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AMENDMENT IV TO THE CRIMINAL LAW

Amendment IV to the Criminal Law of the People’s Republic of China

(Adopted at the 31st Meeting of the Standing Committee of the Ninth National People’s Congress on December 28, 2002
and promulgated by Order No. 83 of the President of the People’s Republic of China on December 28, 2002) 

In order to punish the crimes of disrupting the order of the socialist market economy, obstructing the administration of public order,
and of dereliction of duty committed by functionaries of State organs, and to guarantee smooth progress of the socialist modernization
drive, the following revisions and supplements are made to the Criminal Law: 

1. Article 145 is revised to read: “Whoever produces medical apparatus and instruments or medical hygiene materials that are not
up to the national or trade standards for safeguarding human health or sells such things while clearly knowing the fact, which is
harmful enough to seriously endanger human health, shall be sentenced to fixed-term imprisonment of not more than three years or
criminal detention and shall, in addition, be fined not less than half, but not more than two times, the amount of earnings from
sales; if serious harm is caused to human health, he shall be sentenced to fixed-term imprisonment of not less than three years but
not more than ten years and shall, in addition, be fined not less than half, but not more than two times, the amount of earnings
from sales; if the consequences are especially serious, he shall be sentenced to fixed-term imprisonment of not less than ten years
or life imprisonment, and shall, in addition, be fined not less than half, but not more than two times, the amount of earnings from
sales or be sentenced to confiscation of property. ” 

2. One paragraph is added to Article 152 as the second paragraph, which reads: “Whoever, evading Customs supervision and control,
transports solid waste, liquid waste or gaseous waste from outside China into the territory of China, if the circumstances are serious,
shall be sentenced to fixed-term imprisonment of not more than five years and shall in addition, or shall only, be fined; if the
circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years and shall in addition
be fined. ” 

The original second paragraph of Article 152 is revised as the third paragraph, which reads: “Where a unit commits any of the crimes
as mentioned in the preceding two paragraphs, it shall be fined, and the persons who are directly in charge of the unit and the other
persons who are directly responsible for the crime shall be punished in accordance with the provisions of the preceding two paragraphs.
” 

3. Article 155 is revised to read: “Whoever commits any of the following acts shall be deemed to have committed the crime of smuggling
and shall be punished in accordance with the relevant provisions of this Section: ( 1 ) directly and illegally purchasing from smugglers
articles, the import of which is forbidden by the State, or directly and illegally purchasing from smugglers other smuggled goods
or articles and in and of relatively large quantities and values; ( 2 ) transporting, purchasing or selling in inland seas, territorial
waters, boundary rivers or boundary lakes articles the import and export of which are forbidden by the State, or transporting, purchasing
or selling, without legal certificates and in and of relatively large quantities and values, goods or articles the import and export
of which are restricted by the State. ” 

4. One article is added after Article 244 as Article 244(a), which reads: “Where a unit, in violation of the laws and regulations
on labor administration, employs a minor under the age of 16 to do physical labor of ultra-intensity, or to work high above the ground
or in a pit, or to work under explosive, inflammable, radioactive, poisonous and other dangerous conditions, if the circumstances
are serious, the person who is directly responsible shall be sentenced to fixed-term imprisonment of not more than three years or
criminal detention and shall, in addition, be fined; if the circumstances are especially serious, he shall be sentenced to fixed-term
imprisonment of not less than three years but not more than seven years and shall, in addition, be fined. 

“Whoever commits the act mentioned in the preceding paragraph, which results in an accident and at the same time constitutes another
crime, shall be punished in accordance with the provisions on combined punishment for several crimes. ” 

5. The third paragraph of Article 339 is revised to read: “Whoever, under the pretext of using it as raw material, imports solid
waste , liquid waste or gaseous waste that cannot be used as such shall be convicted and punished in accordance with the provisions
of the second and the third paragraph of Article 152 of this Law. ” 

6. Article 344 is revised to read: “Whoever, in violation of the regulations of the State, illegally fells or destroys precious trees
or other plants under special State protection, or illegally purchases, transports, processes or sells such trees or plants as well
as the products thereof, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public
surveillance and shall, in addition, be fined; if the circumstances are serious, he shall be sentenced to fixed-term imprisonment
of not less than three years but not more than seven years and shall, in addition, be fined. ” 

7. Article 345 is revised to read: “Whoever stealthily fells trees, bamboo, etc. in forest or woods, if the amount involved is relatively
large, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance and
shall in addition, or shall only, be fined; if the amount involved is huge, he shall be sentenced to fixed-term imprisonment of not
less than three years but not more than seven years and shall, in addition, be fined; if the amount involved is especially huge,
he shall be sentenced to fixed-term imprisonment of not less than seven years and shall, in addition, be fined. 

“Whoever, in violation of the provisions of the Forestry Law, arbitrarily fells trees, bamboo, etc. in forest or woods, if the amount
involved is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public
surveillance and shall, in addition, or shall only, be fined; if the amount involved is huge, he shall be sentenced to fixed-term
imprisonment of not less than three years but not more than seven years and shall, in addition, be fined. 

“Whoever illegally purchases or transports trees, bamboo, etc. which he clearly knows are felled stealthily or arbitrarily, if the
circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public
surveillance and shall, in addition, or shall only, be fined; if the circumstances are especially serious, he shall be sentenced
to fixed-term imprisonment of not less than three years but not more than seven years and shall, in addition, be fined. 

“Whoever stealthily or arbitrarily fells trees, bamboo, etc. in forest or woods of nature reserves at the national level shall be
given a heavier punishment. ” 

8. Article 399 is revised to read: “Any judicial officer who, bending the law for selfish ends or twisting the law for a favor, subjects
to investigation for criminal responsibility a person he knows to be innocent or intentionally protects from investigation for criminal
responsibility a person he knows to be guilty or, intentionally running counter to the facts and law, twists the law when rendering
judgments or orders in criminal proceedings shall be sentenced to fixed-term imprisonment of not more than five years or criminal
detention; if the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not
more than ten years; if the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than
ten years. 

“Any judicial officer who, in civil or administrative proceedings, intentionally runs counter to the facts and law and twists the
law when rendering judgments or orders, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more
than five years or criminal detention; if the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment
of not less than five years but not more than ten years. 

“Any judicial officer who, being seriously irresponsible or abusing his power in execution of judgments or orders, does not take
preservation measures in litigation in accordance with law, or does not perform his statutory duty of execution, or unlawfully takes
preservation measures in litigation or takes compulsory enforcement measures, thus causing heavy losses to the interests of the parties
or other persons, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention; and if especially
heavy losses are caused to the interests of the parties or other persons, he shall be sentenced to fixed-term imprisonment of not
less than five years but not more than ten years. 

“Any judicial officer who accepts bribes and commits one of the acts mentioned in the preceding three paragraphs, which at the same
time constitutes a crime as provided for in Article 385 of this Law, shall be convicted and punished in accordance with the provisions
for a heavier punishment. ” 

9. This Amendment shall go into effect as of the date of promulgation.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






INTERPRETATION BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE APPLICATION OF THE SUBJECT OF THE CRIME OF DERELICTION OF DUTY IN CHAPTER IX OF THE CRIMINAL LAW

Interpretation by the Standing Committee of the National People’s Congress Regarding the Application of the Subject of the Crime of
Dereliction of Duty in Chapter IX of the Criminal Law of the People’s Republic of China

(Adopted at the 31st Meeting of the Standing Committee of the Ninth National People’s Congress on December 28, 2002) 

On the basis of the problems encountered in judicial practice, the Standing Committee of National People’s Congress has discussed
the application of the subject of the crime of dereliction of duty in Chapter IX of the Criminal Law, and gives the interpretation
as follows: 

When exercising power on behalf of a State organ, a person, engaged in public service in an organization which exercises the administrative
power of the State according to laws and regulations, or in an organization entrusted by a State organ with the exercise of power
on its behalf, or engaged in public service in a State organ although not included in the staff of the State organ, who commits dereliction
of duty, which constitutes a crime, shall be investigated for criminal responsibility in accordance with the provisions on the crime
of dereliction of duty as provided for in the Criminal Law. 

