NOTICE OF THE STATE COUNCIL ON ADJUSTING THE PROPORTIONS OF REGISTERED CAPITAL IN FIXED ASSET INVESTMENT PROJECTS OF SOME INDUSTRIES

the State Council on Adjusting

Notice of the State Council on Adjusting the Proportions of Registered Capital in Fixed Asset Investment Projects of Some Industries

No. 13[2004] of the State Council

April 26, 2004

Since this year, the national economy has been maintaining a favorable momentum, the reform and opening has been further carried forward
steadily and the social undertakings have been developed in an all-around way. At the same time, those outstanding conflicts existing
in the economic operation have become increasingly apparent, which are embodied in such aspects as the over-increase in investment,
too many newly started projects, the under-construction scale being too large, and the irrational investment structure. There exists
blind investment in industries of steel, electrolytic aluminum and cement, there is serious phenomenon of low-quality repeated construction,
the increase rate of development and investment of real estate is too high and the development capital is excessively dependent on
bank loans. In order to strengthen the macro regulation, adjust and optimize the economic structure and promote a sound development
of the aforesaid industries, the State Council has decided to adjust the proportions of capital money of construction projects in
industries of steel, electrolytic aluminum, cement and real estate development as prescribed in the Notice of the State Council on
Piloting the System of Registered Capital on Fixed Asset Investment Projects (No. 35 [1996] of the State Council): (1) The proportion
of capital money of steel projects shall be raised from 25% or more to 40% or more; (2) The proportion of registered capital of projects
of cement, electrolytic aluminum and real estate development (excluding projects of affordable houses) shall be raised from 20% or
more to 35% or more.

The relevant provisions of this Notice shall go into effect as of the date of promulgation.

the State Council on Adjusting
2004-04-26

ANNOUNCEMENT OF THE MINISTRY OF COMMERCE AND THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE

the Ministry of Commerce, the State Administration for Industry and Commerce

Announcement of the Ministry of Commerce and the State Administration for Industry and Commerce

[2004] No. 25

June 3, 2004

In accordance with the Circular of the General Office of the State Council Concerning Sorting out and Consolidating Non-experimental
Commercial Enterprises with Foreign Investment (Guo Ban Fa [1998] No. 98) and the Circular Concerning Better Implement of Sorting
out and Consolidating Non-experimental Commercial Enterprises with Foreign Investment (Guo Jing Mao Wai Jing [2001] No. 787) which
was approved by the General Office of the State Council and promulgated by the former State Economy and Trade Commission, the former
Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry and Commerce, the five enterprises of
Erbai Yongxin Corp,. Ltd. Shanghai, Aotuo Qibai Mail Order Corp,. Ltd. Shanghai, Stock General Merchandises Corp,. Ltd. Shanghai,
Golden World Shopping Center Corp,. Ltd. Shanghai and Kunlun Taiwan Shopping Mall Corp,. Ltd. Shanghai are in line with the Five
Shall- not Enterprises, which means that they shall have no right to operate import and export, shall not operate wholesale business,
shall not re-expand the business scope and scale of construction, shall not open branches and extend the duration of joint operations
and shall not benefit from the policy of tax reduction or tax exemption for importing equipment and materials of own use.

This is hereby notified.

the Ministry of Commerce, the State Administration for Industry and Commerce
2004-06-03

REPLY OF THE STATE ADMINISTRATION OF TAXATION ON ISSUES CONCERNING THE APPLICATION OF PREFERENTIAL TAX POLICY BY FOREIGN-FUNDED ENTERPRISES FOR THEIR UNDERTAKING OF TAXI BUSINESS AND OTHER PASSENGER TRANSPORTATION BUSINESSES

State Administration of Taxation

Reply of the State Administration of Taxation on Issues concerning the Application of Preferential Tax Policy by Foreign-funded Enterprises
for Their Undertaking of Taxi Business and Other Passenger Transportation Businesses

GuoShuiHan[2004] No. 945

August 3rd, 2004

The Administration of State Taxes of Guangxi Zhuang Autonomous Region:

