CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING WEIHAI ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Weihai Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 13

Weihai Municipal People’s Government and Weihai Economic-Technological Area,

Pursuant to Some Opinions on Further Promoting the Development Level of National Economic and Technical Development Zones (Guo Ban
Fa [2005] No. 15) as forwarded by the General Office of the State Council to the Ministry of Commerce, the Ministry of Land and Resources
and the Ministry of Construction as well as the provisions of the Ministry of Commerce on the authorized examination, approval and
administration of foreign-funded enterprises, the Ministry of Commerce has finished the archival filing, examination and approval
of the management systems of all the national economic and technological development zones and the connected network for examination
and approval of foreign capital. The related matters are hereby notified as follows:

Upon research, we hereby authorize the Management Committee of Weihai Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

The Management Committee of Weihai Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

The Management Committee of Weihai Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

Weihai Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Weihai Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

Circular of the Ministry of Commerce on Entrusting the Provincial Administrative Departments of Commerce to Examine, Approve and Administer
the foreign-funded Construction Enterprises (Shang Zi Han [2005] No. 90)

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Printing Enterprises (Shang Zi Han [2005] No. 91)

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Designing Enterprises for Engineering Projects (Shang Zi Han [2005] No. 92)

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

Circular of the Ministry of Commerce about the related Issues on Entrusting National Economic and Technical Development Zones to Examine
and Approve foreign-funded Commercial Enterprises and International Freight Forwarding Enterprises (Shang Zi Han [2005] No. 102)

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)

Ministry of Commerce
2007-02-12

ANNOUNCEMENT ON THE SECOND NEGOTIATED BIDDING OF TEXTILES EXPORTED TO EU & THE USA OF 2007

Announcement on the Second Negotiated Bidding of Textiles Exported to EU & the USA of 2007

In accordance with the regulations in the Measures for Administration on Textile Export (Provisional) (hereinafter referred to as
the Measures) , Category 4, Category 5, Category 6, Category 7, Category 26, Category 31 exported to EU and Category 338/339, Category
340/640, Category 347/348, Category 349/649, Category 638/639, Category 647/648 and Category 847 exported to the USA in 2007 shall
implement negotiated bidding. Matters of concern are listed as follows:

Negotiated Bidding Gross in 2007 and the Amount of Second Negotiated Bidding

See Appendix 1 for the specific amount of Second Negotiated Bidding in 2007. With Romania and Bulgaria’ s official entry into the
EU on January 1st, 2007, the contract number of the 10 categories of textiles and clothing products exported to EU in 2007 is raised.

Negotiated Bidding Qualification and Available Amount

Qualification: The scaled enterprises with export achievements of the above-mentioned categories could participate this bidding.

Available Amount:

USA: In accordance with 2006 achievement got from export to USA and Article 11 and Article 12 of the Measures, get the available
amount of 2007, then deduct the bid-winning amount in the first bidding and get the available amount of this negotiated bidding.

EU: In accordance with 2006 achievement, of every enterprises, got from export to 25 member states of EU and Article 11 and Article
12 of the Measures, get the available amount of 2007.

The export achievement of Romania and Bulgaria shall not be included in the achievements of non-limited states (regions).

See Appendix 1 for the detailed minimum bidding amounts.

The Export Achievement

The export achievement of enterprises shall be calculated in accordance with Article 9 of the Measures.

Besides, bidding qualification auditing, export achievement auditing shall be conducted.

The available amount (maximum bidding amount) of the enterprises shall be promulgated online at www.mofcom.gov.cn, www.ccct.org.cn
or www.ec.com.cn on about April 2nd to April 6.

The Second Negotiated Bidding shall adopt the electronic bidding mode. The Electronic Bid Documents shall be submitted to the Bidding
Office between 9am of April 9 and 9pm of April 12. And the full amount of bid bond of the enterprises shall be submitted to the designated
bank.

The primary bid-winning matters shall be promulgated at www.ccct.org.cn on April 23. The formal bid-winning results shall be promulgated
at www.mofcom.gov.cn.

All the local departments of commercial administration shall be responsible for this negotiated bidding. Related policies and information
shall be promulgated at www.mofcom.gov.cn, www.ccct.org.cn and www.ec.com.cn.

Tel of the Bidding Office: 010-67739327, 67739213, 67739208

Fax: 010-67719297

Tel of China International Electronic Commerce Centre: 010-67870108

Fax: 010-67800343

Appendix:

Amount, Price and Minimum Bidding Amount of Negotiated Bidding

Export Achievement List of Enterprises (Customs Stat.)

Export Achievement List of Enterprises (Adjusted)

Achievement List of Enterprises on the Export to Romania and Bulgaria

Operation Guidance on Electronic Bidding Technology

Ministry of Commerce

March 13, 2007

The Binding Committee of the Ministry of Commerce for Exporting Textiles
2007-03-13

ANNOUNCEMENT NO.29, 2007 OF MINISTRY OF COMMERCE ON NAME ALTERATION OF KOREAN ENTERPRISES IN COATED FREE SHEET PAPER ANTI-DUMPING CASE

Announcement No.29, 2007 of Ministry of Commerce on Name Alteration of Korean Enterprises in Coated Free Sheet Paper Anti-dumping
Case

[2007] No.29

Ministry of Commerce of the People’s Republic of China released Announcement No 35, 2003 on Aug 6, 2003, deciding to impose anti-dumping
duties on coated free sheet paper originated from Korea and Japan.

MOORIM PAPER CO., LTD. and MOORIM SP CO., LTD put forward applications to Ministry of Commerce on Feb 1, 2007, claiming that the former
Shin Moorim Paper Mfg. Co., Ltd. changed its name into MOORIM PAPER CO., LTD on Jul 21, 2006, and the former Moorim Paper Mfg. Co.,
Ltd. change its name into MOORIM SP CO., LTD. on Jun 8, 2006, and applying to succeed the anti-dumping duty rate of relevant enterprises
before name alteration.

In line with investigation, Ministry of Commerce decides:

MOORIM PAPER CO., LTD. shall succeed the anti-duping duty rate applicable to the former Shin Moorim Paper Mfg. Co., Ltd., namely 4%;

MOORIM SP CO., LTD. shall succeed the anti-duping duty rate applicable to the former Moorim Paper Mfg. Co., Ltd., namely 4%;

As from release of this announcement, companies that export in names of Shin Moorim Paper Mfg. Co., Ltd. and Moorim Paper Mfg. Co.,
Ltd. shall pay anti-dumping duties of 51%, which is applicable to other Korean companies.

This announcement shall take effect as from Mar 30, 2007.

Ministry of Commerce

Mar 29, 2007

Ministry of Commerce
2007-03-29

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING MATTERS RELATED TO STRENGTHENING THE ADMINISTRATION OF THE SPECIAL BILL OF PAYMENT OF IMPORT VAT AND THE INVOICE OF WASTE MATERIAL

The State Administration of Taxation

Circular of The State Administration of Taxation Concerning Matters Related to Strengthening the Administration of the Special Bill
of Payment of Import VAT and the Invoice of Waste Material

Guo Shui Han[2004]No.128

January 21, 2004

To the national taxation bureaus of all the provinces, autonomous regions and municipalities directly under the State Council and
cities with separate plans under the state plan,

In order to crack down the illegal activity of tax evasions by using the Special Bill of Payment of Import VAT and the invoice of
waste material, to strengthening the administration and supervision of VAT and to plug the tax leak, the State Administration of
Taxation (hereinafter refer to as SAT) promulgate the Measures on audit the Special Bill of Payment of Import VAT and the Measures
on audit the invoice of waste materials to you departments now, and the concerning matters are hereby notified as follows:

It is presently an important measure of strengthening the administration of VAT and of plugging tax leaks to strengthen the administration
and supervision of the Special Bill of Payment of Import VAT and the invoice of waste material. After the promulgating of this circular,
all the bureaus and offices of SAT shall convene the special meeting to assign the tasks, to comprehensively spread the spirit of
this circular, to train the competent officials and taxpayers so that the policy can be fully implemented.

In order to meet the need of one-window contrasting of the 4 sorts of non-VAT-invoice including the invoice of waste materials, the
custom duty payment certificate, the receipt of primary product purchasing and the invoice of transportation cost, it is decided
to alter the content of reporting form specified in the Measure of Tax Declaration of Normal VAT Taxpayers as follows:

(1)

Adjust the column 5 of the Annex II of Tax Return of VAT to ” among them: Custom duty payment certificate”. This column reflects specifically
the deducted purchasing tax amount declared with the custom duty payment certificate according to the laws and regulations of the
imported goods of the taxpayers, including the goods of the tax rate of 17% and 13%

(2)

Adjust the column 6 of the Annex II of Tax Return of VAT to “the receipt of primary product purchasing and normal invoice”. This column
reflects specifically the deducted purchasing tax amount declared with the receipt of primary product purchasing and normal invoice
according to the laws and regulations because of the purchasing of the tax-free primary products of the taxpayers.

(3)

Adjust the column 7 of the Annex II of Tax Return of VAT to “the invoice of waste materials”. This column reflects specifically the
deducted purchasing tax amount declared with the normal invoice according to the laws and regulations because of the purchasing of
the waste materials of the taxpayers.

(4)

Adjust the column 8 of the Annex II of Tax Return of VAT to “the invoice of transportation cost”. This column reflects specifically
the deducted purchasing tax amount declared with the normal invoice of transportation cost according to the laws and regulations
because of the purchasing of the taxpayers

The SAT will promulgate the provisions on the matters of information collection, audit and check of the custom duty payment certificate
and the invoice of waste material later.

The questions in the course of implement of this circular shall be reported to the national taxation bureau at the provincial level,
and then be consulted and reflected to the State Administration of Taxation.

Linkman:

Liu Feng, Office of Invoice Tax Control, Department of Circulation Tax 010-63417700

Gong Bin, Office of audit and evaluation, Department of Circulation Tax 010-63417797

Liu Hao, Office of VAT, Department of Circulation Tax 010-63417705

This circular shall go into effect as of February 1, 2004

Annex I:Measures on Audit of Special Bill of Payment of Import VAT

After getting all the Special Bill of Payment of Import VAT (hereinafter referred to as the custom duty payment certificate) to deduct
the VAT, the normal VAT payers shall fill the detailed list of deduct (Appendix I ) one by one according to the custom duty payment
certificate, and shall report them with the tax return simultaneously at the time of VAT declaration. The taxpayers are allowed to
offer the paper documents of the detailed list of deduct of the custom duty payment certificate only when they declare in February
(those who miss the period of declaration shall re-offer after the period of the month), and from March, the taxpayers shall offer
the paper documents and the software or other memory medium that record the electronic data of the detailed list of deduct at the
same time. The purchasing tax amount shall not be deducted if the mentioned documents are not offered. The very certificate cannot
be used to deduct the purchasing tax amount if the detailed list of deduct of the custom duty payment certificate was not filled
or not totally filled according to the related regulations.