This Interpretation is hereby announced.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION (MOFTEC), STATE ADMINISTRATION OF TAXATION (SAT), STATE ADMINISTRATION OF INDUSTRY AND COMMERCE (SAIC), AND STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON ISSUES RELATED TO IMPROVING THE ADMINISTRATION OF ENTERPRISES WITH FOREIGN INVESTMENT IN TERMS OF EXAMINATION AND APPROVAL, REGISTRATION, FOREIGN EXCHANGE AND TAXATION

The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Taxation, the State Administration for Industry
and Commerce, the State Administration of Foreign Exchange

Circular of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), State Administration of Taxation (SAT), State Administration
of Industry and Commerce (SAIC), and State Administration of Foreign Exchange (SAFE) on Issues Related to Improving the Administration
of Enterprises with Foreign Investment in Terms of Examination and Approval, Registration, Foreign Exchange and Taxation

WaiJingMaoFaFa [2002] No.575

December 30, 2002

Commissions (departments, bureaus) of foreign trade and economic cooperation in all provinces, autonomous regions, municipalities
directly under the Central Government, and municipalities separately listed on the State plan; administration bureaus of industry
and commerce in all provinces, autonomous regions, municipalities directly under the Central Government, and other authorized bureaus;
SAFE, and its branches and exchange administration offices in all provinces, autonomous regions and municipalities directly under
the Central Government, and SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; bureaus of state taxation and of local
taxation in all provinces, autonomous regions, municipalities directly under the Central Government, and municipalities separately
listed on the State plan:

In order to keep abreast with the new situation of utilizing foreign funds and normalize the administration of enterprises with foreign
investment, in view of the new circumstances and problems arising out of the recent utilization of foreign funds, the Circular on
Issues Related to Improving the Administration of Enterprises with Foreign Investment in Terms of Examination and Approval, Registration,
Foreign Exchange and Taxation (see attachment) has been formulated jointly by the MOFTEC, SAT, SAIC, and SAFE and is hereby distributed
to you for implementation.

Attachment:Circular on Issues Related to Improving the Administration of Enterprises with Foreign Investment in Terms of Examination and Approval,
Registration, Foreign Exchange and Taxation

Pursuant to the Law of the People’s Republic of China (PRC) on Chinese-foreign Equity Joint Ventures, the Law of the PRC on Chinese-foreign
Contractual Joint Ventures, the Law of the PRC on Foreign-capital Enterprises, the Company Law of the PRC, the Contract Law of the
PRC, the Regulations on the Exchange System of the PRC, and other relevant laws and regulations, a circular on issues related to
improving the administration of enterprises with foreign investment in terms of examination and approval, registration, foreign exchange
and taxation is given hereunder with a view to keeping abreast of the new situation of absorbing foreign funds, normalizing the administration
of enterprises with foreign investment, ensuring the sound development of enterprises with foreign investment, and protecting the
lawful rights and interests of Chinese and foreign investors:

1.

The establishment of an enterprise with foreign investment as well as its contract and articles of association (including the modification
of the contract and articles of association) shall be examined and approved according to the current approving procedures of enterprises
with foreign investment provided by relevant laws and regulations of the State.

2.

According to the current laws and regulations related to foreign investment, the proportion contributed by foreign investors in a
Chinese-foreign equity joint venture or a Chinese-foreign contractual joint venture shall in general not be less than 25 percent
of its registered capital. In case the proportion of the foreign investment is less than 25 percent, unless otherwise provided in
law or administrative regulations, examination and approval as well as registration shall be handled according to the current examining,
approving and registering procedures for the establishment of enterprises with foreign investment. A certificate of approval of enterprise
with foreign investment marked with the words “Proportion of foreign investment is less than 25 percent” shall be issued to the approved;
a business license of enterprise with foreign investment with the words “Proportion of foreign investment is less than 25 percent”
marked in the column of “type of enterprise” shall be issued to the registered.

3.

An enterprise with foreign investment in which the proportion of foreign investment is less than 25 percent shall, unless otherwise
provided in law or administrative regulations, not enjoy the preferential treatment of tax reduction or exemption for importing self-satisfying
equipment and articles under the item of its total investment and other taxation treatment given to enterprises with foreign investment.

A foreign-funded stock limited company that has enjoyed the treatment given to enterprises with foreign investment, after increasing
its registered capital and stocks or transferring its stocks to foreign investors, may still enjoy the treatment given to enterprises
with foreign investment according to relevant provisions.

4.

As to an enterprise with foreign investment in which the proportion of foreign investment is less than 25 percent, if the investor
contributes in cash, the full contribution shall be made within three months after receiving the business license; if the investor
contributes in kind, industrial property rights and etc, the full contribution shall be made within six months after receiving the
business license.

5.

In case a foreign investor purchases the stock of a domestic enterprise of any nature and any type, the said domestic enterprise shall,
according to the provisions of relevant laws and regulations of the State and the current examining and approving procedure for enterprises
with foreign investment, be altered into an enterprise with foreign investment upon the approval of the approving agency concerned
and follow the industrial policy on foreign investment. After the approval, the approving agency shall issue a certificate of approval
of enterprise with foreign investment, and the administration agency of industry and commerce shall issue a business license of enterprise
with foreign investment.

A Chinese natural person shareholder in the said domestic enterprise who has owned its stock for more than one year may, if approved,
still be the Chinese investor of the enterprise with foreign investment established after the alteration.

A domestic Chinese natural person shall not, for the time being, establish an enterprise with foreign investment with a foreign company,
enterprise, other economic organization, or individual in the form of new establishment or purchase.

6.

A foreign investor that has purchased the stock of a domestic enterprise shall make full payment of the purchase within three months
after the issuance of the business license of enterprise with foreign investment. If deferred payment is necessary due to special
reasons, with the approval of the approving agency concerned, no less than 60 percent of the total amount shall be paid within six
months after the issuance of the business license of enterprise with foreign investment, and the total amount shall be fully paid
within one year, and the net profit shall be distributed in proportion to the actual contributions to the registered capital. Before
making full payment for the purchase, the controlling investor shall not obtain the decision-making power of the enterprise, and
may not incorporate his/her equity and assets in the said enterprise into his/her own financial statements in the form of a consolidated
statement. The certificate of foreign exchange registration of foreign funds issued by the SAFE office in the locality where the
stock transferor resides shall be the valid document verifying the payment for the purchase by the foreign investor.

In case a foreign investor purchases the stock of a domestic enterprise, the two parties of the stock transfer shall set a deadline
for the payment for the purchase of stock by the foreign investor in the agreement of stock transfer. In case the said deadline is
not prescribed in the agreement, the approving agency shall not approve the transfer.

7.

An enterprise with foreign investment shall apply to the SAFE office in its place of registration for foreign exchange registration
with the certificate of approval of enterprise with foreign investment and the business license of enterprise with foreign investment.

When allowing a foreign investor to purchase the stock of a domestic enterprise, the approving agency shall send a duplicate of the
approval to the SAFE offices in the localities where the said domestic enterprise is located and where the transferor of the stock
resides. The SAFE office in the locality where the transferor of the stock resides shall supervise the collection of foreign exchange.

8.

Approving agencies, agencies of industrial and commercial registration, and SAFE offices in all localities shall strictly implement
the provisions of this Circular. As from the day when this Circular is put into effect, approval, industrial and commercial registration,
and foreign exchange registration shall not be handled for those that fail to go through the procedure of approval according to this
Circular.

An enterprise established before the implementation of this Circular with the proportion of foreign investment below 25 percent shall
make up the procedure of approval and registration within half a year after the day when this Circular is put into effect. For those
that fail to make up the procedure, the relevant agency of industrial and commercial registration shall order them to do so in a
prescribed time limit. Anyone that does not make up the procedure beyond the time limit shall be punished by the relevant agency
of industrial and commercial registration according to article 63 of the Regulations on the Administration of the Registration of
Company. An enterprise that does not go through the relevant procedures after being punished shall not be let pass the annual inspection
for the current year.

The administration agencies of industrial and commercial registration in all localities shall, according to the provisions of this
Circular, count up the number of enterprises concerned, adjust the jurisdiction of registration, and do a good job in the transfer
of enterprises’ files. The registration alteration for enterprises that have made up the procedure of approval shall be exclusively
under the jurisdiction of the agencies of registration with the authority to register enterprises with foreign investment in the
localities where the said enterprises reside.

9.

In the case of conflict with previous provisions, this Circular shall prevail.

10.

This Circular shall apply to the establishment of enterprises with foreign investment in the mainland by investors from the regions
of Taiwan, Hong Kong and Macao.

11.

This Circular shall enter into force as of January 1, 2003.



 
The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Taxation, the State Administration
for Industry and Commerce, the State Administration of Foreign Exchange
2002-12-30

 






AMENDMENT OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS TO THE CONSTITUTION

Amendment of the Standing Committee of the National People’s Congress to the Constitution of the PRC

     (Effective Date:–Ineffective Date:)

At its Seventh meeting, the Standing Committee of the Ninth National People’s Congress, having discussed the proposal of the Central
Committee of the Communist Party of China on amending parts of the Constitution of the People’s Republic of China, has worked out
in accordance with the provisions in Article 64 of the Constitution the present Draft Amendment to the Constitution and hereby submits
it to the Second Session of the Ninth National People’s Congress for examination:

The seventh paragraph of the Preamble to the Constitution, which reads: “Both the victory in China’s New-Democratic Revolution and
the successes in its socialist cause have been achieved by the Chinese people of all nationalities, under the leadership of the Communist
Party of China and guidance of Marxism-Leninism and Mao Zedong Thought, by upholding truth, correcting errors and surmounting numerous
difficulties and hardships. China is at the primary stage of socialism. The basic task of the nation is to concentrate its effort
on socialist modernization in line with the theory of building socialism with Chinese characteristics. Under the leadership of the
Communist Party of China and the guidance of Marxism- Leninsm and Mao Zedong Thought, the Chinese people of all nationalities will
continue to adhere to the people’s democratic dictatorship and the socialist road, persevere in reform and opening to the outside
world, steadily improve socialist institutions, develop socialist democracy, improve the socialist legal system and work hard and
self-reliantly to modernize the country’s industry, agriculture, national defense and science and technology step by step to turn
China into a socialist country that is prosperous, powerful, democratic and culturally advanced,” is revised as follows: “Both the
victory in China’s New- Democratic Revolution and the successes in its socialist cause have been achieved by the Chinese people of
all nationalities, under the leadership of the Communist Party of China and guidance of Marxism- Leninism and Mao Zedong Thought,
by upholding truth, correcting errors and surmounting numerous difficulties and hardships. China will be in the primary stage of
socialism for a long time to come. The basic task of the nation is to concentrate its effort on socialist modernization along the
road of building socialism with Chinese characteristics. Under the leadership of the Communist Party of China and the guidance of
Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory, the Chinese people of all nationalities will continue to adhere to
the people’s democratic dictatorship and the socialist road, persevere in reform and opening to the outside world, steadily improve
socialist institutions, develop the socialist market economy, develop socialist democracy, improve the socialist legal system and
work hard and self- reliantly to modernize the country’s industry, agriculture, national defense and science and technology step
by step to turn China into a socialist country that is prosperous, powerful, democratic and culturally advanced.”

