-stock commercial banks,

Since the promulgation of the Circular on the Related Issues for Commercial Banks to Provide Overseas Financial Management Services
on Behalf of Clients (Yin Jian Ban Fa [2006] No. 164, hereinafter referred to as the Circular), related business procedures for commercial
banks to provide overseas financial management services on behalf of clients have been sorted out fundamentally, and related investment
experience has been accumulated. On the premise that commercial banks make overseas investment by rigidly differentiating self-owned
funds from clients’ funds and sell products in light of the types of clients, the overseas investment scope is hereby regulated and
the related requirements are hereby brought forward as follows, so as to further diversify the investment varieties of overseas financial
management services on behalf of clients and promote the stable development of such business.

The provision of “not directly investing in stocks, their structured products, commodity derivatives or securities below the grade
of BBB” in paragraph 4 of Article 6 of the Circular shall be regulated as “not investing in commodity derivatives, hedge funds or
securities below the grade of BBB as granted by internationally recognized grading agencies”.

The following requirements shall be met, when a commercial bank issues overseas financial management products on behalf of clients,
which are used to invest in overseas stocks:

(1)

The stocks to be invested in shall be those listed in overseas stock exchanges;

(2)

The funds used to invest in such stocks may not exceed 50% of the total net assets of a single financial management product; the funds
used to invest in a single stock may not exceed 5% of the total net assets of a single financial management product. The commercial
bank shall timely regulate the investment portfolio within the period of investment so as to ensure the continued compliance with
these requirements;

(3)

The minimum sales amount for a single client shall be more than 300,000 Yuan (or the foreign currency with an equivalent value);

(4)

The clients shall have related experiences in stock investment. The commercial bank shall formulate specific evaluation standards
and procedures, evaluate the experiences of clients in stock investment, and ask clients to sign for the confirmation of related
evaluation results;

(5)

The verse as investment manager shall be an institution approved or ratified by the overseas supervisory department which has concluded
the memorandum of understanding on supervisory cooperation concerning the overseas financial management products on behalf of clients
with China Banking Regulatory Commission (hereinafter referred to as the CBRC). The commercial bank shall conduct fidelity examination
on the overseas investment managers it selects, and ensure that the manager continuously holds the corresponding qualification; and

(6)

The commercial bank shall choose the stocks in the stock exchanges under the supervision of the overseas supervisory department which
has concluded the memorandum of understanding on supervisory cooperation concerning the overseas financial management services on
behalf of clients with the CBRC for investment.

A commercial bank shall, when providing overseas financial management products on behalf of clients, which are used to invest in overseas
fund products, select those as approved, registered or ratified by the overseas supervisory department which has concluded the memorandum
of understanding on supervisory cooperation concerning the overseas financial management services on behalf of clients with the CBRC.

A commercial bank shall, when issuing overseas financial management products on behalf of clients, which are used to invest in overseas
structured products, select those as provided by the financial institutions with the grade of A or higher as granted by internationally
recognized grading agencies.

A commercial bank shall, when providing overseas financial management services on behalf of clients, accord to the principles of prudence
and diversification of assets, fully take into account the market situation, its resources, its risk management capabilities and
investors’ risk tolerating ability, etc., carry out the development of products and the design of investment portfolio from the aspect
of asset allocation, avoid concentration risks with respect to investment areas, types of assets and investment objective.

A commercial bank shall, when providing overseas financial management services on behalf of clients, formulate related rules for investment
management, explicitly prescribe the principles, norms and procedures for selecting overseas investment managers and various investment
products, and the related staff members shall own corresponding qualities and qualifications.

A commercial bank shall, when providing overseas financial management services on behalf of clients, make investments strictly according
to the investment objective, investment scope, investment portfolio and investment restrictions as stipulated with its clients.

A commercial bank shall, when providing overseas financial management services on behalf of clients, use swaps, forwards and other
derivative financial instruments circulated in the financial market just for the purpose of avoiding risks, not for speculation or
large transactions.

A commercial bank shall, when providing overseas financial management services on behalf of clients, set up a client suitability evaluation
mechanism in light of the principle of “knowing about your clients”, and shall, based on the financial status, investment objectives,
investment experiences, risk preferences, investment expectations and etc. of its clients, evaluate the risk affordability of its
clients, determine the risk rating of its clients, provide its clients with the products in line with their appropriate risk levels,
and avoid wrongful or improper sales of its financial management personnel.

10.

A commercial bank shall, when providing overseas financial management services on behalf of clients, rigidly manage its financial
management personnel, pay great attention to the training of the marketing staff for financial management business, make them know
the features and risks of financial management products they sold and inform their clients of all these features and risks in a proper
manner during the selling process, and ensure the regulation compliance of their sales.

11.

A commercial bank shall, when providing overseas financial management services on behalf of clients, completely separate the raised
clients’ funds from its self-owned funds and the funds of relevant persons in charge, and open a separate account in the name of
financial management products. Commercial banks and their related persons in charge shall be strictly prohibited from misappropriating
the clients’ funds.

12.

A commercial bank may not, when providing overseas financial management services on behalf of clients, transfer the interests with
any related person in charge.

13.

When providing overseas financial management services on behalf of clients, a commercial bank shall, with the assistance of relevant
persons in charge and strictly according to the Interim Measures for the Administration of Commercial Banks’Personal Financial Management
Services and the Interim Measures for the Administration of Commercial Banks’ Financial Management Services on Behalf of Clients,
regularly disclose the related information to its clients for their investment decisions, and timely disclose unexpected incidents,
which will result in serious affect on the interests or yields of investors to its clients, and perform the obligation of information
disclosure dutifully.

14.

A commercial bank shall, when providing overseas financial management services on behalf of clients, set up and properly implement
procedures for the disposal of complaints the clients inside, properly accept, investigate and handle the complaints of clients.

15.

A commercial bank shall, when providing overseas financial management services on behalf of clients, set up a related risk management
system, formulate and continuously improve risk management rules, practically prevent market risks, credit risks, operational risks,
legal risks, reputation risks and etc., and ensure the legitimate rights and interests of investors.

16.

The clauses other than those that have been regulated in this Circular remain applicable.

All banking regulatory administrations shall forward this Circular to urban commercial banks, foreign-funded banks and other banking
financial institutions within their respective jurisdictions.

General Office of China Banking Regulatory Commission

May 10, 2007

General Office of China Banking Regulatory Commission
2007-05-10

REGULATIONS ON EXPORT CONTROL OF MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES

Regulations of the People’s Republic of China on Export Control of Missiles and Missile-related Items and Technologies

Article 1 These Regulations are formulated for the purposes of strengthening export control of missiles and missile-related items
and technologies, and safeguarding the State security and social and public interests.

Article 2 The export of missiles and missile-related items and technologies referred to in these Regulations means the export for trade of
missiles and missile-related equipment, materials and technologies listed in “The Missiles and Missile-related Items and Technologies
Export Control List” (hereinafter referred to as the Control List) attached to these Regulations, and the gift to, exhibition in,
scientific and technological cooperation with, assistance to, provision of service for as such and other forms of technological transfer
thereof to foreign countries and regions.

Article 3 The State shall exercise strict control on the export of missiles and missile-related items and technologies so as to prevent the
proliferation of missiles and other delivering systems listed in the Control List that can be used to deliver weapons of mass destruction.

Article 4 The State shall practice a licensing system for the export of missiles and missile-related items and technologies. Without being
licensed, no unit or individual shall export missiles and missile-related items and technologies.

Article 5 The export of items and technologies listed in Part I of the Control List shall be subject to the Regulations of the People’s Republic
of China on Administration of Arms Export and other relevant provisions.

To export items and technologies listed in Part II of the Control List (hereinafter referred to as missile-related items and technologies),
the exporter shall follow the examination and approval procedures provided for in Articles 7 to 13 of these Regulations; however,
the export of missile-related items and technologies for military purpose shall be subject to the provisions of the preceding paragraph.

Article 6 The receiving party of missile-related items and technologies shall guarantee not to use missile-related items and technologies supplied
by China for purposes other than the declared end-use, nor to transfer missile-related items and technologies supplied by China to
any third party other than the declared end-user without the consent of the Chinese Government.

Article 7 Exporters of missile-related items and technologies shall register themselves with the competent department in charge of foreign
economic relations and trade of the State Council (hereinafter referred to as the competent foreign economic and trade department
of the State Council). Without such registration, no unit or individual shall export missile-related items and technologies. The
specific measures for such registration shall be formulated by the competent foreign economic and trade department of the State Council.

Article 8 Anyone who intends to export missile-related items and technologies shall apply to the competent foreign economic and trade department
of the State Council, fill in the export application form for missile-related items and technologies (hereinafter referred to as
the export application form), and submit the following documents:

(1) identification of the applicant’s legal representative, chief managers and the persons handling the deal;

(2) duplicates of the contract or agreement;

(3) technical specifications of the missile-related items and technologies;

(4) certificates of the end-user and end-use;

(5) documents of guarantee as defined in Article 6;

(6) other documents as may be required by the competent foreign economic and trade department of the State Council.

Article 9 An applicant shall truthfully fill in the export application form.

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

Article 10 The competent foreign economic and trade department of the State Council shall, from the date of receiving the export application
form and the documents set forth in Article 8 of these Regulations, examine the application, or examine the application jointly with
other relevant departments of the State Council and relevant departments of the Central Military Commission, and make a decision
of approval or denial within 45 working days.

Article 11Where the export of missile-related items and technologies entails significant impact on the State security, social and public interests,
the competent foreign economic and trade department of the State Council shall, jointly with relevant departments, submit the case
to the State Council and the Central Military Commission for approval.

Where the export of missile-related items and technologies is submitted to the State Council and the Central Military Commission for
approval, the timing restriction set forth in Article 10 of these Regulations shall not be applied.

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

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

Article 14 While exporting missile-related items and technologies, the exporter shall present the export licence to the Customs, complete the
customs procedures and accept supervision and control of the Customs in accordance with the provisions of the Customs Law.

Article 15 Where the receiving party contravenes the guarantees made according to the provisions of Article 6 of these Regulations or there
is a risk of proliferation of missiles and other delivering systems listed in the Control List that can be used to deliver weapons
of mass destruction, the competent foreign economic and trade department of the State Council shall suspend or revoke the export
licence granted and notify the Customs in writing.

Article 16 Where the exporter knows or should know that the missile-related items and technologies to be exported will be used by the receiving
party directly in its program for developing missiles and other delivering systems listed in the Control List that can be used to
deliver weapons of mass destruction, the export shall be subject to the provisions of these Regulations even if the items or technologies
are not listed in the Control List.

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

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

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

Article 20 Where a license for the export of missile-related items and technologies is obtained by fraud or other illegal means, the competent
foreign economic and trade department of the State Council shall revoke such an export license, confiscate the illegal income, impose
a fine of not more than the illegal income, and suspend or even revoke the licensing for their foreign trade operations.