The information collection software of the detailed list of deduct of custom duty payment certificate shall be unified tapped by the
SAT, and shall be freely provided to the taxpayers by the competent tax authority. The national tax bureaus and taxpayers can download
the software from the website of the State Administration of Taxation (https://chinatax.gov.cn) after February 25.

The custom duty payment certificate that obtained after February 1, 2004 shall be declared to deduct before the deadline of the first
declaration period after 90 days of the obtain of the certificate, and shall not deduct any purchasing tax amount after the deadline.
The custom duty payment certificate that obtained before January 31, 2004 must be declared to deduct before the declaration period
of May, 2004, and it can not be used to deduct any purchasing tax amount after the period.

The competent tax authority shall do the following audit in the procedure of VAT declaration.

(1)

To audit whether there is data in the column 5 of the Annex II of the VAT Tax Return and to audit the offer of the deduct list if
there is any data.

(2)

To audit whether the deduct list of the custom duty payment certificate is fully filled.

(3)

To audit whether the data in the column of Tax amount in the deduct list equals to the data in the column of Tax amount of the custom
duty payment certificate in the Annex II of the VAT Tax Return.

The competent tax authority shall demand the taxpayers to re-offer the related documents or to redeclare after amending the related
data if it was found out that the taxpayer did not offer the deduct list or there exist problem after the audit.

The normal VAT taxpayers are allowed not to offer the deduct list if they do not obtain the current custom duty payment certificate.

Annex IIMeasures on auditing the invoice of waste materials

The unit managing the recycling of wasted materials (hereinafter refer to as waste-units) shall fill one by one the detailed list
of waste materials (hereinafter refer to as the detailed list of making) according to the normal invoices of selling the materials,
and shall offer it in accordance with the VAT tax return in the course of VAT declaration. The taxpayers are allowed to offer the
paper documents of the detailed list only when they declare in February (those who miss the period of declaration shall re-offer
after the period of the month), and from March, the taxpayers shall offer the paper documents and the software or other memory medium
that record the electronic data of the deduct list at the same time.

The waste-unit shall tap the finance stamp and the stamp of the invoice maker when they make the normal invoice in the course of selling
the waste materials. The normal VAT taxpayers of manufacturing units cannot deduct the purchasing tax amount with the invoice that
has no stamp of the invoice maker.

After getting all the invoice of waste materials to deduct the VAT, the normal VAT payers shall fill the deduct bill of invoice of
waste materials (appendix 3, hereinafter refer to as the detailed list of deduct) one by one according to the invoice, and shall
offer them with the tax return simultaneously at the time of VAT declaration. The taxpayers are allowed to offer the paper documents
of the deduct list only when they declare in February (those who miss the period of declaration shall re-offer after the period of
the month), and from March, the taxpayers shall offer the paper documents and the software or other memory medium that record the
electronic data of the deduct list at the same time. The purchasing tax amount shall not be deducted if the mentioned documents are
not offered. The very certificate cannot be used to deduct the purchasing tax amount if the deduct list was not filled or not totally
filled according to the related regulations.

The information collection software of the detailed list of deduct and the detail list of making shall be unified tapped by the State
Administration of Taxation, and shall be freely provided to the taxpayers by the competent tax authority. The national tax bureaus
and taxpayers can download the software from the website of the State Administration of Taxation (https://chinatax.gov.cn) after February
25.

The invoice of waste materials made after March 1, 2004 shall be declared to deduct before the deadline of the first declaration period
after 90 days of the making of the invoice, and shall not deduct any purchasing tax amount after the deadline. The invoice of waste
materials made before March 1, 2004 must be declared to deduct before the declaration period of June, 2004, and it can not be used
to deduct any purchasing tax amount after the period.

The invoice of waste materials without the stamp of invoice maker that made before March 1, 2004 being holding by the manufacturing
units is allowed to deduct the purchasing tax amount, and the column of ID of Sell Taxpayer and the column of No. of the Competent
Tax Authority of the Sell Taxpayer are allowed not to be filled temporarily.

The detailed list of making and the detailed list of deduct are allowed not to be offered to the competent tax authority in the case
of the waste-unit did not make the invoice of waste materials and the normal VAT taxpayers did not obtain the invoice.

The competent tax authority shall do the following audit in the procedure of VAT declaration.

(1)

To audit the declaration of the waste-unit

i.Whether the detailed list of making is fully filled

ii. Whether the data in the item of Total Amount in the column of Invoice Amount in the detailed list of making equals to or less
than the data in the item of Saleroom of Tax-free Goods in the column 16 Making Normal Invoice in the Annex I of the VAT tax return

(2)

To audit the declaration of the obtain of the invoice of waste materials

i. Whether there is data in the column 7 Invoice of waste materials and whether offer the detailed list of deduct if there is data

ii. Whether the detailed list of deduct is fully filled

iii. whether the data in the column of Invoice Amount and column of Deduct Tax Amount is equals to the data In the column 7 Invoice
of waste materials of the Annex II of VAT tax return

The competent tax authority shall demand the taxpayers to re-offer the related documents or to re- declare after amending the related
data if it was found out that the taxpayer did not offer the detailed list of making and the detailed list of deduct or there exist
problem after the audit.

The waste-unit that be proved to falsely making the invoice of waste materials will not apply the policy of exempt VAT, and will be
punished by the competent tax authority in accordance with the related laws and regulations.

Annex: the sample of the stamp of invoice maker (omitted)

The State Administration of Taxation
2004-01-21

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING XIAOSHAN ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Xiaoshan Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 16

Xiaoshan Municipal People’s Government and Xiaoshan Economic-Technological Area,

Upon research, we hereby authorize the Management Committee of Xiaoshan Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

The Management Committee of Xiaoshan Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

The Management Committee of Xiaoshan Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

Xiaoshan Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Xiaoshan Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)

Ministry of Commerce
2007-02-12

MEASURES FOR EXAMINING DRUG ADVERTISEMENTS

Decree of the State Food and Drug Administration and the State Administration of Industry and Commerce

No.27

The Measures for Examining Drug Advertisements have been deliberated and adopted by the State Food and Drug Administration and the
State Administration of Industry and Commerce of the People’s Republic of China They are hereby promulgated by the sequence number
of the order of the State Food and Drug Administration, and shall go into effect as of May 1, 2007.
Director of the State Food and Drug Administration, Shao Mingli

Director of the State Administration of Industry and Commerce, Zhou Bohua

March 13, 2007

Measures for Examining Drug Advertisements

Article 1

According to the Advertising Law of the People’s Republic of China (hereinafter referred to as Advertising Law), the Drug Administration
Law of the People’s Republic of China (hereinafter referred to as Drug Administration Law), the Rules for Implementing the Drug Administration
Law of the People’s Republic China (hereinafter referred to as Rules for Implementing the Drug Administration Law) and other related
state provisions on the supervision and administration of ads and drugs, the present Measures are enacted with a view to strengthening
the administration of drug advertisements (hereinafter referred to as drug ads) and guaranteeing the authenticity and legality of
drug ads.

Article 2

All the ads containing drug names, applicable diseases (functions and indications) or other drug-related content and published through
various mediums or in various forms belong to drug ads and shall be examined under the present Measures.

As regards a nonprescription drug ad that only publicizes the name of the drug (including the general name and commodity name) or
a prescription drug ad that only publicizes the name of the drug (including the general name and commodity name) on designated professional
publications of medicine science and pharmacy, the examination is not required.

Article 3

A drug ad for being examined may not pass the examination unless it complies with the following laws, regulations and related provisions:

(1)

Advertising Law;

(2)

Drug Administration Law;

(3)

Rules for Implementing the Drug Administration Law;

(4)

Standards for Examining and Issuing Drug Ads;

(5)

Other state provisions on administrating ads.

Article 4

The drug administrative departments of the provinces, autonomous regions and municipalities directly under the Central Government
shall be the examination organs of drug ads and shall, within their respective administrative regions, take charge of examining the
drug ads. The administrative departments of industry and commerce at or above the county level shall be the supervisory and administrative
organs of drug ads.

Article 5

The State Food and Drug Administration shall conduct guidance and supervision over the examination work of drug ads as made by the
examination organs of drug ads, and shall, according to law, punish the examination organs for any violation of the present Measures.

Article 6

Only a qualified manufacturing or trading enterprise of the drug may file an application for a drug license number. In case a trading
enterprise files such application, the consent of the manufacturing enterprise shall be obtained.

An applicant may entrust an agent to deal with the application matters for a drug ad license number on behalf of it.

Article 7

An application for a drug ad license number shall be filed with the examination organ of drug ads at the locality of the manufacturing
enterprise of the drug.

An application for the ad license number of an import drug shall be filed with the examination organ of drug ads at the locality of
the agency of the import drug.

Article 8

For applying for a drug ad license number, an applicant shall provide a Drug Ad Examination Form (Attached List 1), with the electronic
document of the sample manuscript (film or tape) consent with the content to be published and that of the application form for drug
ad attached, and, meanwhile, provide the following true, legal and effective evidentiary documents:

(1)

Photocopy of the Business License of the applicant;

(2)

Photocopy of the Drug Manufacturing License or Drug Trading License of the applicant;

(3)

In case the applicant is a trading enterprise of the drug, the original evidentiary document on the fact that the manufacturing enterprise
agrees to its status as applicant shall be submitted;

(4)

Where the applicant entrusts an agent to apply for a drug ad license number, the original authorization letter produced by the applicant
and the photocopy of the agent’s business license and other evidentiary documents on the agent’s subject status shall be provided;

(5)

Photocopies of the drug approval certificates (including Registration Certificate for Import Drug and Registration Certificate for
Medical Product), photocopy of the approved drug instructions as well as the label and instructions actually used;

(6)

As regards a nonprescription drug ad, a photocopy of the examination and registration certificate of the nonprescription drug or photocopies
of the related evidentiary documents shall be provided;

(7)

For applying for the ad license number of an import drug, the photocopies of the related evidentiary documents on the qualification
of the drug import agencyshall be provided;

(8)

In case the ad involves the commodity name of the drug, the registered trademark or patent, etc, the photocopies of the related evidentiary
valid documents and other evidentiary documents confirming the authenticity of the content of the ad shall be provided.

