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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:

1.

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).

2.

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.

3.

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.

4.

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:

I.

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

SUPPLEMENTARY PROVISIONS ON THE MEASURES FOR THE ADMINISTRATION OF FOREIGN-INVESTED DISTRIBUTION ENTERPRISES OF BOOKS, NEWSPAPERS, AND PERIODICALS

Decree No. 33 of the General Administration of Press and Publication and the Ministry of Commerce

No. 33

The Supplementary Provisions on the Measures for the Administration of Foreign-invested Distribution Enterprises of Books, Newspapers,
and Periodicals have been adopted at the executive meeting of the General Administration of Press and Publication and by the Ministry
of Commerce on November 29, 2006. They are hereby promulgated for entry into force as of May 1, 2007.

Long Xinmin, Director of the General Administration of Press and Publication

Bo Xilai, Minister of the Ministry of Commerce

April 2, 2007

Supplementary Provisions on the Measures for the Administration of Foreign-invested Distribution Enterprises of Books, Newspapers,
and Periodicals

For the purpose of establishing a Hong Kong/Macao Closer Economic Partnership with the Mainland, the following supplementary provisions
are hereby constituted to the Measures for the Administration of Foreign-invested Distribution Enterprises of Books, Newspapers,
and Periodicals in accordance with Supplementary Agreement No. 3 on Hong Kong/Mainland Closer Economic Partnership Arrangement and
Supplementary Agreement No. 3 on Macao/Mainland Closer Economic Partnership Arrangement:

Where a Hong Kong or Macao service supplier has accumulatively set up over 30 stores in the Mainland, if it is engaged in the business
of books, newspapers or periodicals, etc. which have different trademarks and are provided by different suppliers, it is allowed
to hold a controlling share with a limitation of no more than 65%.

 
General Administration of Press and Publication, Ministry of Commerce
2007-04-02

 




THE OFFICIAL REPLY OF THE MINISTRY OF COMMERCE ON RELEVANT ISSUES CONCERNING THE OVERSEAS (COUNTRY/REGION) ENTERPRISE’S ENTRUSTED OPERATION AND MANAGEMENT OF THE DOMESTIC-FUNDED ENTERPRISE

Ministry of Commerce

The Official Reply of the Ministry of Commerce on Relevant Issues concerning the Overseas (Country/Region) Enterprise’s Entrusted
Operation and Management of the Domestic-funded Enterprise

Shang Zi Han [2004] No.19

Beijing Municipal Bureau of Commerce:

We have acknowledged the receipt of your letter Asking for Instruction on the Issues concerning the Examination and Approval of the
Overseas (Country/Region) Enterprise’s Entrusted Operation and Management of the Domestic-funded Enterprise, a document of your Bureau
coded Jing Shang Zi Zi [2003] No.184. After study with the State Administration for Industry and Commerce, we hereby give an official
reply as follows:

In principle, the provincial commerce authorities in charge are allowed to handle the examination and approval of the overseas (country/region)
enterprise’s entrusted operation and management of the domestic-funded enterprise. Your Bureau is required to handle the examination
and approval of the overseas (country/region) enterprise’s entrusted operation and management of the domestic-funded enterprise in
accordance with the Provisions on Guiding Foreign Investment Direction and with reference to Circular of the State Administration
for Industry and Commerce and the Ministry of Foreign Trade and Economic Cooperation on the Issues concerning the Examination and
Approval and Registration of the Entrusted Overseas (Country/Region) Enterprise for Operation and Management in the Joint Venture
(Gong Shang Qi Zi [1988] No.98). Wherein, the overseas (country/region) enterprise shall not be entrusted for the operation and management
of the domestic-funded enterprise whose engaged industry is subject to the banned category in the Catalogue for the Guidance of Foreign
Investment Industries; where the engaged industry of the domestic-funded enterprise is subject to the permitted category in the Catalogue
for the Guidance of Foreign Investment Industries, and the establishment of the foreign-funded enterprise, in accordance with the
relevant provisions, is subject to the examination and approval of the Ministry of Commerce, the entrustment of the overseas (country/region)
enterprise for the operation and management of the domestic-funded enterprise shall be subject to the examination and approval of
the Ministry of Commerce after the examination of the first instance conducted by the provincial commerce authorities in charge.

