(Adopted at the Second Session of the Fifth National People’s Congress on July 1, 1979, promulgated by Order No.1
of the Chairman of the Standing Committee of the National People’s Congress on July 4, 1979 and effective as of January 1, 1980;
amended for the first time in accordance with the Resolution on Revising Certain Provisions of the Organic Law of the Local People’s
Congresses and Local People’s Governments of the People’s Republic of China, adopted at the Fifth Session of the Fifth National People’s
Congress on December 10, 1982; amended for the second time in accordance with the Decision on Revising the Organic Law of the Local
People’s Congresses and Local People’s Governments of the People’s Republic of China, adopted at the 18th Meeting of the Standing
Committee of the Sixth National People’s Congress on December 2, 1986; amended for the third time in accordance with the Decision
on Revising the Organic Law of the Local People’s Congresses and Local People’s Governments of the People’s Republic of China, adopted
at the 12th Meeting of the Standing Committee of the Eighth National People’s Congress on February 28,1995; and amended for the fourth
time in accordance with the Decision on Amending the Organic Law of the Local People’s Congresses and Local People’s Governments
of the People’s Republic of China adopted at 12th Meeting of the Standing Committee of the Tenth National People’s Congress on October
27, 2004)
Contents
Chapter I General Provisions
Chapter II Local People’s Congresses at Various Levels
Chapter III The Standing Committees of Local People’s Congresses at and Above the County Level
Chapter IV Local People’s Governments at Various Levels
Chapter V Supplementary Provisions
Chapter I
General Provisions
Article 1 People’s congresses and people’s governments shall be established in provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures, counties, autonomous counties, cities, municipal districts, townships,
nationality townships, and towns.
Article 2 Standing committees shall be established by local people’s congresses at and above the county level.
Article 3 The organs of self-government of autonomous regions, autonomous prefectures and autonomous counties shall, in addition
to exercising the functions and powers specified in this Law, exercise the power of autonomy within the limits of their authority
as prescribed by the Constitution, the Law on Regional National Autonomy and other laws.
Chapter II
Local People’s Congresses at Various Levels
Article 4 Local people’s congresses at various levels shall be local organs of State power.
Article 5 Deputies to the people’s congresses of provinces, autonomous regions, municipalities directly under the Central Government,
autonomous prefectures and cities divided into districts shall be elected by the people’s congresses at the next lower level; deputies
to the people’s congresses of counties, autonomous counties, cities not divided into districts, municipal districts, townships, nationality
townships, and towns shall be elected directly by their constituencies.
The number of deputies to the local people’s congresses at various levels and the manner of their election shall be prescribed by
the electoral law. There shall be an appropriate number of deputies elected from the minority nationalities in each administrative
area.
Article 6 The term of office of the local people’s congresses at various levels shall be five years.
Article 7 The people’s congresses of provinces, autonomous regions, and municipalities directly under the Central Government
may, in the light of the specific conditions and actual needs of their respective administrative areas, formulate and promulgate
local regulations, which must not contravene the Constitution and other laws, as well as administrative regulations; they shall report
such local regulations to the Standing Committee of the National People’s Congress and the State Council for the record.
The people’s congresses of cities where provincial and autonomous regional people’s governments are located and the people’s congresses
of relatively large cities with the approval of the State Council may, in the light of the specific conditions and actual needs of
their respective cities, formulate local regulations, which must not contravene the Constitution and other laws, administrative regulations,
and the local regulations of their respective provinces and autonomous regions; they shall report such local regulations to the standing
committees of the people’s congresses of the respective provinces and autonomous regions for approval before implementation and for
submission to the Standing Committee of the National People’s Congress and the State Council for the record.