Your Request for Instructions on the Nanning KangFu Communications Limited Company’ Request for Enjoying Preferential Income Tax Policy
on the Development of Western Areas (No.143 [2003] of the Guangxi Administration of State Taxes) and the Request for Instructions
on Issues regarding the Nanning White Horse Public Traffic Limited Company’s Application for Enjoying Preferential Tax Policy on
the Development of Western Areas (No.130 [2003] of the Guangxi Administration of State Tax) have been received, we hereby make the
following reply:

The “communications and transportation industry” that enjoys the treatment of a production-oriented foreign-funded enterprise as stipulated
in Item (8) of Article 72 of the Detailed Rules for the Implementation of the Income Tax Law of the People’s Republic of China on
Foreign-funded Enterprises and Foreign Enterprises (hereinafter referred to as the Detailed Rules for the Implementation of Tax Law)
shall not include the foreign-funded enterprises engaging in the passenger transportation business; the “traffic enterprises” newly
established in the western areas, which enjoy the exemption of enterprise income tax for two years and collection of half the rate
for three more consecutive years as stipulated in Item (2) of Article 3 of the Notice of the State Council on the Implementation
of Several Policies and Measures for the Development of Western Areas (No.33 [2000] of the State Council) shall refer to the enterprises
engaging in the investment and construction of such traffic infrastructure as roads and bridges. Therefore, the Nanning KangFu Traffic
Limited Company and the Nanning White Horse Public Traffic Limited Company that engage in the taxi business and urban public passenger
transportation business do not fall within the scope of application of the aforesaid preferential enterprise income tax. Please dispose
the issue by referring to other relevant tax provisions.

State Administration of Taxation
2004-08-03

MEASURES FOR THE ADMINISTRATION OF EXAMINATION AND APPROVAL OF FOREIGNERS’ PERMANENT RESIDENCE IN CHINA

20031213State Council

The Ministry of Public Security, The Ministry of Foreign Affairs

Order of the Ministry of Public Security and the Ministry of Foreign Affairs

No.74

Measures for the Administration of Examination and Approval of Foreigners’ Permanent Residence in China adopted by the State Council
on December 13, 2003, are hereby promulgated and carried out.

Minister of the Ministry of Public Security, Zhou Yongkang

Minister of the Ministry of Foreign Affairs, Li Zhaoxing

August 15, 2004

Measures for the Administration of Examination and Approval of Foreigners’ Permanent Residence in China

Article 1

In order to standardize the examination and approval of foreigners’ permanent residence in China, these Measures are formulated in
accordance with the relevant provisions of the Law of the People’s Republic of China on Control of Entry and Exit of Foreigners and
the Detailed Rules for its implementation.

Article 2

Foreigners’ permanent residence in China refers to that the period of foreigners’ residence in China is not limited.

Article 3

The Foreigner’s Permanent Residence Card is a valid ID certificate for a foreigner who has obtained permanent residence status in
China and may be used independently.

Article 4

A foreigner with permanent residence status in China may enter and leave China with his valid passport and Foreigner’s Permanent Residence
Card.

Article 5

The authorities to accept the applications of foreigners for permanent residence in China are the public security organs of the people’s
governments of cities with subordinate districts and the public security branch bureaus and county-level bureaus of municipalities
directly under the Central Government. The authorities to examine foreigners’ applications for permanent residence in China are the
departments and bureaus of public security of provinces, autonomous regions and municipalities directly under the Central Government.
The authority to examine and approve foreigners’ applications for permanent residence in China is the Ministry of Public Security.

Article 6

Foreigners applying for permanent residence in China must abide by Chinese laws, be in good health and without any criminal record,
and must meet at least one of the following requirements:

(1)

Having made direct investment in China with stable operation and a good tax paying record for three successive years;

(2)

Having been holding the post of deputy general manager, deputy factory director or above or of associate professor, associate research
fellow and other associate senior post_titles of professional post or above or enjoying an equal treatment, for at least four successive
years, with a minimum period of residence in China for three cumulative years within four years and with a good tax paying record;

(3)

Having made a great and outstanding contribution to and being specially needed by China;

(4)

Being the spouse or unmarried child under 18 years old of a person with reference to the item (1), (2) or (3) of this paragraph;

(5)

Being the spouse of a Chinese citizen or of a foreigner with permanent residence status in China, in a marriage relationship for at
least five years, with at least five successive years of residence in China and at least nine months of residence in China each year,
and having stable source of subsistence and a dwelling place;

(6)

Being an unmarried person under 18 years old turning to his parent; or

(7)

Being a person who is or above 60 years old, who has no direct relative abroad and is to turn to any directive relative in China,
and has stayed in China for at least five successive years with at least nine- month residence in China each year, and has stable
source of subsistence and a dwelling place.