This Official Reply is hereby given.

Ministry of Commerce of the People’s Republic of China

March 22, 2004



 
Ministry of Commerce
2004-03-22

 







ANNOUNCEMENT NO.7, 2007 OF PEOPLE’S BANK OF CHINA, STATE ADMINISTRATION OF FOREIGN EXCHANGE, MINISTRY OF COMMERCE AND STATE ADMINISTRATION OF TAXATION, ON ANNULLING THE CIRCULAR OF DISTRIBUTING THE DETAILED RULES ON REWARD AND PUNISHMENTS OF PROVISIONAL REGULATIONS ON EXAMINATION OF FOREIGN EXCHANGE COLLECTION

Announcement No.7, 2007 of People’s Bank of China, State Administration of Foreign Exchange, Ministry of Commerce and State Administration
of Taxation, On Annulling the Circular of Distributing the Detailed Rules on Reward and Punishments of Provisional Regulations on
Examination of Foreign Exchange Collection

[2007] No. 7

With the consideration and research of People’s Bank of China, State Administration of Foreign Exchange, Ministry of Commerce and
State Administration of Taxation, the Circular of Distributing the Detailed Rules on Reward and Punishments of Provisional Regulations
on Examination of Foreign Exchange Collection (2000 No.[58]) shall be annulled as of March 8, 2007.

People’s Bank of China

State Administration of Foreign Exchange

Ministry of Commerce

State Administration of Taxation

February 28, 2007



 
People’s Bank of China, State Administration of Foreign Exchange, Ministry of Commerce, State Administration of Taxation
2007-02-28

 







SEVERAL OPINIONS OF THE STATE COUNCIL ON ACCELERATING THE DEVELOPMENT OF THE SERVICE INDUSTRY






Several Opinions of the State Council on Accelerating the Development of the Service Industry

Guo Fa [2007] No.7

The People’s Governments of all provinces, autonomous regions, and municipalities directly under the State Council, and all ministries,
commissions and directly subordinate organs under the State Council,

In accordance with the general direction and guidelines for the development of the service industry as determined in the design of
the Eleventh Five-Year Plan, several opinions on accelerating the development of the service industry are set forth as follows:

1.

Fully realizing the major significance of accelerating the development of the service industry

The service industry is an important part of the national economy, and an important indicator for measuring the economic development
level of a modern society. China is now in the stage of building a well-off society in an all-round way and in the progress accelerated
industrialization, urbanization, market mechanisms and internationalization, and many conditions supporting the sound and rapid economic
development have been preliminarily in place. Accelerating the development of the service industry, enhancing the proportion of the
service industry in the structure of primary, secondary and tertiary industries, as well as making the service industry a leading
industry in the national economy are the only way to pushing the adjustment of economic structure and speeding up the transition
of the economic growth mode, are the imperative needs for effectively easing the bottleneck restrictions as a result of shortage
of resources and advancing the use efficiency of resources, and are the effective ways for and realization of upswing in the overall
national strength as a whole in the new situations of opening up to the outside world. Accelerating the development of the service
industry, forming a relatively complete system of the service industry, offering profuse products satisfying the needs of people
in materials, culture and living, and making it a major industry that absorbs both urban and rural new workers are the intrinsic
requirements for the settlement of the livelihood of the people, promotion of the social harmony and building a well-off society
in an all-round way. Therefore, we must attach great importance to the major long-term strategic task of accelerating the development
of the service industry at the height of implementing the scientific development view and strategic ideology of building a harmonious
socialist society into real effect.