Article 21 Where, in violation of Article 7 of these Regulations, the export of missile-related items and technologies is operated without registration,
the competent foreign economic and trade department of the State Council shall ban such illegal activities according to law, and
relevant competent departments of the State shall impose punishment thereon in accordance with relevant laws and administrative regulations.

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

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

Article 24 These Regulations shall be effective as of the date of promulgation.

ANNEX

THE MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES EXPORT CONTROL LIST

1. INTRODUCTION

(1) Part 1 of this List includes missiles and other delivery systems (including ballistic missiles, cruise missiles, rockets and unmanned
air vehicles) as well as their specially designed items and technologies. Part 2 includes items and technologies related to Item
1 of Part 1.

(2) If a Part 1 item is included in a system, that system will also be considered as a Part 1 item, except when the incorporated item
cannot be separated, removed or duplicated and the system is designed for civilian uses, where the item will be considered as a Part
2 item.

(3) All items listed in this List include their directly related technologies.

2. DEFINITIONS

For the purpose of this List, the following definitions apply:

(1) “Technology” means specific information which is required for the “development”, “production” or “use” of a product. The information
may take the form of “technical data” or “technical assistance”. But “technology” does not include technology “in the public domain”
nor “basic scientific research”.

(a) “In the public domain” as it applies to this List means technology which has been made available without restrictions upon its
further dissemination. (Copyright restrictions do not remove technology from being “in the public domain”.)

(b) “Basic scientific research” means experimental or theoretical work undertaken principally to acquire new knowledge of the fundamental
principles of phenomena and observable facts, not primarily directed towards a specific practical aim or objective.

(2) “Development” is related to all phases prior to “production” such as:

(a) Design

(b) Design research

(d) Design concepts

(e) Assembly and testing of prototypes

(f) Pilot production schemes

(g) Design data

(h) Process of transforming design data into a product

(i) Configuration design

(j) Integration system design

(k) Layouts

(3) “Production” means all production phases such as:

(a) Production engineering

(b) Manufacture

(d) Assembly

(e) Inspection

(f) Testing

(g) Quality assurance

(4) “Use” means:

(a) Operation

(b) Installation (including on-site installation)

(d) Repair

(e) Overhaul

(f) Refurbishing

(5) “Technical data” may take forms such as:

(a) Blueprints

(b) Plans

(d) Models

(e) Formulae

(f) Engineering designs and specifications

(g) Manuals and instructions written or recorded on other media or devices such as disk, tape, read-only memories.

(6) “Technical assistance” may take forms such as:

(a) Instruction

(b) Skills

(d) Working knowledge

(e) Consulting services

(7) “Production facilities” means equipment and specially designed software therefor integrated into installations for “development”
or for one or more phases of “production”.

(8) “Production equipment” means tooling, templates, jigs, mandrels, moulds, dies, fixtures, alignment mechanisms, test equipment,
other machinery and components therefor, limited to those specially designed or modified for “development” or for one or more phases
of “production”.

PART I

1. Complete ballistic missiles, space launch vehicles, sounding rockets, cruise missile and unmanned air vehicles that can be used
to deliver at least a 500 kg payload to a range of at least 300 km as well as the specially designed production facilities therefor.

2. The following items usable in the systems in Item 1:

(1) Individual stages of a ballistic missile;

(2) Individual stages of a rocket;

(3) Reentry vehicles of missiles;

(4) Heat shields and components fabricated of ceramic materials used in Subitem (3);

(5) Heat shields and components fabricated of ablative materials used in Subitem (3);

(6) Heat sinks and components fabricated of light-weight, high heat capacity materials used in Subitem (3);

(7) Electronic equipment specially designed for Subitem (3);

(8) Storable liquid propellant rocket engines, having a thrust force of 90 kN or greater;

(9) Solid propellant rocket engines, having a total impulse capacity of 1100 kN s or greater;

(10) Guidance sets capable of achieving system accuracy of 10 km or less (CEP) for ballistic missiles with a range of 300 km;

(11) Thrust vector control sub-systems;

(12) Warhead safing, arming, fuzing, and firing mechanisms;

(13) Production facilities and equipments designed for Subitems (1) to (12).

3. Interstage mechanisms for space launch vehicles and the specially designed production equipment therefor.

4. Rocket motor cases and the specially designed production equipment therefor.

5. Hydraulic, mechanical, electro-optical, or electro-mechanical flight control systems specially designed or modified for the systems
in Item 1 of Part I.

6. Attitude control equipment specially designed or modified for the systems in Item 1 of Part I.

7. Design technology for integration of air vehicle fuselage, propulsion system and lifting control surfaces to optimize aerodynamic
performance throughout the flight regime of an unmanned air vehicle.

8. Design technology for integration of the guidance, flight control, and propulsion data into a flight management system for optimization
of trajectory of ballistic missiles or space launch vehicles.

9. Passive interferometer equipment usable in the systems in Item 1.

10. Apparatus and devices designed or modified for the handling, control, activation and launching of the systems in Item 1.

11. Vehicles designed or modified for the transport, handling, control, activation and launching of the systems in Item 1.

12. Gravity meters, gravity gradiometers, and specially designed components therefor, for airborne or marine use, and having a static
or operational accuracy of one milligal or better, with a time to steady-state registration of two minutes or less;

13. Precision tracking systems:

(1) Tracking systems which use a translator installed on the rocket system or unmanned air vehicle in conjunction with either surface
or airborne references or navigation satellite systems to provide real-time measurements of in-flight position and velocity;

(2) Software which processes post-flight, recorded data, enabling determination of vehicle position throughout its flight path.

14. Structure specially designed for reduced radar reflectivity.

15. Structural material specially designed for reduced radar reflectivity.

16. Coatings specially designed for reduced radar reflectivity.

17. Coatings specially designed for reduced optical reflectivity or emissivity.

18. Production equipment, technology and specially designed software usable in Items 14 to 17 above.

19. Technology and specially designed software for reduced radar reflectivity, ultraviolet/infrared signatures or acoustic signatures.

PART II

1. Reentry Vehicle Components and Technology Thereof

(1) Design and manufacturing technology for ceramic heat shields;

(2) Design and manufacturing technology for ablative heat shields;

(3) Design and manufacturing technology for heat sinks and components thereof;

(4) Structure for protection against electromagnetic pulse (EMP) and X-rays and shock wave and combined blast and thermal effects:

(a) Radiation-hardened microcircuits and detectors;

(b) Hardened radome structure designed to withstand a combined thermal shock greater than 418 J/cm2 accompanied by a peak over pressure
of greater than 50 kPa.

(5) Design technology for radiation hardenning;

(6) Design technology for hardened structure.

2. Propulsion Components and Technology Thereof

(1) Lightweight turbojet engines that are small and fuel efficient;

(2) Lightweight turbofan engines that are small and fuel efficient;

(3) Lightweight turbocompound engines that are small and fuel efficient;

(4) Ramjet engines;

(5) Scramjet engines;

(6) Pulse jet engines;

(7) Combined cycle engines;

(8) Devices to regulate combustion for the above Subitems (4) to (7);

(9) Liquid and slurry propellant control systems, and specially designed components thereof, designed or modified to operate in vibration
environments of more than 10 g (RMS) between 20 Hz and 2,000 Hz:

(a) Servo valves designed for flow rates of 24 liters per minute or greater, at an absolute pressure of 7,000 kPa or greater, that
have an actuator response time of less than 100 microseconds;

(b) Pumps, for liquid propellants, with shaft speeds equal to or greater than 8,000 RPM or with discharge pressures equal to or greater
than 7,000 kPa.

(10) Production facilities specially designed for the above Subitems (1) to (9).

3. Liquid Propellants

(1) Hydrazine with a concentration of more than 70 percent;

(2) Unsymmetric dimethylhydrazine (UDMH);

(3) Monomethylhydrazine (MMH);

(4) Mixed amine;

(5) Dinitrogen tetroxide;

(6) Red Fuming Nitric Acid.

4. Solid Propellant and Propellant Constituents

(1) Metal fuels with particle sizes less than 500 mm, whether spherical, atomized, spheroidal, flaked or ground, consisting of 97
percent by weight or greater of any of the following metal and alloys of these:

(a) Zirconium;

(b) Boron;

(d) Titanium;

(e) Uranium;

(f) Tungsten;

(g) Zinc;

(h) Cerium.

(2) Ammonium perchlorate with particle sizes less than 500 mm;

(3) Spherical aluminum powder meeting the following requirements:

(a) With particle of uniform diameter;

(b) With aluminum content of 97 percent or greater;

(4) Boron Slurry, having an energy density of more than 40 x 106 J/kg;

(5) Nitro-amines:

(a) Cyclotetramethylene-tetranitramene (HMX);

(b) Cyclotrimethylene-trinitramine (RDX).

(6) Composite Propellants:

(a) Molded colloid propellants;

(b) Propellant including nitrate bonding agents and with an aluminum (particle) content of 5 percent or greater.

(7) Polymeric substances:

(a) Carboxl-terminated polybutadiene (CTPB);

(b) Hydroxy-terminated polybutadiene (HTPB).

(8) Triethylamine as an igniting agent.

5. Guidance and Control Set, Components and Related Technologies

(1) Gyro-astro compasses and other devices which derive position or orientation by means of automatically tracking celestrial bodies
or satellites;

(2) Flight control software and related test software;

(3) Gyro stability platform;

(4) Automatic pilots for UAV;

(5) Gyros with a rated drift rate stability of less than 0.5 degree per hour;

(6) Test table for inertial platform (including high-accuracy centrifuges and rotating table);

(7) Inertial Measurement Unit (IMU) tester;

(8) Inertial Measurement Unit (IMU) stable element handling fixture;

(9) Inertial Measurement Unit (IMU) platform balance fixture;

(10) Tester for gyro tuning;

(11) Tester for gyro dynamic balance;

(12) Gyro run-in/motor test station;

(13) Gyro evacuation and filling station;

(14) Centrifuge fixture for gyro bearings;

(15) Rectangular scatterometer for ring laser gyro production;

(16) Polarity scatterometer for ring laser gyro production;

(17) Reflectometer for ring laser gyro production;

(18) Surface profilometer for ring laser gyro production;

(19) Accelerometers with a proportional error of 0.25 percent or less;

(20) Accelerometer test station;

(21) Accelerometer axis align station;

(22) Specially designed test, calibration, and alignment equipment for gyro or accelerometer.

6. Target Detection System and Related Electronics

(1) Radar systems;

(2) Altimeters;

(3) Terrain contour mapping equipment;

(4) Scene mapping and correlation (both digital and analog) equipment;

(5) Imaging sensor equipment;

(6) Processors and software specially designed for processing navigation information;

(7) Electronic devices and components removed of conductive heat;

(8) Radiation-hardened electronic devices and components;

(9) Electronic assemblies and components operating at temperatures in excess of 125 C for a short period of time;

(10)Electronic devices and components with specially designed integrated support;

(11) Telemetry equipment and related technologies;

(12) Telemetering and telecontrol ground equipment;

(13) Analogue computers and digital computers having either of the following characteristics:

(a) Rated for continuous operation at temperatures from below minus 45 C to above plus 55 C;

(b) Designed as ruggedized or radiation hardened.