2. A new paragraph is added to Article 5 of the Constitution as the first paragraph, which provides: “The People’s Republic of China
governs the country according to law and makes it a socialist country ruled by law.”

3. Article 6 of the constitution, which reads: “The basis of the socialist economic system of the People’s Republic of China is socialist
public ownership of the means of production, namely, ownership by the whole people and collective ownership by the working people.
The system of socialist public ownership supersedes the system of exploitation of man by man; it applies the principle of ‘From each
according to his ability, to each according to his work'”, is revised as follows: “The basis of the socialist economic system of
the people’s Republic of China is socialist public ownership of the means of production, namely, ownership by the whole people and
collective ownership by the working people. The system of socialist public ownership supersedes the system of exploitation of man
by man; it applies the principle of ‘from each according to his ability, to each according to his work’.” “In the primary stage of
socialism, the state upholds the basic economic system under which the public ownership is dominant and diverse forms of ownership
develop side by side and keeps to the distribution system under which distribution according to work is dominant and diverse modes
of distribution coexist.”

4. The first paragraph of Article 8 of the Constitution, which reads: “In rural areas the responsibility system, the main form of
which is household contract that links remuneration to output, and other forms of cooperative economy, such as producers, supply
and marketing, credit and consumers’ cooperatives, belong to the sector of socialist economy under collective ownership by the working
people. Working people who are members of rural economic collectives have the right, within the limits prescribed by law, to farm
plots of cropland and hilly land allotted for their private use, engage in household sideline production and raise privately owned
livestock”, is revised as follows: “The rural collective economic organizations apply the dual operation system characterized by
combination of centralized operation with decentralized operation on the basis of operation by households under a contract. In rural
areas, all forms of Cooperative economy, such as producers’ supply and marketing, credit and consumers’ cooperatives, belong to the
sector of socialist economy under collective ownership by the working people. Working people who are members of rural economic collectives
have the right, within the limits prescribed by law, to farm plots of cropland and hilly land allotted for their private use, engage
in household sideline production and raise privately owned livestock.”

5. Article 11 of the Constitution, which reads: “The individual economy of urban and rural working people, operating within the limits
prescribed by law, is a complement to the socialist public economy. The state protects the lawful rights and interests of the individual
economy.” “The state guides, assists and supervises the individual economy by administrative control.” “The state permits the private
sector of the economy to exist and develop within the limits prescribed by law. The private sector of the economy is a complement
to the socialist public sector of the economy. The State protects the lawful rights and interests of the private sector of the economy,
and exercises guidance, supervision and control over the private sector of the economy”, is revised as follow:” The Non-public sectors
of the economy such as the individual and private sectors of the economy, operating within the limits prescribed by law, constitute
an important component of the socialist market economy.” “The state protects the lawful rights and interests of the individual and
private sectors of the economy, and exercises guidance, supervision and control over the individual and private sectors of the economy.”

6. Article 28 of the Constitution, which reads: “The state maintains public order and suppresses treasonable and other counter- revolutionary
activities; it penalizes criminal activities that endanger public security and disrupt the socialist economy as well as other criminal
activities; and it punishes and reforms criminals”, is revised as follows: “The State maintains public order and suppresses treasonable
and other criminal activities that endangers state security; it penalizes criminal activities that endanger public security and disrupt
the socialist economy as well as other criminal activities; and it punishes and reforms criminals.”

    





DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING PUNISHMENT OF THE CRIME OF COPYRIGHT INFRINGEMENT

Decision of the Standing Committee of the National People’s Congress Concerning Punishment of the Crime of Copyright Infringement

     Supplementary provisions to the Criminal Law are formulated as follows in order to punish crimes constituted by the infringement of
copyrights and the infringement of rights and interests related to copyrights.

   Article 1 A party which has committed any of the following infringements of copyrights for profit-making purposes shall, in cases of relatively
large amounts of illicit gains or in other serious cases, be sentenced to up to three (3) years imprisonment or to criminal detention
and have a fine imposed singly or cumulatively; and shall, in cases of enormous amounts of illicit gains or other very serious cases,
be sentenced to more than three (3) years and up to seven (7) years imprisonment or criminal detention and have a fine imposed concurrently:

(1) copying and publishing a written literary work, musical composition, film, television or musical work, computer software or other
work without the consent of the copyright holder;

(2) publishing a book for which another party has exclusive rights of publication;

(3) copying and distributing an audio-visual recording without the consent of the audio-visual recorder who produced the recording;

(4) producing and selling fake works of art which are copies of other people’s famous works.

   Article 2 A party which knowingly sells duplicates which infringe copyrights as stipulated in Article 1 of this Decision shall, in cases of
relatively large amounts of illicit gains, be sentenced to up to two (2) years imprisonment or criminal detention and have a fine
imposed singly or cumulatively; and shall, in cases of enormous illicit gains, be sentenced to more than two (2) years and up to
five (5) years imprisonment or criminal detention and have a fine imposed concurrently.

   Article 3 If a unit has committed criminal offences as stipulated in this Decision, the unit shall be fined and those principal personnel directly
responsible and other personnel directly responsible shall be punished in accordance with the provisions of this Decision.

   Article 4 The illicit gains from duplicates which have infringed copyrights which are discovered and seized, and the materials, tools, equipment
and other property owned by a unit or individual which were used chiefly to infringe copyrights shall, without exception, be confiscated.

   Article 5 A party which has committed criminal offences as stipulated in this Decision, thus causing the aggrieved party to incur losses shall,
in addition to having criminal liability pursued in accordance with this Decision, be ordered to compensate the aggrieved party for
those losses, depending on the seriousness of the case, in accordance with the law.

   Article 6 This Decision shall take effect from the date of promulgation.

    





DECISION OF THE STATE COUNCIL ON FURTHER STRENGTHENING THE WORK OF INTELLECTUAL PROPERTY PROTECTION

Decision of the State Council of the PRC on Further Strengthening the Work of Intellectual Property Protection

     The protection of intellectual property is a component part of the policy of reform and openness of China and an important system
for promoting the prosperity and development of scientific, technological and cultural undertaking and ensuring the normal operation
of the socialist market economy. In order to adapt to the international trend of integration of science, technology and economy and
to the objective requirement for the early restoration of China’s status as contracting State of GATT, China has in recent years
speeded up its intellectual property legislation and successively promulgated such laws as the Trademark Law of the People’s Republic
of China, the Patent Law of the People’s Republic of China, the Law of the People’s Republic of China on Technology Contracts, the
Copyright Law of the People’s Republic of China and the Law of the People’s Republic of China for Countering Unfair Competition,
which have begun to link up with international standards and have played a positive role in promoting reform and openness as well
as the construction of modernization in China. As it is only recently that China has established its intellectual property system,
and the sense of intellectual property of society as a whole is still rather hazy, there is still lacking, in certain regions and
departments, a sufficient understanding of the importance of protecting intellectual property. A number of aggravated acts of infringement
have not only damaged the lawful rights and interests of intellectual property right owners but also the dignity of law. In order
to strengthen conscientiously the work of intellectual property protection and ensure the enforcement of the laws, the following
decision is made.

1. Perfecting the intellectual property system and strengthening conscientiously the work of intellectual property protection, are
currently important contents of deepening the complementary reforms in the scientific, technological and economic fields and expanding
the scope of opening to the outside world, and also the basic requirements in our efforts to speed up the establishment of a system
of socialist market economy and realize the link-up with the world economy. The People’s Governments at the various levels have to
understand fully the importance of the intellectual property system in giving impetus to scientific and technical progress and economic
development, to handle correctly the relationship between local interests and overall interests, between immediate interests and
long-term interests, place the strengthening of intellectual property protection on the agenda of scientific, technical, economic
and cultural work as an important matter, utilize comprehensively legal, economic and administrative means to induce enterprises,
scientific research institutes and institutions of higher learning (referred to below as enterprises and institutions) to adopt effective
measures to protect their intellectual property while fully respect the intellectual property of others, urge society as a whole
to foster the good habit of respecting and protecting intellectual property so as to create a favourable environment and conditions
for the producing, by citizens, enterprises and institutions, of inventions, creations, and literary/artistic works as well as for
the scientific, technical, economic and cultural cooperation and exchange with foreign countries.