Both the Central Party and the State Council have always attached importance to the development of the service industry, formulated
a series of policy measures for encouraging and supporting it, and the development of the service industry have been advanced obviously.
Especially since the 16th Conference of the Chinese Communist Party, we have continued to expand the scale of service industry, improved
in both structure and quality, and deepen the reform and opening to the outside world in service fields, which has played a significant
role in promoting the steady and rapid economic development, increasing work opportunities, etc. However, there are still some problems
which cannot be neglected in the development of the service industry, such as the overemphasis on the development of industry, especially
on heavy industry, and pay insufficient attention to the development of the service industry. In general, China’s service industry
is short in supply, unreasonable in structure, low in service level, weak in competitiveness, low in the proportion of contribution
to the national economic development, not in match with the accelerated economic and social development as well as the adjustment
and upgrade of the industrial structure, it does not meet the requirements for building a well-off society in an all-round way and
building a harmonious socialist society, and does not conform to the new situations of economic globalization and opening further
to the outside world. All localities and all departments shall further improve their awareness, make their minds consistent with
central decision making and deployment, alter their development concepts, broaden their vision about development, and endeavor to
solve the existing problems, in order to speed up the escalation of the service industry to a new level, to boost the economy and
society to run on the tracks of scientific development, and promote the sound and rapid development of the national economy.

2.

General requirements and major targets for accelerating the development of the service industry

During the present and next few years, the requirements for the development of the service industry are to: take Deng Xiaoping Theory
and the important thought of Three Represents as our guide, fully implement the scientific outlook on development and the important
strategic ideology of building a harmonious socialist society, regard the development of the service industry as a major way for
accelerating the adjustment of industrial structure, transiting the mode of economic growth, enhancing the overall strength of the
national economy and realizing the full, consistent and sustainable development of the national economy, insist on the ideas of people
first, reciprocity and fairness, further improve the public service system and mechanisms that shall cover both urban and rural fields
with reasonable function, and continuously enhance the supply ability and level of public services; stick to the direction of market
mechanism, industrialization and socialization, promote the service industry to broaden its fields, intensify its functions and optimize
its structure; keep to the overall allocation and coordination as well as categorized guidance, bring relative advantages into play,
carry out reasonable planning, and shape up a development pattern for a service industry that is vigorous, with distinct features
and mutually supplemental in advantages; adhere to the innovative development, enlarge the opening wider the outside world, absorb
the advanced experiences, technologies and modes of management of the developed countries, intensify the international competitiveness
of the service industry, and realize the sound and rapid development of the service industry.

According to the design of the Eleventh Five-Year Plan, the major targets in developing the service industry during the period of
the Eleventh Five-Year Plan are: by the year of 2010, the ratio of the added value of the service industry to the GDP shall have
grown by 3 per cent as opposed to that of 2005, the ratio of workers engaging in the service industry to those in the whole society
shall have grown by 4 per cent, and the total amount of trade in services shall have reached 400 billion U.S. dollars; an industrial
structure giving priority to the service economy shall have been formed in qualified large or medium-sized cities, and their growth
rates of added value of the service industry shall have exceeded the growth rates of the GDP and the secondary industry. By the year
of 2020, the transition to an economic structure giving priority to the service economy shall have been accomplished preliminarily,
with the ratio of the added value of the service industry to the GDP over 50%, the structure of the service industry notably optimized,
the employment capacity obviously augmented, the degree of equalization in the public services notably advanced and the market competitiveness
notably enhanced, and the overall level of development shall have basically satisfied the requirements for the full construction
of a well-off society.

3.

Greatly optimizing the structure of development of the service industry

In order to adapt to the new situations of new-type industrialization and the upgraded consumption structure of residents, emphasis
shall be placed on the development of the modern service industry, the traditional service industry shall be regulated and upgraded,
and the role of the service industry in attracting employment shall be fully displayed. The structure of this industry shall be optimized,
with the technical structure upgraded, the organizational structure reformed and the level of development of the service industry
fully improved.