(14) Analogue-to-digital converter having one of the following characteristics:

(a) Rated for operation at temperatures from below minus 54 C to above plus 125 C, and

(b) Designed to meet military specifications for ruggedized equipment; or

(c) Designed or modified for military use or designed as radiation hardened, and having one of the following characteristics:

Converting at a rate of over 200000 times (complete conversion) per second under rated accuracy;

With accuracy exceeding 1/10000 of the whole range in the rated temperature scope;

With quality factor of over 1 108 (complete conversion times per second divided by accuracy);

The inbuilt microcircuits having the following characteristics:

(A) The maximum converting time is less than 20 microseconds under maximum resolution, and

(B) The rated nonlinearity is better than 0.025 percent of the range in rated temperature scope.

(15) Design technology for protection of avionics and electrical subsystems against electromagnetic pulse and electromagnetic interference
hazards from external sources:

(a) Design technology for shielding systems;

(b) Design technology for the configuration of hardened electrical circuits and subsystems;

7. Material

(1) Structural composites, including composite structures, laminates, and manufactures thereof, and resin impregnated fibre prepregs
and metal coated fibre preforms therefor, made with either organic matrix or metal matrix utilizing fibrous or filamentary reinforcements
having a specific tensile strength greater than 7.62 x 104 m and a specific modulus greater than 3.18 x 106 m:

(a) Polyimide composite;

(b) Polyamide composite;

(d) Quartz-fibre-reinforced composite;

(e) Carbon-fibre-reinforced composite;

(f) Boron-fibre-reinforced composite;

(g) Magnesium matrix composite;

(h) Titanium matrix composite.

(2) Ceramic composite materials with dielectric constant less than 6 at frequencies from 100 Hz to 10,000 MHz;

(3) Fine grain bulk artificial graphites having the following features measured at 20 C:

(a) With a bulk density of at least 1.72 g/cm3;

(b) With a tension rupture strain of at least 0.7 percent;

(4) Resaturated pyrolized carbon-carbon materials;

(5) Special Steel:

Titanium-stabilized duplex stainless steel (Ti-DSS) having the following characteristics:

(a) Containing 17.0 to 26.5 weight percent chromium and 4.5 to 7.0 weight percent nickel;

(b) Having a ferritic-austenitic microstructure (also referred to as a two-phase microstructure) of which at least 10 percent is austenite
by volume;

Ingots or bars having a size of 100 mm or more in each dimension;

Sheets having a width of 600 mm or more and a thickness of 3 mm or less;

Tubes having an outer diameter of 600 mm or more and a wall thickness of 3 mm or less.

(6) Ceramic heat shielding material;

(7) Ablative heat shielding material.

8. Design and Test Equipment and Technologies Related to Ballistic Missiles and Rockets

(1) Specially designed software, or analogue and digital computers thereof, for modeling, simulation, or design integration of the
systems;

(2) Vibration test systems capable of providing a force of 100kN or more and incorporating a digital controller, as well as specially
designed vibration test auxiliaries and software;

(3) Wind-tunnel for supersonic (Mach 1.4 to 5) or hypersonic (Mach 5 to 15) speeds except those specially designed for teaching and
those with the test area dimensions smaller than 25 cm (measured internally);

(4) Test benches which have the capacity to handle solid or liquid propellant rocket motors of more than 90 kN of thrust, or which
are capable of simultaneously measuring the three axial thrust components.

9. Production Equipment and Production Technology

(1) Equipment for production of solid propellants listed in Item 4 of Part II:

(a) Batch mixers having:

A total volumetric capacity of 110 litres or more; and

At least one mixing/kneading shaft mounted off centre.

(b) Continuous mixers having:

Two or more mixing/kneading shafts; and

Capability to open the mixing chamber.

(d) Fluid energy mills;

(e) Handling equipment for production of solid propellant;

(f) Curing equipment for production of solid propellant;

(g) Casting equipment for production of solid propellant;

(h) Pressing equipment for production of solid propellant;

(i) Acceptance testing equipment for production of solid propellant;

(j) Machining equipment for production of solid propellant;

(k) Extruding equipment for production of solid propellant.

(2) Equipment for producing liquid propellant in Item 3 of Part II:

(a) Handling equipment for production of liquid propellant;

(b) Production equipment for liquid propellant;

(3) Pyrolytic deposition and densification equipment and technology

(a) Technology for producing pyrolytically derived materials formed on a mould, mandrel or other substrate from precursor gases which
decompose at temperatures from 1,300 C to 2,900 C and at pressures of 130 Pa to 20 kPa, including technology for the composition
of precursor gases, flow-rates and process control schedules and parameters;

(b) Specially designed nozzles for the above processes;

Maximum working pressure of 69 MPa or greater;

Designed to achieve and maintain a controlled thermal environment of 600 C or greater, and

Possessing a chamber cavity with an inside diameter of 254 mm or greater.

(d) Chemical vapor deposition furnaces for the densification of carbon-carbon composites;

(e) Pyrolytic deposition and densification process controls equipment and specially designed software therefor.

(4) Equipment and technology for production of composite component:

(a) Filament winding machines coordinated and programmed in three or more axes, and specially designed computers and software thereof;

(b) Tape-laying machines coordinated and programmed in two or more axes, and specially designed software thereof;

(d) Technical data and procedures for the regulation of temperature, pressures or atmosphere in autoclaves or hydroclaves;

(e) Equipment for converting polymeric fibres (such as polyacrylonitrile, rayon or polycarbosilane) including special provision to
strain the fibre during heating;

(f) Equipment for the vapor deposition of elements or compounds on heated filament substrates;

(g) Equipment for the wet-spinning of refractory ceramics (such as aluminium oxide);

(h) Equipment for special fibre surface treatment;

(i) Equipment for producing prepregs and preforms;

(j) Moulds, mandrels, dies, fixtures and tooling for the preform pressing, curing, casting, sintering or bonding of composite structures,
laminates and manufactures thereof.

Source:MOFTEC

REGULATIONS ON MANAGEMENT OF INTERNATIONAL FREIGHT FORWARDERS

Regulations of the PRC on Management of International Freight Forwarders

CHAPTER I GENERAL PROVISIONS CHAPTER II CONDITIONS FOR THE ESTABLISHMENT CHAPTER III PROCEDURES OF EXAMINATION AND APPROVAL CHAPTER
IV BUSINESS SCOPE CHAPTER V PENALTIES CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 1 These regulations are formulated to govern behaviors of international freight forwarders to safeguard the lawful rights and benefits
of consignors and consignees of exports and imports, and international freight forwarders and to promote the development of foreign
trade.

Article 2 The international freight forwarders referred to in the regulations mean those trades entrusted by consignors and consignees of exports
and imports conduct international freight forward and related businesses for their clients and collect enumerations for their services
in their own names or in the name of their consignors.

Article 3 International freight forwarders must obtain the status of a legal body as an enterprise of the People’s Republic of China according
to law.

Article 4 The Competent Departments of foreign trade and economic cooperation under the State Council are responsible for supervision and management
of international freight forwarders throughout the country.

The competent departments of trade and economic relations with other countries of people’s governments of various provinces, autonomous
regions and municipalities as well as special economic zones (shortened below as local competent departments of trade and economic
relations with other countries) are responsible for supervision and management of international freight forwarders in their administrative
areas in accordance with the regulations and with in the scope of power authorized by the competent departments of foreign trade
and economic cooperation under the State Council.

Article 5 The supervision and management of international freight forwarders should abide by the following principles:

1. To meet the demands of development of foreign trade and promote the rational distribution of international freight forwarding agencies.

2. To protect fair competition and promote the improvement of services of international freight forwarders.

Article 6 Enterprises engaged in international freight forwarding should observe the laws and administrative rules and regulations of the People’s
Republic of China and be subject to the supervision and management carried out by related competent institutions of their trade in
keeping with relevant laws and administrative rules and regulations.

CHAPTER II CONDITIONS FOR THE ESTABLISHMENT

Article 7 According to the characteristics of the trade the establishment of an international freight forwarder must acquire the following
conditions:

1. It has competent professional to engage in international freight forwarding.

2. It has a fixed site for business and necessary facilities.

3. It has stable sources of and markets for exports and imports.

Article 8 The minimum amount of registered capital of an international freight forwarder must meet the following demands:

1. The minimum amount of registered capital of an international freight forwarder by sea should be 5 million yuan.

2. The minimum amount of registered capital of an international freight forwarder by air should 3 million yuan.

3. The minimum amount of registered capital of an international freight forwarder by land or and international express deliverer should
be 2 million yuan.

For an enterprise engaged in two or more than two items of businesses mentioned above its minimum amount of registered capital should
be that of the item with the highest amount of registered capital.

In sitting up a branch an international freight forwarder should add a registered capital of 500,000 yuan.

CHAPTER III PROCEDURES OF EXAMINATION AND APPROVAL

Article 9 To apply for the establishment of an international freight forwarding agency the applicant should submit an application to the competent
department of trade and economic relations with other countries of the locality when the agency is to be set up and, with opinions
put forward by the department, should forward the applications to the competent department of foreign trade and economic cooperation
under the State Council for approval and ratification.

Article 10 To apply for the establishment of an international freight forwarding agency. The following documents should be submitted.

1. Application.

2. Draft Constitution of the enterprise.

3. The names, posts and identification paper of leading members and chief staff members.

4. Certificates of credit standing and conditions of operational facilities.

5. Other documents as stipulated by the competent departments of foreign trade and economic s/cooperation under the State Council.

Article 11 The local competent department of trade and economic relations with other countries should put forward its opinions within 45 days
farm the day it receives the application and other documents and then forwards them to the competent department of foreign trade
and economic cooperation under the State Council.

The competent department of foreign trade and economic cooperation under the State Council should decide on approval or disapproval
within 45 days from the day it receives the application for the establishment of an international freight forwarding agency and other
documents, and should issue a certificate of ratification to the approved international freight forwarding agency.

Article 12 With the certificate of ratification issued by the competent department of trade and economic corporation with other countries the
he international freight forwarding agency should go through the procedures of enterprise and taxation registration according to
relevant stipulations of laws, administrative rules and regulations.

Article 13 The competent department of trade and economic cooperation under the State Council should cancel the certificate of ratification
if the applicant does not open business without proper reasons within 180 days from the day it receives the certificate of ratification.

Article 14 The certificate of ratification is valid for 3 years.

When the certificate of ratification expires and the agency wants to continue its business the international freight forwarding agency
should apply to the competent department of foreign trade and economic cooperation under the State Council for another certificate
of ratification 30 days before the expire.

If the international freight forwarding agency does not apply for another certificate of ratification according to stipulations in
the previous clause, it will automatically lose its qualification to engage in international freight forwarder.