2. The protection of intellectual property is a comprehensive task involving many aspects such as legislation, judicature, law enforcement,
and administration, and the various relevant departments should support each other and cooperate closely so as to form a unified
and harmonious system of intellectual property protection.

Recently, the Standing Committee of the National People’s Congress has examined and approved the decision on punishing crimes of infringing
on copyright, so as to increase the force of the law for stopping and punishing acts of intellectual property infringement.

The State Council will pay close attention to the study and formulation of administrative regulations for carrying out border measures
in respect of intellectual property protection.

The administrative authorities and enforcing agencies for intellectual property at the various levels shall strengthen their functions,
maintain their staff at full strength and increase efficiency. At present, it is necessary to focus on reinforcing the staff of copyright
administrative and enforcing agencies at various levels to ensure the effective implementation of the Copyright Law of the People’s
Republic of China. In the process of performing their duties, the intellectual property administrative and enforcing agencies will
need the cooperation of other enforcement agencies and administrative departments, and the relevant agencies and departments should
lend their support unstintingly. In respect of major cases producing a great impact, the administrative authorities and enforcement
agencies for intellectual property affairs may investigate and deal with them jointly with the departments in charge of scientific,
technological, economic, cultural, press, publishing, broadcasting, cinematic, television and public security affairs.

Support should be given to the hearing of intellectual property cases by the People’s Courts according to law and to the setting up
of intellectual property adjudication divisions by the relevant People’s Courts where they are needed. The ranks of judges should
be expanded in earnest so as to ensure that various categories of intellectual property cases will be dealt with justly and promptly.

In judicial and administrative enforcement, the barriers of local protectionism and of departmentalism should be broken down and various
acts of intellectual property infringement should be investigated and punished by following the principles of “There should be laws
to abide by. Where there are laws, they must be abided by. Where laws are enforced, they must be enforced strictly. Where laws are
broken, the law-breakers must be investigated and dealt with.” and by the strict enforcement of laws and regulations. Where the circumstances
of the infringing acts are so serious as to constitute crimes, the relevant persons should be prosecuted for their criminal liability
according to law so as to safeguard conscientiously the lawful rights and interests of owners of intellectual property rights as
well as the unity and dignity of the socialist legal system.

In order to further amplify and perfect the intellectual property administration system of the country and strengthen the macro-management
and coordination of intellectual property, the State Council has decided to institute the system of holding regular meetings at the
State Council to deal with intellectual property matters. The various departments concerned should strengthen their administration
organizations for intellectual property affairs in the organizational reform and sort out interdepartmental relations, build up in
China a framework in which the system of executive administration and the system of judicial protection operate in parallel so as
to increase the force of intellectual property protection.

3. It is necessary to strengthen energetically the supervision and inspection of the implementation of intellectual property laws
and develop a mechanism combining routine supervision with inspection of key sectors. The State Council will nonperiodically organize
the various administrative authorities and enforcement agencies for intellectual property affairs, together with the departments
concerned with scientific, technological, economic, cultural, press, publishing, broadcasting, cinematic, television and public security
matters, to carry out joint inspections of the situation in various regions and departments regarding the implementation of intellectual
property laws, with the stress on investigating and dealing with a number of major cases of intellectual property infringement which
are significant and make a great impact, and to supervise local authorities in combating such phenomena as laxity in law enforcement
and leniency in punishing infringing acts. This is to be shaped gradually into a system to ensure the effective implementation of
the intellectual property laws.

At present, the focal point of supervision and inspection is to put the audio-visual product and computer software market in order.
The administrative authorities for copyright and for industry and commerce at various levels should cooperate closely, intensify
their inspections and deal seriously with piratical acts of illegally copying audio-visual products and computer soft-ware.

4. In order to carry out the relevant provisions in the Paris Convention for the Protection of Industrial Property and the Berne Convention
for the Protection of Literary and Artistic Works, acceded to by China, and to strengthen intellectual property protection in foreign
economic relations and trade, it is necessary to enhance the functions of the customs authorities in protecting intellectual property
and stopping the import and export of infringing products, and to adopt necessary border measures to stop the import and export of
infringing products effectively. The customs authorities should strengthen the liaison and cooperation with the relevant departments
and strictly carry out the border measures concerning intellectual property according to law.

5. It is necessary to strengthen the work of protecting intellectual property in the import and export of new technologies and new
products. Where an item of technology or a product is imported from abroad, a comprehensive investigation should be carried out of
the status of the relevant technology or product in respect of intellectual property in order to avoid infringement disputes or other
losses. Where an item of new technology or a new product is exported, proper inquiries should also be made with respect to intellectual
property so that after the technology or product is exported it may not be copied by others or infringe the intellectual property
of others.

It is necessary to strengthen the examination, approval and administration of the processing of brand-name audio-visual product using
materials which are supplied by clients or are imported and the manufacturing and distributing of such products in the form of joint
ventures. Where an enterprise is entrusted by a foreign firm with such activities, it should find out through the relevant intellectual
property administrative authority or service agency whether the foreign firm is the lawful proprietor of the particular item of intellectual
property and has the right to its use, and it should be stipulated in the contract the liability for making defence where the enterprise
is accused by a third party of infringement for carrying out the activities of processing name-brand audio-visual products or manufacturing
and distributing such products while performing the contract, and the liability for making compensation where the accusation is found
tenable.

6. The various trades and professions should each take the strengthening of intellectual property work as an important measure for
promoting the scientific-technological progress and economic development within the trade. Each should, according to the actual state
of scientific, technological and economic development in the trade, actively carry out studies on its own intellectual property strategy
and management in order to lend guidance to the adjustment of the product mix, scientific research and production throughout the
trade. In respect of those trades with little capability of autonomous research and development, such as the pharmaceutical, chemical
and computer software trades, a preferential policy should be adopted to increase the input of funds for research and development
and raise the capability and level of autonomous research and development.

7. The departments responsible for various plans of scientific- technological development should take intellectual property work as
an important link in the management of their plans and formulate a unified intellectual property strategy in the light of the execution
and development of the plans, and should in particular strengthen the investigation and analysis of intellectual property in the
fields related to the plans and the corresponding study of countermeasures, so that the intellectual property work will run through
the entire process of putting the projects in the plans on record, the legal protection of the results and their commercialization,
industrialization and internationalization.

8. Enterprises and institutions should take the protection of intellectual property as an important content of establishing a modern
system of enterprises and a modern system of scientific research institutes, heighten their consciousness of intellectual property,
abide by the intellectual property laws and regulations, channel the strengthening of intellectual property protection into line
with their own work in research, development, production, operation and internal management, and shaping these into corresponding
systems.

The research and development of new techniques, new technology, and new products as well as the technical transformation of enterprises
and institutions should be closely combined with intellectual property work. They should make use of information on intellectual
property to formulate correct strategies of research, development, production and operation and decide on an appropriate direction
of research and technical line, raise the starting point, level and efficiency of research and development and avoid the emergence
of unnecessary repetitive developments or the arising of infringement disputes in scientific research and in production.

9. The various categories of trade associations in the scientific, technical, economic and cultural fields, together with specialized
public organizations concerning intellectual property and socialized service organizations, are an important force in promoting the
implementation of intellectual property laws and strengthening the work in intellectual property protection. It is necessary to encourage
and support the development of these organization, steer them towards utilizing their flexible mechanisms and, geared to the needs
of society, provide all manners of intellectual property law consulting and other services. A number of legal service organizations
concerning intellectual property should be set up to assist interested parties in the investigation of infringing acts and the gathering
of evidence so that the relevant disputes may be resolved through legal channels. The departments concerned of the government should
fully bring into play the initiative of these organizations so that they may become capable assistants of the administrative authorities
in protecting intellectual property.

10. At present, it is necessary to vigorously strengthen the training of specialists in the field of intellectual property and the
work of popularizing knowledge on intellectual property protection among the vast numbers of leading cadres and the masses. The administrative
authorities for intellectual property and departments in charge of scientific, technological, economic and cultural affairs should
carry out in-depth propaganda about intellectual property in combination with the Second Five Year Plan for the Popularization of
Legal Knowledge and strengthen education in respect of the legal system concerning intellectual property. The media should intensify
the reporting on intellectual protection and fulfil satisfactorily the tasks of propagation, education, and supervision through public
opinion. Enterprise and institutions should bring intellectual property law into line with their educational plans for popularization
of legal knowledge. It is necessary to gradually heighten the consciousness of intellectual property protection and the related sense
of legality in society as a whole through in-depth, sustained propaganda and education, so as to create a salutary social environment
favourable to the protection of intellectual property.