The periods of time in this Article mean the successive ones till the date of application.

Article 7

In the case of a foreigner under item (1) of the first paragraph of Article 6 herein, the registered capital paid by him as investment
in China shall meet any of the following requirements:

(1)

In the case of investment in any industry encouraged under the Catalogue for Guidance of Foreign Investment Industries, at least US$500,000
in total;

(2)

In the case of investment in the western area of China or any key county under poverty reduction and development program, at least
US$500,000 in total;

(3)

In the case of investment in the central area of China, at least US$1 million in total; or

(4)

In the case of investment in China, at least US$2 million in total.

Article 8

In the case of a foreigner under item (2) of the first paragraph of Article 6 herein, the entity in which he holds a post must be
any of the following:

(1)

An institution subordinate to any department of the State Council or to the people’s government at the provincial level;

(2)

A key college or university;

(3)

An enterprise or government-sponsored institution implementing a key engineering project or major scientific research project of the
state; or

(4)

A high-tech enterprise, foreign invested enterprise in encouraged fields, technologically advanced enterprise with foreign investment
or export-oriented enterprise with foreign investment.

Article 9

The applicant shall faithfully fill in the Form of Application for Foreigner’s Permanent Residence in China and submit the following
materials:

(1)

A copy of his valid passport or other certificate that may be used instead of the passport;

(2)

A health certificate issued by a health quarantine agency designated by the Chinese government or by a foreign health quarantine agency
recognized by the relevant Chinese embassy or consulate;

(3)

A certificate of no criminal record in the country concerned as issued by the relevant Chinese embassy or consulate;

(4)

Four recent full-face color photos (2 by 2 inches, bareheaded) of the applicant; and

(5)

Other relevant materials provided herein.

Article 10

An applicant under Item (1) of the first paragraph of Article 6 herein shall submit a certificate of approval for the foreign-invested
enterprise, certificate of registration and a joint annual inspection certificate, report on the verification capital and personal
tax payment receipt in addition.

In the case of a foreign-invested enterprise in encouraged fields, a letter of confirmation in respect of the foreign-invested project
as encouraged by the state shall be submitted in addition.

Article 11

An applicant under Item (2) of the first paragraph of Article 6 herein shall submit the following materials in addition:

(1)

A certificate certifying his position or professional post_title as issued by his employer;

(2)

The Foreign Expert Card or Foreigner Employment Card;

(3)

A certificate of registration and certificate of annual inspection of his employer, certificate of personal tax payment issued to
him; where the employer is a foreign-invested enterprise, a certificate of approval for the foreign-invested enterprise and a joint
annual inspection certificate is required in addition; and

(4)

In the case of an applicant who holds a post in an enterprise or institution that carries out a key engineering project or major scientific
research project of the state, a certificate certifying the project as issued by the competent authority of the government at the
provincial or ministry level; in the case of an applicant who holds a post in a high-tech enterprise, a high-tech enterprise certificate;
in the case of a foreign-invested enterprise in encouraged fields, technologically advanced enterprise with foreign investment or
export-oriented enterprise with foreign investment, a certificate certifying the foreign-invested enterprise in encouraged fields,
advanced-tech enterprise with foreign investment or export-oriented enterprise with foreign investment.

Article 12

An applicant under Item (3) of the first paragraph of Article 6 herein shall submit a letter of recommendation and the relevant certificates
as issued by the competent authority of the Chinese government in addition.

Article 13

An applicant under Item (4) of the first paragraph of Article 6 herein shall, in addition, submit a marriage certificate in the case
of a spouse, his birth certificate or parentage certificate in the case of an unmarried child under 18 years old, and a adoption
certificate in the case of an adopted child. The above-mentioned certificates as issued by a foreign agency shall be subject to the
authentication of the Chinese embassy or consulate in the country concerned.