Article 15 When the international freight forwarding agency terminates its business it should report to the local competent department of trade
and economic relations with other countries or to the competent department of foreign trade and economic cooperation under the State
Council according to the procedures of application for its establishment as stipulated in Article 9 and hand in its ratification
certificate for cancellation.

Article 16 To apply for setting up a branch the international freight forwarding agency should go through the necessary procedures stipulated
in the regulations.

Article 17 An international freight forwarding agency may accept a commission to operate part or all of the following business:

1. To book ship’s holds and warehouses.

2. Supervision of freight loading and unloading and assembling and dismantling of containers.

3. Multi-forms of international through transportation.

4. International express delivery excluding private letters.

5. To make customs declaration, undergo customs quarantine and inspection and to insure,

6. To prepare related bills and certificates, pay transport charges, settle accounts and pay miscellaneous fees.

7. Other businesses of international forwarder.

An international freight forwarding agency should conduct its business within the ratified scope. To engage in above-mentioned businesses
an international freight forwarding agency should register with relevant competent departments as required by related laws and administrative
rules and regulations.

International freight forwarding agencies can be mutually entrusted to conduct business stipulated in this articles.

Article 18 International freight forwarding agencies should pursue and operational policy of safety, high speed, accuracy, economy and convenience
in serving consignors and consignees of exports and imports.

Article 19 An international freight forwarding agency must set the standards of charges to be collected according to relevant state stipulations
and publicize them at the business site.

Article 20 An international freight forwarding agency must use invoices checked and approved by taxation departments in its business,

Article 21 An international freight forwarding agency should hand in a report on its business performance of the previous year to the competent
department of trade and economic relations with other countries of its locality before the end of March every year.

Article 22 An international freight forwarding agency is not allowed to do the following things:

1.To conduct its business through using unfair competition method.

2. To lend, lease or transfer to others its certificate of ratification and other papers concerning international freight forwarder.

Article 23 When and international freight forwarding agency violates the stipulations of Articles 19 and 21 of the regulations, the competent
department of foreign trade and economic operation under the State Council should serve if a warning and order it to amend with a
time limit. If not, the department should cancel its certificate of ratification.

Article 24 When an international freight forwarding agency violates the 2nd stipulation of Article 17 and stipulations of Articles 20 and 22,
the competent department of foreign trade and economic cooperation under the State Council should serve it a warning and order it
to suspend business for rectification up to canceling its certificate of ratification. Related competent departments of industrial
and commercial administration, customs and taxation should give punishments according to relevant laws and administrative rules and
regulations.

Article 25 To engage in international freight forwarder as prescribed in Article 17 without authorization in violation of the stipulations of
the regulations the competent departments of foreign trade and economic cooperation under the State Council should be these illegal
business activities and the administration institutions of industry and commerce should give punishments according to laws, and administrative
rules and regulations.

Article 26 If violations of the regulations constitute a crime the violator should be given criminal sanctions according to law.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 27 International freight forwarders may set up an association of international freight forwarders which can give guidance and provide
services to its members according to its charter.

RULES ON THE DETERMINATION OF MINIMUM PRICES FOR THE USE RIGHTS OF STATE-OWNED LAND TRANSFERRED THROUGH AGREEMENTS

Rules on the Determination of Minimum Prices for the Use Rights of State-Owned Land Transferred Through Agreements

Article 1 These Rules are hereby formulated in accordance with the relevant regulations stipulated in “Law of the People’s Republic
of China on the Management of Urban Real Estates” to strengthen macro government regulation, control and management of the transfer
of the use rights of State-land, ensure the income of State-owned land assets, and promote the healthy development of the land market.

Article 2 The minimum prices for the use rights of State-owned land transferred through agreements as referred to in these Rules (hereinafter
referred to as minimum prices for agreed transfer) are the bottom standards on transfer fees fixed by people’s governments at a higher
level to exercise macro regulation, control and management of land markets and prevent the agreed transfer of State-owned land use
rights at law prices.

Article 3 Determination of minimum prices for agreed transfer of the use rights of State-owned land in areas covered by urban development programmes
shall follow stipulations in these Rules.

Article 4 The minimum prices for agreed transfer shall be determined by the land management departments under people’s governments at the provincial,
autonomous regional and municipal level together with other departments and put into implementation by land management departments
under people’s governments at the county level after approval by people’s governments at the provincial, autonomous regional and
municipal level.

Article 5 The minimum prices for agreed transfer shall be determined in proportion to the base prices of land for different uses (commercial,
residential, and industrial) and in different grades. Specific proportions shall be worked out by provinces, autonomous regions,
and municipalities. The specific proportions in cities where the people’s governments of municipalities, cities separately listed
in the State budget, provinces, and autonomous regions are located shall, however, be reported to the State Land Administration for
verification and approval.

Base land prices shall be determined in accordance with Procedures for Price Estimation of Urban Land. If base land prices are readjusted,
minimum prices for agreed transfers shall be readjusted accordingly.

Article 6 Different minimum prices for agreed transfer may be determined for land used for industries and projects whose development enjoys
key support or encouragement from the State in line with the classification of industries or projects.

Article 7 Basic factors including compensations for removal and resettlement, land development costs, bank interests, and net land incomes
shall be taken into comprehensive consideration when minimum prices for agreed transfer are determined.

Article 8 Land management departments of people’s governments at the provincial, autonomous regional and municipal level shall report the minimum
prices for agreed transfer they have determined to the State Land Administration for registration before they are put into implementation.
The State Land Administration shall order the re- determination of determined minimum prices for agreed transfer if they do not conform
with stipulations in Article 7 of these Rules.

Article 9 The fees for the transfer of the use rights of State-owned through agreements shall not be smaller than minimum prices for agreed
transfer.

Article 10 Land management departments under people’s governments at the city and county level shall make public the fees for the transfer of
the use rights of State-owned land after conclusion of transfer contracts, if the use rights are transferred through agreements.

Article 11 Implementation of minimum prices for agreed transfer shall be subject to supervision and inspection by land management departments
under people’s governments that determine and approve these prices.

If the fees for the transfer of the use rights of State-owned land through agreements are smaller than the minimum prices for agreed
transfer, land management departments under people’s governments responsible for supervision and inspection shall order their correction
with prescribed periods of time. Contracts on land use right transfer shall be invalid if no corrections are made within the prescribed
periods of time. Losses recurred therefrom shall be sustained by the transferers, and responsible persons shall be administratively
disciplined by their units or units at a higher level according to the seriousness of their cases.

Article 12 The State Land Administration shall be responsible for the explanation of these Rules.

Article 13 These Rules shall come into force on the date of their promulgation.

SPECIAL PROVISIONS OF THE STATE COUNCIL CONCERNING THE FLOATATION AND LISTING ABROAD OF STOCKS BY LIMITED STOCK COMPANIES

Special Provisions of the State Council Concerning the Floatation and Listing Abroad of Stocks by Limited Stock Companies

Article 1 This set of provisions has been formulated according to Article 85 and Article 155 of the “Company Law of the People’s Republic
of China” in order to meet the needs of the floatation and listing abroad of stocks by limited stock companies.

Article 2 Limited stock companies may issue their stocks to given or non-given investors and list them abroad with the approval of the Securities
Committee of the State Council.

The term “listing abroad” used in this set of provisions means to issue stocks to investors abroad and list them for transactions
and transfer on the stock exchanges by limited stock companies.

Article 3 The stocks issued and listed abroad (hereinafter referred to as “foreign capital stock listed abroad”) by limited stock companies
shall be in the form of inscribed stocks, with the per value indicated in Renminbi and subscribed to in foreign currencies.

The foreign capital stock listed abroad may be in the form of stock deposit receipts or in other derivations.

Article 4 The Securities Committee of the State Council or its supervision and management and executive organization the China Securities Supervision
and Management Committee may reach understanding or an agreement with securities supervision and management organizations abroad
to exercise cooperative supervision and management of the limited stock companies in their activities of issuing and listing their
stocks abroad and other relevant activities.

Article 5 A limited stock company wishing to issue and list its stocks abroad shall file a written application according to the requirements
by the Securities Committee of the State Council and submit it, together with relevant documents, to the Securities Committee of
the State Council for approval.

Article 6 If a State-owned enterprise or an enterprise with State-owned property occupying the dominant position is to be converted into a
limited stock company that will issue and list its stocks abroad according to the relevant regulations of the State, the number of
promoters may be less than five if it is incorporated by way of promotion. Such a limited stock company may issue new stocks as soon
as it is incorporated.

Article 7 The stocks issued to domestic investors (hereinafter referred to as “domestic capital stocks”) by a limited stock company (hereinafter
referred to as “company”) that has issued and listed its stocks abroad shall be in the form of inscribed stocks.

Article 8 The board of directors may make separate arrangements for the plan of issuing and listing foreign capital stocks and domestic capital
stocks approved by the Securities Committee of the State Council.

The plan for the issuing and listing of foreign capital stocks and domestic capital stocks worked out according to the provisions
in the preceding paragraph may be executed separately within 15 months starting from the date of approval by the Securities Committee
of the State Council.

Article 9 If a company issues foreign capital stocks and domestic capital stocks listed abroad within the total amount fixed in the stock issue
plan, it shall float them in full in one issue. If special circumstances prevent this from being realized, it may issue them in installments
with the approval of the Securities Committee of the State Council.

Article 10 If a company fails to issue all the stocks as planned in one issue, it is not allowed to issue new stocks not covered by the plan.
If a company needs to adjust the stock issue plan, the shareholders meeting shall adopt a resolution for the examination by the company
examination and approval department authorized by the State Council and the approval by the Securities Committee of the State Council.

The interval between the second issue of foreign capital stocks listed abroad by adding capital and the previous issue shall not be
less than 12 months.

Article 11 In issuing foreign capital stocks listed abroad within the total amount fixed in the stock issue plan, it may, with the approval
of the Securities Committee of the State Council, agree with the underwriter(s) in the underwriting agreement to reserve a certain
amount of stocks apart from the amount underwritten but the amount reserved shall not exceed 15% of the total amount planned to be
issued and listed abroad. The issue of the reserved shares is regarded as part of the same issue.

Article 12 A company shall reveal in full and detail the plan for separately issuing foreign capital stocks listed abroad and domestic capital
stocks in the prospectus for all issues. Rerevelation is required if the stock issue plan approved is altered.

Article 13 The Securities Committee of the State Council, together with the company examination and approval department, may provide specific
stipulations concerning the essential clauses in the articles of association of a company.

The articles of association of a company shall specify clearly the contents required by essential clauses. A company is not allowed
to alter or omit, without approval, the contents of the essential clauses in the articles of association.

Article 14 A company shall specify the term of its operation in the articles of association. The term of operation of a company may be extended
for ever.

Article 15 The articles of association of a company are binding to the company and its shareholders, directors, supervisors, managers and other
senior management personnel.