The photocopy of any evidentiary documents to be provided as provisioned in this Article shall be affixed with the seal of the entity
holding it.

Article 9

An examination organ of drug ads may not accept an enterprise’s application for drug ad under any of the following circumstances:

(1)

Any of the circumstances under which the application may not be accepted as provisioned in Articles 20, 22 and 23 of the present Measures;

(2)

The administrative procedure for revoking the drug ad license number is going on.

Article 10

Where the application materials are complete and satisfy the statutory requirements, an examination organ of drug ads shall issue
a Notice of Drug Ad Acceptance after receiving an application for a drug ad license number, and, where they are not complete or fail
to satisfy the statutory requirements, it shall, on the spot or within 5 workdays, inform the applicant of the content to be corrected
once and for all ; in case it fails to do so within the prescribed time limit, the day of the receipt of the application materials
shall be deemed as the day of acceptance.

Article 11

An examination organ of drug ads shall examine the authenticity, legality and validity of the evidentiary documents provided by the
applicant within 10 workdays since its acceptance of the application and examine the content of the ad in accordance with law. Where
the drug ad passes the examination, it shall issue a drug ad license number; otherwise, it shall make a decision on rejecting issuing
a drug ad license number, inform the applicant of the decision in written form and make explanations, and, meanwhile, inform the
applicant of its right to apply for an administrative reconsideration or lodge an administrative lawsuit in accordance with law.

As regards an approved drug ad, the examination organ of drug ads shall report it to the State Food and Drug Administration for archival
filling and send the approved Drug Ad Examination Form to the ad supervisory and administrative organ at the same level for archival
filling. In case the State Food and Drug Administration finds any problem in the drug ad reported for archival filling, it shall
order the examination organ of drug ads to make corrections.

The drug supervisory and administrative departments shall timely publicize the approved drug ads to the general public.

Article 12

The archive-filing formalities shall be gone through beforehand at the examination organ of drug ads of the place where the ad is
to be published, if the drug ad is to be published in any province, autonomous region, or municipality directly under the Central
Government other than the place where the manufacturing enterprise of the drug or the import drug agency is located (hereinafter
referred to as publishing drug ad in any other place).

Article 13

For publishing any drug ad in any other place, the following materials shall be provided:

(1)

Photocopy of the Drug Ad Examination Form;

(2)

Photocopy of the approved drug instructions;

(3)

For a TV or radio ad, a tape, CD or any other medium carrier with content identical with the content passing the examination shall
be submitted;

The photocopy of any evidentiary document to be provided as provisioned in this Article shall be affixed with the seal of the entity
holding it.

Article 14

As regards an application for the archive-filing of a drug ad published in any other place filed according to the provisions of Articles
12 and 13 of the present Measures, the examination organ of drug ads shall, within 5 workdays as of the acceptance of the archive-filing
application, put it on record, endorse the word “Filed” on the Form, affix the special seal for the examination of drug ads and send
a copy of the Form to the ad supervisory and administrative organ at the same level for future reference.

Where the examination organ of drug ads at the place where a drug ad is to be put on record holds that the drug ad fails to comply
with the related provisions, it shall fill in the Opinion on the Archive-filing of Drug Ads (Attached List 2) and send it to the
original examination organ of drug ads for reexamination, and a copy thereof shall be sent to the State Food and Drug Administration.

The original examination organ shall inform the examination organ of drug ads at the place where the drug ad is to be put on record
of its opinion within 5 workdays since the day when it receives the Opinion on the Archive-filing of Drug Ads. In case the two examination
organs of drug ads can’t achieve a consensus, the State Food and Drug Administration may be invited to make a ruling thereon.

Article 15

A drug ad license number’s valid period shall be one year, and once the period expires it shall become invalid.

Article 16

When publishing an approved drug ad, no content of the ad may be altered. In case it is necessary to alter any content, the drug
ad license number shall be reapplied.

Article 17

In case a drug ad applicant publishes the drug ad by itself, the original Drug Ad Examination Form shall be kept for two years for
future reference.

In case an ad publisher or operator is entrusted by a drug ad applicant to act as an agent or publish the drug ad, it shall check
the original Drug Ad Examination Form, publish the drug ad on the basis of the examined and approved content, and keep the photocopy
of the Form for two years for future reference.

Article 18

Where an approved drug ad falls within any of the following circumstances, the original examination organ of the drug ad shall issue
a Notice on the Reexamination of Drug Ads (Attached List 3) to the applicant of the drug ad and reexamine the drug ad in accordance
with law. The drug ad may be continually published during the reexamination period:

(1)

The State Food and Drug Administration holds that the content of the approved drug ad fails to comply with the related provisions;

(2)

An ad supervisory and administrative organ at the provincial level or above suggests the reexamination of the drug ad;

(3)

Any other circumstance under which the examination organ of drug ads holds that it is necessary to reexamine.

Where, upon reexamination, the original examination organ of drug ads holds that the drug ad fails to meet the statutory conditions,
it shall take back the Drug Ad Examination Form and cancel the original drug ad license number.

Article 19

The examination organ of drug ads shall write-off the drug ad license number under any of the following circumstances:

(1)

The Drug Manufacturing License or Drug Trading License has been canceled;

(2)

The approval certifications on the drug have been cancelled or written-off;

(3)

The State Food and Drug Administration or the drug supervisory and administrative department of the province, autonomous region, or
municipality directly under the Central Government has ordered to suspend the production, sale and use of the drug.

Article 20

In case false publicity is made by altering an approved drug ad’s content without authorization, the drug supervisory and administrative
department shall order to stop such publishing immediately, revoke the ad license number of such drug and may not accept the application
for the examination and approval of any ad on such drug within one year.

Article 21

As regards any illegal drug ad that enlarges the scope of applicable diseases (functions and indications) of the drug at will, absolutely
exaggerates the curative effects of the drug and severely cheats and misleads the consumers, once the drug supervisory and administrative
department at the provincial level or above finds, an administrative coercive measure shall be adopted to suspend the sale of such
drug within its jurisdiction and, meanwhile, order the enterprise illegally publishing the drug ad to publish a notice of correction
on the corresponding local medium. The drug supervisory and administrative department at the provincial level or above shall, within
15 workdays, make a decision on releasing the administrative coercive measure after the notice is published; in case it is necessary
to check the drug, the drug supervisory and administrative department shall, within 15 days since the day when the written check
report is sent, make a decision on whether to release the administrative coercive measure or not.

Article 22

As regards an enterprise providing any false application material for the examination and approval of a drug ad, once the examination
organ of drug ads finds during the acceptance or examination, this enterprise’s application for the examination and approval of any
ad on such drug may not be accepted within one year.

Article 23

In case an enterprise obtains a drug ad license number by submitting false application materials, the examination organ of drug ads
shall, after finding, revoke the drug ad license number and may, within three years, not accept this enterprise’s application for
the examination and approval of any ad on such drug.

Article 24

In case the license number of a drug ad has been taken back, written-off or cancelled according to Articles 18, 19, 20 or 23 of the
present Measures, the publication thereof shall be suspended at once; the examination organ of drug ads of any other place shall
stop accepting such enterprise’s application for the archive-filing of such drug ad’s approved license number.

In case an examination organ of drug ads decides to take back, write-off or cancel a drug ad license number according to Articles
18, 19, 20 or 23 of the present Measures, it shall inform the ad supervisory and administrative organ at the same level to deal with
it in accordance with law within 5 workdays since the day when it makes such administrative handling decision.

Article 25

In case an enterprise publishes a drug ad in other place without sending an archive-filing application to the examination organ of
drug ads at the place where the drug ad is published, once it is found out, it shall be order to go through the formalities for archive-filing
within a prescribed period, where it fails to do so, the publishing activities of such drug ad shall be ordered to be stopped in
that place.

Article 26

The drug supervisory and administrative departments at the county level or above shall monitor and inspect the publication of the
examined and approved drug ads. As regards the illegally published drug ads, the drug supervisory and administrative departments
at each level shall fill in the Notice on Transferring Illegal Drug Ads (Attached List 4) and transfer them together with such materials
as the sample pieces of these illegal drug ads to the ad supervisory and administrative organs for investigating and handling at
the same level ; as regards an other-place publication of a drug ad with approved contend altered without authorization, the examination
organ of drug ads at the place where the drug ad is published shall, according to Article 92 of the Pharmaceutical Administration
Law and Article 20 of the present Measures, put forward a suggestion on revoking the license number of the drug ad to the original
examination organ of drug ads.

Article 27

As regards any illegal drug ad with serious circumstance, the drug supervisory and administrative department under the province,
autonomous region, or municipality directly under the Central Government shall publicize an announcement thereon and report it to
the State Food and Drug Administration, which shall, on a consolidated and regular basis, publicize such reports.

As regards any illegal drug ad with serious circumstance, when necessary, the State Administration of Industry and Commerce and the
State Food and Drug Administration shall jointly publicize an announcement thereon.

Article 28

In case a drug ad is published without being examined and approved or the content of a published drug ad is inconsistent with the
examined and approved one, the ad supervisory and administrative organ shall punish according to Article 43 in the Advertising Law;
in case it constitutes a false ad or a false and misleading publicity, the ad supervisory and administrative organ shall punish according
to Article 37 of the Advertising Law and Article 24 of the Anti-Unfair Competition Law.

In case the ad supervisory and administrative organ, when investigating and punishing a case of illegal drug ad, finds it is necessary
to determine certain professional technical content as involved in the case, it shall send a written notice on the content to be
determined to the drug supervisory and administrative department at the provincial level or above, which shall, within 10 workdays
since the day when the notice is received, feed back the determination result to the ad supervisory and administrative organ.

Article 29

The working personnel undertaking the examination and supervision of drug ads shall be subject to the training on the Advertising
Law, the Drug Administration Law and other related laws and regulations. In case any working personnel of the examination organs
of drug ads and the supervisory and administrative organs thereof neglects his duties, abuses his power or conducts any self-exerting
misconduct, administrative punishment shall be imposed. In case any crime is established, criminal liabilities shall be investigated
in accordance with law.

