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ANNOUNCEMENT OF THE PEOPLE’S BANK OF CHINA AND CHINA BANKING REGULATORY COMMISSION

Announcement of the People’s Bank of China and China Banking Regulatory Commission

[2007] No.5

The People’s Bank of China and China Banking Regulatory Commission have cleared some existing rules, regulations and regulatory documents
on financial affairs as issued by the People’s Bank of China according to the Law of the People’s Republic of China on the People’s
Bank of China, the Banking Supervision Law of the People’s Republic of China and the Law of the People’s Republic of China on Commercial
Banks. We hereby publicize the clearing result of the second batch of rules, regulations and regulatory documents, totally 74 pieces,
as follows:

1.

With regard to the 60 rules, regulations and regulatory documents as issued by the People’s Bank of China (Appendix 1), including
the Circular of the People’s Bank of China Concerning the Further Regulation of the Business Operation of Non-banking Financial Institutions,
the People’s Bank of China and China Banking Regulatory Commission shall take charge of supervising, implementing and interpreting
the related matters involved in these rules, regulations and regulatory documents according to their respective statutory duties
and responsibilities, and any modification or abolishment shall be made jointly by the People’s Bank of China and China Banking Regulatory
Commission.

2.

With regard to the 14 rules, regulations and regulatory documents as issued by the People’s Bank of China (Appendix 2) including the
Measures for Administering Trust and Investment Companies, China Banking Regulatory Commission shall take charge of implementing,
interpreting and amending them.

Appendix: 1. The rules, regulations and regulatory documents supervised and implemented jointly by the People’s Bank of China and
China Banking Regulatory Commission

Appendix 2. The rules, regulations and regulatory documents supervised and implemented by China Banking Regulatory Commission

People’s Bank of China

China Banking Regulatory Commission

January 16, 2007
Appendix 1
The rules, regulations and regulatory documents supervised and implemented jointly by the People’s Bank of China and China Banking
Regulatory Commission (Altogether 60)

1.

Circular of the People’s Bank of China Concerning the Further Regulation of the Business Operation of Non-banking Financial Institutions
(Yin Fa [2001] No.356)

2.

Circular of the People’s Bank of China concerning Issues Concerning the Administration of Market Access of Chinese-funded Commercial
Banks (No.105 [2002] of the People’s Bank of China)

3.

Circular concerning the Printing and Distribution of the Provisions on Administering Urban Cooperative Banks (Yin Fa [1997] No.264)

4.

Measures for Administering Overseas Financial Institutions (Order No.1, 1990 of the People’s Bank of China)

5.

Circular of the People’s Bank of China on Matters Concerning Practically Doing Well in Renaming County (Urban) Credit Cooperative
as Rural Credit Cooperative (Yin Fa [2001] No.105)

6.

Guiding Opinions of the People’s Bank of China concerning Inter-bank Borrowing between Rural Credit Cooperatives (Yin Fa [2002] No.107)

7.

Circular of the General Office of the People’s Bank of China Concerning Matters on Initiating Foreign Exchange Business by Rural Credit
Cooperatives (Yin Fa [2002] No.240)

8.

Letter concerning Matters Concerning the Take-over of Financial Assets (Yin Ban Han [2000] No.65)

9.

Circular Concerning Matters on Stripping Bad Loans (Yin Ban Fa [2000] No.89)

10.

Circular Concerning the Printing and Distribution of the Interim Measures for Avoiding and Disposing the Payment Risks of Financial
Institutions (Yin Fa [1998] No.49)

11.

Some Provisions on Implementing the Regulation concerning the Administration of Savings (Yin Fa [1993] No. 7)

12.

Circular concerning Reinforcing the Administration of Personal Business of Depositing and Withdrawing Savings in Financial Institutions
(Yin Fa [1997] No.363)

13.

Circular Concerning the Printing and Distribution of the Measures for Administering Renminbi Corporate Deposit (Yin Fa [1997] No.485)

14.

Circular Concerning the Printing and Distribution of the Measures for Administering of Deposits at Notice (Yin Fa [1999] No.3)

15.

Circular Concerning the Printing and Distribution of the Measures for Administering Educational Deposits (Yin Fa [2000] No.102)

16.

Circular concerning the Opinions on the Disposal of the Related Matters Concerned after the Implementation of the Provisions on the
Real-Name Personal Savings Account System (Yin Fa [2000] No.126)

17.

Circular on Severely Forbidding Soliciting Depositors with High Interest Rates and Attracting Deposits by Unfair Means (Yin Fa [2000]
No.253)

18.

Supplementary Circular of the People’s Bank of China Concerning the Opinions on the Disposal of the Related Matters Concerned in the
Implementation of the Provisions on the Real-Name Personal Savings Account System (Yin Fa [2001] No.102)

19.

Circular of the People’s Bank of China Concerning Matters on the Day Deposit and Withdrawal of Individual Deposits (Yin Fa [2001]
No.340)

20.