The company and its shareholders, directors, supervisors, managers and other senior management personnel all may apply for arbitration
or take legal proceedings according to the advocacy and rights provided for in the articles of association.

The term “senior management personnel” referred to in the first and second paragraphs of this article include people responsible for
the financial and accounting affairs of the company, secretaries of the board of directors and other people as provided for in the
articles of association.

Article 16 The names of investors abroad holding foreign capital stocks listed abroad and registered in the list of shareholders of a company
shall be the foreign capital stock holders abroad of the company.

Owners of the rights and interests of foreign capital stocks listed abroad may registered their shares under the names of nominal
shareholders according to the provisions of the laws of the place where the list of foreign capital stock holders is kept or the
place where the stocks are listed.

The list of foreign capital stock holders is the full evidence testifying the holding of the company’s foreign capital stocks, except
otherwise testified by opposite evidence.

Article 17 A company may keep the original list of its foreign capital stock holders abroad and entrust a foreign agency for its safekeeping
according to the understanding and agreement referred to in Article 4 of this set of provisions. The company shall keep the copy
of the list of foreign capital stock holders made by the foreign agency at the residence of the company. The entrusted foreign agency
shall ensure the all-time identity of the original and copy of the list of foreign capital stock holders.

Article 18 If an alteration of the list of foreign capital stock holders needs to be made according to judicial rulings, the ruling may be made
by the court exercising the jurisdiction over the place where the original of the list is kept.

Article 19 If a holder of foreign capital stocks lost his or her shares and applies for re-issue, the case may be handled according to the law
where the list of the foreign capital stock holders is kept, the rules of the stock exchange and other relevant regulations.

Article 20 In calling shareholders meetings, a company shall issue a written notice 45 days in advance to all the listed shareholders, specifying
the matters to be examined and discussed, the date and place of the meeting.

The shareholders planning to attend the shareholders meeting shall send back the reply in writing to the company 20 days before the
convocation of the meeting.

The specific format of the written notice and written reply shall be specified in the articles of association of a company.

Article 21 In its annual meeting of shareholders, the shareholders holding more than 5% of the voting stocks have the right to put forward new
bills in writing and the company should list the matters falling into the scope of the functions of the shareholders meeting into
the agenda of the meeting.

Article 22 A company shall count the number of voting stocks represented by shareholders according to the number of written replies received
on 20th day away from the shareholders meeting. If the number of voting stocks represented by shareholders planning to attend the
meeting has reached half of the total number of voting stocks, the company may call the shareholders meeting. If the number has not
reached half of the total number of voting stocks, the company should, within five days, inform the shareholders in the form of announcement
of the matters to be discussed and the date and place of the meeting. After the announcement is made, the company may call the shareholders
meeting.

Article 23 The directors, supervisors, managers and other senior management personnel of a company have the obligations of being honest, trustworthy
and industrious to the company.

The people listed in the preceding paragraph shall observe the articles of association of the company, faithfully perform their duties
and protect the interests of the company. They are not allowed to seek personal gains by abusing the positions and powers they hold
in the company.

Article 24 A company shall appoint an independent certified accountants office that conforms to the relevant regulations of the State to audit
its annual report and cross check other financial reports of the company.

The company shall provide relevant materials to the certified accountants office it has appointed and answer its inquires.

The period of appointment of a certified accountants office starts from the date when the first annual shareholders meeting ends to
the date when the next annual shareholders meeting ends.

Article 25 In dismissing or discontinuing the appointment of a certified accountants office, a company shall notify the said accountants office
in advance and the said accountants office has the right to make its statement to the shareholders meeting.

If a certified accountants office quits, it shall state to the shareholders meeting whether or not there is anything improper in the
company.

Article 26 The decision to appoint, dismiss or discontinue to appoint a certified accountants office shall be taken by the shareholders meeting
and the decision shall be submitted to the China Securities Supervision and Management Committee for the record.

Article 27 The dividends on foreign capital stocks and other relevant payments made to shareholders abroad shall be priced and announced in
Renminbi and paid in foreign currencies. The settlement of the capital raised by the company in foreign currencies and the foreign
exchange needed by a company to pay the stock dividends and make other payments to shareholders shall be handled according to the
provisions concerning the foreign exchange control of the State.

If the articles of association provide that the said payments shall be converted into foreign currencies and paid to shareholders
by other organizations, the provisions of the articles of association shall apply.

Article 28 The documents of information compiled by a company for revelation at home and abroad shall not be self-contradictory in contents.

If there are disparities between the information revealed at home, abroad or in different countries according to the domestic and
foreign laws and regulations and rules of stock exchanges, the company shall reveal the differences simultaneously at relevant stock
exchanges.

Article 29 The disputes arising from the matters relating to the contents of the articles of association and other affairs of the company between
foreign capital stock holders and the company, between foreign capital stock holders and the directors, supervisors and managers
of the company and between foreign capital stock holders and domestic capital stock holders shall be settled in the way provided
for in the articles of association.

The law of the People’s Republic of China shall apply in settling the disputes mentioned in the preceding paragraph.

Article 30 This set of provisions shall be implemented starting from the date of promulgation.

THE GOVERNMENT PROCUREMENT LAW

The Government Procurement Law of the People’s Republic of China

(Adopted at the 28th Meeting of the Standing Committee of the Ninth National People’s Congress on June 29, 2002 and
promulgated by Order No. 68 of the President of the People’s Republic of China on June 29, 2002)

Contents

Chapter I General Provisions

Chapter II Parties to Government Procurement

Chapter III Methods of Government Procurement

Chapter IV Government Procurement Proceedings

Chapter V Government Procurement Contract

Chapter VI Query and Complaint

Chapter VII Supervision and Inspection

Chapter VIII Legal Liabilities

Chapter IX Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted for purposes of regulating government procurement activities, improving efficiency in the use
of government procurement funds, safeguarding the interests of the State and the public, protecting the legitimate rights and interests
of the parties to government procurements and promoting honest and clean government.

Article 2 This Law is applicable to government procurement activities conducted within the territory of the People’s Republic
of China.

For purposes of this Law, “Government Procurement” refers to the purchasing activities conducted with fiscal funds by government
departments, institutions and public organizations at all levels, where the goods, construction and services concerned are in the
centralized procurement catalogue complied in accordance with law or the value of the goods, construction or services exceeds the
respective prescribed procurement thresholds.

The centralized procurement catalogue and the prescribed procurement thresholds mentioned above shall be complied within the limits
of powers defined by this Law.

For purposes of this Law, “Procurement” refers to activities conducted by means of contract for the acquirement of goods, construction
or services for consideration, including but not limited to purchase, lease, entrustment and employment.

For purposes of this Law, “Goods” refer to objects of every kind and form, including but not limited to raw and processed materials,
fuel, equipment and products.

For purposes of this Law, “Construction” refers to all construction projects, including construction, reconstruction, expansion,
fitting up, demolition and repair and renovation of a building or structure.

For purposes of this Law, “Services” refer to any object of government procurement other than goods and construction.

Article 3 The principles of openness and transparency, fair competition, impartiality and good faith shall be adhered to in
government procurement activities.

Article 4 Where public invitation or invited bidding is adopted for government procurement of construction, the Law on Bid
Invitation and Bidding shall apply.

Article 5 No entity or individual may, by any means, deny or restrict free access by outside suppliers to the local markets
or the market of the same industry for government procurement.

Article 6 Government procurement shall be conducted strictly in accordance with the budget approved.

Article 7 Government procurement shall be conducted by both centralized and decentralized procurement. The items of centralized
procurement shall be determined in accordance with the centralized procurement catalogue published by people’s governments at or
above the provincial level.

The centralized procurement catalogue for government procurement items that come under the central budget shall be determined and
published by the State Council; the centralized procurement catalogue for government procurement items that come under the local
budgets shall be determined and published by the people’s governments of provinces, autonomous regions or municipalities directly
under the Central Government or the departments authorized by them.

Centralized procurement shall be made for government procurement items that are included in the centralized procurement catalogue.

Article 8 The thresholds for government procurement items that come under the central budget shall be prescribed and published
by the State Council; the thresholds for items that come under local budgets shall be prescribed and published by the people’s governments
of provinces, autonomous regions or municipalities directly under the Central Government or the department authorized by them.

Article 9 Government procurement shall be conducted in such a manner as to facilitate achievement of the goals designed by
State policies for economic and social development, including but not limited to environmental protection, assistance to underdeveloped
or ethnic minority areas, and promotion of the growth of small and medium-sized enterprises.

Article 10 The government shall procure domestic goods, construction and services, except in one of the following situations:

(1) where the goods, construction or services needed are not available within the territory of the People’s Republic of China or,
though available, cannot be acquired on reasonable commercial terms;

(2) where the items to be procured are for use abroad; and

(3) where otherwise provided for by other laws and administrative regulations.

The definitions for the domestic goods, construction or services mentioned in the preceding paragraph shall be applied in accordance
with the relevant regulations of the State Council.

Article 11 Information, with the exception of information related to business secrets, regarding government procurements shall
be announced to the public in a timely manner through the media designated by the department for supervision over government procurement.

Article 12 Where in government procurement the procuring person or the person concerned has an interest in the suppliers, he
shall withdraw from the procurement proceeding. Where a supplier believes that the person doing the procuring or the person concerned
has an interest in other suppliers, it may apply for withdrawal of the said person.

The person concerned as mentioned in the preceding paragraph means any of the members of the bid evaluation committee for procurement
through public invitation, of the negotiation team for procurement through competitive negotiations, or the inquiry team for procurement
through inquiry of quotations.

Article 13 The finance departments of the governments at all levels are departments for supervision over government procurement,
performing the duty of supervision over government procurement activities in accordance with law.

The departments concerned in the government at all levels shall, in accordance with law, perform the duty of supervision over activities
related to government procurement.

Chapter II

Parties to Government Procurement

Article 14 The parties to government procurement refer to the principal entities of all kinds that enjoy rights and undertake
obligations in government procurement, including the procuring entities, the suppliers and the procuring agencies.

Article 15 The procuring entities refer to the government departments, institutions and public organizations that engage in
government procurement in accordance with law.

Article 16 The institutions for centralized procurement are the procuring agencies. People’s governments at the level of cities
divided into districts and of autonomous prefectures or above that make arrangements for centralized procurement on the basis of
the items to be procured by the governments, are required to set up institutions for centralized procurement.

The institutions for centralized procurement are non-profit legal persons that conduct procurement as entrusted by the procuring
entities.

Article 17 When conducting government procurement activities, institutions for centralized procurement shall meet the requirements
for procurement at a lower-than-average market price, at higher efficiency, and of quality goods and services.

Article 18 When procuring items for the government that are included in the centralized procurement catalogue, the procuring
entities shall entrust the matter to institutions for centralized procurement; they may do it themselves where the items to be procured
are not included in the said catalogue, or they may entrust the matter to institutions for centralized procurement that shall do
it on their behalf within the scope entrusted.