Article 14

An applicant under Item (5) of the first paragraph of Article 6 herein shall, in addition, submit his (her) Chinese spouse’s registered
permanent residence certificate or foreign spouse’s Foreigner’s Permanent Residence Card, marriage certificate, and a notarized certificate
of source of subsistence and house leasing certificate or muniments of post_title. The above-mentioned certificates as issued by a foreign
agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.

Article 15

An applicant under Item (6) of the first paragraph of Article 6 herein shall, in addition, submit his Chinese parent’s registered
permanent residence certificate or foreign parent’s Foreigner’s Permanent Resident Card, his birth certificate or parentage certificate
and, in the case of an adopted child, the adoption certificate in addition. The above-mentioned certificates as issued by a foreign
agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.

Article 16

An applicant under Item (7) of the first paragraph of Article 6 herein shall, in addition, submit the registered permanent residence
certificate of the Chinese citizen, or the Foreigner’s Permanent Residence Card of the foreigner, to whom he is to turn, a notarized
certificate of kindred and a certificate certifying that the applicant has no direct relative abroad, a notarized certificate certifying
the applicant’s financial source or notarized certificate of financial guarantee by the person to whom the applicant is to turn,
and notarized house leasing certificate or muniments of post_title of the applicant or the person to whom the applicant is to turn. The
above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate
in the country concerned.

Article 17

An application for foreigner’s permanent residence in China shall be submitted by the applicant himself or his parent if he is unmarried
and under 18 years old or his attorney to the public security organ of the people’s government of the city with subordinate districts,
or the branch or county bureau of public security of the municipality directly under the Central Government, in the place where the
principal investment was made or of long-term residence.

In the case of applying through an attorney, a power of attorney issued by the applicant shall be submitted. A power of attorney issued
by the applicant abroad shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.

Article 18

The public security organ shall make an approval or disapproval decision within six months from the date of the acceptance of the
application.

Article 19

The Ministry of Public Security shall issue a Foreigner’s Permanent Residence Card to the applicant whose permanent residence status
in China has been approved. If the applicant is not in China, the Ministry of Public Security shall issue a Confirmation Form of
Foreigner’s Permanent Residence Status to the applicant, who shall apply for a “D” visa to the Chinese embassy or consulate in the
country concerned by producing such Conformation Form and, within 30 days from his entry into China, get the Foreigner’s Permanent
Residence Card from the public security organ that accepted his application.

Article 20

A foreigner who has been approved to permanently reside in China must stay in China for at least three cumulative months a year. If
the foreigner is unable to stay in China for such minimum period due to any reason, he shall apply for the approval of the department
or bureau of public security of the province, autonomous region or municipality directly under the Central Government where he reside
in, provided that the cumulative period of his residence in China shall not be less than one cumulative year in five years.

Article 21

A Foreigner’s Permanent Residence Card shall be valid for five or ten years.

In the case of a foreigner under 18 years old approved to permanently reside in China shall have a Foreigner’s Permanent Residence
Card valid for five years; those being or above 18 years old shall have one valid for ten years.

Article 22

In the case of expiry of, any change of particulars in, damage to or loss of a Foreigner’s Permanent Residence Card, the holder shall
apply for renewal or reissue of the Card to the public security organ of the people’s government of the city with subordinate districts,
or the branch or county bureau of public security of the municipality directly under the Central Government in the place of his long-term
residence. The public security organ shall make such renewal or reissue within one month if, upon examination, it holds that the
holder still meets the requirements for a foreigner to be approved to permanently reside in China.

Article 23

The holder of a Foreigner’s Permanent Residence Card shall apply for a renewal of the Card within a month before the expiry of the
old one, for a renewal within a month after any change of particulars in the Card, or for a renewal or reissue promptly in the case
of any damage to or loss of the Card.

Article 24

The Ministry of Public Security may cancel such status of him and withdraw or revoke his Foreigner’s Permanent Residence Card in the
case of a foreigner with permanent residence status in China under any of the following circumstances:

(1)

Being likely to threaten the national security and interests;

(2)

Being expelled from China by the people’s court;

(3)

Having obtained the permanent residence status in China by submitting false materials or by other illegal means; and

(4)

Having stayed in China without approval for a period less than three cumulative months a year or less than a cumulative year in five
years.