Circular of the People’s Bank of China Concerning the Initiation of the Negotiated Deposits of National Social Security Funds by Commercial
Banks (Yin Fa [2002] No.40)

21.

Circular Concerning the Inquiry, Freeze, Deduction and Transfer of the Deposits of Enterprises, Public Institutions, Organs and Consortium
Banks (Yin Fa [1993] No.356)

22.

Circular Concerning the Inquiry, Freeze, Deduction and Transfer of the Deposits of Army Units and the Related Enterprises, Public
Institutions, Organs and Consortium Banks by the Security Departments of the Army (Yin Fa [1996] No.76)

23.

Circular on Checking and Ceasing the Payment of the Deposits of Withholding Taxpayers and Withholding Agents in Financial Institutions
(Yin Fa [1998] No.312)

24.

Circular Concerning the Printing and Distribution of the Measures for Disposing of Small-sum Secured Loans on Individual Fixed Savings
Deposit Certificates (Yin Fa [1994] No.316)

25.

Circular of the People’s Bank of China Concerning the Printing and Distribution of the Interim Provisions on Protecting Safe Computer
Rooms and Counter Equipments of Banks (Yin Fa [2002] No.42)

26.

Circular on Issuing the Interim Measures for Disposing of Syndicated Loans (Yin Fa [1997] No.415)

27.

Circular of the People’s Bank of China, the Ministry of Foreign Trade and Economic Cooperation, and the State Administration of Taxation
on Conducting the Trust Loan Business for Export Tax Refund Accounts (Yin Fa [2001] No.276)

28.

Circular of the People’s Bank of China Concerning Matters on Administering Fixed Assets Loans (Yin Fa [2001] No.331)

29.

Circular of the People’s Bank of China Concerning the Printing and Distribution of the Guiding Opinions on Administering Small-sum
Credit Loans for Rural Households of Rural Credit Cooperatives ( Yin Fa [2001] No.397)

30.

Circular of the People’s Bank of China on Reinforcing the Administration of the Credit Operations of Public Accumulation Fund for
Housing Construction (Yin Fa [2002] No.247)

31.

Circular Concerning the Printing and Distribution of the Measures for Handling the Hypothecated Loans on Proof National Debts (Yin
Fa [1999] No.231)

32.

Circular of the People’s Bank of China on Regulating the Administration of Co-branded Cards (Yin Fa [2002] No.6)

33.

Scope of Foreign Exchange Business of Non-banking Financial Institutions (Hui Guan Han Zi [1997] No. 258)

34.

Provisions on Administering Foreign Exchange Business of Banks (Approved by the People’s Bank of China on September 8, 1997 and promulgated
by the State Administration of Foreign Exchange on September 27, 1997)

35.

Circular on Forwarding the Circular of the Ministry of Finance and the State Archives Bureau Concerning the Printing and Distribution
of the Measures for Accounting Archives Management (Yin Ban Fa [1998] No.135)

36.

Circular Concerning the Printing and Distribution of the Guidelines on the Foreign Exchange Transferred Loans Business of Policy Banks
and Commercial Banks (Yin Fa [2000] No.351)

37.

Circular of the People’s Bank of China Concerning the Printing and Distribution of the Guiding Opinions on the Basic Norms for Bank
Accounting (Yin Fa [2002] No.370)

38.

Circular on Reinforcing Credit Management of Agricultural and Forestry Development Projects and Strictly Prohibiting Illegally Raising
Funds in the Name of Land Development and Land Transfer (Yin Fa [1999] No.254)

39.

Circular of the People’s Bank of China on Putting Down Underground Banks and Cracking Down on Usury Behaviors (Yin Fa [2002] No.30)

40.

Circular of the People’s Bank of China on Further Doing well in Granting Small-sum Credit Loans to Farmer Households and Improving
Supporting Services for Agriculture (Yin Fa [2002] No.113)

41.

Circular on Further Intensifying Bank Settlement Management ( Yin Fa [1997] No.143)

42.

Circular Concerning the Printing and Distribution of the Interim Measures for Administering the Acceptance, Discount and Rediscount
of Commercial Drafts (Yin Fa [1997] No.216)

43.

Circular Concerning the Printing and Distribution of the Measures for the Settlement of Domestic Letters of Credit and the Procedures
for the Accounting of Letters of Credit ( Yin Fa [1997] No.265)

44.

Circular on Reinforcing the Management of Commercial Drafts and Promoting the Development of Commercial Drafts (Yin Fa [1998] No.229)

45.

Circular of the People’s Bank of China Concerning Maters on the Handling of Bank Draft and Bank Acceptance Business (Yin Fa [2002]
No.364)

46.

Circular on Issuing the Measures for Postal Exchange Fund Settlement (Yin Fa [1993] No.20)

47.

Circular of the People’s Bank of China on Improving and Reinforcing the Administration of Postal Exchange Fund Settlement (Yin Fa
[2002] No.25)

48.

Measures for Administering RMB Bank Settlement Accounts (Order No.5, 2003 of the People’s Bank of China)

49.