Items, included in the centralized procurement catalogue that are for general use by the governments, shall be procured by entrusting
the matter to an institution for centralized procurement; items for the special need of a department or set-up shall be procured
by the department or set-up in a centralized manner; items for the special need of an individual entity may be procured by the entity
itself upon approval by the people’s government at or above the provincial level.

Article 19 Procuring entities may entrust procuring agencies certified by the relevant department under the State Council or
under the people’s government at the provincial level, which shall conduct the government procurement within the scope entrusted.

Procuring entities shall have the right to choose procuring agencies on their own, no unit or individual may, by any means, designate
procuring agencies for them.

Article 20 Where a procuring entity, in accordance with law, entrusts a procuring agency with the procurement, the two sides
shall conclude an agreement to such an effect, in which the entrusted matters shall be defined and the rights and obligations for
both sides shall be specified in accordance with law.

Article 21 The suppliers refer to the legal persons, other organizations or natural persons that provide goods, construction
or services to the procuring entities.

Article 22 A supplier in government procurement shall meet the following requirements:

(1) having the capacity to assume civil liabilities independently;

(2) having a good business reputation and sound financial and accounting systems;

(3) having the equipment and professional expertise needed for performing contracts;

(4) having a clean record of paying taxes and making financial contributions to social security funds in accordance with law;

(5) having committed no major breaches of law in its business operation in the three years prior to its participation in the procurement;
and

(6) other requirements provided for in laws and administrative regulations.

A procuring entity may specify special requirements for suppliers on the basis of the special need of a particular item for procurement,
provided that they are not unreasonable requirements that result in differential or discriminatory treatment of suppliers.

Article 23 The procuring entity may require the suppliers participating in government procurement to provide the documents
certifying their qualifications and information about their business performance and examine the qualifications of the suppliers
against the requirements provided for in this Law and the special requirements necessitated by the items to be procured.

Article 24 Two or more natural persons, legal persons or other organizations may form a consortium to participate in government
procurement in the capacity of a single supplier.

Where the form of consortium is taken in government procurement, each of the suppliers in the consortium shall meet the requirements
specified in Article 22 of this law and, in addition, a consortium agreement shall be submitted to the procuring entity, in which
the assignments allotted to and the obligations undertaken by each party to the consortium are clearly stated. All parties to the
consortium shall jointly enter into a procurement contract with the procuring entity, bearing joint and several liabilities to the
procuring entity for matters agreed upon in the contract.

Article 25 No parties to government procurement may act in collusion with each other to harm the interest of the State or the
public or the legitimate rights and interests of other parties to government procurement, or exclude, by any means, other potential
suppliers from participating in competition.

No supplier may try to win a bid or conclude a deal by bribing members of the procuring entity, the procuring agency, or members
of the bid evaluation committee, the competition negotiation team or quotation inquiry team, or by any other illegitimate means.

No procuring agency may seek illegal interests through bribing members of the procuring entity or by any other illegitimate means.

Chapter III

Methods of Government Procurement

Article 26 The following methods shall be adopted for government procurement:

(1) public invitation;

(2) invited bidding;

(3) competitive negotiation;

(4) single-source procurement;

(5) inquiry about quotations; and

(6) other methods confirmed by the department for supervision over government procurement under the State Council.

Public invitation shall be the principal method of government procurement.

Article 27 Where public invitation is required for procurement of goods or services by the procuring entity, if such goods
or services are included in the government procurement items covered by the central budget, the specific quotas shall be determined
by the State Council; if the items covered by local budgets, the specific quotas shall be determined by the people’s government of
a province, autonomous region or municipality directly under the Central Government. Where it is necessary to adopt a method other
than public invitation under special circumstances, the matter shall be subject to approval by the department for supervision over
procurement under the people’s government at or above the level of the city divided into districts or of the autonomous prefecture,
before procurement is conducted.

Article 28 No procuring entity may avoid public invitation required for procuring certain goods or services by breaking them
up into parts or by any other means.

Article 29 Under one of the following conditions, goods or services may be procured by invited bidding in accordance with this
Law:

(1) where the goods or services in question are special in character and can only be procured from a limited number of suppliers;
or

(2) where the cost of public invitation forms an excessive proportion of the total value of the government procurement items.

Article 30 Under one of the following conditions, goods or services may be procured through competitive negotiation in accordance
with this Law:

(1) where, after bidding is invited, no supplier submits any tender, or qualified tender is lacking, or re-invitation fails;

(2) where it is hard to determine the detailed specifications or specific requirements because of technical complexity or special
nature;

(3) where bid invitation takes so long a time that it is hard to satisfy the urgent needs of the procuring entity; or

(4) where the total value of the goods or services to be procured cannot be determined in advance.

Article 31 Under one of the following conditions, goods or services may be procured through single-source procurement in accordance
with this Law:

(1) where goods or services can be procured from only one supplier;

(2) where goods or services can not be procured from other suppliers due to an unforeseeable emergencies; or

(3) where consistency of the items or compatibility of the services procured requires procurement of additional items or services
from the same supplier, provided that the total value of the additional procurement does not exceed 10 percent of the value of the
base procurement contract.

Article 32 Inquiry about quotations may be adopted in accordance with this law for government procurement of those goods the
specifications and standards of which are uniform, the supply of which for spot transaction is sufficient and the prices of which
fluctuate very little.

Chapter IV

Government Procurement Proceedings

Article 33 When the department in charge of departmental budgeting drafts the budget for the next fiscal year, the items to
be procured and the funds required shall be included in the budget and submitted to the financial department at the same level for
compilation. The departmental budget shall be subject to examination and approval conducted and granted within the limits of powers
of budgetary administration and in accordance with budgetary administration procedures.

Article 34 Where invited bidding is adopted for the procurement of goods or services, the procuring entity shall randomly choose
three or more suppliers from among those that meet the qualifications required, and send invitation documents to them.

Article 35 Where public invitation is adopted for the procurement of goods or services, the period of time beginning from the
date of issuance of the bid invitation documents to the deadline for submission of the bid documents by bidders shall be not less
than 20 days.

Article 36 When one of the following circumstances arises in procurement through bid invitation, the bid proceeding shall be
annulled:

(1) where there are less than three suppliers that meet the professional qualifications required or that have made substantive response
to the bid invitation documents;

(2) where violations of laws or regulations occur to the detriment of impartial procurement;

(3) where all the prices offered by the bidders exceed the budget for procurement so that the procuring entity can not afford them;
or

(4) where the procurement project is cancelled due to major changes in circumstances.

Once the bid proceeding is annulled, the procuring entity shall inform all the bidders of the reasons for the annulment.

Article 37 After annulment, the bid proceedings shall be rearranged unless the procurement project is cancelled. Where it is
necessary to adopt other methods of procurement, the matter shall, before procurement starts, be subject to approval by the department
for supervision over procurement under the people’s government at or above the level of a city divided into districts or of an autonomous
prefecture, or by a relevant government department.

Article 38 Where competitive negotiation is adopted for procurement, the following procedure shall be followed:

(1) Setting up of a negotiation team. The team shall be composed of three or more representatives of the procuring entity and experts
in the relevant fields, the number shall be odd, and the number of experts shall be not less than two-thirds of the total.

(2) Drafting of documents for negotiation. In the documents shall be clearly stated the negotiation procedure and contents, the terms
of a draft contract and the criteria for evaluating a deal concluded.

(3) Deciding on the name list of the suppliers to be invited to participate in the negotiation. The negotiation team shall choose
not less than three suppliers from among all the qualified suppliers in the name list to participate in negotiation and provide them
with the documents for negotiation.

(4) Negotiating. All members of the negotiation team together negotiate with the suppliers individually. In the course of negotiation,
neither side may disclose other suppliers’ technical data, prices or other information related to the negotiation. Where there are
any substantive changes made in the documents for negotiation, the negotiation team shall inform, in writing, all the suppliers participating
in the negotiation of the changes.

(5) Deciding on the successful supplier. Once the negotiation is concluded, the negotiation team shall request all the suppliers
participating in the negotiation to quote their final offering prices within a specified time limit. The procuring entity shall decide
on the successful supplier from among the candidates recommended by the negotiation team on the principle that the supplier meets
the need of procurement and that the price it quotes is the lowest among the prices quoted for goods of equal quality and for equal
services, and it shall inform all the unsuccessful suppliers that participate in the negotiation of the result.

Article 39 Where the single-source procurement is adopted, the procuring entity and suppliers shall follow the principles provided
for by this Law in carrying out the procurement on the basis of guaranteed quality and the reasonable price agreed by both sides.

Article 40 Where inquiry about quotations is adopted, the following procedure shall be followed:

(1) Setting up of a quotation inquiry team. The team shall be composed of three or more representatives of the procuring entity and
experts in the relevant fields, the number shall be odd, and the number of the experts shall be not less than two-thirds of the total.
The team shall specify the composition of price for the items to be procured and the criteria for evaluating a deal concluded.

(2) Deciding on the name list of the suppliers to be inquired of about quotations. The quotations inquiry team shall, on the basis
of the procurement need, choose not less than three suppliers from among all the qualified suppliers in the name list and send to
each of them a quotations inquiry notice to solicit their quotations.

(3) Inquiry about quotations. The quotations inquiry team shall request the suppliers to be inquired of about quotations, to quote
their prices just for once, which are not to be changed.

(4) Determining the successful supplier. The procuring entity shall determine the successful supplier on the principle that the supplier
meets the need of procurement and the price it quotes is the lowest among the prices quoted for goods of equal quality and equal
services, and it shall inform all the unsuccessful suppliers that are inquired of about quotations of the result.

Article 41 The procuring entity or the entrusted procuring agency shall, before acceptance, make arrangements for inspection
of the fulfillment of the procurement contract on the part of the supplier. For large and complex procurement items, it shall invite
quality-testing institutions confirmed by the State to participate in the inspection. Members of the inspecting side shall sign their
names on the inspection report and shall bear corresponding legal responsibilities.

Article 42 The procuring entity or the procuring agency shall properly keep all the procurement documents relating to the procurement
of each item, and it may not fabricate, forge, conceal or destroy such documents. The period of time for preservation of procurement
documents shall be not less than 15 years starting from the date the procurement is completed.

The procurement documents include the records of procurement, procurement budget, bid invitation documents, bid documents, criteria
for bid evaluation, evaluation report, documents relating to decision on the awarding of a bid, contract text, inspection-acceptance
certificates, replies to queries, decisions on complaints handled and other related documents and data.

The records of procurement shall, at least, include the following:

(1) the types and names of the items to be procured;

(2) the budget for procurement items, composition of funds and price fixed by contract;

(3) the procurement method; where a method other than public invitation is adopted, the reasons shall be stated clearly;

(4) qualification requirements and reasons for inviting or selecting suppliers;

(5) criteria for bid evaluation and reasons for deciding on the winner of the bid;

(6) reasons for canceling the bid proceeding; and

(7) the records relating to adoption of the procurement method other than bid invitation.