Article 30

A drug ad license number shall be in the form of “No. 0000000000 of X Drug Ad Examination (Video)”, “No. 0000000000 of X Drug Ad
Examination (Audio)” or “No. 0000000000 of X Drug Ad Examination (Words)”, among which, “X” means the abbreviation of a province,
autonomous region, or municipality directly under the Central Government, “0” consists of 10 digits, the first 6 shall be the date
when the examination is conducted and the last 4 shall be the approved ad’s serial number. “Video”, “Audio” and “Words” means the
medium forms for publishing ads.

Article 31

The present Measures shall go into effect as of May 1, 2007. The Measures for Examining Drug Ads (No. 25 of the State Administration
of Industry and Commerce), which were promulgated by the State Administration of Industry and Commerce and the Ministry of Health
on March 22, 1995, shall be repealed at the same time.

The State Food and Drug Administration, the State Administration of Industry and Commerce
2007-03-13

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE RELATED TAX POLICIES ON THE SERVICE SPONSORSHIP OF THE 29TH OLYMPIC GAMES BY ATOS ORIGIN (BEIJING) COMPANY AND OMEGA (SWITZERLAND) COMPANY

Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Related Tax Policies on the Service Sponsorship
of the 29th Olympic Games by Atos Origin (Beijing) Company and Omega (Switzerland) Company

Cai Shui [2007] No. 38

The public finance departments (bureaus), state taxation bureaus and local taxation bureaus of each province, autonomous region, municipality
directly under the Central Government and city specifically designated in the state plan,

For the purpose of ensuring the success of the 29th Olympic Games held in China, upon study, the related tax matters on the service
sponsorship to the 29th Olympic Games in the forms of cash and goods, etc. by Atos Origin (Beijing) Company and Omega (Switzerland)
Company are hereby clarified as follows:

As regards the 82,510,000 USD of expenses for Atos Origin (Beijing) Company to provide the service sponsorship to the Beijing Organizing
Committee in accordance with the sponsorship agreement, when calculating the taxable enterprise incomes, the actual amount occurred
in the current year shall be totally deducted according to Item 4 of Article 2 of the Notice of the Ministry of Finance, the State
Administration of Taxation and the General Administration of Taxation on the Related Tax Policies for the 29th Olympic Games (Cai
Shui [2003] No. 10).

As regards the 53,110,000 USD of expenses for Omega (Switzerland) Company to provide the service sponsorship to the BOCOG in accordance
with the sponsorship agreement, where no permanent institution has been set up within the territory of China in accordance with the
Agreement between the Government of the People’s Republic of China and the Swiss Federal Council on Avoiding Double Taxation on Incomes
and Properties, the matter of pre-tax deduction is not involved; where a permanent institution has been established within the territory
of China, in accordance with Item 4 of Article 2 of the Circular of the Ministry of Finance, the State Administration of Taxation
and the General Administration of Taxation on the Related Tax Policies for the 29th Olympic Games (Cai Shui [2003] No. 10), when
calculating the taxable enterprise incomes, the actual amount occurred in the current year shall be totally deducted. Where the enterprise
income tax is levied by way of verifying profits, the expenses for such service sponsorship may be deducted directly from the income
amount, on basis of which, the taxes to be levied are verified.

As regards the sponsorship services gratuitously provided to the BOCOG by Atos Origin (Beijing) Company or Omega (Switzerland) Companyin
accordance with the sponsorship agreement, no business tax may be levied.

Except for the service sponsorship, in case Atos Origin (Beijing) Company or Omega (Switzerland) Company collects other service incomes
from the BOCOG, related taxes shall be paid in accordance with the tax law or the treaty of China.

The Ministry of Finance

The State Administration of Taxation

March 29, 2007

The Ministry of Finance, the State Administration of Taxation
2007-03-29

NOTICE ON RELEVANT ISSUES CONCERNING APPLICATION PROCEDURES FOR TRANSFER OF STATE-OWNED SHARES OF LISTED COMPANIES TO FOREIGN INVESTORS AND ENTERPRISES WITH FOREIGN INVESTMENT

The ministry of commerce, the General Office of the State-owned Assets Supervision and Administration Commission

Notice on Relevant Issues Concerning Application Procedures for Transfer of State-owned Shares of Listed Companies to Foreign Investors
and Enterprises with Foreign Investment

ShangZiZi [2004] No. 1

January 21st, 2004

The foreign trade and economic commissions or offices or bureaus, commerce offices or bureaus and state-owned assets supervision and
administration commissions of all provinces, autonomous regions, municipalities directly under the Central Government, and cities
directly under state planning:

With a view to introducing foreign advanced management experiences, technology and capital, accelerating the steps for adjustment
of economic structure, improving on the corporate governance structure of listed companies, protecting the legal rights and interests
of investors, and promoting the healthy development of the securities market, as well as regulating the acts of foreign investors
and enterprises with foreign investment for their entry into the securities market, we hereby issue the following Notice on the relevant
issues concerning the application procedures for transfer of the state-owned shares of listed companies held by non-financial enterprises
to foreign investors and enterprises with foreign investment in accordance with the “Interim Provisions on Merger of Domestic Enterprises
by Foreign Investors” promulgated by the former Ministry of Foreign Trade and Economic Cooperation (MOFTEC), the State Administration
of Taxation, State Administration for Industry and Commerce, and State Administration on Foreign Exchange Control, and the Announcement
No. 25 of the Ministry of Commerce, Ministry of Finance, State-owned Assets Supervision and Administration Commission of the State
Council, and China Securities Regulatory Commission in 2003:

Where a non-financial enterprise transfers the state-owned shares it holds to foreign investors and enterprises with foreign investment,
if the non-financial enterprise is a local enterprise, the state-owned shareholders shall file an application to the State-owned
Assets Supervision and Administration Commission of the State Council (hereinafter referred to as the SASAC) through the state-owned
assets supervision and administration departments at the provincial level, and meanwhile send a copy to the Ministry of Commerce;
if it is a central enterprise, the parent company (the competent department in charge of the enterprise in case the enterprise does
not separate from the relevant administrative department) of the central enterprise shall file an application to the SASAC, and send
a copy to the Ministry of Commerce at the same time.

II.

After receiving the relevant application, the SASAC shall ask the Ministry of Commerce for its opinions by letter of the department
or bureau of the SASAC. And the Ministry of Commerce shall then propose opinions on whether the transfer of the state-owned shares
of listed companies, which are held by the non-financial enterprise, to the foreign investors and enterprises with foreign investment
is in conformity with the policy of attracting foreign investment, and reply by letter of the departmental or bureau level of the
Ministry of Commerce.

III.

The SASAC shall, after receiving the opinions of approval of the Ministry of Commerce, handle the examination formalities for transfer
of the state-owned shares of listed companies, which are held by non-financial enterprises, to foreign investors and enterprises
with foreign investment.

IV.

After the application for transfer of state-owned shares has been approved by the SASAC, the listed companies shall draw up the relevant
legal documents in accordance with the relevant provisions, and in pursuance of prescribed procedures, go through formalities for
approving the transfer of shares to foreign investors and enterprises with foreign investment and formalities for approving the alteration
of the articles of association of the listed companies to the Ministry of Commerce, who shall then give written reply after making
examination in accordance with the relevant provisions on foreign investment, and send a copy to the SASAC, State Administration
for Industry and Commerce, and China Securities Regulatory Commission, and other relevant departments.

The ministry of commerce, the General Office of the State-owned Assets Supervision and Administration Commission
2004-01-21

REGULATION ON THE NATIONAL NATURAL SCIENCE FUNDS

Decree of the State Council

No. 487

The Regulation on the National Natural Science Funds has been adopted at the 169th executive meeting of the State Council on February
14, 2007. It is hereby promulgated and shall enter into force as of April 1, 2007.
Premier Wen Jiabao

February 24, 2007

Regulation on the National Natural Science Funds
Chapter I General Rules

Article 1

In order to regulate the use and management of National Natural Science Funds, advance the efficiency in the use of National Natural
Science Funds, promote the basic research, cultivate science and technology talents, and intensify the independent innovation ability,
this Regulation is formulated in accordance with the Law of the People’s Republic of China on Scientific and Technological Progress.

Article 2

The state establishes the National Natural Science Funds, in order to subsidize the basic research as prescribed in the Law of the
People’s Republic of China on Scientific and Technological Progress.

Article 3

The National Natural Science Foundation is mainly funded by the allocations of the central treasury, and any donation from natural
persons, legal persons and other organizations is encouraged by the National Natural Science Foundation.

The central treasury will incorporate the national natural science funds into the budget thereof.

Article 4

The grants made by the National Natural Science Foundation shall comply with the principles of openness, justice and impartiality,
as well as the guidelines of respecting science, developing democracy, advocating competition, improving cooperation, prompting innovations
and guiding the future.

Article 5

When deciding the projects to be subsidized by National Natural Science Funds (hereinafter referred to as funded projects), the professionals
shall be brought into full play, and the mechanism of macro guidance, automatic application, equal competition, evaluation by the
experts working in the same field and selecting the best for support shall be adopted.

Article 6

The natural science fund management organ of the State Council (hereinafter referred to as fund management organ) shall have the
responsibilities of managing the National Natural Science Funds and surveilling the implementation of funded projects.

The science and technology competent authority of the State Council shall have the responsibilities of the macro administration and
overall coordination of the work concerning National Natural Science Funds. The finance competent authority of the State Council
shall administrate and surveil the budget and finance of National Natural Science Funds. And the audit department shall surveil the
use and management of National Natural Science Funds.

Chapter II Organization and Planning

Article 7

A fund development plan and the annual directory of funded projects shall be formulated by the fund management organ in light of
the plan for national economic and social development, the plan for scientific and technological development as well as the circumstance
of scientific and technological development. The fund development plan shall detail the fields to be developed with precedence, and
the annual directory of funded projects shall indicate the scope of projects to be supported with precedence. Exclusive funds shall
be set up under National Natural Science Funds for cultivating young science and technology talents.

The formulation of a fund development plan and the annual directory of funded projects by the Funds management organ shall widely
heed the opinions from the higher education institutions, scientific research institutions, academic groups, as well as related state
organs and enterprises, and organize related experts for scientific demonstrations. The annual directory of funded projects shall
be announced 30 days before the receipt of the applications for funded projects.