Circular of the People’s Bank of China Concerning Matters on Handling the Inquiry and Reply Business of Trans-bank Acceptance by Commercial
Banks (Yin Fa [2002] No.63)

50.

Circular of the People’s Bank of China Concerning Matters on Paying Bonds and Reloan Interest of Financial Assets Management Companies
(Yin Fa [2002] No.97)

51.

Reply on the Related Matters Concerning the Fund Settlement of Stripping Non-performing Loans (Yin Ban Han [2000] No.585of the General
Office of the People’s Bank of China)

52.

Circular of the People’s Bank of China, the Ministry of Finance, the Office of the Leading Group for Poverty Alleviation and Development
under the State Council and the Agricultural Bank of China Concerning the Printing and Distribution of the Implementation Measures
for Administering Interest Discount Loans for Poverty Alleviation (Yin Fa [2001] No.185)

53.

Circular of the People’s Bank of China on Establishing Direct Business Contact between Foreign-funded Banks and the Commercial Banks
of Taiwan (Yin Fa [2002] No.361)

54.

Circular of the People’s Bank of China on Regulating the Competition in the Banking Market (Yin Fa [2002] No.354)

55.

Circular Concerning the Printing and Distribution of the Provisions on Administering Hypothecated Loans on Time Deposit Certificates
of Entities (Yin Fa [1999] No.302)

56.

Circular Concerning the Printing and Distribution of the Measures for Administering Valuable Documents and Important Blank Vouchers
(Yin Fa [1997] No.163)

57.

Circular of the General Office of the People’s Bank of China on the Relevant Issues Concerning the Reform of Bank Accounting System
(Yin Ban Fa [2001] No.186)

58.

Provisions on Administering the Foreign Exchange Business of Non-banking Financial Institutions (Approved by the People’s Bank of
China on December 18, 1992 and promulgated by the State Administration of Foreign Exchange on January 1, 1993)

59.

Circular Concerning the Printing and Distribution of the Measures for Administering Loans for the Increase of Registered Capital of
the Chinese Parties of Sino-foreign Equity Joint Ventures and Sino-foreign Cooperative Joint Ventures (Yin Fa [2000] No.68)

60.

Circular on Forwarding the Measures of the Ministry of Public Security for the Administration of Computer Virus Prevention and Control
(Yin Ban Fa [2000] No.156)

Appendix 2
The rules, regulations and regulatory documents supervised and implemented by China Banking Regulatory Commission

1.

Circular of the General Office of the People’s Bank of China Concerning the Related Matters on Reinforcing the Supervision over Non-banking
Financial Institutions (Yin Ban Fa [2002] No.162)

2.

Measures for Administering Trust and Investment Companies (Order No.5, 2002 of the People’s Bank of China)

3.

Circular of the People’s Bank of China Concerning the Related Matters on the Trust and Investment Companies’ Operation of Capital
Trust (Yin Fa [2002] No.314 )

4.

Provisions Concerning the Entrusted Loans Business of Financial Trust and Investment Companies (Yin Fa [1993] No.49)

5.

Circular of the People’s Bank of China Concerning the Related Matters on Strengthening the Supervision over Rural Credit Cooperatives
(Yin Fa [2001] No.396)

6.

Circular Concerning the Printing and Distribution of the Opinions on Reinforcing the Prevention, Investigation and Punishment of Cases
of Rural Credit Cooperatives (Yin Fa [1998] No.139)

7.

Circular Concerning the Printing and Distribution of the Guiding Opinions on Reinforcing the Electronic Construction and Management
of Rural Credit Cooperatives (Yin Ban Fa [2000] No.291)

8.

Circular Concerning the Printing and Distribution of the Opinions on Reinforcing and Regulating the Administration of Agency Business
of Rural Credit Cooperatives (Yin Fa [1999] No.335)

9.

Circular of the People’s Bank of China on Issuing the Provisions on Administering Financial Institutions’ Assistance in the Inquiry,
Freeze or Deduction of Deposits (Yin Fa [2002] No.1)

10.

Circular of the General Office of the People’s Bank of China Concerning the Related Matters on the Settlement and Restructuring Work
of Trust and Investment Companies (Yin Ban Fa [2003] No.24)

11.

Circular Concerning the Issuance of the Measures for the Administration of Assisting the Investigation of Cases of Financial Swindling
(Yin Fa [1997] No.195)

12.

Circular Concerning the Printing and Distribution of the Interim Provisions on Safety Protection of the Business Places and Vaults
of Financial Institutions (Yin Fa [1998] No.588)

13.

Circular Concerning the Earnest Implementation of the Circular of the State Council on Strengthening the Administration of Financial
Claims in the Restructuring Process of Small and Medium-sized State-owned Enterprises and Collective Enterprises (Yin Fa [1998] No.578)

14.