11. The departments concerned of the State Council may formulate, on the basis of this Decision, specific procedures for strengthening
the intellectual property work in enterprises and institutions.

    





INTERIM PROCEDURES CONCERNING CAPITAL ACCRETION THROUGH ADDITIONAL ISSUES OF B-SHARES BY DOMESTIC LISTED COMPANIES

Interim Procedures Concerning Capital Accretion Through Additional Issues of B-Shares by Domestic Listed Companies

     Article 1 This set of procedures has been formulated in accordance with the provisions of the Company Law of the People’s Republic
of China (hereinafter referred to as Company Law), the Regulations of the State Council on Domestic Listed Shares for Overseas Investors
and Detailed Rules for Regulations of the State Council on Domestic Listed Shares for Overseas (hereinafter referred to as Detailed
Rules), and other related laws and regulations with a view to promoting the development of the market for B-shares and standardize
the increases of capital by listed companies concerned (hereinafter referred to as “companies”) by additional issues of B-shares
(excluding rights issues).

   Article 2 A company to place additional B-shares for capital accretion should be in conformity with the following conditions:

(1) The uses of the fund raised from the placement should be in whole conformity with the industrial policy of the State, the plan
for investment to fixed assets and the relevant provisions concerning the use of foreign capital;

(2) The shares issued for a previous placement of the company (including placement for capital accretion or placement of rights, the
same below) has been fully subscribed, and the uses of the capital raised are in conformity with what has been addressed in the Prospectus
on Stock Issue or Prospectus on Rights Issue, or the issues concerned have been approved according to legal procedures and has already
acquired a good efficiency in use of the capital;

(3) The interval between the announcement of the prospectus for the previous placement of B-shares of the company and announcement
of the current pnlacement for increasing capital is not less than 12 months. But the interval between the current additional B-share
placement and the previous placement for same A-shares may be less than 12 months;

(4) There was no major act violating the law in the latest three years of the company;

(5) The contents of the company’s articles of association are in conformity with the Company Law and other related provisions;

(6) The methods for calling and holding of general meetings of shareholders, the methods for voting at the meetings, and the contents
of resolutions made at the meetings are in conformity with the provisions of relevant laws and regulations, policies, and the articles
of association of the company;

(7) Information disclosure concerned is made according to provisions of relevant laws and regulations;

(8) The company made profits in the latest three consecutive years, being able to distribute dividends to its shareholders;

(9) The financial and accounting statements of the company for the latest three years do not have false records and no important imformation
omitted;

(10) The prescribed minimum of issue price for the additional placement of B-sharese for capital accretion or the range of the issue
prices is not less than the net asset value of per share before the issue;

(11) The proportion of the foreign-funded shares in the total capitalization of the company after the additional placement of B-shares
for capital accretion does not exceed the said proportion as prescribed by the department in charge of the enterprise, the administrative
department of the industry and other competent departments; and

(12) Other conditions as provided by the Securities Committee of the State Council.

   Article 3 In general meeting of shareholders, the following matters concerning an additional placement of B-shares for capital accretion of
a company should be voted item by item:

(1) number of shares to be issued in the said placement;

(2) principles or conditions for determining the issue price;

(3) term of validity of the resolution on the said placement; and

(4) authorization and requirements to the board of directors of the company for the handling of specific matters of the said placement.

The board of directors of the company should put the above items into the notices on holding of the general meeting to shareholders
and also ensure full opportunity of all shareholders to exercise the right to vote.

   Article 4 Whereas the general meeting of shareholders authorizes the board of directors to make specific arrangements for the additional placement
of B-shares for capital accretion, the board of directors may, within the scope of authorization, independently decide on such matters
as the time, means and prices of the placement, and revisions to relevant clauses of the company’s articles of association, as well
as the plan for the uses of the capital raised.

   Article 5 A company placing additional B-shares for capital accretion may accretion prepare a brief memorandum or other forms of information
for the placement which should include at least the following contents:

(1) type, face value, total volume and price of the shares in the current placement, net asset value per share before the placement
and the expected net asset value per share after the placement, total capital to be raised, and the market price of the company’s
stock at the time when the issue price is determined;

(2) explanation of the uses of the capital raised from the current placement;

(3) names of the underwriter(s) and other related intermediaries, program and principles for the current placement;

(4) major changes to the company’s operational conditions since the latest public disclosure of documents (prospectus on the stock
placement, prospectus on rights placement, announcement for the listing of the company, annual report, interim report, etc.); and

(5) other contents as required by the China Securities Regulatory Commission.

   Article 6 Whereas a company offers the B-shares to be issued for capital accretion to unitary subscribers including lump sum purchase of all
the shares by underwriters underwriting by a securities organization the company may not necessarily prepare the memorandum of other
form of information for the placement. However, the company should timely disclose information in accordance with the requirements
of the China Securities Regulatory Commission and related securities exchange. Within five days after placement, the conditions of
placement, underwriting and information disclosure of the additional B-shares for capital accretion should be reported to the China
Securities Regulatory Commission for the record.

   Article 7 The reporting materials on a company’s placement of additional B-shares for capital accretion should be prepared according to a standard
form as provided for in Article 7 and Article 14 of the Detailed Rules and the appendix of these procedures, and be reported to the
China Securities Regulatory Commission for examination and approval. The company may put the placement of additional B-share for
capital accretion into effect upon the approval of the China Securities Regulatory Commission.

   Article 8 This set of procedures shall come into force as of the date of its promulgation.

Appendix:

Standard Forms for Reporting Materials on Placement of Additional B- Shares for Capital Accretion by Companies Listed within the Territory

The materials to be reported to the China Securities Regulatory Commission by a B-share company (hereinfter referred to as “company”)
for additional placement of B-shares for capital accretion should be prepared in accordance with the following standard forms:

I. Paper, Cover and Number of Copies of the Reporting Materials

1. Paper:

Paper in the size of 209 X 295 (equal to A4 paper) shall be used.

2. The cover should present:

(1) The words of “Reporting Materials on Additional Placement of B- Shares for Capital Accretion”;

(2) Name of the reporting company;

(3) Date of reporting;

(4) Date of acceptance;

(5) Date of meeting to examine the issue;

(6) Date on which the document of approval is signed.

(The items (4) – (6) should be filled up by the China Securities Regulatory Commission.)

3. Number of copies:

(1) Six copies of the reporting materials should be submitted initially, at least one of which shall be the original copy;

(2) After pre-examination ends, 12 copies of the reporting materials that have been revised should be submitted, at least one of which
shall be the original copy.

II. Contents of Reporting Materials on Placement of Additional B-Shares for Capital Accretion

Chapter One Documents on the Said Issuance Issued by the Local Government or the Central Government Department in Charge of the Company
Concerned

1-1 Agreement of the local government or the central government department in charge of the company for the placement of additional
B- shares for capital accretion and the presentation of related reporting materials to the China Securities Regulatory Commission.

Chapter Two Documents of Authorization and Appendices on the Additional Placement

2-1 Resolution of the current general meeting of shareholders

2-2 Explanation of the basic conditions about the current general meeting of shareholders (including the conditions about the attendance
and voting of the company’s domestic shareholders and foreign shareholders)

2-3 Notice on convening the current general meeting of shareholders (duplicate of the announcement) and the explanation of the conditions
about the notice

2-4 Application for the company’s placement of additional B-shares for capital accretion

2-5 Resolutions of the board of directors and minutes of the meeting

Chapter Three Related Conditions about the Previous Stock Issue (Including Rights Issue or Additional Issue for Capital Accretion,
the Same Below), and Other Materials

3-1 The conditions about the uses of the capital raised from the previous stock issue, and explanation of the conditions about the
approval of change to the planned uses

3-2 The Prospectus on Stock Issue or Prospectus on Rights Issue for the Previous Stock Issue

3-3 Explanation of the conditions about information disclosure since the previous stock issue

3-4 Historical changes of stock right composition of the company (may be shown in figures or tables)

3-5 Business license for enterprise legal person

Chapter Four Explanatory Materials about the Feasibility of Capital Uses

4-1 The feasibility study report on the uses of the capital to be raised from the current issuance of additional B-shares for capital
accretion

4-2 Documents of approval issued by the competent government departments to the proposal of fixed assets investment

Chapter Five Brief Informations about the Placement

5-1 A memorandum or other forms of explanatory information on the additional placement (A version in foreign language shall also be
presented at the same time)

5-2 Appendices to the explanatory information

5-2-1 Financial statements and attached notes and audit reports (including audit in and out of the territory) of the company for the
latest three years

5-2-2 Report on profit forecast (if available)

5-2-3 Letter of legal opinion

5-2-4 Examination records of the underwriter’s lawyer on the prospectus of the information memorandum

5-3 Summary of the prospectus

Notes:

(1) With the agreement of the China Securities Regulatory Commission, a brief introduction to the placement may not necessarily be
included in the reporting materials if all the additional shares are to be offered to the underwriter(s) in a lump sum. But the financial
statements and attached notes and audit reports (including audits in and out of the territory) for the latest years, the report on
profit forecast, the letter of legal opinion, the program for issuing and listing, etc. still have to be provided. Besides, within
five days after the additional shares are placed, the lead underwriter and the company should respectively report the related conditions
about the current issuance of B-shares and information diclosure about the issuance to the China Securtities Regulatory Commission
for the record.