Chapter V

Government Procurement Contract

Article 43 The Contract Law is applicable to government procurement contract. The rights and obligations of the procuring entity
and the supplier respectively shall, on the principle of equality and voluntariness, be agreed on in a contract.

The procuring entity may entrust a procuring agency with the conclusion, on its behalf, of a government procurement contract with
the supplier. Where the contract is signed by the procuring agency in the name of the procuring entity, the entrustment document
shall be submitted as an annex to the contract.

Article 44 The government procurement contract shall be made in written form.

Article 45 The department for supervision over government procurement under the State Council shall, in conjunction with the
relevant departments under the State Council, specify the provisions essential to government procurement contracts.

Article 46 The procuring entity, the winner of the bid or the successful supplier shall, within 30 days from the date the notice
informing the said winner or supplier of their acceptance is sent out, sign a government procurement contract pursuant to the particulars
set in the procurement documents.

The notice informing the winner of a bid or the successful supplier of their acceptance shall be legally effective to both the procuring
entity and the said winner or supplier. After the said notice is sent out, if the procuring entity alters the result regarding the
winner of a bid or the successful supplier, or the said winner or supplier gives up the project for which it wins the bid, it shall
bear legal responsibility in accordance with law.

Article 47 Within seven working days beginning from the date the contract for government procurement items is concluded, the
procuring entity shall submit a copy of the contract to the department for supervision over government procurement at the same level
and a copy to the relevant department for the record.

Article 48 Subject to consent of the procuring entity, the winner of the bid or the successful supplier may perform the contract
by subcontract in accordance with law.

Where the government procurement contract is performed by subcontract, the winner of the bid or the successful supplier shall be
responsible to the procuring entity for both the whole procurement project and its subcontracted parts, while the subcontractors
shall be responsible for the subcontracted part.

Article 49 If, when the government procurement contract is being performed, the procuring entity needs to procure additional
goods, construction or services of the same nature as those of the base government procurement contract, it may, on the premise that
no change is made in the other clauses of the contract, conclude a supplementary contract with the supplier, provided that the total
value of all the additional procurements does not exceed 10 percent of that of the principal contract.

Article 50 No parties to the government procurement contract may, without authorization, alter, suspend or terminate the contract.

Where continued performance of the government procurement contract is detrimental to the interests of the State or of the public,
the parties to the contract shall alter, suspend or terminate the contract. The party at fault shall bear the liability to pay compensation;
where both parties to the contract are at fault, each shall honor its own liability.

Chapter VI

Query and Complaint

Article 51 Where suppliers have queries about matters regarding government procurement activities, they may raise the queries
to the procuring entity, the latter shall make a timely reply, in which no business secrets may be contained.

Article 52 Where a supplier believes that the procurement documents, procurement proceeding or the results regarding the winner
of the bid or the successful supplier harm its own rights and interests, it may, within 7 working days from the date it knows or
should know that its rights and interests are harmed, raise queries to the procuring entity in writing.

Article 53 The procuring entity shall, within seven working days from the date it receives the queries of the supplier in writing,
make a reply and notify in writing the supplier that raises the queries and the other suppliers concerned of the reply, in which
no business secrets may be contained.

Article 54 Where a procuring agency is entrusted by the procuring entity with the procurement, the suppliers may address inquiries
or queries to the agency, which shall, pursuant to Articles 51 and 53 of this Law, make a reply regarding matters within the limits
of authorization given by the procuring entity.

Article 55 Where the supplier that raises queries is not satisfied with the reply made by the procuring entity or the procuring
agency, or the latter fails to make a reply within the specified time limit, the supplier may, within 15 working days following the
expiration of the time limit, lodge a complaint with the department for supervision over government procurement at the same level.

Article 56 The department for supervision over government procurement shall, within 30 working days after receiving the complaint,
make a decision after handling the complaint and inform in writing the complainant and the parties related to the complaint of its
decision.

Article 57 Depending on the specific circumstances, the department for supervision over government procurement may, during
the period in which it is dealing with the complaint, notify in writing the procuring entity to suspend its procurement activities,
provided that the period of suspension does not exceed a maximum of 30 days.

Article 58 Where the complaint is not satisfied with the decision made by the department for supervision over government procurement,
or the latter fails to make a decision within the specified time limit, the complainant may, in accordance with law, apply for administrative
reco

ADMINISTRATIVE RULES FOR THE REPORTING BY FINANCIAL INSTITUTIONS OF LARGE-VALUE AND SUSPICIOUS FOREIGN EXCHANGE TRANSACTIONS

Decree of the People’s Bank of China

No.3

In accordance with the Law of the People’s Republic of China on the People’s Bank of China and other laws and regulations, the Administrative
Rules for the Reporting by Financial Institutions of Large-Value and Suspicious Foreign Exchange Transactions has been adopted at
the 7th executive meeting on September 17, 2002, and is hereby promulgated for implementation as of March 1, 2003.
President of the People’s Bank of China Zhou Xiaochuang

January 3, 2003

Administrative Rules for the Reporting by Financial Institutions of Large-Value and Suspicious Foreign Exchange Transactions

Article 1

These Rules are formulated in accordance with Regulations of the People’s Republic of China on Foreign Exchange Administration and
other regulations in order to monitor large-value and suspicious foreign exchange transactions.

Article 2

Financial institutions located in the territory of China that run foreign exchange business (hereinafter referred to as financial
institutions) shall report, in accordance with these Rules, to foreign exchange administration authorities large-value and suspicious
foreign exchange transactions.

Large-value foreign exchange transaction refers to foreign exchange transactions above a specified amount made by transactions parties
in any form of settlement through financial institutions.

Suspicious foreign exchange transaction refers to foreign exchange transaction with abnormal amount, frequency, source, direction,
use or any other such nature.

Article 3

State Administration of Foreign Exchange and its branches (hereinafter referred to as SAFE) are responsible for supervising and administering
the reporting of large-value and suspicious foreign exchange transactions.

Article 4

When opening foreign exchange accounts for customers, financial institutions shall abide by Rules on Using Real Name for Opening
Individual Deposit Account and Rules on Administration of Foreign Exchange Account within the Territory of People’s Republic of China
and shall not open anonymous foreign exchange accounts or accounts in obviously fictitious names for their customers.

When processing foreign exchange transactions for customers, financial institutions shall verify information about the customer’s
real identity, including the name of work unit, name of the legal representative or person-in-charge, ID and its number, supporting
documents for account opening, organization registration code, address, registered capital, business scope, size of business operation,
average daily transaction volume of the account and in the case of an individual customer, name of the depositor, ID and its number,
address, occupation, household income and other information about the customer’s family.

Article 5

Financial institutions shall record all large-value and suspicious foreign exchange fund transactions and keep the record for a minimum
of five years as of the day of transaction.

Article 6

Financial institutions shall establish and improve internal anti-money laundering post responsibility system, formulate internal
anti-money laundering procedure and, have specified staff record, analyze and report large-value and suspicious foreign exchange
transactions.

Article 7

Financial institutions shall not disclose to any agency or individual information about large-value and suspicious foreign exchange
transactions, unless otherwise provided for by laws.

Article 8

The following foreign exchange transactions constitute large-value foreign exchange transactions:

(1)

Any single deposit, withdrawal, purchase or sale of foreign exchange cash above US$10,000 or its equivalent, or the accumulated amount
of multiple deposit, withdrawal, purchase or sale transactions of foreign exchange within one day above US$10,000 or its equivalent;

(2)

Foreign exchange non-cash receipt and payment transactions made through transfer, bills, bank card, telephone-banking, internet banking
or other electronic transactions or other new financial instruments in which a single transaction volume or accumulated transaction
volume within one day exceeding US$100,000 or its equivalent by individual customers, and in the case of corporate customers, a single
transaction volume or accumulated transaction volume within one day exceeding US$500,000 or its equivalent.

Article 9

The following foreign exchange transactions constitute suspicious foreign exchange cash transactions:

(1)

Frequent deposit and/or withdrawal of large amount of foreign exchange cash from an individual bankcard or individual deposit account
that are apparently not commensurate with the identity of or use of fund by the cardholder or account owner;

(2)

An individual resident transferring to or withdrawing cash in large amount in a foreign country after depositing large amount of foreign
exchange cash in a bankcard in China;

(3)

Frequent depositing, withdrawal or sale of foreign exchange through an individual foreign exchange cash account below the SAFE validated
threshold;

(4)

Non-resident individual requiring banks to open traveler’s check or draft to convert large amount of foreign exchange cash he/she
has brought into China in order to take the fund out of China;

(5)

Frequently depositing large amount of foreign exchange cash in a bankcard held by non-resident individual;

(6)

Frequent and large-amount fund movement through a corporate foreign exchange account not commensurate with the business activities
of the account owner;

(7)

Regular and large-amount cash deposit into a corporate foreign exchange account without withdrawal of large amount of cash from the
said account;

(8)

An enterprise frequently receiving export proceeds in cash that is apparently not commensurate with the range and size of its business;

(9)

The RMB fund that an enterprise uses to buy foreign exchange for overseas investment is mostly in cash or has been transferred from
a bank account not belonging to the said enterprise;

(10)

The RMB fund that a foreign-funded enterprise uses to buy foreign exchange for repatriation of profit is mostly in cash or has been
transferred from a bank account not belonging to the said enterprise;

(11)

A foreign-funded enterprise making investment in foreign exchange cash.