The service fields facing production shall be strongly developed to facilitate the organic integration and interactive development
of the modern manufacturing industry and the service industry. The work division by specialty shall be detailed and deepened, the
productive and manufacturing enterprises shall be encouraged to reform their present business flow, outsourcing shall be boosted,
core competitiveness shall be fortified, and the extension from the production and processing lines to self-development, brand name
marketing and other service lines shall be accelerated, with the consumption of resources reduced and the added value of products
raised. Priority shall be given to the transportation industry, the levels of special and socialized services of logistics shall
be advanced, and the third-party logistics shall be vigorously developed; the information service field shall be actively developed,
the development of the software field shall be accelerated, and the industrialization derived by informationization shall be persisted
in so as to perfect information infrastructures, actively promote the integration of “Three Networks”, develop value-added and Internet
businesses, and boost the development of e-commerce and e-administration; the financial service field shall be developed in an orderly
way, the financial market system shall be improved, and the innovation of products, services and management shall be accelerated;
the science and technology service field shall be strongly developed, the role of science and technology in underpinning and leading
the development of the service industry shall be brought into full play, and the development of such specialized service fields as
research and development in science and technology, technology generalization, industrial designing and energy saving shall be encouraged;
commercial services such as legal consultation, accounting and auditing, engineering consultation, certification and accreditation,
credit assessment, advertising and convention & exhibition shall be regulated for development; the trade and circulation industry
shall be boosted and reformed, and modern business forms and new types of trade such as chain and franchised operations shall be
popularized. By the development of the service industry, the best use of both materials and human resources is made, with goods circulated
smoothly, cost for social transaction reduced, the resource allocating efficiency raised and the development towards a new-type industrialization
accelerated.

The service fields facing the livelihood of the people shall be strongly developed, and new-type service fields shall be actively
expanded and constantly fostered to produce new growth points in the service industry. Based on the requirements of urbanization
and aging population, such service fields as municipal public utility, real estate and property services, community services, household
services and socialized retirement services shall be strongly developed. Based on the requirements of building a harmonious society,
such service fields as educational, medical and health, press, postal, telecommunication, radio, film and television services and
causes shall be strongly developed. Importance shall be attached to the rural and underdeveloped regions, with the building of public
service systems intensified, the structure of urban and rural regional service industries optimized and the equalization of public
services realized gradually. Based on the targets for construction of a well-off society and the requirements for transiting and
upgrading the consumption structure, such service fields as tourist, cultural, sports, recreational and entertainment services shall
be strongly developed, and the consumption structure of services shall be optimized, in order to enrich the spiritual and cultural
life of the people. The service industry shall be the major channel for increasing employment in China, the service fields with large
employment capacity shall be especially developed, other service fields shall be encouraged to contain more employment, and the huge
potential of the service industry in creating employment opportunities shall be fully dug up.

Participants in the service market shall be strongly fostered, and the organizational structure of the service industry shall be optimized.
The enterprises in service business shall be encouraged to intensify their own creativity, improve their general quality and competitiveness
through technological progress, and continue carrying out managerial, service and product creation and innovation. We shall, based
on enterprises with great competitiveness, promote large-scale networked operations with well-known brands by means of acquisition
and merger, consortium, restructuring and IPO, etc., in order to form a batch of large-scale service enterprises or enterprise groups
that hold their own intellectual properties and well-known brand and have great competitiveness. The non-public economy shall be
encouraged and guided to develop the service industry, and active support shall be given to the development of medium- and small-sized
service enterprises to fully take the advantage of their advantages in helping people start their own businesses and in the creation
of employment opportunities.

4.

Scientifically adjusting the development pattern of the service industry

We shall, under the precondition of realizing the provision of universal services and meeting the basic needs, and in light of the
comparative advantages and reality of regional economic development, make scientific and reasonable planning in order to form a development
pattern of the service industry that is full of strength, adapted to the market with distinctive features and is mutually supplemental
in advantages.

Cities shall make full use of their advantages in the relatively centralized talents, logistics, information and capital, advance
the structure adjustment, and improve the quality and level of the service industry. Municipalities directly under the Central Government,
cities specifically designated in the state plan, capital cities and other qualified large- and medium-sized cities need to advance
the formation of an industrial structure giving priority to the service economy. Within the developed regions, especially the Pearl
River delta, Yangtze River delta and Bohai Sea ring, upon their advantages of faster progression of industrialization and higher
resident’s incomes and consumption levels, the modern service industry shall be strongly developed with the upgrade of the service
industry promoted, quality of the service industry improved and the economic growth boosted mainly by the growth of the service industry.
Within the middle and western China, the notion that the service industry can be developed only after the industrial development
is changed, the service fields with comparative advantages and traditional service fields shall be actively developed, and the service
fields diverted from the eastern China may be picked up, in order to escalate the development of the service industry to a new level
as soon as possible and continue raising the rate of contribution of the service industry to the economy growth.