(2) Before the China Securities Regulatory Commission works out separate rules, the summary of the prospectus may be prepared with
reference to the Contents and Form of Prospectus, and should be completely consistent with the contents published on designated newspapers
later.

Chapter Six Appendices to the Reporting Materials for Issuance

6-1 Opinion (if available) of the holders of State shares on the current placement of additional B-shares for capital accretion

6-2 Articles of association of the company

6-3 Underwriting agreement

6-4 Agreement of the underwriting consortium (if available)

6-5 Letter of commitment issued by a stock exchange on agreeing to arranging the listing of the additional B-shares for increasing
capital issued by the company

6-6 Analysis report on the prospects of the additional B-shares placement for capital accretion and the issuance program made respectively
by the lead underwriter and the international coordinator

Chapter Seven Business Qualification Certificates for Intermediaries

7-1 Qualification certificates for competent securities organizations dealing in foreign funded-shares listed within the territory

7-2 Qualification certificates for other intermediaries (accounting firms, law firms) and their signers dealing securities business

Notes:

(1) The page number of each page must be consistent with the page numbers in the contents

(2) Examples for marking page numbers. For example, the page numbers for the 4-1 section of Chapter Four shall be marked as: 4-1-1,
4-1-2, 4-1-3 …4-1-N.

    





INTERIM REGULATIONS ON THE MANAGEMENT OF INTERNATIONAL NETWORKING OF COMPUTER INFORMATION

Interim Regulations of the PRC on the Management of International Networking of Computer Information

     Article 1 These Regulations are promulgated hereby with the aim of strengthening management of international networking of computer
information and promoting the healthy development of international exchange of computer information.

   Article 2 International networking of computer information within the People’s Republic of China shall be carried out in accordance with stipulations
in these Regulations.

   Article 3 Denotations of the following terms as used in these Regulations:

(1) International networking of computer information (hereinafter referred to as international networking) refers to the linking of
networks of computer information within the People’s Republic of China to foreign networks of computer information for the purpose
of international exchange of information.

(2) Inter-connected networks refers to networks of computer information directly linked to international networking. Inter-connected
units refer to units in charge of operation of inter-connected networks.

(3) Insertion networks refer to networks of computer information that are inserted into inter-connected networks for the purpose of
international networking. Insertion units refer to units in charge of operation of insertion networks.

   Article 4 The State shall implement the principle of unified planning, unified standards, and level-by-level management of international networking
to promote its development.

   Article 5 The Information Working Group of the State Council (hereinafter referred to as the Leading Group) shall take charge of coordinating
and solving problems concerning international networking.

The office of the Leading Group shall work out, in line with stipulations in these Regulations, specific management rules to clarify
the rights, obligations and responsibilities of units providing international output and input channels, inter-connected units, insertion
units, and customers. It shall also take charge of examination and supervision of international networking.

   Article 6 To carry out international networking of computer information, the output and input channels provided by the Ministry of Posts and
Telecommunications in its public telecommunication network shall be used.

No units or individuals shall establish or use other channels for international networking on their own accord.

   Article 7 Inter-connected networks that have already been established shall be readjusted and put into management by the Ministry of Posts
and Telecommunications, the Ministry of Electronics Industry, the State Education Committee, and the China Academy of Sciences.

Establishment of new inter-connected networks shall be reported to the State Council for approval.

   Article 8 Insertion networks shall carry out international networking via inter-connected networks.

Insertion units that plan to engage in the business of international networking shall apply for license for doing the business of
international networking from departments or units in charge of inter- connected units empowered to handle applications for engagement
in the business of international networking. Those that have not obtained these licenses shall not engage in activities related to
international networking.

Insertion units that plan to engage in activities of a non-business kind shall report for examination and approval to departments
or units in charge of inter-connected units empowered to handle applications for these activities. Those that have not obtained approval
shall not carry out international networking via inter-connected networks.

Those applying for licenses for doing businesses related to international networking or reporting for examination and approval shall
provide information on the character of their computer information, scope of information, and location of their host computers.

The form of the license for doing businesses relationed to international networking shall be produced by the Leading Group in a unified
way.

   Article 9 Insertion units doing businesses related to international networking or engaged in non-business activities related to international
networking shall all meet the following requirements:

(1) They shall be legal person enterprises or institutions set up in accordance with law.

(2) They shall have corresponding computer networks, equipment, and relevant technical and management personnel.

(3) They shall have perfect safety and security systems and measures for technical protection.

(4) They shall meet other requirements stipulated in laws or raised by the State Council.

Insertion units doing businesses related to international networking that no longer meet requirements in clauses (1) and (2) due to
changes in their situation shall have their licenses revoked by the departments that have originally issued these licenses, and insertion
units engaged in non-business activities related to international networking that no longer meet the requirement in clause (1) due
to changes in their situation shall have their qualifications for international networking nullified by the departments that have
originally granted the approval.

   Article 10 International networking of the networks of computer information used by individuals, legal persons, and other organizations (hereinafter
referred to as customers) shall be carried out via insertion networks.

If the computers or networks of computer information as referred in the preceding clause are to be inserted into networks, consent
shall be won from insertion units, and registration procedures shall be gone through.

   Article 11 Units providing international input and output channels, inter-connected units, and insertion units shall set up corresponding network
management centres, enhance management of themselves and their customers according to law and relevant stipulations of the State,
do a good job in the safety management of network information, and provide excellent and safe services to customers.

   Article 12 Inter-connected units and insertion units shall take charge of technical training and management education related to international
networking for themselves and for their customers.

   Article 13 Units and individuals doing businesses related to international networking shall abide by relevant laws and administrative decrees
of the State, strictly implement the system of safety and security, refrain from illegal and criminal activities that endanger national
security and leak State secrets through international networking, and stay away from producing, consulting, duplicating, or spreading
information that interrupts social order or pornographic information.

   Article 14 Those that violate stipulations in articles 6, 8 and 10 shall be ordered by public security departments to stop networking, with
a warning issued to them. They may also be imposed a fine below 15,000 yuan. If they have earned any illegal incomes, these incomes
shall be confiscated.

   Article 15 Those that violate these Regulations and violate stipulations in other laws or administrative decrees shall be punished according
to the relevant laws and administrative decrees. If the cases are so serious as to be criminal, criminal responsibilities shall be
affixed.

   Article 16 Networking of computer information with Taiwan, Hong Kong and Macao shall be carried out with reference to these Regulations.

   Article 17 These Regulations shall take effect on the date of promulgation.

    





PROCEDURES FOR INSPECTION OF INTENATIONAL NAVIGATION SHIPS ENTERING AND EXITING PORTS

Procedures for Inspection of Intenational Navigation Ships Entering and Exiting Ports of the People’s Republic of China

     Article 1 This set of procedures are formulated for the purpose of strengthening the administration of the international navigation
ships entering and exiting the ports of the People’s Republic of China to facilitate their entry and exit and improve the uses of
the ports.

   Article 2 Upon the entry in or exit from ports of the People’s Republic of China international navigation ships (hereinafter referred as the
ships)as well as their crew and the passengers, cargoes and other goods they carry shall be inspected by organs stipulated in Article
3 of this set of procedures according to this set of procedures except stipulated by law of the State Council for other ways of inspection.

   Article 3 The inspection shall be carried out by harbour superintendent department of China (HSD), China’s General Administration of Customs
(GAC), border checking departments (BCD) of health quarantine departments (HQD) of China and China’s quarantine departments of animal
and plant (QAP), which are referred to hereinafter as the inspection organs.

   Article 4 The inspection organs carry out their inspection according to relevant laws and regulations and deal with the acts of violating laws
and administrative regulations.

HSD is responsible for calling other inspection organs to participate in associated meetings for the study of related problems arising
from the inspection of the ships upon their entry in and exit from China’s ports.

   Article 5 When a ship enters and exits China’s ports, its owner or agent should go through formalities in line with relevant stipulations the
procedures. The personnel of inspection organs shall not go on board of the ship for inspections except in the cases stipulated in
the second clause of Article 10 and Article 11 of the procedures or in other special cases.

In going through all the formalities concerning the entry in or exit from China’s ports, owner or agent of the ship concerned should
accurately fill in the forms and provide related certificates and data in line with the stipulations of the inspection organs.

   Article 6 The owner or the agent of a ship should fill in an “Application Form for International Navigation Ships Entering and Exiting Chinese
Ports” 7 days before the arrival of the ship to the port (before exiting the previous port if the voyage takes less than 7 days),
and report to the HSD of the arriving port for approval.

The owner or the agent of a ship which is to enter the Yangtze River should fill in an “Application Form for International Navigation
Ships Entering and Exiting Chinese Ports” 7 days before the ship is expected to arrive at the Shanghai port (before exiting the previous
port if the voyage takes less than 7 days), and report to the HSD for approval.