Article 8 Local people’s congresses at and above the county level shall exercise the following functions and powers:
(1) to ensure the observance and execution, in their respective administrative areas, of the Constitution and other laws, administrative
regulations and the resolutions of the people’s congresses and their standing committees at higher levels, and to ensure the implementation
of the State plan and the State budget;
(2) to examine and approve the plans for national economic and social development and budgets of their respective administrative
areas and the reports on the implementation of such plans and budgets;
(3) to discuss and decide on major issues in political, economic, educational, scientific and cultural affairs, public health, protection
of the environment and natural resources, and civil and nationality affairs, in their respective administrative areas;
(4) to elect the members of their respective standing committees;
(5) to elect governors and deputy governors, chairmen and vice-chairmen of autonomous regions, mayors and deputy mayors, prefects
and deputy prefects, and heads and deputy heads of counties and districts;
(6) to elect the presidents of the people’s courts and the chief procurators of the people’s procuratorates at the corresponding
levels; the election of the chief procurator of a people’s procuratorate shall be reported to the chief procurator of the people’s
procuratorate at the next higher level, who shall submit it to the standing committee of the people’s congress at that same level
for approval;
(7) to elect deputies to the people’s congresses at the next higher level;
(8) to hear and examine reports on the work of the standing committees of the people’s congresses at the corresponding levels;
(9) to hear and examine reports on the work of the people’s governments, the people’s courts and the people’s procuratorates at the
corresponding levels;
(10) to alter or annul inappropriate resolutions of the standing committees of the people’s congresses at the corresponding levels;
(11) to annul inappropriate decisions and orders of the people’s governments at the corresponding levels;
(12) to protect the socialist property owned by the whole people, property owned collectively by working people and citizens’ legitimate
private property, maintain public order and safeguard citizens’ rights of the person and their democratic and other rights;
(13) to protect the legitimate rights and interests of various economic organizations;
(14) to safeguard the rights of minority nationalities; and
(15) to safeguard women’s rights as endowed by the Constitution and other laws, such as equality with men, equal pay for equal work
and freedom of marriage.
Article 9 The people’s congresses of townships, nationality townships, and towns shall exercise the following functions and
powers:
(1) to ensure the observance and execution, in their respective administrative areas, of the Constitution, other law, administrative
regulations, and the resolutions of the people’s congresses and their standing committees at higher levels;
(2) to adopt and promulgate resolutions within the scope of their functions and powers;
(3) to decide, in accordance with State plans, on plans for the development of the economy, cultural affairs and public services
in their respective administrative areas;
(4) to examine and approve the budgets of their respective administrative areas as well as the reports on the implementation of the
budgets;
(5) to decide on plans for civil affairs in their respective administrative areas;
(6) to elect the chairman and vice-chairmen of the people’s congress at the corresponding level;
(7) to elect heads and deputy heads of townships and towns;
(8) to hear and examine reports on the work of the people’s governments of townships, nationality townships, and towns;
(9) to annul inappropriate decisions and orders of the people’s governments of townships, nationality townships, and towns;
(10) to protect the socialist property owned by the whole people, property owned collectively by working people and citizens’ legitimate
private property, to maintain public order and safeguard citizens’ rights of the person and their democratic and other rights;
(11) to protect the legitimate rights and interests of various economic organizations;
(12) to safeguard the rights of minority nationalities; and
(13) to safeguard women’s rights as endowed by the Constitution and other laws, such as equality with men, equal pay for equal work
and freedom of marriage.
In exercising their functions and powers, the people’s congresses of townships, nationality townships, and towns in which minority
nationalities live in concentrated communities shall adopt specific measures appropriate to the characteristics of the nationalities
concerned.
Article 10 Local people’s congresses at various levels shall have the power to remove from office members of the people’s governments
at the corresponding levels. Local people’s congresses at or above the county level shall have the power to remove from office members
of their standing committees and the presidents of the people’s courts and the chief procurators of the people’s procuratorates elected
by those standing committees. The removal of the chief procurator of a people’s procuratorate shall be reported to the chief procurator
of the people’s procuratorate at the next higher level, who shall submit the matter to the standing committee of the people’s congress
at that same level for approval.
Article 11 Local people’s congresses at various levels shall meet in session at least once a year.
A session of a local people’s congress may be convened at any time upon the proposal of one-fifth of its deputies.
Article 12 Sessions of local people’s congresses at or above the county level shall be convened by their standing committees.
Article 13 A preliminary meeting shall be held for each session of a local people’s congress at or above the county level to
elect the presidium and secretary-general of that session, adopt the agenda for the session and decide on other preparations.
The preliminary meeting shall be presided over by the standing committee of the people’s congress. The preliminary meeting for the
first session of a people’s congress shall be presided over by the standing committee of the preceding people’s congress at the corresponding
level.
When a local people’s congress at or above the county level meets, its session shall be conducted by the presidium.