Circular on the Related Matters Concerning the Initiation of Entrusted Loans Business by Commercial Banks (Yin Ban fa [2000] No.100)



 
People’s Bank of China, China Banking Regulatory Commission
2007-01-16

 






ANNOUNCEMENT NO.7, 2007 OF MINISTRY OF COMMERCE ON STARTING ANTI-DUMPING INTERIM REVIEW ON IMPORTED ETHANOLAMINE

Announcement No.7, 2007 of Ministry of Commerce on Starting Anti-dumping Interim Review on Imported Ethanolamine

[2007] No.7

The Ministry of Commerce issued Announce No.57 of 2004 on November 14, 2004 to start levying anti-dumping duties on imported Ethanolamine
(hereinafter referred to as investigated products) originating in Japan, the US, Iran, Malaysia, Taiwan Region and Mexico. Among
the related enterprises, the anti-dumping duties rate on Ethanolamine from Oriental Union Chemical Corporation was 20%, NIPPON SHOKUBAI
CO.,LTD. adopted 74% as in the Others category.

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

In respond to the application, Ministry of Commerce made an examination on related issues and decided to start a judicial review,
as of the date when this announcement is issued, on the anti-dumping measures implemented on the investigated products from the above-mentioned
two enterprises during a period from January 1, 2006 to December 31, 2006.

The investigated products are listed under Tariff No. 29221100 and 29221200 in Customs Tariff of Import and Export of the People’s
Republic of China.

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

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

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

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

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

Address: No. 2, DongChangAn St., Beijing

Postcode: 100731

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

Tel: 86-10-65198924￿￿65197655

Fax: 86-10-65198915￿￿65198172

Ministry of Commerce

February 1, 2007



 
Ministry of Commerce
2007-02-01

 






CIRCULAR OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING THE REGULATION OF THE ARCHIVAL FILING ADMINISTRATION OF ALIENING BAD CLAIMS TO FOREIGN PARTIES BY FINANCIAL INSTITUTIONS

Circular of the National Development and Reform Commission and the State Administration of Foreign Exchange Concerning the Regulation
of the Archival Filing Administration of Aliening Bad Claims to Foreign Parties by Financial Institutions

Fa Gai Wai Zi [2007] No.254

The development and reform commissions, economy and trade commissions (economy commission) and the branch bureaus of foreign exchange
control of each province, autonomous region, municipality directly under the Central Government, city specifically designated in
the state plan and Xinjiang Production and Construction Corps.:

For the purpose of regulating the administration of foreign debts formed in the alienation of bad claims to overseas investors by
domestic financial institutions, effectively protecting the lawful rights and interests of investors, improving the disposing efficiency
of non-performing assets, actively avoiding and removing the foreign debts risks formed in the disposal process and promoting the
sound and orderly development of China’s bad assets disposal market, we hereby inform the related matters as follows:

1.

In case a domestic financial institution assumes foreign debts resulted from its alienation of bad claims to an overseas investor,
the domestic financial institution shall report such case to the National Development and Reform Commission and the State Administration
of Foreign Exchange and put it under the administration of foreign debts according to the provisions of the Interim Measures for
Administering Foreign Debts (Order No.28 of the National Development Planning Commission, the Ministry of Finance and the State Administration
of Foreign Exchange) by analogy.

2.

The National Development and Reform Commission shall, in collaboration with the State Administration of Foreign Exchange, administer
the foreign debts formed from the alienation of bad claims to foreign parties by domestic financial institutions in accordance with
China’s foreign debt structure, balance of payment position, scale of bad claims and the development of the disposal market.

3.

A domestic financial institution aliening bad claims to foreign parties shall submit the plan of aliening bad claims to foreign parties
of the next year to the National Development and Reform Commission prior to November 30 of each year, which shall cover the basic
information on the existing bad claims, the bad claims it intends to alien to foreign parties in the next year and the forecasting
on the recovery of the bad claims it intends to alien.

4.

According to the Regulation on Financial Asset Management Companies (Order No.297 of the State Council) and the related provisions
of the Ministry of Finance and China Banking Regulatory Commission, etc, a domestic financial institution shall conform to the principles
of openness, impartiality and fairness in aliening bad claims to foreign parties. Prior to an act of aliening bad claims to foreign
parties, a domestic financial institution shall publicize an explicit disposal announcement at a news media of economic or comprehensive
category at the provincial level or above. By principle, all alienations shall be conducted in public ways such as bidding, auction
and public price competition, etc, and the alienation price shall be paid off by the related overseas investors once and for all.

5.

The bad claims to be aliened to foreign parties may not involve in any claim with the Chinese government of any level or its administrative
department as the debtor or guaranteed by it, any claim of any enterprise falling within the prohibited category of the Catalogue
of Industries for Guiding Foreign Investment or involving any industry of national security, or any other claim forbidden by laws
and regulations from being aliened to foreign parties.

6.

No overseas investor concerned with the alienation of bad claims may viciously release information to the outside or conduct any behavior
that infringes upon China’s foreign debt service credibility, or recover debts from the Chinese government of any level or its the
administrative department in any way.

7.