   Article 7 The owner or the agent of a ship should report the time of arrival, the site of anchorage, and the plan for anchoring and moving
as well as related information about the crew and passengers to the inspection organs concerned 24 hours before its arrival at the
port (before exiting the previous port if the voyage takes less than 24 hours).

   Article 8 The owner or the agent who has not gone through the formalities of entering the port before the arrival of the ship should go through
the formalities at the inspection organs within 24 hours after its arrival.

If the anchoring time is less than 24 hours, the owner or the agent may, with the agreement of the inspection organ, go through the
formalities of exiting the port while going through the formalities of entering the port.

   Article 9 If the formalities of entering the port have been gone through by the owner or the agent of a ship the people concerned can move
and cargoes can be loaded on or out of the ship as soon as the arrival of the ship to the port.

If formalities of entering the port have not been gone through by the owner or the agent of a ship upon its arrival of a port all
people must not move and cargoes and other goods must not be loaded on and out of the ship after its arrival except inspection personnel
and navigators; if the previous entering and exiting port of the ship is a Chinese port, people may leave and go on board the ship
and cargoes and other goods may be loaded and unloaded after its arrival, but the owner or the agent should immediately go through
the formalities of entering the port.

   Article 10 The HQDs carry out telecommunications quarantine. The owner or the agent of a ship with a sanitation certificate may apply to the
HQDs for telecommunications quarantine.

HQDs should carry out quarantine at the site of the anchorage if the ships come from epidemic areas and ships carrying people who
have or are suspected to have contracted infectious diseases or bodies of those who have died of non-accidental causes or of unclear
causes, or ships without sanitation certificate or with an expired sanitation certificate only or the sanitation conditions not up
to the required standards.

   Article 11 QDAPs may carry out the quarantine at the site of the anchorage if the ships or animals and plants, animal and plant products or
other goods carried by the ship come from animal and plant epidemic areas that need quarantine

   Article 12 The ship owner or the agent of a ship should go through the necessary formalities of exiting at the inspection organs within 4 hours
before the ship exits the port (or at the time of entering the port if the anchoring time is less than 4 hours). The relevant inspection
organs should notify this by signing the “Ship Exiting Formalities Certificate”; and the owner or the agent should go to the HQD
to apply for an exiting license with the certificate and other certificates and data as required by the HQD.

   Article 13 If any changes happen or the ship does not exit the port after getting the license, the owner or the agent should report to the HQD,
which will discuss with other inspection organs to decide whether it is necessary for the owner or the agent to go through the exiting
formalities again.

   Article 14 For the ships that have a regular shipping route and fixed crew and come and go one or more than one voyage, the owner or the agent
may apply in a written form to the HQD to go through the formalities of regular entering and exiting China’s ports. The HQD concerned
which handles the application will discuss with other inspection organs to decide whether to approve it or not, and after their approval,
the HQD will issue a regular exiting license valid for 7 days.

   Article 15 The inspection organs and their personnel must implement the procedures impartially, scrupulously abide by their duties, and carry
out the inspections and handle the applications for entering and exiting Chinese ports in time.

   Article 16 The following related terms of the procedures can be defined as:

(1) International navigation ships are referred to the ships of foreign origin which enter and exit China’s ports and the ships of
Chinese origin which sail international navigation routes;

(2) Ports are referred to the Chinese ports which have been approved by the Chinese government for international navigation ships
to enter and exit; and

(3) The ship owner is referred to the owner or the operator of the ship.

    





PROMOTION OF CLEANER PRODUCTION LAW

Law of the People’s Republic of China on Promotion of Cleaner Production

(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. 72 of the President of the People’s Republic of China on June 29, 2002) 

Contents 

Chapter I    General Provisions 

Chapter II   Popularization of Cleaner Production 

Chapter III  Implementation of Cleaner Production 

Chapter IV   Incentive Measures 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of promoting cleaner production, increasing the utilization ratio of resources,
reducing and preventing pollutant-generating, protecting and improving the environment, protecting human health, and promoting the
sustainable development of the economy and society. 

Article 2  For purposes of this Law, cleaner production means, by continuous adopting measures to improve designing, use cleaner
energy and raw materials, introduce advanced techniques and equipment, improve management and make comprehensive use of resources
as well as other measures, to reduce pollution from its source, increase the utilization ratio of resources, reduce or prevent the
generation and discharge of pollutants in the course of production, services and use of products, in order to alleviate or eliminate
harm to human health and the environment. 

Article 3  Within the territory of the People’s Republic of China, units engaged in production and service activities and the
departments engaged in administration of such activities shall, in accordance with the provisions of this Law, organize efforts to
implement cleaner production. 

Article 4  The State encourages and promotes cleaner production. The State Council and the local people’s governments at or
above the county level shall incorporate cleaner production into their plans for national economic and social development and plans
for environment protection, recourses utilization, industrial development, regional development, etc. 

Article 5  The administrative department for the economy and trade under the State Council shall be responsible for organizing
efforts to coordinate the work of promoting cleaner production nationwide. The administrative departments under the State Council
for environment protection, planning, science and technology, agriculture, construction, water resources and technical supervision
over quality shall, within their respective functions and responsibilities, be responsible for the relevant work of promoting cleaner
production. 

The local people’s governments at or above the county level shall be responsible for directing the work of promoting cleaner production
within their own administration areas. The administrative departments for the economy and trade under the said people’s governments
shall be responsible for organizing efforts to coordinate the work of promoting cleaner production within their own administrative
areas. The administrative departments under the said people’s governments for environment protection, planning, science and technology,
agriculture, construction, water resources and technical supervision over quality shall, within their respective functions and responsibilities,
be responsible for the relevant work of promoting cleaner production. 

Article 6  The State encourages scientific research, technological development and international cooperation in the field of
cleaner production, organizes efforts to disseminate knowledge about cleaner production and spreads the use of technologies for cleaner
production. 

The State encourages public organizations and the general public to participate in the promotion of, education in, popularization
and implementation of and supervision over cleaner production. 

Chapter II 

Popularization of Cleaner Production 

Article 7  The State Council shall formulate financial and taxation policies for the benefit of implementation of cleaner production. 

The State Council, the relevant administrative departments under it and the people’s governments of provinces, autonomous regions
and municipalities directly under the Central Government shall formulate industrial policies and policies for technological development
and popularization for the benefit of implementation of cleaner production. 

Article 8  The administrative departments for the economy and trade under the local people’s governments at or above the county
level shall, together with the relevant administrative departments for environment protection, planning, science and technology,
agriculture, construction, water resources, etc., formulate plans for popularization of cleaner production. 

Article 9  The local people’s governments at or above the county level shall make rational plans for the economic layout within
their own administrative areas, readjust industrial structures, develop cycling economic sectors and promote cooperation among enterprises
in the comprehensive use of recourses and waste materials and in other fields, in order to realize highly effective use and recycling
of resources. 

Article 10  The administrative departments for the economy and trade, environment protection, planning, science and technology,
agriculture and other relevant administrative departments under the State Council and under the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government shall organize efforts to support the establishment of
an information system for cleaner production and a system for technical consultancy, in order to provide information and services
in respect of the methods and technologies for cleaner production, supply and demand of recyclable waste, policies for cleaner production,
etc.  

Article 11  The administrative department for the economy and trade under the State Council shall, together with the related
administrative departments under the State Council, regularly publish directories on technologies, techniques, equipment and products
for cleaner production. 

The administrative departments for the economy and trade, environment protection, agriculture and construction and other departments
concerned under the State Council and under the people’s governments of provinces, autonomous regions and municipalities directly
under the Central Government shall organize efforts to compile guidebooks and technical manuals for cleaner production in respect
of certain trades or regions, for the purpose of guiding the implementation of cleaner production.  

Article12  With respect to out-dated production technologies, techniques, equipment and products which cause waste of recourses
and serious pollution of the environment, the State applies a system of elimination within a time limit. The administrative department
for the economy and trade under the State Council shall, together with the other related administrative departments under the State
Council, compile and publish catalogues of technologies, techniques, equipment and products to be eliminated within a time limit. 

Article 13  The relevant administrative departments under the State Council may, where necessary, grant approval to marks for
products made for the benefit of environment and resources protection, such as energy- or water-conservation products and products
made out of recycled waste, and they shall lay down corresponding standards according to State regulations.  

Article 14  The administrative departments for science and technology and other relevant administrative departments under the
local people’s governments at or above the county level shall provide guidance to and support research in and development of technologies
for cleaner production and products conducive to protection of the environment and resources and the demonstration and wide use of
technologies for cleaner production. 

Article 15  The administrative department for education under the State Council shall incorporate the courses of cleaner production
technology and management into the related systems of higher education, vocational education and technical training. 

The relevant administrative departments under the local people’s governments at or above the county level shall organize efforts
to disseminate knowledge about cleaner production and conduct training in this area, in order to enhance the awareness of the importance
of cleaner production among government functionaries, enterprise managers and the general public and train managerial and technical
personnel for cleaner production.  