Article 25

Foreigners who have been approved to permanently reside in China before the implementation of these Measures shall, within six months
from the implementation, renew his Foreigner’s Permanent Residence Card with the public security organ of the people’s government
of the city with subordinate districts or the branch and county bureau of public security of the municipality directly under the
Central Government that issued the original Card or in the place of his long-term residence.

Article 26

The items and rates of charge in respect of a foreigner’s application for permanent residence status in China and the issue, renewal
and reissue of a Foreigner’s Permanent Residence Card shall conform to the relevant provisions of the departments of price control
and finance of the State Council.

Article 27

In these Measures:

(1)

“Direct relative” shall include parents (spouse’s parents), grandparents, child being at least 18 years old and his (her) spouse,
and grandchild being at least 18 years old and his (her) spouse; and

(2)

Both “above” and “within” shall include the given figure.

Article 28

The power to interpret these Measures shall be vested in the Ministry of Public Security and the Ministry of Foreign Affairs.

Article 29

These Measures shall go into effect as of the date of promulgation.

The Ministry of Public Security, The Ministry of Foreign Affairs
2004-08-15

HIGHWAY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (2004 REVISION)

e01582

Standing Committee of the National People’s Congress

Highway Law of the People’s Republic of China (2004 Revision)

(Adopted at the 26th Meeting of the Standing Committee of the Eight National People’s Congress and implementation as of January 1st,
1998; Revised at the 11th session of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China
on August 28th, 2004)

ContentsChapter I General Provisions

Chapter II Highway Planning

Chapter III Construction of Highways

Chapter IV Maintenance of Highway Roads

Chapter V Road Administration

Chapter VI Toll Highways

Chapter VII Supervision and Checking

Chapter VIII Legal Responsibilities

Chapter IX Supplementary Provisions

Appendix

Chapter I General Provisions

Article 1

The law is enacted with a view to strengthening the construction and management and stimulating the development of highways so as
to suit the need of socialist modernization construction and people’s life.

Article 2

The law is applicable to the planning, construction, maintenance, operation, use and management of highways inside the territory of
the People’s Republic of China.

The word “highways” as referred in this law includes facilities such as bridges, tunnels and ferries for the highways.

Article 3

The development of highways shall follow the principles of overall planning, rational distribution, quality guarantee, clearance of
obstructions, environment protection and equal stress to construction, renovation and maintenance.

Article 4

The People’s Governments at all levels shall adopt effective measures to support and boost the construction of highways.

The construction of highways shall be incorporated into the national economic and social development plans.

The State encourages and guides domestic and foreign economic organizations to invest in the construction and operation of highways
according to law.

Article 5

The State shall help and support areas of minority nationalities, remote and border areas and impoverished areas to develop highways.

Article 6

Highways shall be divided, according to their positions in the networks, into State roads, provincial roads, county roads and township
roads and, technically into expressways, first class roads, second class roads, third class roads and fourth class roads. The specific
standards for the division shall be worked out by the State Council department in charge of transportation.

New roads should conform to technical standards in grading. The existing roads that fail to meet the minimum technical grading standards
should be transformed step by step according to the set standards.

Article 7

Highway roads are subject to the protection by the State. No unit or individual is allowed to damage or destroy highways, land or
ancillary facilities for highways or illegally put them into one’s own use.

Any unit or individual is obliged to protect highways and lands or ancillary facilities for highways and has the right to report or
indict acts of damaging or destroying highways, lands or ancillary facilities for highways, or acts affecting road safety.

Article 8

Department under the State Council in charge of transportation shall be responsible for the administration of highways throughout
the country.

Transportation departments of local People’s Governments at and above the county level shall be responsible for the administration
of highways within their respective administrative areas; but the functions and responsibilities of transportation departments of
local People’s Governments at and above the county level for the administration and supervision of State roads and provincial roads
shall be fixed by respective provincial, autonomous regional or municipal People’s Governments.

People’s Governments of townships, townships of minority nationalities areas and towns shall be responsible for the construction and
maintenance of township roads within their respective administrative areas.

Transportation departments of local People’s Governments at and above the county level may decide to entrust road management organizations
to exercise the duties of highway administration according to the provisions of this law.

Article 9

It is forbidden for any unit or individual to set up check posts, collect fees, impose fines or intercept vehicles on highways.

Article 10

The State encourages scientific research in terms of highways and reward units and individuals that have made significant achievements
on scientific and technical research and application in terms of highways.