Article 10

The following foreign exchange transactions constitute suspicious foreign exchange non-cash transactions:

(1)

Foreign exchange account of an individual resident frequently receiving fund from domestic accounts that are not under the same name;

(2)

An individual resident frequently receiving large amount of foreign exchange remittance from abroad before remitting the total amount
out in the original denomination, or frequently remitting foreign exchange fund of the same denomination that is transferred from
abroad in large amount;

(3)

Non-resident individual frequently receiving remittance in large amount from abroad, especially from countries (regions) with serious
problems of narcotics production and trafficking;

(4)

Foreign exchange account of a resident or non-resident individual with a regular pattern of receiving large amount of fund which is
withdrawn in several transactions the next day, and then receiving large amount of fund again which is withdrawn in several transactions
the next day;

(5)

An enterprise making frequent and large advance payment for import and commission under trade account below the SAFE validated threshold
through its foreign exchange account;

(6)

An enterprise frequently receiving, through its foreign exchange account, export payment in bills (such as check, draft and promissory
note) in large amount;

(7)

Dormant foreign exchange accounts or foreign exchange accounts usually with no large fund movement suddenly receiving abnormal foreign
exchange fund inflow, and the inflow gradually becoming larger in a short period of time;

(8)

An enterprise having frequent and large amount fund transactions through its foreign exchange account not commensurate with the nature
and size of its business operation;

(9)

The foreign exchange account of an enterprise becoming inactive abruptly following frequent and large amount inflow and outflow of
fund;

(10)

Frequent fund movement through the foreign exchange account of an enterprise in amounts divisible by thousand;

(11)

Rapid inflow and outflow of fund through the foreign exchange account of an enterprise, the amount of which is big within one day
but the outstanding balance of the account is very small or nil;

(12)

The foreign exchange account of an enterprise remitting abroad the bulk of balance received in multiple small amount electronic transfers,
check or draft deposits;

(13)

A domestic enterprise opening an offshore account in the name of an overseas legal person or natural person, and the said offshore
account experiencing regular fund movement;

(14)

An enterprise remitting fund to many domestic residents through an offshore account and surrendering foreign exchange to banks in
the name of donation, the transfer of fund and foreign exchange sales all done by one person or few persons;

(15)

The annual expatriation of profit by a foreign-funded enterprise exceeding the amount of originally invested equity by a large margin
and obviously not commensurate with its business operation;

(16)

A foreign-funded enterprise rapidly moving the fund abroad in a short period of time after receiving the investment, which is not
commensurate with the payment demand of its business operation;

(17)

Offsetting deposit and loan transactions with affiliates or connected companies of financial institutions located in regions with
serious smuggling, drug trafficking or terrorist activities or other crimes;

(18)

Securities institutions ordering banks to transfer foreign exchange fund not for the purpose of securities dealing or settlement;

(19)

Securities institutions that engages in B share trading business frequently borrowing large amount of foreign exchange fund through
banks; and

(20)

Insurance institutions frequently making compensation payment in large amount to or discharging insurance in large amount for the
same overseas policy holder through banks.

Article 11

Financial institutions shall report the large-value or suspicious foreign exchange fund transactions as defined by Articles 8, 9
and 10 monthly in hard copy as well as in electronic copy.

Article 12

Financial institutions shall examine the following foreign exchange cash transactions and report promptly any discovery of suspected
money laundering in hard copy with relevant documents attached.

(1)

Amount of expenditure of foreign exchange account roughly tallying with the amount of deposit in the previous day;

(2)

Depositing foreign exchange or renminbi cash in many transactions in the foreign exchange deposit accounts of other individuals and
receiving at the same time renminbi or foreign exchange of equivalent amount;

(3)

An enterprise frequently purchasing foreign exchange with renminbi cash.

Article 13

Financial institutions shall conduct verification over the following non-cash foreign exchange transactions, and shall promptly report
any discovering of suspected money laundering activity and attach related files to the superior authorities:

(1)

An individual resident frequently switching from one denomination to another when conducting foreign exchange transactions apparently
with no profit-seeking purpose;

(2)

An individual resident asking a bank to issue traveler’s check or draft after frequently receiving foreign exchange remittance from
abroad;

(3)

A non-resident individual frequently ordering traveler’s check or cashing traveler’s check or draft in large amount through foreign
exchange account;

(4)

When opening foreign exchange account, an enterprise declining to provide supporting documents or general information on different
occasions;

(5)

An enterprise group making internal foreign exchange fund transfer exceeding the volume of actual business operation;

(6)

An enterprise providing incomplete documents when surrendering to or purchasing foreign exchange from a bank, or the amount of buying
or selling suddenly expanding, selling and buying becoming more frequent, or the amount of foreign exchange sold to the bank apparently
exceeding the normal level of its business operation;

(7)

When entering an item of export revenue into an account in a bank, an enterprise failing to provide valid documents but frequently
collecting foreign exchange sales statement (for verification purpose), or rejecting to provide valid documents but frequently collecting
foreign exchange sales statement (for verification purpose);

(8)

An enterprise frequently receiving foreign exchange, making foreign exchange payment or frequently selling foreign exchange to banks,
all in large amount, for the purpose of donation, advertising, sponsoring conference or exhibition, which is apparently not commensurate
with its range of business;

(9)

An enterprise frequently receiving foreign exchange, making foreign exchange payment, or frequently selling foreign exchange to banks,
all in large amount, for the purchase of buying or selling technology or trade mark right or other intangible assets, which is apparently
not commensurate with its range of business;

(10)

Freight, premium and commission paid by an enterprise apparently not commensurate with its import and export trade;

(11)

An enterprise often depositing traveler’s check or foreign exchange draft, especially those issued abroad and not commensurate with
its business operation;

(12)

An enterprise suddenly paying its overdue foreign exchange loan in full with fund whose source is unspecified or not commensurate
with the background of the said enterprise;

(13)

An enterprise applying for a loan guaranteed by assets or credit belonging to itself or a third party, the source of which is unspecified
or not commensurate with the background of the customer;

(14)

Raising fund abroad through letter of credit with no foreign trade background or other means;

(15)

An enterprise knowingly conducting loss-making sales or purchase of foreign exchange;

(16)

An enterprise seeking to conduct a swap between the local currency and foreign currency for a fund whose source and use is unspecified;

(17)

The capital invested by the foreign partner of a foreign-funded enterprise exceeding the approved amount or direct external borrowing
of a foreign-funded enterprise being remitted from a third country where there is no connected enterprise;

(18)

Local currency fund converted from capital invested by the foreign partner of a foreign-funded enterprise or external borrowing being
diverted to bank accounts for securities and other investment, which is not commensurate with its business operation;

(19)

Fund movement in and out of the foreign exchange cash account of an financial institution apparently not commensurate with the size
of the deposit in the account, or the fluctuation of fund movement apparently exceeding the change in the size of deposit;

(20)

Fund movement of the internal foreign exchange transaction accounts of a financial institution apparently not commensurate with its
daily business operation;

(21)

Fund movement of the inter-bank foreign exchange transaction account, onshore and offshore business transaction account, or account
for transactions with overseas affiliates apparently not commensurate with the daily business operation of the financial institution;

(22)

Foreign exchange credit or settlement between a financial institution and its connected enterprises fluctuating by a large margin
within a short period of time;

(23)

A financial institution buying an insurance policy with large value foreign currency cash; and

(24)

Any foreign exchange fund transaction being suspected with proper reasons by the staff of a bank or other financial institutions as
money laundering.

Article 14

Tier-one branches located in provincial capital, capital of autonomous region and municipality directly under the central government
of a financial institution shall act as the major reporting unit and the head office of the financial institution shall designate
a major reporting unit if there is no such branch in these places.

Sub-branches and offices of a financial institution shall report, within the first five work days of every month, large-value and
suspicious foreign exchange fund transactions of the preceding month through their superior office to the major reporting unit and
at the same time to the local branch office of SAFE.

Each major reporting unit shall summarize large-value and suspicious foreign exchange fund transactions that take place in the province,
autonomous region or municipality directly under Central Government in the preceding month and report, within the first 15 work days
of every month, to the local branch office of SAFE.

The head office of each financial institution shall report, within the first five days of every month, large-value and suspicious
foreign exchange fund transactions that take place within the head office in the preceding month to the local branch office of SAFE.

Article 15

When a financial institution discovers suspected crime during the examination and analysis of large-value and suspicious foreign
exchange fund transactions, it shall report to the local public security authority and local SAFE office within three work days as
of the day of discovery.

Article 16

SAFE branch offices in every province, autonomous region, and municipality directly under the central government shall summarize
large-value and suspicious foreign exchange fund transactions reported by financial institutes and report to SAFE head office within
the first 20 work days of every month; when a foreign exchange transaction is suspected as crime, the case shall be transferred promptly
to local public security authority and to the SAFE head office.

Article 17

In the case of any of the following misconduct by a financial institution, the SAFE shall issue a warning, order the financial institution
to take remedial action, and impose a fine between RMB10,000 yuan to RMB30,000 yuan.

(1)

Failing to report, according to relevant rules and regulations, large-value or suspicious foreign exchange fund transactions;

(2)

Failing to keep large-value or suspicious foreign exchange transactions in record as stipulated by relevant rules and regulations;

(3)

Disclosing large-value or suspicious foreign exchange fund transactions in violation of relevant rules and regulations; and

(4)

Opening foreign exchange account without examining account-opening document.

Article 18

When a financial institution opens a foreign exchange account for an individual customer without examining account-opening documents,
the SAFE shall issue a warning, order it to take remedial action and may impose a fine between RMB1,000 yuan and RMB5,000 yuan.

Article 19

When a financial institution brings about grave loss as a result of its serious violation of these Rules, the SAFE may cease or revoke
its approval for foreign exchange purchase and sales business in part or in full.

Article 20

Disciplinary penalty shall be imposed on the staff of a financial institution who provides assistance to money-laundering activities;
when the misconduct constitutes a violation of the criminal law, the case shall be transferred to judiciary authorities.

Article 21

“Frequent” in these Rules means foreign exchange fund transactions occurring at least three times each day or occurring daily for
at least five days in a row.

“Large amount” in these Rules refers to amount close to the threshold amount for reporting as a large-value foreign exchange transaction.

“A short period of time” in these Rules means within 10 business days.

When “above”, “between” and “up to” are used to indicate a threshold number, a floor or a ceiling, the number that ensues any of them
is also included.

Article 22

These Rules shall enter into force as of March 1, 2003.

The People’s Republic of China
2003-01-03

12 Page 1 of 2

Retirement

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON DISTRIBUTING THE SYSTEM OF THE INDIRECT DECLARATION AND VERIFICATION OF...

RULES FOR ANTI-MONEY LAUNDERING BY FINANCIAL INSTITUTIONS

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING THE TAX PAYMENT BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES ENGAGING IN THE BUSINESS OF FINANCIAL ASSET DISPOSITION

LETTER OF THE MINISTRY OF COMMERCE ABOUT REINFORCING THE PROTECTION OF INTELLECTUAL PROPERTY WHEN ATTENDING OR ORGANIZING OVERSEAS EXHIBITIONS

MEASURES FOR THE ADMINISTRATION OF INFORMATION DISCLOSURE OF COMMERCIAL FRANCHISES

CIRCULAR OF THE GENERAL OFFICE OF CHINA BANKING REGULATORY COMMISSION ON REGULATING THE OVERSEAS INVESTMENT SCOPE FOR COMMERCIAL BANKS TO PROVIDE OVERSEAS FINANCIAL MANAGEMENT SERVICES ON BEHALF OF CLIENTS

REGULATIONS ON EXPORT CONTROL OF MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES

REGULATIONS ON MANAGEMENT OF INTERNATIONAL FREIGHT FORWARDERS

RULES ON THE DETERMINATION OF MINIMUM PRICES FOR THE USE RIGHTS OF STATE-OWNED LAND TRANSFERRED THROUGH AGREEMENTS

SPECIAL PROVISIONS OF THE STATE COUNCIL CONCERNING THE FLOATATION AND LISTING ABROAD OF STOCKS BY LIMITED STOCK COMPANIES

THE GOVERNMENT PROCUREMENT LAW

ADMINISTRATIVE RULES FOR THE REPORTING BY FINANCIAL INSTITUTIONS OF LARGE-VALUE AND SUSPICIOUS FOREIGN EXCHANGE TRANSACTIONS

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