All localities shall, in light of the state planning, development trend of urbanization and the industrial distribution, provide guidance
to such service fields as traffic, information, research and development, design and commercial services, etc. that have a stronger
radiating or aggregative effect, and foster and form state or regional service centers that are prominent in the principal functions
relying on a cluster of cities or the central city. The traffic infrastructures such as railways, highways, civil aviation and water
carriage shall be further improved with the priority given to the development of city public transportation, in order to form a fast,
convenient, smooth, highly efficient and safe integrated transportation system. And no time shall be wasted in building international
shipping centers and major ports in Shanghai, Tianjin and Dalian. The construction of transportation pivots and connecting transportation
facilities shall be advanced, and regional logistical centers shall be formed by intensifying the allocation and integration of logistical
infrastructures in the economically developed regions and transportation pivot cities. State or regional financial centers shall
be set up by selecting the extra-large cities and large cities that have stronger radiating functions and extensive service spectrums.
Relying on the regions that have large-scale industrial convergence, high-level equipments and strong ability in scientific research,
the fostering and completion of public service platforms shall be accelerated, which are mutually supplemental in functions and have
a strong sustainability in such fields as research and development, design, financial management and information inquiry. And a batch
of industrial design and research and development service centers shall be built by making full use of the functions of the state
software industry bases, in order to form ever new growth poles with strong driving powers and extensive radiating spectrums.

We shall, by adhering to making good use of existing service resources, break up the administrative separation and regional blockage,
bring into full play the functions of the market mechanisms, encourage the cooperation in various manners between sections, fields
and regions, promote the restructuring of resources in the service industry, make full use of the combination advantages and deepen
work division and cooperation, in order to realize the optimal allocation of resources in a greater extent, in a broader field and
at a higher level. And we shall avoid impractical comparison, blind investment and repetitive construction.

5.

Actively developing the service industry in rural areas

By carrying out the basic strategy of coordinating the development of urban and rural areas, the service industry for the needs of
rural areas shall be strongly developed to continuously prosper the rural economy, increase the income of farmers, improve the living
standard of farmers, and tangibly serve the aims of developing modern agriculture and boosting the construction of new socialist
countryside.

Centering on the services rendered before, during and after the agricultural production, the structuring and improvement shall be
accelerated of the rural socialized service system giving priority to the production and sales, science and technology, information
and financial services. And the support for agricultural industrialization shall be intensified, and such production services as
seed supply and uniform prevention and control of major plant diseases and insect pests shall be actively developed. The circulation
system of agricultural products and by-products shall be improved, various circulation intermediaries shall be fostered, a batch
of large-scale agriculture-related commercial enterprise groups shall be fostered, and the issue of difficulty in selling agricultural
products and by-products shall be tangibly solved. The market project of “ten thousand villages and thousand counties” shall be accelerated.
Building of the agricultural science and technology system shall be intensified, the agricultural technical support system such as
spread of agricultural technologies, testing and certification of agricultural products, animal epidemic prevention and plant protection,
etc. shall be improved, as well as the agricultural science and technology innovation promoted, implementation of the project of
household access to the science and technology accelerated. The building of the agricultural information service system shall be
accelerated, and an information network linking both domestic and foreign markets and covering both production and consumption shall
be formed step by step. Meanwhile, building of the agricultural financial system shall be intensified, the roles of rural commercial,
cooperative, policy and other financial institutions shall be brought into full play, a variety of rural insurances shall be developed,
and the financial services for the “three rural issues”(that is the countryside, farmer and agriculture) shall be boosted. In addition,
the building of the agricultural machinery socialized service system shall be accelerated, and the market mechanism, specialization
and industrialization of the agricultural machinery services shall be boosted. And the various specialized farmer cooperative organizations
shall be greatly encouraged to build, and shall be supported in conducting operations such as marketing, information services, technical
training, processing and storage of agricultural products, and supply of agricultural production materials.