When a local people’s congress at or above the county level meets, it shall propose a number of deputy secretaries-general; the choice
of deputy secretaries-general shall be decided by the presidium.
Article 14 The people’s congress of a township, nationality township or town shall have a chairman, and may have one or two
vice-chairmen. The chairman and vice-chairmen shall be elected from among the deputies to the people’s congress at the corresponding
level, and their term of office shall be the same as that of each people’s congress at that level.
The chairman or vice-chairmen of the people’s congress of a township, nationality township or town shall not concurrently hold office
in an administrative organ of the State; if they hold office in an administrative organ of the State, they must resign from the post
of the chairman or vice-chairman of the people’s congress at that level.
The chairman or vice-chairmen of the people’s congress of a township, nationality township or town shall, during the period when
the people’s congress at the corresponding level is not in session, be responsible for keeping in touch with the deputies to the
people’s congress at that level, organizing the deputies to conduct activities, and conveying the suggestions, criticisms and opinions
of the deputies and the masses regarding the work of the people’s government at the same level.
Article 15 When the people’s congress of a township, nationality township, or town holds a session, it shall elect a presidium,
which shall preside over the session and be responsible for convening the next session of that people’s congress. The chairman and
vice-chairmen of the people’s congress of a township, nationality township or town shall be the members of the presidium. The chairman
and vice-chairmen of the people’s congress of a township, nationality township or town shall be the members of the presidium.
Article 16 The first session of each local people’s congress at any level shall be convened, within two months after the election
of its deputies, by the standing committee of the preceding people’s congress at the corresponding level or by the presidium of the
preceding session of the people’s congress of the township, nationality township, or town.
Article 17 Members of the local people’s governments at or above the county level, the presidents of the people’s courts, the
chief procurators of the people’s procuratorates, and the leading persons of the people’s governments at the township level shall
attend sessions of the people’s congresses at the corresponding levels as nonvoting delegates; leading members of the other relevant
government departments and public organizations at or above the county level may, by decision of the standing committees of the people’s
congresses at the corresponding levels, attend sessions of the people’s congresses at the corresponding levels as nonvoting delegates.
Article 18 When a local people’s congress holds its sessions, its presidium, standing committee and special committees and
the people’s government at the corresponding level may submit bills and proposals to that people’s congress within the scope of its
functions and powers. The presidium shall decide to refer such bills and proposals to a session of the people’s congress for deliberation,
or to simultaneously refer them to relevant special committees for deliberation and reports before the presidium decides, upon examination
of such reports, to submit them to the people’s congress for a vote.
Ten or more deputies to a local people’s congress at or above the county level, or five or more deputies to the people’s congress
of a township, nationality township, or town may jointly submit a bill or proposal to the people’s congress at the corresponding
level within the scope of its functions and powers. The presidium shall decide whether to place the bill or proposal on the agenda
of the people’s congress or to first refer it to a relevant special committee for deliberation and a recommendation on whether to
place it on the agenda before the presidium makes such a decision.
With agreement of the presidium, deliberation shall be terminated on a bill or proposal placed on the agenda of a session, if the
party that submitted the bill or proposal requests its withdrawal before it is referred to the congress for a vote.
Article 19 Suggestions, criticisms and complaints on any aspect of work put forward by deputies to a local people’s congress
at or above the county level to that people’s congress and its standing committee shall be referred by the administrative office
of the standing committee to the departments and organizations concerned for consideration, disposition and reply.
Suggestions, criticisms and complaints on any aspect of work put forward by deputies to the people’s congress of a township, nationality
township, or town to that people’s congress shall be referred by its presidium to the departments and organizations concerned for
consideration, disposition and reply.
Article 20 When a local people’s congress conducts an election or adopts a resolution, a majority vote of all the deputies
shall be required.
Article 21 Members of the standing committee of local people’s congresses at or above the county level, choices for chairmen
and vice-chairmen of the people’s congresses of townships, nationality townships or towns, governors and deputy governors, chairmen
and vice-chairmen of autonomous regions, mayors and deputy mayors, heads and deputy heads of prefectures, heads and deputy heads
of counties, districts, townships and towns, presidents of the people’s courts and chief procurators of the eople’s procuratorates
shall be nominated by the presidiums of the people’s congresses at the corresponding levels or jointly nominated by deputies in accordance
with the provisions of this Law.