Article 8

The higher education institutions, scientific research institutions or any other public welfare institution that has the independent
legal person qualification and develops basic research within the territory of the People’s Republic of China may make registration
at the fund management organ as supporting institutions.

Where a supporting institution that has existed before the implementation of this Regulation requires to be registered as a supporting
institution, the registration shall be made by the fund management organ.

The fund management organ shall announce the names of registered supporting institutions.

Article 9

In the management work of fund granting, a supporting institution shall perform the duties as follows:

(1)

It shall organize applicants to apply for the subsides of National Natural Science Funds;

(2)

It shall examine the genuineness of the materials as submitted by applicants or project principals;

(3)

It shall provide the requirements for implementing the funded projects, and safeguard the time for project principals and participants
to carry out funded projects;

(4)

It shall follow up the implementation of funded projects, and surveil the use of Fund subsides; and

(5)

It shall cooperate with the fund management organ in surveilling and examining the implementation of funded projects.

The fund management organ shall guide and surveil the management work of supporting institutions relating to the granting of funds.

Chapter III Application and Evaluation

Article 10

Any science and technology talent in a supporting institution that satisfies the following requirements may apply for the National
Natural Science Funds:

(1)

He has the experiences of assuming the basic research topic or other basic research; and

(2)

He has a senior academic rank (post_title) or a doctoral degree, or has a recommendation from two science and technology persons who are
working in the same research field and have a senior academic rank (post_title).

Where a science and technology personnel that engages in basic research satisfies the requirements as prescribed in the preceding
paragraph, has no job or works for an entity that is not a supporting institution, if he has obtained the consent of a supporting
institution as registered at the fund management organ after negotiations, he may apply for the National Natural Science Funds under
this Regulation. The supporting institution shall deem him as a science and technology personnel of its own, and perform effective
management to him in accordance with this Regulation.

An applicant shall be the person in charge of an application for funded projects.

Article 11

An applicant that applies for the National Natural Science Funds shall determine the research project upon the annual directory of
funded projects, and submit an application in written form to the fund management organ through the supporting institution within
the time limit as prescribed.

An applicant that applies for the National Natural Science Funds shall submit the materials that may prove he has satisfied the requirements
as prescribed in Article 10 of this Regulation; in case of any special requirement in the annual directory of funded projects, the
applicant shall also submit the certification materials that prove he has satisfied the said requirements.

Where an applicant has obtained other subsides for the project research for which he is applying for the Funds subsides, the information
on the said subsidies shall be explained in the application materials. An applicant shall have the responsibilities of the genuineness
of the application materials he submits.

Article 12

The fund management organ shall complete the preliminary examination of application materials within 45 days as of the expiration
of the term for applying for funded projects. As regards an application that complies with this Regulation the fund management organ
shall accept it, and shall publicize the basic information on the applicant, the name of the supporting institution as well as the
name of the project for which the application for funded projects has been filed. In case of any of the following circumstances occurs
to an application, the fund management organ may not accept it, and shall inform the applicant through the supporting institution
in written form, and shall explain the reasons:

(1)

The applicant fails to satisfy the requirements as prescribed in this Regulation;

(2)

The application materials fails to comply with the requirements as mentioned in the annual directory of funded projects; or

(3)

The number of funded projects as applied for by the applicants is in excess of that as prescribed by the fund management organ.

Article 13

The fund management organ shall employ the experts that have a fairly high academic level and good professional ethics in the same
field to evaluate the applications for funded projects. The fund management organ shall formulate the specific measures for employing
evaluation experts.

Article 14

As regards the applications for funded projects that have been accepted, the fund management organ shall randomly choose three or
more experts from the database of experts working in the same field for a communication-based evaluation, and then organize the experts
for a meeting-based evaluation; and with respect to the applications for funded projects that are temporarily brought forward because
of specific demands of national economic and social development or other specific circumstances, the fund management organ shall
carry out only a communication-based evaluation or meeting-based evaluation.

An evaluation expert that finds it difficult to render an academic judgment or is too busy to make an evaluation for the applications
for funded projects shall timely inform the fund management organ, and the fund management organ shall choose another evaluation
expert for evaluation as required by this Regulation.

Article 15

With respect to an application for funded projects, an evaluation expert shall render an independent judgment and evaluation in terms
of scientific value, innovation, social influences as well as the possibility of research schemes, and bring forward the evaluation
opinions thereof.

When giving the evaluation opinions about the applications for funded projects, an evaluation expert shall also consider the research
experiences of the applicants and participants, the rationality of the plan for using the funds, the information on other grants
for research topics, the information on the implementation of the funded projects by the applicants as well as the necessity for
continuous subsidies.

The evaluation opinions as brought forward through the meeting-based evaluation shall be determined by voting.

Article 16

As regards an application for a funded project on which most of evaluation experts in the communication-based evaluation believe
that the fund may not be granted, but this project involves many innovations, and a meeting-based evaluation may be performed if
two evaluation experts that participate in the meeting-based evaluation have signed recommendation for it, unless it is an application
for a funded project that is temporarily submitted because of special demands or circumstances as prescribed in Article 14 of this
Regulation.

The fund management organ shall publicize the recommendation opinions that are brought forward by evaluation experts.

Article 17

The fund management organ shall determine the research projects to be funded in accordance with this Regulation and the evaluation
opinions brought forward by experts, and may not deny the evaluation opinions brought forward by experts on the ground that it has
different academic viewpoints from those of evaluation experts.

Where the fund management organ determined to grant a fund, it shall timely inform the applicant and the supporting institution in
written form, and publicize the basic information on the applicant, the name of the supporting institution, the name of the project
for which an application for funded projects has been submitted, and the amount of the fund to be granted; in case it determined
not to grant a fund, it shall timely inform the applicant and the supporting institution in written form, and explain the reasons.

The fund management organ shall sort out the evaluation opinions of experts and provide them to the applicant.

Article 18

Where an applicant does not satisfy with the decision on refusal to accept his application or to fund his project as made by the
fund management organ, he may submit a request for reexamination to the fund management organ in written form within 15 days upon
receipt of the circular. The different opinions on the academic judgment of evaluation experts as held by an applicant may not be
deemed as the reasons for requesting the reexamination.

The fund management organ shall complete the reexamination within 60 days as of receipt of a reexamination request as submitted by
an applicant. Where the fund management organ deems that the former decision is consist with this Regulation, it shall maintain the
former decision and inform the applicant in written form. Where the fund management organ deems that the former decision is not consist
with this Regulation, it shall annul the former decision, organize evaluation experts to evaluate the application for the funded
project as submitted by the applicant again, make a decision, and inform the result to the applicant and the supporting institution
in written form.

Article 19

In the evaluation of funded projects, a personnel of the fund management organ or an evaluation expert shall apply for withdrawal
in case of any circumstance as follows:

(1)

The personnel of the fund management organ or the evaluation expert is a close family member of the applicant or participant or has
any other relation which may affect the fair evaluation;

(2)

The funded project as submitted by an evaluation expert himself is identical with the one as submitted by the applicant or is close
to it; or

(3)

The evaluation expert and the applicant or participant work for a same legal person entity.

The fund management organ shall, according to the application, make a decision on whether to withdraw or not upon examination, or
may directly make such a decision without an application.

An applicant for funded projects may provide a name list of three or less evaluation experts that are not suitable for evaluation,
and the fund management organ shall the said name list upon the actual circumstance when selecting evaluation experts.

Article 20

Any personnel of the fund management organ may neither apply for or participate in the application for the National Natural Science
Funds, nor may he interfere the evaluation of evaluation experts.

Any personnel of the fund management organ or evaluation expert may neither reveal the basic information with respect to evaluation
experts, evaluation opinions, evaluation results or other information on the evaluation that has not been revealed.

Chapter IV Grant of Funds and Implementation

Article 21

A supporting institution and a project principal shall fill in a project plan in light of the evaluation opinions of evaluation experts
and the amount of fund as determined by the fund management organ within 20 days as of the receipt of a circular on the grant of
fund as issued by the fund management organ, and submit it to the fund management organ for examination and approval.

When filling in a project plan, a supporting institution and a project principal may not alter other contents in the application form
except that they do so under the evaluation opinions of evaluation experts or the amount of fund as determined by the fund management
organ.

Article 22

As regards the research projects to be funded in this year, the fund management organ shall apply to the finance competent authority
of the State Council for budgetary allotments to funded projects in a timely manner in accordance with the Budget Law of the People’s
Republic of Chin and other related provisions of the state, unless for those funded projects that are temporarily brought forward
because the specific demands or other specific circumstances as prescribed in Article 14 of this Regulation.

A supporting institution shall inform the fund management organ and the project principal thereof within seven days as of the receipt
of fund.

A project principal shall use the funds as required in the project plan, and a supporting institution shall surveil the project principal’s
use of the funds. No project principal or supporting institution may infringe or misappropriate the funds by any means. The specific
measures for the use and management of funds subsides shall be formulated by the finance competent authority of the State Council
and the fund management organ.

Article 23

A project principal shall organize and implement the research work in light of the project scheme, make original records on the implementation
of the funded project, and submit an annual progress report concerning the project to the fund management organ.

A supporting institution shall inspect the annual progress reports concerning the funded projects, check the original records on the
implementation of the funded projects, and file the annual reports concerning the management on funded projects to the fund management
organ.

The fund management organ shall inspect the annual progress reports on the projects and the annual reports concerning the management
on funded projects.

Article 24

The supporting institution may not change the project principal without approval while a funded project is implemented.

In case of any of the following circumstances occurs to a project principal, the supporting institution shall submit an application
for altering this project principal or terminating the implementation of the funded project in a timely manner, and report it to
the fund management organ for approval; and the fund management organ may directly make a decision concerning terminating the implementation
of the funded project:

(1)

He is a science and technology personnel of the supporting institution no more;

(2)

He can not implement the research work continuously; or

(3)

He steals the scientific research achievements of someone else or resorts to fraud in scientific research.

Where a project principal shifts his post to another supporting institution, the former supporting institution may submit an application
for altering the supporting institution to the fund management organ for approval upon negotiations between the new supporting institution
and the former supporting institution. If it fails to reach unanimity between the new supporting institution and the former supporting
institution upon negotiations, the fund management organ shall make a decision on terminating the implementation of the funded project
under the charge of the said project principal.

Article 25

Where it is necessary to make some major adjustments to the research contents or research plans during the process of implementation
of a funded project, the project principal shall timely submit an application, and apply to the fund management organ for approval
upon examination of the supporting institution.