The press, publishing, radio, films, television and cultural institutions and relevant public organizations shall give play to their
own advantages and make a success of promotion for cleaner production.   

Article 16  People’s governments at various levels shall give first priority to purchasing energy- and water-conservation products
and products made out of recycled waste which are conducive to protection of the environment and resources. 

People’s governments at various levels shall, through promotion and education or by other means, encourage the general public to
purchase and use energy- and water-conservation products and products made out of recycled waste which are conducive to protection
of the environment and resources. 

Article 17  The administrative departments for environment protection under the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government shall exercise strict supervision over the implementation of cleaner
production and they may, in light of the need to promote cleaner production and the discharge of pollutants by enterprises, regularly
publish, through the principal local media, name lists of the enterprises which cause serious pollution by exceeding the norms specified
for the pollutants discharged or for the total amount of the pollutants discharged, providing the basis for public supervision over
the enterprises’ implementation of cleaner production. 

Chapter III 

Implementation of Cleaner Production 

Article 18  For new construction, reconstruction and expansion projects, their impact on the environment shall be assessed,
the use of raw materials, consumption and comprehensive use of resources, generation and disposition of pollutants shall be analysed
and expounded and employment of technologies, techniques and equipment for cleaner production, which serve to make highly effective
use of resources and generate less pollutants, shall be given first priority. 

Article 19  In the course of technological updating, enterprises shall adopt the following measures for cleaner production: 

(1) replacing highly toxic and harmful raw materials with nontoxic and harmless or less toxic and harmful ones; 

(2) replacing techniques and equipment which serve to make less effective use of resources to generate greater amount of pollutants
with ones which serve to make highly effective use of resources and generate pollutants;  

(3) making comprehensive or cycle use of solid waste and waste water and heat discharged in the course of production; and 

(4) adopting technologies for prevention and control of pollution which help keep the pollutants discharged and within the norms
specified by the State or local authorities and keep the total amount of the pollutants discharged within the control norms specified
by the State or local authorities.  

Article 20  In the designing of products and packages, consideration shall be given to their effects on human health and the
environment during their life cycles, and priority shall be given to options for products and packages that are toxicant-free, harmless,
easily dissolved or recycled.  

Enterprises shall properly pack their products, refraining from overusing the packages and preventing the generation of package waste. 

Article 21  Enterprises producing large mechanical and electrical equipment, motor-driven means of transport and other products
designated by the administrative department for the economy and trade under the State Council shall, in adherence to the technical
specifications laid down by the administrative department for standardization under the State Council or the institutions authorized
by the department, indicate the standard brand of the material composition on the principal component parts of the product.  

Article 22  Agricultural producers shall use chemical fertilizers, pesticides, agricultural film and feed additives in a scientific
way and improve planting and breeding technologies, so as to produce quality and harmless agricultural products, turn agricultural
waste into resources, and prevent the agricultural environment from pollution. 

Toxic and harmful waste is prohibited to be used as fertilizers or for cultivating new farmland. 

Article 23  Service enterprises providing food and drinks, entertainment or hotel services shall use energy- and water-conservation
and other technologies and equipment conducive to environment protection and shall refrain from using or use less consumer goods
which lead to waste of resources and pollution of the environment.   

Article 24  For construction projects, the designing, construction and decoration materials, construction component and accessory
parts and equipment, which are energy- and water-conserving and conducive to environment protection, shall be adopted or used. 

Construction and decoration materials shall conform to the norms of the State. Production, marketing and use of such materials, the
toxic and harmful substances which contain exceed State norms, are prohibited. 

Article 25  In prospecting and exploiting mineral resources, the methods, techniques and technologies which are conducive to
rational use of resources, environment protection and prevention of pollution shall be adopted for better use of resources. 

Article 26  Enterprises shall, where feasible in financial and technological terms, retrieve wastes and waste heat discharged
in the course of production and services, or transfer them to other enterprises or individuals that have the ability of using them. 

Article 27  Enterprises producing and marketing products or packages included in the catalogue of products or packages for compulsory
recycling shall recycle the scrapped products and used packages. The catalogue of products and packages for compulsory recycling
and the specific measures for compulsory recycling shall be compiled and formulated by the administrative department for the economy
and trade under the State Council. 

With regard to the products and packages listed in the catalogue of products and packages for compulsory recycling, the State adopts
economic measures favorable to their recycling; the administrative departments for the economy and trade under the local people’s
governments at or above the county level shall regularly inspect the recycling of such products and packages and make the result
of inspection known to the public. The specific measures shall be formulated by the administrative department for the economy and
trade under the State Council. 

Article 28  Enterprises shall monitor the consumption of resources and discharge of waste in the course of production and services
and, where necessary, examine whether their production and services conform to the requirements of cleaner production. 

Enterprises that discharge pollutants in excess of the norms specified by the State or local authorities or of the control norms
for the total amount of pollutants discharged approved by the local people’s governments concerned shall conduct examination for
cleaner production. 

Enterprises that use toxic or harmful raw materials in production or discharge toxic or harmful substances in the course of production
shall conduct regular examination for cleaner production and report the results to the administrative departments for environment
protection and for the economy and trade under the local people’s governments at or above the county level where the enterprises
are located. 

The measures for examination for cleaner production shall be formulated by the administrative department for the economy and trade
under the State Council, together with the administrative department for environment protection under the State Council. 

Article 29  Enterprises that have succeeded in keeping the pollutants they discharge within the norms specified by the State
and the local authorities of their own free will, sign agreements on further conservation of resources and reduced amount of pollutants
discharged with the administrative departments for the economy and trade and for environment protection, which have jurisdiction
over them. The said departments shall, through the principal local media, make public the names of the enterprises and their achievements
in conserving resources and preventing and controlling pollution. 

Article 30  Enterprises may, on the principle of voluntariness and in accordance with the State regulations on verification
by environment management system, apply for verification to the verification authority authorized by the government department for
supervision and control over verification and approval and go through the verification for environment management, so as to raise
their level of cleaner production.  

Article 31  According to the provisions in Article 17 of this Law, enterprises included in the name list of the enterprises
which cause serious pollution shall, in compliance with the regulations of the administrative department for environment protection
under the State Council, make public their discharge of the main pollutants to accept public supervision. 

Chapter IV 

Incentive Measures 

Article 32  The State establishes a commending and awarding system for cleaner production. The people’s governments shall commend
and award units and individuals that achieve remarkable successes in their efforts to bring about cleaner production. 

Article 33  Projects designed for research, demonstration and training in cleaner production, key technological updating projects
of the State for cleaner production, and other technological updating projects clearly stated in the agreements on voluntary reduction
of pollutants discharged, as prescribed in Article 29 of this Law, shall be included in the projects for which special funds are
arranged by the State Council and the finance department at the same level as the local people’s government at or above the county
level in support of their technological updating. 

Article 34  From the funds established for developing small and medium-sized enterprises in accordance with State regulations,
an appropriate amount shall, where necessary, be set aside to support such enterprises in their efforts to engage in cleaner production.
 

Article 35  Where enterprises manufacture products out of waste and obtain raw materials out of recycled waste, the taxation
authority shall, in accordance with relevant State regulations, reduce their value-added tax or exempt them from such tax. 

Article 36  Enterprises may incorporate into their operational cost the fees paid for examination and verification regarding
cleaner production and for training in this respect. 

Chapter V 

Legal Responsibility 

Article 37  Where an enterprise that, in violation of the provisions in Article 21 of this Law, fails to indicate the composition
of product materials or indicates the said composition untruthfully, the administrative department for quality and technical supervision
under the local people’s government at or above the county level shall instruct it to rectify within a time limit; if it refuses
to do so, it shall be fined not more than RMB 50,000 yuan. 

Article 38  Where an enterprise, in violation of the provisions in the second paragraph of Article 24 of this Law, produces
or markets construction and decoration materials, the toxic or harmful substances which contain exceed State norms, it shall be investigated
for administrative, civil or criminal responsibility in accordance with the provisions in the law on product quality and the relevant
civil and criminal laws. 

Article 39  Where an enterprise, in violation of the provisions in the first paragraph of Article 27 of this Law, fails to fulfill
the obligation of recycling scrapped products or used packages, the administrative department for the economy and trade under the
local people’s government at or above the county level shall instruct it to rectify within a time limit; if it refuses to do so,
it shall be fined not more than 10,000 yuan. 

Article 40  Where an enterprise, in violation of the provisions in the third paragraph of Article 28 of this Law, fails to conduct
examination for cleaner production, or to provide truthful report on the result of the examination which it conducts, the administrative
department for environment protection under the local people’s government at or above the county level shall instruct it to rectify
within a time limit, if it refuses to do so, it shall be fined not more than 10,000 yuan. 

Article 41  Where an enterprise, in violation of the provisions in Article 31 of this Law, fails to make public its discharge
of pollutants or fails to do so in compliance with the requirements specified, its discharge shall be made public by the administrative
department for environment protection under the local people’s government at or above the county level, and it may also be fined
not more than 10,000 yuan. 

Chapter VI 

Supplementary Provisions 

Article 42  This Law shall go into effect as of January 1, 2003.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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