A domestic financial institution shall, within 20 workdays as of the conclusion of an agreement on aliening bad claims to foreign
parties, submit the related information (in triplicate) about the alienation of bad claims to the National Development and Reform
Commission for archival filling and send copies to the Ministry of Commerce and China Banking Regulatory Commission simultaneously.
The archival materials shall cover the following items:

(1)

circumstances about the bad claims to be aliened to foreign parties (paper principal, total amount of interest, regional distribution);

(2)

agreement on the alienation to foreign parties;

(3)

photocopy of the disposal announcement as publicized in news media;

(4)

attested registration certificate of the overseas investor, the related written commitment of the overseas investor and the documentary
evidences on the credit status and performance of the overseas investor. In case any bad claim is purchased by an overseas investor
in the form of foreign special-purpose company and it fails to abundantly testify the credit and performance situations of the overseas
investor, the documentary evidences on the holding parent company shall be presented;

(5)

notarial paper on the alienation process issued by the notary organ (brief statement on the bad claims, alienation mode, major domestic
and overseas investors that take part in the alienation, the related quotations);

(6)

legal letter issued by law firm; and

(7)

other materials as requested by the National Development and Reform Commission.

8.

In case the National Development and Reform Commission holds that the archival filing materials are incomplete or fail to meet the
related requirements, it shall, within 5 workdays after it receives the materials, inform the related domestic financial institution
aliening bad claims to foreign parties once and for all and require it to define and make up the related explanations and documents
or adjust the content concerned. In case a domestic financial institution still fails to provide complete archival filing materials
within 20 workdays since it is notified or aliens bad claims by violating the provisions of the present Circular, the National Development
and Reform Commission shall issue a notice of refusing to archive to the domestic financial institution aliening bad claims to foreign
parties and state the reasons. The National Development and Reform Commission shall prepare an archival filing confirmation letter
to the domestic financial institution that aliens bad claims to foreign parties within 20 workdays after receiving the complete archival
filing materials.

9.

A domestic financial institution aliening bad claims to foreign parties shall submit the related documents on the exchange issues
concerned in the alienation and the archival filing confirmation letter issued by the National Development and Reform Commission
to the State Administration of Foreign Exchange within 15 workdays after receiving the archival filing confirmation letter issued
by the National Development and Reform Commission. After the State Administration of Foreign Exchange examines and approves the exchange,
the domestic financial institution aliening bad claims shall go through exchange settlement formalities at the appointed branch bureau
of foreign exchange control, while the overseas investor accepting the bad claims or its agency shall go through the formalities
for the archival filing registration of the alienation of bad claims.

10.

In case a bad claim is disposed in manners of overseas investment, it shall be conducted according to the Interim Measures for Examining
and Approving Overseas Investment Projects (Decree No.21 of the National Development and Reform Commission) and the related provisions
on the administration of foreign exchange.

11.

The National Development and Reform Commission and the State Administration of Foreign Exchange shall cancel the archival filing confirmation
or archival filing registration of aliening bad claims to foreign parties, in case an overseas investor or a domestic financial institution
aliening bad claims to foreign parties obtains archival filing confirmation letter or conduct archival filing registration of debts
alienation by illegal means like providing false materials.

12.

In case any overseas investor viciously releases information to the outside, conducts any behavior that infringes China’s foreign
debt service credibility, engages in such illegal criminal activities as money laundering through transactions of bad claims or does
any other activity that seriously violates the present Circular, once it is ascertained, the National Development and Reform Commission
shall, in collaboration with the State Administration of Foreign Exchange, prohibit the overseas investor from purchasing any domestic
bad credit. The overseas investor shall be aliened to and punished by the judicial organ in the case of the constitution of any crime.

13.

In case an investor from Hong Kong SAR or Macao SAR, or Taiwan Region takes part in the disposal of bad claims of the inland, it shall
be governed by the present Circular by analogy.

14.

The National Development and Reform Commission and the State Administration of Foreign Exchange shall be responsible for interpreting
the present Circular. In case any previous provision conflicts with the present Circular, the present Circular shall prevail.

15.

The provisions mentioned above shall go into effect as of April 1, 2007.

National Development and Reform Commission

State Administration of Foreign Exchange

February 1, 2007



 
The National Development and Reform Commission, the State Administration of Foreign Exchange
2007-02-01

 






CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE ON PROHIBITING ASSIGNING QUOTA OF INVITING INVESTMENT TO SUBORDINATE GOVERNMENTS AND LINKING UP THEIR PERFORMANCE WITH THE QUOTA COMPLETION

Circular of the General Office of the Ministry of Commerce on Prohibiting Assigning Quota of Inviting Investment to Subordinate Governments
and Linking Up Their Performance with the Quota Completion

The competent departments of commerce in all provinces, autonomous regions, municipalities directly under the Central Government,
cities specifically designated in the state plan and Xinjiang Production and Construction Corps:

Currently, the work of absorbing foreign investment has entered a new stage in China and great progress has been achieved in making
the investment invitation more scientific and standardized. Local governments and the competent departments of investment invitation
at various levels have made their contributions to inviting foreign investment by committing themselves to the work and providing
good service for foreign investors in China. However, there still remain some unreasonable emphases in invitation instead of in administration
and in scale instead of in quality. Some local governments have attached undue importance to the quantity of foreign investment and
simply assigned “inflexible quota” to their subordinate, regardless of the quality, or they may even link up the quantity of foreign
investment invited with the assessment of the cadres’ achievements and their salaries and bonuses, which will not only interfere
in the normal operation of the government, but also serve as the hotbed of untruthful reports of figures and irrational and malign
competitions between different regions, and undermine the uniformity and seriousness of the national policies and laws. It runs counter
to the requirements of the scientific outlook on development and will do harm to the quality and level of the absorbed foreign investment.
For the purpose of checking this trend and raise the quality and level of the absorbed foreign investment, it is hereby notified:

I.