Thirty or more deputies to the people’s congress of a province, autonomous regions, or a municipality directly under the Central
Government, or twenty or more deputies to the people’s congress of a city divided into districts or of an autonomous prefecture,
or ten or more deputies to the people’s congress at the county level may nominate, with joint signatures, the candidates for members
of the standing committee of the people’s congress at the corresponding level, leading persons of the people’s government, the president
of the people’s court and the chief procurator of the people’s procuratorate at the same level. Ten or more deputies to the people’s
congress of a township, nationality township or town may nominate, with joint signatures, candidates for the chairman and vice-chairmen
of the people’s congress at the corresponding level and leading persons of the people’s government at the same level. Deputies elected
from different electoral districts or electoral units may deliberate on and jointly nominate candidates.
The number of candidates nominated by a presidium or jointly nominated by each deputy together with other deputies shall not exceed
the number of persons to be elected.
Nominators shall make a trustful introduction of their nominees.
Article 22 In elections for chairmen and secretaries-general of the standing committees of the people’s congresses, chairmen
of the people’s congresses of townships, nationality townships or towns, heads of people’s governments, presidents of the people’s
courts and chief procurators of the people’s procuratorates, there shall generally be one more candidate than the number of persons
to be elected, and a competitive election shall be conducted. If only one candidate is nominated, a non-competitive election may
be conducted. In elections for vice-chairmen of the standing committees of the people’s congresses, deputy chairmen of the people’s
congresses of townships, nationality townships or towns, and deputy heads of the people’s governments, there shall be one to three
more candidates than the number of persons to be elected; in elections for members of the standing committees of the people’s congresses,
there shall be one-tenth to one-fifth more candidates than the number of persons to be elected. The specific differential number
shall be prescribed by the people’s congresses at the corresponding levels in the electoral measures on the basis of the number of
persons to be elected. And the competitive election shall be conducted. If the number of candidates nominated is the same as the
differential number prescribed in the electoral measures, the presidium of a people’s congress shall submit the list of candidates
to the deputies for deliberation and discussion, before election is conducted. If the number of candidates nominated exceeds the
differential number prescribed in the electoral measures, a preliminary election shall be conducted after the deputies deliberate
and discuss the list of candidates submitted by the presidium, and an official list of candidates shall, in accordance with the differential
number prescribed in the electoral measures, be determined by order of the votes that the candidates obtain in the preliminary election,
and then election shall be conducted.
When leading persons of State organs at the corresponding levels are to be elected by local people’s congresses at or above the county
level, the time for nomination and consideration of candidates shall be not less than two days.
Article 23 Elections shall be conducted by secret ballot. The deputies may vote for or against any of the candidates that have
been determined, or may instead elect any other deputies or voters or abstain from voting.
Article 24 In elections for leading persons of State organs conducted by local people’s congresses at the corresponding levels,
when the number of candidates who obtain more than half of the votes exceeds the number of leading persons to be elected, those who
obtain more votes shall be elected. If the number of votes for some candidates is tied, thus making it impossible to determine the
elected, another balloting shall be conducted for those candidates to resolve the tie, and those who obtain more votes shall be elected.
If the number of the elected persons who obtain more than half of the votes is less than the number of persons needed to be elected,
another election shall be held to make up the difference, the candidates for another election may be determined by order of the votes
they obtain in the first balloting, or may be nominated and determined in accordance with the procedures provided by this Law. Another
election for making up the difference may be held at the current session or the next session of the people’s congress upon decision
by the people’s congress at the corresponding level.
When another election is held to elect the vice-chairmen and members of the standing committee of a people’s congress, the vice-chairmen
of the people’s congress of a township, nationality township or town, and the deputy heads of a people’s government, competitive
election shall be conducted after the differential number is determined in accordance with the provisions in the first paragraph
of Article 22 of this Law.
Article 25 When by-elections are held by the local people’s congresses at various levels for chairmen, vice-chairmen, secretaries-general
and members of their standing committees, chairmen, and vice-chairmen of the people’s congresses of townships, nationality townships
or towns, governors, deputy governors, chairmen and vice-chairmen of autonomous regions, mayors, deputy mayors, prefects, deputy
prefects, heads and deputy heads of counties, districts, townships and towns, presidents of people’s courts, and chief procurators
of people’s procuratorates, the number of candidates may exceed or equal the number of vacancies, and the election procedures and
methods shall be decided by the people’s congresses at the corresponding levels.