Article 26

A project principal shall submit a concluding report to the fund management organ through the supporting institution within 60 days
as of the expiration of the funded project; and as regards a funded project that obtains the research achievements, a research achievement
report shall be submitted at the same time.

A supporting institution shall verify the concluding report and establish the archives on funded projects. When examining a concluding
report, a supporting institution shall check the original records on the implementation of the funded project.

Article 27

The fund management organ shall examine the concluding reports in a timely manner. As regards a concluding report the finalizing
topics of which fails to satisfy the requirements, the fund management organ shall give its opinions and notify them to the supporting
institution and the project principal in written form.

The fund management organ shall announce the abstracts of the concluding reports, research achievement reports and applications for
funded projects, and solicit the comments and opinions of the general public.

Article 28

Where any funded project obtains the research achievements, it shall indicate that it is funded by the National Natural Science Foundation
when it is publicized.

Chapter V Surveillance and Administration

Article 29

The fund management organ shall take a sample survey on the implementation of the funded projects and the performance of duties by
the supporting institutions, and shall check the original records on the implementation of the funded projects at the time of survey.
The results of sample survey shall be recorded and publicized, and can be consulted by the general public.

The fund management organ shall set up archives on the credits of project principals and supporting institutions.

Article 30

The fund management organ shall regularly assess the performance of appraising duties by evaluation experts, and set up archives
on the credits of evaluation experts according to the evaluation results; and may not employ those who have stolen scientific research
achievements of others or resorted to fraud in scientific research.

Article 31

At the end of each accounting year, the fund management organ shall publish the funded projects, the allotment of funds and the punishments
to those acts against this Regulation, etc. in this year.

The fund management organ shall assess the work on the grant of funds at regular intervals, publish the evaluation reports, and regard
the evaluation reports as the evidence for formulating the fund development plan and the annual directory of funded projects.

Article 32

The applicant may show his opinions to the fund management organ concerning the evaluation work of evaluation experts after the evaluation
experts have brought forward their evaluation opinions on an application for a funded project as submitted by an applicant; and the
fund management organ shall consider the opinions of this applicant when evaluating the performance of appraising duties by evaluation
experts.

Any entity or individual may tip off or accuse any act in violation of this Regulation as committed by the fund management organ or
any of the personnel thereof, any evaluation expert, supporting institution, person in charge of the management of funded projects,
applicant or project principal.

The fund management organ shall publicize its contact phone numbers, address and e-mail address.

Article 33

The related information as publicized by the fund management organ as prescribed by this Regulation shall be identical with the confidentiality
provisions of the state.

Chapter VI Legal Liabilities

Article 34

Where an applicant or participant forges or changes any application materials, he shall be given a warning by the fund management
organ; and if the application for fund thereof has been determined to be granted, the original decision on fund granting shall be
annulled, and the allotted funds shall be recovered; in case of any serious circumstance, the applicant or participant may not apply
for the National Natural Science Funds or be concerned with the application for the Funds for 3 up to 5 years, nor may he be promoted
to a higher academic technical rank (post_title).

Article 35

In case of any of the following acts in violation of this Regulation as committed by a project principal or participant, a warning
shall be given, the allotment of Funds subsides shall be suspended, and he shall be ordered to make correction within a time limit;
if he fails to make correction within the time limit, the original decision on fund granting shall be annulled, and the allotted
funds shall be revoked; in case of any serious circumstance, the applicant or participant may not apply for the National Natural
Science Funds or participate in the application for the Funds for 5 up to 7 years:

(1)

He fails to perform research in light of the project plan;

(2)

He alters the research contents or plans without approval;

(3)

He fails to submit an annual progress report, concluding report or research achievement report on the project in accordance with this
Regulation;

(4)

He submits any false or invented report, original records or related materials; or

(5)

He occupies or misappropriates the funds.

The project principal or participant that commits any act referred to in Subparagraph (4) or (5) of the preceding paragraph may not
be promoted to a higher academic rank (post_title) for 5 up to 7 years under any serious circumstance.

Article 36

In case of any following circumstance occurs to a supporting institution, the fund management organ shall give it a warning and order
it to make correction within a time limit; in case of any serious circumstance, a circular of criticism shall be publicized and the
said institution may not be taken as the supporting institution for 3 up to 5 years:

(1)

It fails to perform the duty of guaranteeing the research conditions for the funded project;

(2)

It fails to examine the genuineness of the materials or reports as submitted by applicants or project principals;

(3)

It fails to submit an annual progress report, concluding report or research achievement report on the projects in accordance with
this Regulation;

(4)

It connives and harbors any applicant or project principal in their fraudulent activities;

(5)

It changes the project principals without approval;

(6)

It refuses to cooperate the fund management organ to surveil and inspect the implementation of the funded projects; or

(7)

It retains or misappropriates any of the funds.

Article 37

In case of any of the following acts committed by an evaluation expert, the fund management organ shall give him a warning and order
him to make correction within a time limit; in case of any serious circumstance, a circular of criticism shall be publicized and
the fund management organ may not employ him as an evaluation expert:

(1)

He fails to perform the appraising duties as prescribed by the fund management organ;

(2)

He fails to apply for withdrawal in accordance with this Regulation;

(3)

He reveals the information on the evaluation that has not been publicized;

(4)

He makes unfair evaluation of the applications for funded projects; or

(5)

He seeks unjustifiable interests by taking advantage of such work.

Article 38

In case of any of the following acts committed by a personnel of the fund management organ, he shall be punished:

(1)

He fails to apply for withdrawal in accordance with this Regulation;

(2)

He reveals the information on the evaluation that has not been publicized;

(3)

He interferes the evaluation work of evaluation experts; or

(4)

He seeks unjustifiable interests by taking advantage of such work.

Article 39

In case of any of the following acts in violation of this Regulation committed by any entity or individual, and if a crime is constituted,
he shall be subject to criminal liabilities:

(1)

He embezzles or misappropriates any of the funds;

(2)

Any personnel of the fund management organ or an evaluation expert exacts or illegally accepts the properties of others or seeks for
other unjustifiable interests when performing the duty as prescribed in this Regulation;

(3)

An applicant, a project principal or participant forges or changes the official documents, certificates or seals of state organs;

(4)

An applicant, a project principal or participant, a supporting institution or any of its staff members in charge of the management
of funded projects provides any property or money to any personnel of the fund management organ in order to seek for unjustifiable
interests, or

(5)

He divulges state secrets.

Where an applicant, a project principal or participant has been subjected to criminal liabilities due to his committing any act as
prescribed in the preceding paragraph, he may not apply for the application for the National Natural Science Funds or be concerned
with the Funds for life.

Article 40

Anyone that is in violation of the related laws or administrative regulations on finance shall be punished and sanctioned in accordance
with related laws or administrative regulations.

Chapter VII Supplementary Rules

Article 41

As regards the research projects that the subsides have been granted upon decision before the implementation of this Regulation,
it shall be implemented in accordance with the related provisions of the state that were in force when the decision was made.

Article 42

As regards the work on the grant of funds relating to the use and management of the organization and implementation fees for projects
or the subsidies for academic exchanges on basic research and for basic research environment construction, the fund management organ
shall implement the related provisions of the finance competent authority of the State Council.

Article 43

This Regulation shall enter into force as of April 1, 2007.

State Council
2007-02-24

REAL RIGHT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Order of the President of the People’s Republic of China

No. 62

The Real Right Law of the People’s Republic of China has been adopted at the 5th session of the Tenth National People’s Congress on
March 16, 2007. It is hereby promulgated and shall go into effect as of October 1, 2007.
President of the People’s Republic of China Hu Jintao

March 16, 2007

Real Right Law of the People’s Republic of China

(Adopted at the 5th session of the Tenth National People’s Congress on March 16, 2007)

Contents
Part I General Rules

Chapter I Basic Principles

Chapter II Creation, Alternation, Alienation and Termination of Real Right

Section 1 Reality Registration

Section 2 Chattel Delivery

Section 3 Other Rules

Chapter III Protection of Real Right

Part II Ownership

Chapter IV General Rules

Chapter V State Ownership, Collective Ownership and Private Ownership

Chapter VI Owners’ Partitioned Ownership of Building Areas

Chapter VII Neighboring Relationship

Chapter VIII Common Ownership

Chapter IX Special Rules on Acquiring Ownership

Part III Usufructuary Rights

Chapter X General Rules

Chapter XI Right to the Contracted Management of Land

Chapter XII Right to Use Construction Land

Chapter XIII Right to Use House Sites

Chapter XIV Easement

Part IV Real Rights for Security

Chapter XV General Rules

Chapter XVI Mortgage Right

Section 1 General Mortgage Right

Section 2 Mortgage Right at Maximum Amount

Chapter XVII Pledge Right

Section 1 Chattel Pledge

Section 2 Right Pledge

Chapter XVIII Lien

Part V Possession

Chapter XIX Possession

Supplementary Rules
Part I General Rules

Chapter I Basic Principles

Article 1

In accordance with the Constitution Law, the present Law is enacted with a view to maintaining the basic economic system of the state,
protecting the socialist market economic order, clearly defining the attribution of the res, bringing into play the utilities of
the res and safeguarding the real right of the right holder.

Article 2

The civil relationships incurred from the attribution and utilization of the res shall be governed by the present Law.

The term “res” as mentioned in the present Law means realties and chattels. Where it is prescribed in any provision that certain right
shall be taken as an object of real right, such provision shall be applicable.

The term “real right” as mentioned in the present Law means the exclusive right of direct control over a specific res enjoyed by the
holder in accordance with law, including ownership, usufractuary right and real rights for security.

Article 3

In the primary phase of socialism, the state adheres to the basic economic system with the public ownership playing a dominant role
and diverse forms of ownership developing side by side.

The public economy shall be consolidated and developed by the state, and the development of the nonpublic economy shall be encouraged,
supported and guided.

The socialist market economy system shall be practiced by the state as well as the equal legal status and development rights of all
market subjects shall be protected.

Article 4

The real right of the state, collective, individual or any other right holder shall be protected by law, and may not be damaged by
any entity or individual.

Article 5

The varieties and contents of real rights shall be prescribed by law.

Article 6

The creation, alteration, alienation or termination of the real right of a realty shall be subject to registration in accordance
with law. The creation or alienation of the real right of a chattel shall be delivered in accordance with law.