The scientific outlook on development shall be strictly followed and it is prohibited to assign quota of inviting investment to subordinate
governments and linking up their performance with the quota completion. China’s main competitiveness in absorbing foreign investment
lies in the long-term steady growth of national economy, political stability, improvement of people’s livelihood, huge market potential
and constantly improving investment environment. Local governments and institutions at various levels shall unswervingly implement
the principles of the State Council and prevent and put an end to all practices of assigning quota to the subordinate departments
and appraising their performance with the quota completion as the only indicator. Meanwhile, emphasis should be laid on improving
the investment environment and raising the quality of service, with a view to further optimizing the foreign investment mix and accelerating
the shift of foreign investment absorption to a growth mode which stresses quality and efficiency. In the future, the Ministry of
Commerce will intensify its supervision over the local authorities and conduct a regular inspection for the aforementioned phenomena
as well as that of mobilizing everyone to attract investment; in serious cases, a notice of criticism shall be circulated.

II.

The Ministry of Commerce shall strengthen the guidance to the formulation and implementation of investment promoting strategy of local
governments, adopt scientific policies, innovate the working methods and measures and boost the investment promoting efficiency,
in accordance with the objectives of the state macro-economic development and the reality of economic development and industrial
distribution. The Ministry of Commerce will provide technical support for the less developed areas in Central-Western Region in image-building,
programme introduction and recommendation, information exchange and personnel training through “the Assistance Centre of Investment
Promoting for Less-Developed Areas” so as to improve the investment promoting work in these areas.

III.

The Ministry of Commerce will cooperate with relevant institutions and conduct an appraisal of local investment environment and performance
of the local authorities in investment promoting, with a view to constantly improving the investment environment and raising the
level of investment promoting.

General Office of the Ministry of Commerce

February 2, 2007



 
General Office of the Ministry of Commerce
2007-02-02

 






ANNOUNCEMENT NO. 8, 2007 OF MINISTRY OF COMMERCE ON ARBITRATION OF ANTI-DUMPING INVESTIGATION OF POTATO STARCH ORIGINATING FROM EU

Announcement No. 8, 2007 of Ministry of Commerce on Arbitration of Anti-dumping Investigation of Potato Starch Originating from EU

[2007] No. 8

In accordance with Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce of the People’s Republic of China
released announcement on Feb 6, 2006, deciding to carry out anti-dumping investigation on potato starch (hereinafter referred to
as “investigated commodity”) originating from EU.

In line with investigation, Ministry of Commerce finally verdicts dumping of the investigated commodities, injures the domestic potato
starch industry, and the existence of causality between dumping of the investigated commodities and the injury of domestic industry.

In accordance with Anti-dumping Regulations of the People’s Republic of China, Tariff Committee of the State Council decides to impose
anti-dumping duties on potato starch originating from EU as from Feb 6, 2007, the tariff codes of which are 11081300 in Import and
Export Tariff of the People’s Republic of China.

Rate of Anti-dumping Duties on Different Companies:

AVEBE U.A. 18%

Avebe Kartoffelstarkefabrik Prignitz/Wendland GmbH) 17%

All Others 35%

The duration of the anti-dumping duties on Potato Starch originating from EU is 5 years as from Feb 6, 2007.

Appendix: Ministry of Commerce’s Final Arbitration on Anti-dumping Investigation on Potato Starch Originating from EU

The Ministry of Commerce

February 5, 2006



 
Ministry of Commerce
2007-02-05

 






PROVISIONS FOR ADMINISTERING NATIONAL INTER-BANK BOND MARKET MAKERS

Announcement of the People’s Bank of China

[2007] No.1

With a view to perfecting the system of national inter-bank bond market makers, improving market liquidity, enhancing market price
discovery and promoting the development of China’s bond market, the People’s Bank of China formulated the Provisions for Administrating
National Inter-bank Bond Market Makers. They are hereby promulgated.
The People’s Bank of China

January 9, 2007

Provisions for Administering National Inter-bank Bond Market Makers

Article 1

In accordance with the Law of the People’s Republic of China on the People’s Bank of China, the present Provisions are enacted with
a view to regulating the market making business operated by national inter-bank market makers, improving market liquidity, perfecting
the price discovery mechanism and promoting the rapid development of China’s bond market.