Article 26 When a local people’s congress at or above the county level is in session, its presidium, its standing committee,
or a joint group of at least one tenth of its deputies may submit a proposal to remove from office members of its standing committee
or members of the people’s government, the president of the people’s court or the chief procurator of the people’s procuratorate
at the corresponding level; the presidium shall refer such proposals to the congress for deliberation.
When the people’s congress of a township, nationality township or town is in session, the presidium or a group of at least one-fifth
of the deputies may submit a proposal to remove from office the chairman or vice-chairmen of the people’s congress, the head or deputy
heads of the township or town; the presidium shall refer the proposal to the congress for deliberation.
In a proposal for removal from office, reasons for the removal shall clearly be stated.
Persons proposed to be removed from office shall have the right to defend themselves at a meeting of the presidium or at the plenary
meeting of a session, or to submit their written defence. The defence made at the meeting of the presidium or the written defence
shall be printed and distributed to participants of the session by the presidium.
The proposal for removal from office submitted to a local people’s congress at or above the county level shall, after being distributed
by the presidium to the participants for deliberation , be submitted to the plenary meeting of the session for voting; or the presidium
shall, subject to decision of the plenary meeting of the session, propose to organize an investigation committee, and the proposal
for removal from office shall be deliberated and decided at the next session of the people’s congress at the corresponding level
on the basis of the report prepared by the investigation committee.
Article 27 A component member of the standing committee of a local people’s congress at or above the county level, a leading
person of a local people’s government, the president of a people’s court or the chief procurator of a people’s procuratorate at or
above the county level may submit the resignation to the people’s congress at the corresponding level, which shall decide whether
or not to accept the resignation; if the people’s congress is not in session, such resignations may be submitted to its standing
committee, which shall decide whether or not to accept the resignations. If the standing committee decides to accept a resignation,
it shall report it to its people’s congress for the record. A resignation of the chief procurator of a people’s procuratorate must
be reported to the chief procurator of the people’s procuratorate at the next higher level, who shall refer it to the standing committee
of the people’s congress at the corresponding level for approval.
The chairman or vice-chairman of the people’s congress of a township, nationality township or town, the head or deputy head of a
township or town may submit his resignation to the people’s congress at the corresponding level, which shall decide whether or not
to accept the resignation.”
Article 28 When a local people’s congress at any level is in session, a group of at least ten of the deputies may submit a
written proposal for addressing questions to the people’s government or any of its departments, the people’s court or the people’s
procuratorate at the corresponding level. In the proposal shall clearly be stated to whom the questions are addressed and the specific
questions themselves.
The presidium shall decide whether to refer the proposal to the organ addressed for an oral reply at the meeting of the presidium,
or at the plenary meeting of a session, or at the meeting of a relevant special committee, or for a written reply. Where a reply
is made at a meeting of the presidium or of the special committee, the deputies who submit the proposal shall have the right to attend
the meeting as nonvoting delegates and express their opinions; when the presidium considers it necessary, it may have the report
on the reply printed and distributed to the session.
If the reply is to be made orally, the leading person of the organ addressed shall be present at the meeting to give the reply; if
the reply is to be made in writing, it shall be signed by the leading person of the organ addressed, and the presidium shall have
it printed and distributed to the session or to the deputies who address the questions.
Article 29 When a local people’s congress at any level examines a bill or proposal, its deputies may address questions to the
local state organs concerned, which shall send their personnel to the congress to give explanations.
Article 30 The people’s congresses of provinces, autonomous regions, municipalities directly under the Central Government,
autonomous prefectures and cities divided into districts may, where necessary, establish special committees such as legislative (political
and law) committees, finance and economic committees, and education, science, culture and public health committees. The special committees
shall work under the direction of the respective people’s congresses; when the people’s congresses are not in session, they shall
work under the direction of the standing committees of the people’s congresses.
Nominations for the chairman, vice-chairmen and members of a special committee shall be made by the presidium from among the deputies
and approved by the people’s congress. When the people’s congress is not in session, its standing committee may appoint and remove
individual vice-chairmen and some members of the special committee through nomination by its council of chairmen and approval by
a meeting of the standing committee.