The elementary conditions in rural areas shall be improved, and the development of rural living services be accelerated, in order
to enhance the living quality of farmers. The infrastructure construction in such fields as water conservancy, transportation, fishery
harbor, post, telecommunications, electric power, radio, film and television, medicine and health, birth control and education shall
be boosted, and implementation of the project of rural drinking water safety shall be accelerated, the use of marsh gas strongly
developed in countryside, the exploitation and use of renewable energy such as biomass energy, solar power and wind energy boosted,
so that the farmers’ production and living conditions can be improved. Meanwhile, distinctive industries such as horticulture, special
breeding farms and countryside tourism shall be vigorously developed, and the laboring economy shall be encouraged, in order to increase
the income of farmers. In addition, the community construction in countryside shall be actively promoted, development of rural culture,
medicine and health, social security, birth control and so on shall be accelerated, farmer sport projects shall be implemented, the
coverage of publications and broadcasting of radio, film and television in rural fields shall be enlarged, and the level of equalization
in public services shall be raised, so that the material and spiritual life of farmers are enriched. The basic, occupational and
continuing education in rural areas shall be intensified and the training of farmers and migrant workers be done well in order to
improve the quality of farmers, and in combination with the urbanization process, the transferred employment of residual rural labor
forces shall be actively advanced.

6.

Exerting to raise the level of opening up of the service industry

The opening up of the service industry shall be firmly impelled, and efforts shall be made to improve the quality and level of the
use of foreign capital. Pursuant to various commitments on the liberalization of trade in services made by China upon its accession
to the World Trade Organization (WTO), foreign investors are encouraged to invest in the service industry. And the relationship between
the opening up of the service industry and the fostering and growing of domestic industries shall be properly managed, the laws and
regulations on the service industry for attracting foreign capital shall be perfected, and a batch of internationally competitive
service enterprises shall be fostered through the introduction of advanced foreign experience and improvement of the structure of
enterprise governance. The basic systems and rules on the financial market shall be intensified, and the risk resistance capabilities
of such industries as banking, securities and insurance shall be fortified in order to maintain the state financial safety.

The vigorously developing trades in service field shall be made as an important part of the effort to transform the growth mode of
foreign trade and raise the level of opening up. And accepting international service outsourcing shall be made as the emphasis in
expanding the trades in service, and international service outsourcing in fields such as information management, data processing,
accounting, technology research and development and industrial design shall be actively accepted by making good use of China’s rich
human resources. Qualified coastal areas and cities shall study and make supporting policies to encourage the acceptance of service
outsourcing in light of their respective advantages, speed up fostering a batch of internationally qualified service outsourcing
enterprises and set up a batch of outsourcing industry bases. The service platforms supporting domestic enterprises to “go abroad”
shall be set up to offer market research, legal consulting, information, finance, management and other services. We shall support
the development of export-orientated service enterprises, develop and expand the international transportation, continually develop
the trades in service such as tourism, contracting of international engineering projects and labor export with comparative advantages,
actively participate in the international competition, and expand the cooperation and co-development on the basis of mutual benefits.

7.

Accelerating and impelling the reform of service fields

The various reforms in the service fields shall be further boosted. And the state-owned capital in the service industry shall, in
light of the requirements for strategic adjustment of the national economic pattern, concentrate in the major public product and
service fields. We shall deepen the reform in service fields such as telecommunications, railways and civil aviation, broaden the
market access, introduce the mechanism of competition, boost the restructuring of state-owned assets, and achieve the diversity of
investment participants. Meanwhile, we shall actively impel the reform of state-owned service enterprises, transform the state-owned
service enterprises in competitive fields into shareholding enterprises, and set up the modern enterprise system to turn them into
real participants in the market competition. The public service function and commonweal nature of such social causes as education,
culture, radio and television broadcasting, social security, medicine and health and sport shall be made clear, and for those services
that can be supplied on the market, the social forces shall be mobilized to increase the market supply. According to the principles
of separation of administration and enterprises, separation of administration and institutions, separation of institutions and enterprises,
and separation of for-profit institutions and non-profit institutions, the reform of institutions shall be accelerated, and the for-profit
institutions shall be transformed into enterprises. In addition, a modern enterprise system shall be set up as soon as possible.
The reform of logistic and related services in government agencies, enterprises and institutions shall be boosted continually, and
the transformation from mainly internally serving oneself to mainly serving the general public shall be boosted as well.