Article 2

The term “market maker” as mentioned in the present Provisions means the financial institutions that conduct the market making business
in the inter-bank market upon the approval of the People’s Bank of China, enjoy the provisioned rights and assume the corresponding
obligations.

Market making business means an act that a market maker, in accordance with the relevant requirements, consecutively makes bilateral
quotations for the purchase and sale of the existing market making bonds in the inter-bank market, and then transacts with other
market participants on the basis of its quotations.

Article 3

To be a market maker, a financial institution set up within the territory of the People’s Republic of China in accordance with law
shall meet the conditions as follows:

(1)

its registered capital or net capital shall be 1.2 billion Yuan or more;

(2)

it shall be active in the market and its trading amount of existing bonds for the previous year shall rank top 80 when it lodges the
application;

(3)

it shall have tried to conduct the market making business in the inter-bank market and have possessed necessary experience and ability
before it lodges an application;

(4)

it shall own perfect interior control system, operation instruction and sound mechanism of interior risk control and incentive and
examination mechanism;

(5)

it shall own a considerably strong ability to study and analyze the bond market;

(6)

there are five or more employees qualified for conducting bond business in the business department concerned, the posts are reasonably
set and the duties are well clarified;

(7)

it shall have no record of grave violation of any law or regulation in the recent two years prior to its application; and

(8)

other conditions as specified by the People’s Bank of China.

Article 4

To be a market maker, a financial institution shall present the following materials to the People’s Bank of China:

(1)

an application form;

(2)

its Business License (copy of the duplicate);

(3)

its Finance License (copy of the duplicate);

(4)

its interior control system and operational instruction for the market making business;

(5)

a brief introduction on the related business department (inclusive of personnel structure, post establishment, duty division and so
on.);

(6)

a report on its activities in the inter-bank market in the recent two year prior to its application (inclusive of the summary of its
try in market making business);

(7)

the balance sheets, profit appropriation statements and cash flow statements (copies) of the recent two years before it submits the
application which have been audited by certified public accountants,;

(8)

a written statement on the fact that it has no record of grave violation of any law or regulation in the recent two years prior to
its application; and

(9)

other materials as requested by the People’s Bank of China.

A financial institution shall hold responsibility for the authenticity, accuracy and integrity of the materials it presents and there
shall be no false record, misleading statement or major omission.

Article 5

After receiving the application of a financial institution, the People’s Bank of China shall carry out examination and approval according
to the procedure as specified in the Measures for Implementing the Administrative Licensing by the People’s Bank of China (Decree
No.3, 2004 of the People’s Bank of China).

Article 6

A market maker may be enpost_titled to:

(1)

obtain the convenience to purchase bonds in the primary market;

(2)

have priority to become a member of the underwriting syndicates for the government bonds or the bonds of governmental development
financial institutions, or a primary dealer for open market business;

(3)

have the advantage for making bond debit and credit;

(4)

enjoy the policy support in terms of making product innovation in the inter-bank market;

(5)

as regards the transaction of existing bonds or bond debit and credit conducted through the market making business, to enjoy preferences
in commission charges for both transaction and settlement; and

(6)

have the advantage for obtaining such information as the real time quotation data and transaction data provided by the National Inter-bank
Funding Center (hereinafter referred to as Funding Center).

Article 7

A market maker shall fulfill the obligations as follows:

(1)

the total number of varieties of market making bonds it has decided shall be no less than six and the varieties finally decided shall
cover the following three: namely, government bonds, bonds of governmental development financial institutions and non-governmental
debenture bonds;

(2)

the compensation terms of market making bonds shall include at least 4 of the 5 terms namely 0-1 year, 1-3 years, 3-5 years, 5-7 years
and more than 7 years;

(3)

once a market maker decides the varieties of market making bonds, it mustn’t alter them on the current day, and shall make consecutive
bilateral quotations on the selected varieties, and the time gap between bilateral quotations shall not exceed 30 minutes; and

(4)

the minimum volume of quotation of a single transaction shall be the par value of RMB 1, 000, 000 Yuan.

In case any market maker is unable to perform any obligation as mentioned above by virtue of unusual circumstance, it shall report
to the People’s Bank of China in a written form and explain the reasons in a timely manner.

Article 8

A market maker shall, on the basis of the actual price, make bilateral quotations, whose price gap shall fall within the reasonable
scope of the market.

Article 9

A market maker shall, within 10 workdays upon the end of each season, present the People’s Bank of China a written analysis of the
bond market and its bond transaction and market making situation of this season.

Article 10

A market maker may not manipulate the market. If it does so and causes any loss to the investors, it shall undertake the liability
for compensation in accordance with law.

Article 11

The self-discipline organization of the inter-bank market shall, through information platforms such as the website of the People’s
Bank of China every half a year, publicize the following related market-making circumstances of market makers: the number of the
varieties of market-making bonds, the total amount of market-making quotations and information about the market-making transactions,
etc.

Article 12

The self-discipline organization of the inter-bank market shall evaluate the market-making business of the market makers on a regularly
basis, and the evaluation results shall be circularized through such information platform as the website of the People’s Bank of
China.