The special committees shall discuss, examine and draw up relevant bills and draft resolutions under the direction of the people’s
congresses and their standing committees at the corresponding levels; they shall make investigations and studies of, and put forward
proposals on, matters related to those committees and within the scope of functions and powers of the respective people’s congresses
and their standing committees.
Article 31 A local people’s congress at or above the county level may appoint an investigation committee on specific questions.
The presidium or a group of at least one-tenth of the deputies may submit to the session of the people’s congress a proposal for
organizing an investigation committee on specific questions, which shall be submitted by the presidium to the plenary meeting for
decision.
An investigation committee shall be composed of a chairman, vice-chairmen and m
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Ministry of Commerce
Ministry of Commerce Circular on Printing and Distributing the System of Reporting Country Investment and Operation Obstacles
The competent commercial departments of all provinces, autonomous regions or municipalities directly under the Central Government
and all specifically designated cities in the state plan, all central enterprises and all economic and commercial agencies in foreign
countries;
For the purpose of having a good grasp of the overall situation of and problems encountered in the overseas investment and operations
by Chinese enterprises, handling well the work of follow-up administration of overseas investment, strengthening the macro coordination
and guidance, protecting the lawful rights and interests of investors and promoting the development of overseas investment, we hereby
print and distribute the System of Reporting Country Investment and Operation Obstacles to you, please implement it accordingly.
Ministry of Commerce
November 11, 2004
System of Reporting Country Investment and Operation Obstacles
Chapter I Goal of Establishment of the System
Article 1
For the purpose of accelerating the implementation of the “going abroad” strategy, handling well the work of follow-up administration
of and service for overseas investment and operations, protecting the lawful rights and interests of investors, building a good environment
and promoting the development of overseas investment, this System is formulated in accordance with the Foreign Trade Law, the Interim
Rules for Foreign Trade Barriers Investigation and other relevant provisions.
Article 2
The system of reporting country investment and operation obstacles means that the Chinese economic and commercial agencies, chambers
of commerce and enterprises in foreign countries shall, on an annual basis or irregular basis, report various obstacles, barriers
and related problems encountered by the Chinese-capital enterprises in their investment and operations in the host countries (regions),
and these reports shall serve as one of the bases for the annual Foreign Market Access Reports as issued by the Ministry of Commerce
and are for the domestic administrative departments’ and other relevant departments’ reference; the domestic departments concerned
shall, on the basis of the overall follow-up and understanding of the various problems encountered by the Chinese enterprises in
their overseas investment and operations, safeguard the lawful rights and interests of Chinese enterprises through multilateral or
bilateral mechanisms.
Chapter II Reporting Subjects
Article 3
The reporting subjects shall be all economic and commercial agencies in foreign countries, chambers of commerce and associations of
overseas Chinese-capital enterprises, overseas Chinese-capital enterprises and their branches (hereinafter referred to as “Chinese-capital
enterprises”) and their domestic investors, who shall submit reports to the Ministry of Commerce as required.
Article 4
Each economic and commercial agency in foreign countries and each chamber of commerce or association of overseas Chinese-capital enterprises
shall regularly organize the Chinese-capital enterprises to make exchanges and discussions with regard to the particulars required
to be reported, solicit opinions from the Chinese-capital enterprises in full swing, and seriously implement the reporting system
by submitting to the Ministry of Commerce reports as required on the problems encountered by the Chinese enterprises in their overseas
investment and operations in the current year prior to December 31 of each year. In the case of any serious circumstance, the report
thereon shall be submitted immediately (for the format of such report, have reference to Attachment 1).
Article 5
The overseas Chinese-capital enterprises and their domestic investors may, in combination with the problems encountered in their overseas
investment and operations, submit reports with regard to any or some items as required to be reported at any time or irregularly
(for the format of such report, have reference to Attachment 2).
Article 6
The reports shall be prepared and issued with signatures.
Chapter III Main Particulars to Be Reported
Article 7
The reports shall exactly reflect the actual situation of and problems encountered in the investment and operations and trade in service
(including project contracting, service cooperation and designing consultancy) by the Chinese enterprises in the host countries (regions).