A fair, equal and standard system for access to the service industry shall be set up. We shall encourage the social capital to flow
into the service industry, strongly develop non-public service enterprises, in order to raise the ratio of non-public economy in
the service industry. All service fields to which the access is not prohibited expressly by laws or regulations shall be opened up
to the private capital; all fields opened up to foreign capital shall be opened up to domestic capital as well. The market separation
and regional blockage shall be broken, and the construction of a market system featuring nationally uniform opening up and orderly
competition shall be impelled. All service fields opened up to local enterprises in all localities shall be also opened up to non-local
enterprises.

8.

Enhancing the input and policy support

The policy support shall be enhanced to boost the rapid development of the service industry. We shall, in light of the state industrial
policies, improve and detail the catalog for guidance of the development of the service industry, further improve the policy system
on promoting the development of the service industry in such aspects as finance, taxation, credit, land and price. Preferential policies
in finance and taxation shall be adopted for the enterprises engaged in the construction of rural circulation infrastructures and
logistics and the service enterprises certified as high and new technology enterprises engaged in the research and development of
software, product technology, industrial design and information technology as well as the outsourcing of information technology and
technical business processes. The reform of the service price system shall be further impelled, the price policies shall be improved,
and basically the same prices of power, water, gas and heat supply shall be realized for both the industry and the service fields
falling within the categories of fields encouraged by the state. The urban land use structure shall be adjusted, the proportion of
land used for the service industry shall be determined reasonably, and as for the land supply, the service fields falling within
the categories of fields encouraged by the state shall be considered favorably. Upon the actual conditions, the threshold for the
ordinary service fields in such aspects as the registered capital and registration with the industrial and commercial administration
shall be lowered, and the formalities for the registration with the industrial and commercial administration and examination and
approval of business operation shall be go through in an uniform way by the headquarters of enterprises in the form of chain operation.

The channels for investment and financing shall be broadened, and the input in the service industry shall be enhanced. As for the
arrangement of funds under the state fiscal budget, great importance shall be attached to the support for the development of major
and weak fields of the service industry and the improvement of creation and innovation capabilities. The government investment structure
shall be actively regulated, and the state will continue to arrange for the funds for the development and guidance of the service
industry with an increasing scale, and the social capital shall be guided to increase the input in the service industry. The local
governments shall also arrange for funds to support the development of the service industry. The financial institutions shall be
guided and encouraged to offer credit support to the service enterprises that meet the requirements of the state industrial policies,
and accelerate the development of financial products meeting the needs of service enterprises conditioned upon risk control. Qualified
service enterprises shall be actively encouraged to enter the capital market at home and abroad for funding, and funds may be raised
in a variety of ways such as the public offering of shares and issuance of enterprise bonds. The various business start-up venture
capital institutions and credit guarantee institutions shall be encouraged to develop businesses with medium- and small-sized service
enterprises that take on a bright business prospect, create large job opportunities or adopt new technologies or business forms.

9.

Continuously optimizing environment for the development of service industry

The standardization of the service industry shall be accelerated, the standard system of the service industry shall be set up and
improved, and the coverage of service standards shall be enlarged. The service standards in such fields as logistics, finance, post,
telecommunications, transportation, tourism, sport, trade and catering shall be made and amended by wasting no time. For the newly
emerging service fields, the leading enterprises, local authorities and industrial associations shall be encouraged to first make
the service standards. As for the service fields where standardization cannot be made currently, such systems as service commitments,
service covena

OFFICIAL REPLY OF CHINA INSURANCE REGULATORY COMMISSION CONCERNING SUCH MATTERS AS THE DETERMINATION OF INSURANCE VALUE

Official Reply of China Insurance Regulatory Commission Concerning Such Matters as the Determination of Insurance Value

Bao Jian Ting Han [2007] No.71

The Insurance Regulatory Bureau of Inner Mongolia:

We have received your Request for Instructions on Such Issues as the Determination of Insurance Value (Nei Bao Jian Fa [2007] No.24).
Upon study, we hereby reply as follows:

1.