The People’s Bank of China shall adjust market makers in accordance with the evaluation results.

Article 13

In case a market maker engages in market-making business or a non-market maker tries to engage in market-making business, it shall
conduct through the trading system of the Funding Center, which shall consummate its trading system to provide technical support
for the conduction of market-making business.

Article 14

The Funding Center shall set down operational instruction for the market-making business according to the present Provisions, which
shall be implemented after being reported it to the People’s Bank of China for archival filling.

The Funding Center and China Government Securities Depository Trust & Clearing Co., Ltd. shall set down the detailed rules on
commission charge preference for the transactions of existing bonds and transactions of bond debit and credit as conducted by market
makers through market making business, which shall be implemented after being reported to the People’s Bank of China for archival
filling.

Article 15

The market making business of market makers shall be subject to the examination and supervision of the People’s Bank of China.

Article 16

In case any market maker or any other institution violates any provision of the present Provisions, the People’s Bank of China shall
punish it according to the provisions of Article 46 in the Law of the People’s Republic of China on the People’s Bank of China.

Article 17

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

Article 18

The present Provisions shall go into effect as of February 1, 2007. The Circular of the People’s Bank of China Concerning Matters
on Regulating and Supporting the Bilateral Quotation Business in the Inter-bank Bond Market ([2001] No.75) and the Circular of the
Monetary Policy Department of the People’s Bank of China Concerning the Adjustment of the Maximum Price Gap and Minimum Amount of
Quotations made by Bilateral Quotation Makers (Yin Huo Zheng [2002] No.43) shall be concurrently repealed.



 
The People’s Bank of China
2007-01-09

 






CIRCULAR OF MINISTRY OF COMMERCE, MINISTRY OF FINANCE, STATE ADMINISTRATION OF TAXATION, STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE, NATIONAL BUREAU OF STATISTICS, STATE ADMINISTRATION OF FOREIGN EXCHANGE ON CONDUCTING THE 2007 JOINT SURVEY OF FOREIGN-INVESTED ENTERPRISES

Circular of Ministry of Commerce, Ministry of Finance, State Administration of Taxation, State Administration for Industry and Commerce,
National Bureau of Statistics, State Administration of Foreign Exchange on Conducting the 2007 Joint Survey of Foreign-Invested Enterprises

Shang Zi Han [2007] No. 7

The joint annual survey of foreign-invested enterprises is a significant move to transform the administration model of the government
and improve the environment of investment. For the purpose of well implementing the Circular of the Implementing Plan of the Joint
Annual Survey of Foreign-Invested Enterprises (Wai Jing Mao Zi Fa [1998] No.938, hereinafter referred to as the Circular) and making
the national joint survey of foreign-invested enterprises of 2007 a success, it is hereby notified:

I.

Approved by the State Council, the General Administration of Customs will not participate the joint annual survey any more while National
Bureau of Statistics will take its place. The departments which take part in the joint annual survey shall strictly follow the Circular
in the survey and enhance their coordination and cooperation. They shall have the survey carefully arranged and well organized and
take effective measures in publicity and in raising the participation rate of the enterprises. They shall timely wind up and revoke
the “three-no-enterprises (referring to enterprises with no capital, no plant, and no administrative structure)” and, in accordance
with the laws and regulations, impose penalties on those which do not apply for the annual survey, or which cheat in the survey or
perform any other illegal activities in their production and operation.

II.

The period from March 1 to June 30, 2007 shall be the office hours of the joint annual survey of foreign-invested enterprises and
the survey will focus on the operation of the foreign-invested enterprises in 2006.

III.

The departments which take part in the joint annual survey shall further enhance their communication and coordination, make full use
of the current network resources so as to facilitate the online joint annual survey of foreign-invested enterprises. In provinces
and municipalities with due facilities, the online signature can be tried out to further relieve the burden of the enterprises and
conduct a substantial online survey.

IV.

The departments which take part in the joint annual survey shall enhance the guidance of the joint annual survey at the basic level,
keep abreast with its latest progress, resolve various problems and guarantee the smooth progress of the survey in the region. The
departments which take part in the joint annual survey shall enhance the administration of the intermediary agencies such as accounting
firms; in case of any activities against the existing laws and regulations on their part, they shall be dealt with strictly and,
if necessary, transferred to the departments in charge and imposed corresponding penalties.

V.

The departments which take part in the joint annual survey shall provide more training for the personnel of the government and the
enterprises involved in the survey with a view to raising their professional level and ensuring the efficient and smooth progress
of the online joint annual survey.

Ministry of Commerce

Ministry of Finance

State Administration of Taxation

State Administration for Industry and Commerce

National Bureau of Statistics

State Administration of Foreign Exchange

January 10, 2007



 
Ministry of Commerce, Ministry of Finance, State Administration of Taxation, State Administration for Industry and
Commerce, National Bureau of Statistics, State Administration of Foreign Exchange
2007-01-10

 






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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