(1)
Overall situation of the investment and operations of Chinese-capital enterprises
(a)
overall information about the number, investment scale, sectoral distribution, operation results and other overall situations of and
problems generally encountered by Chinese-capital enterprises; and
(b)
brief account of major investment projects of Chinese-capital enterprises, including the names of the enterprises and of the domestic
investors of such enterprises (in the case of reinvestment via a third country or region, a note shall be stated), investment scale
and type, principal business and products, operation performance and major difficulties and problems.
(2)
Investment environment obstacles and risks
(a)
any law or regulation of the host country unfavorable to Chinese investment;
(b)
non-operational obstacles and risks in the host country, which cause cost burden to the operation of the enterprises, such as problems
in the public security and safety, enterprises’ credit, trade union, strike, government honesty, the public attitude toward foreign-capital
enterprises, and public holidays; and
(c)
any shortcoming or deficiency of the host country in supply or pricing of transport, water, electricity, gas or communications that
may adversely affect the investment and operations of the enterprises.
(3)
Barriers to investment and trade in service
The following measures that the host country implements or permits to be implemented in violation of any of the relevant multilateral
or bilateral agreements and that will or are likely to be inequitable obstacles or damage to or restriction of the investment and
operations or trade in service by Chinese enterprises:
(a)
barriers to access, such as any inequitable restriction of the inflow of Chinese investment, failure of any WTO member to fulfill
its commitment to open certain sectors to Chinese investment; or in the case of bidding for an engineering project, the government’s
requiring that a Chinese company must make a joint bid with a local enterprise or commit to have a local company as its subcontractor;
(b)
barriers to operations, such as any inequitable restriction on the operating activities of the Chinese-capital enterprises in terms
of production, supply, sale, human resources, finance and materials etc, reluctance to give employment visa and non-transparency
or overelaborate formalities in the government’s working procedure; and
(c)
barriers to withdrawal, such as restrictions on withdrawal of Chinese investment or remittance-out of profits of the Chinese-capital
enterprises.
(4)
Proposals on corresponding measures
Proposals of the reporting subjects on measures for dealing with the above-mentioned problems, obstacles and investment barriers.
Chapter IV Submission and Publication of the Reports
Article 8
The reports shall be submitted to the Ministry of Commerce (the Cooperation Department, departments of the relevant regions and the
Bureau of Fair Trade) in written form or through the Internet.
The institutions with necessary conditions shall submit their reports by making use of administrative affairs information communication
processing system of the Ministry of Commerce, or directly fill out and send the forms of Reports on Country Investment and Operation
Obstacles on the sub-website of cooperation guidance of the website of the Ministry of Commerce (www.mofcom.gov.cn), or submit their
reports by e-mailing (Processing Division of the Cooperation Department: hzjg@mofcom.gov.cn; Barriers Investigation Division of the
Bureau of Fair Trade: boft_tbi@mofcom.gov.cn).
Article 9
On the premise that the interests and trade secrets of the relevant enterprises shall be protected, the Ministry of Commerce shall
regularly publish the relevant particulars of the reports in the form of Country Trade Investment Environment Reports or in other
forms, pay close attention to the investment environment of the host countries and call the potential investing enterprises’ attention
to the avoidance of risks.
Chapter V Problem-resolving Mechanism
Article 10
Ministry of Commerce shall, after receipt of the reports, based on the reports and in conjunction with the relevant departments, exchange
information and make consultations and set forth comments and resolving measures.
Article 11
The reported problems shall be negotiated through exchange of visits by high-level personnel, bilateral mixed commissions of economic
relations of trade or any other diplomatic channel so as to help the enterprises resolve the problems in a quick manner.
Article 12
If any reported problem involves any barrier to investment or trade in service, the Ministry of Commerce may conduct investigations
thereon in accordance with the Interim Rules for Foreign Trade Barriers Investigation.
Chapter VI Supplementary Provisions
Article 13
The right to interpret this System shall reside in the Ministry of Commerce.
Article 14
This System shall be implemented as of the date of promulgation.
Attachments:
1.
Form of Reports by Economic and Commercial Agencies and Chambers of Commerce and Associations of Chinese-capital Enterprises in Foreign
Countries on Country (Region) Investment and Operation Obstacles (omitted)
2.
Form of Reports by Chinese-capital Enterprises and Their Domestic Investors on Country (Region) Investment and Operation Obstacles
(omitted)
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