As regards the term “insurance value”, at present, there is not any clear definition in any legislation. In accordance with the interpretations
on the Insurance Terms formulated by China Insurance Standardization Technical Committee, insurance value means the value of insurance
object as stipulated by both parties and indicated in the insurance contract or the actual value of insurance subject matter at the
time when the insurance accident occurs.

In accordance with provisions of Article 40 of the Insurance Law, two ways may be adopted for determining the insurance value of
an insurance subject matter, namely, either be stipulated by the insured and the insurer and indicated in the insurance contract
or be determined in accordance with the actual value of the insurance subject matter when insurance accident occurs. The former means
valued insurance and the latter means unvalued insurance. In actual practice, attention shall be paid to whether stipulation in the
insurance contract is about the insurance amount or the insurance value of insurance subject matter.

2.

The term “replacement value” means the value or expenses spent for replacing damaged property with the same or similar substance and
quality, which is a method for deciding insurance value in property insurance.

The term that “the insurance value of fixed assets shall be the replacement value at the time when insurance accident occurs” means
that the insurance value of fixed assets shall be decided in accordance with the replacement value as provided for in the basic insurance
clauses of life insurance or property insurance.

3.

As regards an insurance, the insurance amount of which is determined by way of price appraisement, after an insurance accident occurs,
the insurance value shall be decided in accordance with the actual value of insurance object at the time when the insurance accident
occurs.

China Insurance Regulatory Commission

April 3, 2007

 
China Insurance Regulatory Commission
2007-04-03

 




CIRCULARS ON REVISING THE PROCEDURE OF SUBMISSION AND EXAMINATION OF IMPORTED DRUG

The registration department of the state food and drug administration

Circulars on revising the procedure of submission and examination of imported drug

Letters No. 44 (2004) of the registration department of the state supervision and administration bureau of food and drug

March 23, 2003

Every port supervision and administration bureau of drug:

The departments have promulgated the circular on beginning to employ the procedure of submission and examination(Letters No (2003)
141 of the registration department of the state supervision and administration bureau of food and drug),which played a good role
in favor of raising the efficiency of import registration and handling the registration procedure of imported drug. According to
the feedback and suggestion of unit of submission and examination since implementing, the department determines to amend this procedure,
increase security measures, and revise the unit description of the item on the quantity of submission and examination. the specific
amended content can be seen in appendices. Every port supervision and administration bureau of drug notifies the unit of submission
and examination of downloading the renewed software in the download area of www.sfda.gov.cn or www. nicpbp.org.cn in time, and employ
this software to submit the list of submission and examination of imported drug.

Meanwhile, the department revised the administration system of edition R1.0 for submission and examination of imported drug correspondingly,
would make CDs with the content of the upgraded directions, the upgraded procedure and the renewed procedure of submission and examination
of imported drug as well would issue it to every bureau; the aforesaid bureau shall upgrade the t administration system for submission
and examination of imported drug according to the upgraded directions. It’s sure to contact the department in time if finding any
problem in using it.

It is hereby announced

Annex: the revised content about the procedure of submission and examination of imported drug Annex:The revised content about the procedure of submission and examination of imported drug

1

Revised the item on the quantity of submission and examination. The binding item on the weight measurement kilogram is removed.

2

Revised the functions of saving the copy, printing the copy and printing the submitted materials. The specific revised content as
follows:

Saveing the backup: the function of the key is to save the editing documents. The check-up numeral will keep unchanged without taping
the button of printing the submitted materials before saving. The check-up numeral will be changed if taping the button of printing
the submitted material before saving.

Printing the copy: the key serves the units who need to save the written documents, the function of the key is printing the written
documents, but the printed written documents shall add the mark of “-T”. the check-up numeral of written documents shall be consistent
with that of the electrical documents.

Printing the submitted materials: the function of the key is to print the list of submitted materials and produce the new check-up
numeral, the printed list of submission and examination shall add the mark of “-B”. the saved check-up numeral of electrical documents
shall be consistent with that of written documents.



 
The registration department of the state food and drug administration
2004-03-23

 







CONSTITUTION ACT, 1982 – page 22

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