Article 7

One shall, when acquiring or exercising a real right, comply with the law, respect social morals and may not infringe upon the public
interests or the lawful rights and interests of any other person.

Article 8

In case there exists any other special provision in respect of real right in any other law, such special provision shall prevail.

Chapter II Creation, Alteration, Alienation and Termination of Real Right

Section 1 Reality Registration

Article 9

Until it is registered in accordance with law, the creation, alteration, alienation or termination of the real right of a realty
shall come into effect; unless it is otherwise prescribed by any law, it shall have no effect if it is not registered in accordance
with law.

As regards the ownership of the natural resources owned by the state in accordance with law, the registration is not required.

Article 10

The registration of a realty shall be handled by the registration organ at the locality of the realty.

A uniform registration system over realties shall be practiced by the state. The scope, organ and measures of uniform registration
shall be specified by the related laws and administrative regulations.

Article 11

In light of the different registration items, an applicant shall, when applying for the registration of a realty, provide the ownership
certificate of the realty and such necessary materials as the location and area of the realty.

Article 12

A registration organ shall perform the duties as follows:

(1)

to examine the ownership certificate and other necessary materials as provided by the applicant;

(2)

to inquire the applicant about the registration items concerned;

(3)

to register the related items in accordance with the facts and in a timely manner; and

(4)

other duties as provided for in any law or administrative regulation.

In case the related situation of the realty under application for registration needs further proving, the registration organ may request
the applicant to provide supplementary materials and conduct on-the-spot inspection where necessary.

Article 13

No registration organ may commit any of the behaviors as follows:

(1)

to ask for an evaluation of a realty;

(2)

to repeatedly register registration in the name of annual inspection; or

(3)

other behaviors conducted beyond its scope of registration duties.

Article 14

As regards the creation, alteration, alienation or termination of the real right of a realty, it shall go into effect since the date
when it is recorded in the realty register in case the registration thereof is required by law.

Article 15

As regards a contract entered into by the related parties concerned on the creation, alteration, alienation or termination of the
real right of a realty, it shall go into effect upon the conclusion of the contract, unless it is otherwise prescribed by any law;
and the validity of the contract is not affected, whether the real right has been registered or not.

Article 16

The realty register shall be the basis for deciding the ownership and contents of a realty and shall be under the management of the
registration organ.

Article 17

The realty ownership certificate shall be the evidence for the holder’s ownership of a realty. The items recorded in the realty ownership
certificate shall accord with those recorded in the realty register; unless it is proved that there is anything wrong in the realty
register, the one recorded therein shall prevail in the case of any inconsistence.

Article 18

Any right holder or interested party may file an application for consulting or copying the registration materials, and the registration
organ may not reject.

Article 19

In case any right holder or interested party holds that there is anything wrong in any item recorded in the realty register, it/he
may apply for a correction of the registration. The registration organ shall revise the registration accordingly, in case the holder
recorded in the realty register agrees to revise the registration in written form or there is evidence to prove that the registration
is wrong.

The interested party may apply for dissidence registration, in case the holder recorded in the realty register does not agree to the
alteration. Where the registration organ grants the dissidence registration but the applicant fails to lodge an action within 15
days as of the date of dissidence registration, the dissidence registration shall lose its effect. In case the dissidence registration
is improper and bring into damages to the right holder, the holder may require the applicant to compensate for damages.

Article 20

In case the related parties entered into a purchase agreement on a premise or the real right of any other realty, they may apply
for advance notice registration to the registration organ so as to ensure the realization of the real right in the future. Without
the consent of the holder in the advance notice registration, any disposal of the realty, after the advance notice registration,
may not produce effect of real right.

In case the obligee’s right is terminated after the advance notice registration is made, or the application for the registration of
the realty is not filed within 3 months as of the date when it can be registered, the advance notice registration shall lose its
effect.

Article 21

In case any related party provides false materials for applying for registration and causes damages to any other person, it/he shall
assume the liability for compensation.

In case any registration organ causes damages to any other person by virtue of any mistake in registration, it shall assume the liability
for compensation. The registration organ may, after making the compensation, recover the amount from the person who causes the registration
mistake.

Article 22

Realty registration fees shall be charged on each piece, and may not be charged on the basis of the size, volume or certain proportion
of the realty’s value. The concrete charging rates shall be formulated by the related departments in the State Council in collaboration
with the competent pricing department.

Section 2 Chattel Delivery

Article 23

Unless it is otherwise prescribed by any law, the creation or alienation of the real right of a chattel shall come into effect upon
delivery.

Article 24

The creation, alteration, alienation or termination of the real right of any vessel, aircraft or motor vehicle and so on may not
challenge any bona fide third party if it is not registered.

Article 25

In case the right holder has legally possessed the chattel prior to the establishment or alienation of a chattel’s real right, the
real right shall come into effect upon the effectiveness of the legal act.

Article 26

In case a third party has legally possessed the chattel prior to the establishment or alienation of a chattel’s real right, the person
assuming the obligation of delivery may, instead of delivery, alien the right to request the third party to return the original object.

Article 27

In case both parties agree to let the alienator continuously possess the chattel when the real right of a chattel is alienated, the
real right shall go into effect upon the effectiveness of the agreement.

Section 3 Other Rules

Article 28

In case the creation, alteration, alienation or termination of a real right is resulted from a legal document of the people’s court
or arbitration committee or a requisition decision of the people’s government, etc, the real right shall come into effect upon the
effectiveness of the legal document or the requisition decision of the people’s government.

Article 29

In case real right is acquired through inheritance or bequest, it shall go into effect as of the beginning time of the inheritance
or bequest.

Article 30

In case a real right is created or terminated as a result of such factual behaviors as the legal construction or premise demolition,
it shall come into effect upon the accomplishment of the factual behavior.

Article 31

As regards a real right of realty enjoyed according to the provisions of Articles 28 through 30 of the present Law, any disposal
thereof may not produce effect of real right until it is registered as required by law.

Chapter III Protection of Real Right

Article 32

Where a real right is damaged, the right holder may settle the problem by means of conciliation, mediation or arbitration, etc.

Article 33

Where any dispute over the ownership or content of real right arises, the interested parties may require the confirmation of the
right.

Article 34

Where a realty or chattel is under an unauthorized possession, the right holder may require the returning of the original object.

Article 35

In case a real right is under obstruction or may be obstructed, the right holder may require the removing of the impediment or the
termination of the danger.

Article 36

In case a realty or chattel is damaged, the right holder may require the repairing, remaking, changing or the restoration of the
original state.

Article 37

In case the infringement upon a real right causes losses to the right holder, the right holder may require the compensation for the
losses or the assuming of any other civil liability.

Article 38

The ways for protecting real right as prescribed in the present Law may apply either independently or jointly in light of the specific
situation of an injury of real right.

In addition to assuming civil liabilities, any entity or individual infringing upon a real right shall assume the administrative liabilities
where it/he violates any provision on administrative regulation; in case any crime is established, it/he shall assume the criminal
liabilities.

Part II Ownership

Chapter IV General Rules

Article 39

The owner of a realty or chattel is enpost_titled to possess, utilize, seek profits from and dispose of the realty or chattel in accordance
with law.

Article 40

The owner of a realty or chattel is enpost_titled to establish a usufructuary right or real right for security over the realty or chattel.
The holder of usufructuary right or the holder of real right for security may, when exercising the right, not injure the owner s
rights and interests.

Article 41

As regards a realty or chattel that is exclusively owned by the state as prescribed by law, its ownership may not be acquired by
any entity or individual.

Article 42

In order to meet the demands of public interests, it is allowed to requisition lands owned collectively, premises owned by entities
and individuals or other realties according to the statutory power limit and procedures.

When requisitioning land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees,
placement subsidies, compensations for the above-ground fixtures of the lands and seedlings and other fees, arrange for social security
fees for the farmers with land requisitioned, guarantee their livelihood and protect their lawful rights and interests.

When requisitioning the premises owned by entities and individuals or other realties, it is required to compensate for demolishment
and relocation in accordance with law and protect the lawful rights and interests of the owners of the requisitioned realties; when
requisitioning the individuals’ residential houses, it is required to guarantee the housing conditions of the owners of the requisitioned
houses.

The compensation fees for requisition and other fees may not be embezzled, misappropriated, privately shared, detained or delayed
in the payment of by any entity or individual.

Article 43

Special protections are provided by the state for farm lands, the conversion of farm lands into construction lands is strictly restricted
and the aggregate quantity of construction lands is under control. No one may requisition any land owned collectively with violation
of the statutory power limit and procedures.

Article 44

For meeting needs of emergent dangers or disasters, it is allowed for one to use the realties or chattels owned by entities and individuals
according to the statutory power limit and procedures. Such realties or chattels shall, after the emergent use, be returned to the
owners. In case any realty or chattel owned by any entity or individual is used or damaged or lost after being used, corresponding
compensation shall be made.

Chapter V State Ownership, Collective Ownership and Private Ownership

Article 45

As regards the properties that shall be owned by the state as provided for by law, they shall be in the ownership of the state, that
is, owned by all the people.

The State Council shall exercise the ownership of state-owned properties on behalf of the state; in case there is any otherwise provision
in any law, such provision shall prevail.

Article 46

Mineral deposits, waters and sea areas shall be in the ownership of the state.

Article 47

Urban lands shall be in the ownership of the state. As regards lands in the rural areas and suburban areas that shall be owned by
the state as prescribed by law, they shall be in the ownership of the state.

Article 48

Such natural resources as forests, mountains, grasslands, waste lands and tidal flats shall be in the ownership of the state, except
for those that shall be in the ownership of collective as provided for by law.

Article 49

As regards the wildlife resources that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.

Article 50

Radio frequency spectrum resources shall be in the ownership of the state.

Article 51

As regards the cultural relics that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.

Article 52

National defense assets shall be in the ownership of the state.

As regards such infrastructures as railways, highways, electric power facilities, telecommunication facilities, and petrol and gas
pipelines that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.

Article 53

State organs have the power, in accordance with the laws and the relevant provisions of the State Council, to possess, utilize and
dispose of any realty or chattel directly controlled by them.

Article 54

The public institutions held by the state have the power to possess, utilize, as well as, according to the laws and the relevant
provisions of the State Council, seek profits from and dispose of any realty or chattel directly controlled by them.

Article 55

As regards the enterprises set up with the funds invested in by the state, the State Council and the local people’s governments shall
perform and enjoy the contributor’s duties as well as rights and interests on behalf of the state in accordance with the relevant
laws and administrative regulations.

Article 56

The state-owned properties shall be protected by law, and no entity or individual may encroach, plunder, privately distribute, hold
back or damage them.

Article 57

The institutions and working personnel thereof in charge of performing the duties of managing and supervising state-owned assets
shall, according to law, strengthen the management and supervision of state-owned assets so as to promote the value maintenance and
appreciation prevent the losses thereof; in case any entity or individual causes any loss of state-owned assets by misusing authority
or neglecting duty, it/he shall assume legal liabilities in accordance with law.

In case any entity or individual, in the process of enterprise restructuring, merger, division or affiliated transactions, causes
losses of state-owned assets by way of transferring at a low price, conspiring to distribute them secretly, providing guarantee with
them without authorization or any other way with violation of the provisions on the management of state-owned assets, it/he shall
assume legal liabilities in accordance with law.

Article 58

The collectively-owned realties and chattels shall contain:

(1)

Lands, forests, mountains, grasslands, wastelands and tidal flats that shall be in the ownership of collective as provided for by
law;

(2)

Buildings, production facilities, farmland, and water conservancy facilities that are in the ownership of collective;

(3)

Facilities for education, science, culture, sanitation and sports, etc that are in the ownership of collective;

(4)

Other realties and chattels that are in the ownership of collective.

Article 59

The realties and chattels that are in the ownership of a farmers’ collective shall be collectively owned by all the members of this
collective.

The following issues shall be determined by the members of the collective according to the statutory procedures:

(1)

land contracting plan and whether to contract out a land to an entity or individual not included in the collective;

(2)

adjustment of the contracted lands among the right holders of the contracted management of land;

(3)

methods for using and distributing such fees as land compensation fees;

(4)

the alteration of ownership or any other related issue of an enterprise set up with the funds invested in by the collective; and

(5)

other issues provided for by any law.

Article 60

As regards any collectively-owned land, forest, mountain, grassland, wasteland or tidal flat, the ownership thereof shall be exercised
according to the provisions as follows:

(1)

In case it is owned by a farmers’ collective of a village, a collective economic organization or the villagers’ committee of the village
shall exercise the ownership on behalf of the collective;

(2)

In case it is owned by two farmers’ collectives or more, all the collective economic organizations or villagers’ groups of the village
shall exercise the ownership on behalf of the collective; and

(3)

In case it is owned by a farmers’ collective of a town, a collective economic organization of the town shall exercise the ownership
on behalf of the collective.

Article 61

As regards any realty or chattel owned by an urban collective, this urban collective has the rights to possess, use, seek profits
from and dispose of it according to the related laws and administrative regulations.

Article 62

The collective economic organization, villager’s committee or villagers’ group shall, in accordance with the relevant laws, administrative
regulations, articles of association and village regulations and villagers’ pledges, publicize the situation of the properties owned
by a collective to the members of the collective.

Article 63

Collectively-owned properties shall be protected by law, and any entity or individual may not encroach, plunder, privately distribute,
hold back or destroy them.

Where the legitimate rights and interests of any member of the collective are infringed upon by any decision made by a collective
economic organization, villagers’ committee or the principle thereof, such member may require the people’s court to cancel the decision.

Article 64

An individual has the right to own his legal income, premise, household goods, production instruments, raw materials as well as other
realties and chattels.

Article 65

The legal savings, investments and the proceeds therefrom of an individual shall be protected by law.

An individual’s right of inheritance as well as other legal rights and interests shall be protected by the state in accordance with
law.

Article 66

An individual’s legal properties shall be protected by law, any entity or individual may not encroach, plunder or destroy them.

Article 67

The state, any collective or individual may invest to set up a limited liability company, a company limited by shares or any other
form of enterprise. In case the state, a collective or an individual invest the realties or chattels it owns in an enterprise, the
contributor shall, in accordance with the agreement or on the basis of his proportion of investment, enjoy rights such as obtaining
asset returns, making important decisions and selecting operators and managers and perform their duties.

Article 68

In accordance with the laws, administrative regulations and its articles of association, An enterprise legal person is enpost_titled
to possess, utilize, seek profits from and dispose of any realty or chattel it owns.

As regards the rights over the realties and chattels owned by a legal person other than an enterprise legal person, the provisions
of the related laws, administrative regulations and its articles of associations shall apply.

Article 69

The realties and chattels owned by social organizations in accordance with law shall be protected by law.

Chapter VI Owners’ Partitioned Ownership of Building Areas

Article 70

As regards such exclusive parts within the buildings as the residential houses or the houses used for business purposes, an owner
shall enjoy the ownership thereof, while as regards the common parts other than the exclusive parts, the owner shall have common
ownership and the common management right thereof.

Article 71

An owner is enpost_titled to possess utilize, seek profits from and dispose of the exclusive parts of the building. Any owner may not
endanger the safety of the building or infringe upon the lawful rights and interests of any other owner when exercising his or its
rights.

Article 72

An owner enjoys the rights and assumes the obligations over the common parts other than the exclusive parts of the building, and
may not reject performing the obligations under the pretext of abandoning rights.

In case an owner alienates his residential house or the house used for business purposes within the building, the common ownership
and the common management right enjoyed by him/her over the common parts shall be alienated at the same time.

Article 73

The roads within the building zone, except for the public roads of cities and towns, shall be commonly owned by the owners. The green
lands within the building area, except for the public green lands of cities and towns or those which are definitely ascribed to individuals,
shall be commonly owned by all the owners. The other public places, common facilities and houses used for realty services within
the building zone shall be commonly owned by all the owners.

Article 74

The parking places and garages within the building area planned for parking cars shall be used to meet the needs of the owners above
all else.

The ownership of the parking places and garages shall be agreed upon by the related parties in the manners of selling, complementary
using or leasing, etc.

The parking places, which occupy the roads or other fields commonly owned by all owners, shall be in the common ownership of all the
owners.

Article 75

The owners may set up an owners’ assembly and vote for an owners’ committee.

For the establishment of the owners’ assembly and the vote of the owners’ committee, the related departments under the local people’s
governments shall provide guidance and assistance.

Article 76

The following matters shall be commonly determined by all owners:

(1)

to formulate and revise the rules of procedure for the owners’ assembly;

(2)

to formulate and revise the stipulations on managing the building and affiliated facilities thereof;

(3)

to vote for the owners’ committee or alter the members thereof t;

(4)

to hire or fire the realty service enterprise or any other manager;

(5)

to raise or use the funds for maintaining the building and affiliated facilities thereof;

(6)

to rebuild the building or any of its affiliated facilities;

(7)

other important matters on the common ownership and the common management right.

For making a decision on matters prescribed in Item (5) or (6) of the preceding paragraph, the consent of the 2/3 or more of the total
owners with exclusive parts accounting for 2/3 or more of the total area of the building shall be obtained. For making a decision
on any other issue prescribed in the preceding paragraph, the consent of half of the total owners with exclusive parts accounting
for half of the total area of the building shall be obtained.

Article 77

Any owner may not alter a residential house into a house used for business purposes with violation of any law, regulation or management
stipulation. An owner shall, when changing a residential house into a house used for business purposes, obtain the consent of the
interested owners, in addition to complying with the laws, regulations and management stipulations.

Article 78

Decisions made by the owners’ assembly or the owners’ committee are binding to each owner.

In case the legitimate rights and interests of any owner has been injured by any decision made by the owners’ assembly or the owners’
committee, the injured owner may require the people’s court to cancel the decision.

Article 79

The funds for maintaining a building and affiliated facilities thereof shall be commonly owned by the owners of the building. The
funds may, upon the codetermination of the owners, be used for maintaining such common parts as elevators and water tanks. The circumstance
about the raise and use of the maintenance funds shall be released to the owners.

Article 80

As regards such matters as the expenses allocation and the proceeds distribution of a building or any of its affiliated facilities,
in case there exists any stipulation for these, such stipulation shall apply; in the case of no stipulation or unclear stipulation,
these matters shall be determined in accordance with the proportion of each owner’s exclusive parts to the total area of the building.

Article 81

The owners of a building may manage the building and affiliated facilities thereof by themselves or they may entrust a realty service
enterprise or any other manager to conduct the management.

As regards the realty service enterprise or any other manager hired by the construction entity, the owners are enpost_titled to alter it
in accordance with law.

Article 82

The realty service enterprise or any other manager shall, upon the strength of the owners’ entrustment, manage the building and affiliated
facilities thereof within the building area and accept the owners’ supervision.

Article 83

The owners shall comply with the laws, regulations and management stipulations.

As regards any act infringing upon the lawful rights and interests of other persons, such as discarding wastes at will, discharging
atmospheric pollutants and noise, breeding animals with violation of the related regulations, illegally building shelters, occupying
passages or rejecting paying realty management fees, etc, the owners’ assembly and the owners’ committee have the right, in accordance
with the relevant laws, regulations a

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Tax

IMPLEMENTING REGULATIONS FOR THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON INSPECTION OF IMPORT AND EXPORT COMMODITY

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING NANCHANG ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK...

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING WEIHAI ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

ANNOUNCEMENT ON THE SECOND NEGOTIATED BIDDING OF TEXTILES EXPORTED TO EU & THE USA OF 2007

ANNOUNCEMENT NO.29, 2007 OF MINISTRY OF COMMERCE ON NAME ALTERATION OF KOREAN ENTERPRISES IN COATED FREE SHEET PAPER ANTI-DUMPING CASE

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING MATTERS RELATED TO STRENGTHENING THE ADMINISTRATION OF THE SPECIAL BILL OF PAYMENT OF IMPORT VAT AND THE INVOICE OF WASTE MATERIAL

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING XIAOSHAN ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

MEASURES FOR EXAMINING DRUG ADVERTISEMENTS

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE RELATED TAX POLICIES ON THE SERVICE SPONSORSHIP OF THE 29TH OLYMPIC GAMES BY ATOS ORIGIN (BEIJING) COMPANY AND OMEGA (SWITZERLAND) COMPANY

NOTICE ON RELEVANT ISSUES CONCERNING APPLICATION PROCEDURES FOR TRANSFER OF STATE-OWNED SHARES OF LISTED COMPANIES TO FOREIGN INVESTORS AND ENTERPRISES WITH FOREIGN INVESTMENT

REGULATION ON THE NATIONAL NATURAL SCIENCE FUNDS

REAL RIGHT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7