Article 11

Provisions concerning special roads in this law apply to special roads.

Special highway roads refer to those built, maintained, managed by enterprises or other units exclusively or mainly for their own
respective uses.

Chapter II Highway Planning

Article 12

Highway planning shall be made in the light of the needs of the national economic and social development and national defense and
also in coordination with urban construction and development plans and the development of other traffic means.

Article 13

Plans for requisition of lands for constructing roads shall conform to the overall planning for land use and the land to be used for
such purposes shall be incorporated into the general land use plan of the year.

Article 14

Plans with respect to State roads shall be formulated by the transportation department under the State Council together with other
related departments under the State Council and the People’s Governments of provinces, autonomous regions and municipalities along
the lines and submitted to the State Council for approval.

Plans in respect to provincial roads shall be formulated by the transportation departments of People’s Governments of provinces, autonomous
regions and municipalities together with the People’s Governments of a lower level along the lines and submitted to the People’s
Governments of the respective provinces, autonomous regions and municipalities for approval and to the transportation department
under the State Council for record filing purposes.

Plans with respect to county roads shall be formulated by the transportation departments of the People’s Governments at the county
level together with related departments at the same level and submitted to the people’s governments of the same level for examination
and to the People’s Governments of the next higher level for approval.

Plans with respect to township roads shall be formulated by the people’s governments of township, townships inhabited by people of
minority nationalities and towns with the assistance of the transportation departments of the people’s governments at the county
level and submitted to the people’s governments at the county level for approval.

Plans with respect to county roads and township roads to be approved according to the provisions of paragraph three and paragraph
four of this article shall be submitted to the transportation departments of the people’s governments at the next higher level for
the record.

Plans with respect to provincial roads should be in harmony with plans of State roads; plans of county roads shall be coordinated
with plans of provincial roads; and plans of township roads shall be coordinated with plans of county roads.

Article 15

Plans of special roads shall be formulated by units in charge of special roads and, after being examined by departments in charge
at the next higher level, be submitted to the transportation departments of the People’s Governments at and above the county level
for approval.

Plans of special roads shall be coordinated with highway planning. Transportation departments of the people’s governments at and above
the county level shall put forward proposals for revision should they find the plans of special roads in disagreement with plans
of State roads, provincial roads, county roads and township roads and the departments and units in charge of the special roads shall
make revisions accordingly.

Article 16

Partial adjustments of State road plans shall be determined by the original organ of formulation. For major revisions of State road
plans, the original organ of formulation shall put forward revision plans and submit them to the State Council for approval.

If plans for provincial roads, county roads and township roads already approved need revising, the original organ of formulation shall
put forward revision proposals and submit them to the original organ of approval for re-approval.

Article 17

Names and indexes of State roads shall be set by the transportation department under the State Council. Names and indexes of provincial,
county and township roads shall be set by the transportation departments of the People’s Governments of provinces, autonomous regions
and municipalities according to the relevant provisions of the transportation department of the State Council.

Article 18

New villages and towns and development zones should be planned and built at prescribed distances from highways and absolutely not
to have any highway running across to avoid using highways as part of streets to impede the safety and smooth operations of the highways.

Article 19

The State encourages special roads to be used for public traffic. If a special road is turned to public use, it shall be made part
of provincial, county or township roads at the request of units in charge of the special roads or related departments and with the
consent of the units in charge of special roads and the approval of the transportation departments of the People’s Governments of
provinces, autonomous regions and municipalities.

Chapter III Construction of Highways

Article 20

The departments of transportation administration of the People’s Governments at and above the county level should, according to their
respective duties, safeguard the order and strengthen supervision and control of highway roads construction.

Article 21

In raising funds for highway construction, the People’s Government at all levels may, in addition to appropriations made by the People’s
Government at all levels, can collect special charges for road construction or solicit loans from domestic and foreign financial
organizations or foreign governments according to law and relevant provisions of the State Council on their own decisions.

The State encourages investments for highway construction by domestic and foreign organizations. Companies which engage in development
and/or management of highways may, according to law and administrative regulations, raise funds by means of issuance of stocks or
corporate bonds.

Incomes from the transfer of rights for collection of toll from highways according to the provisions of this law should be used for
construction of highways. Raising funds for highway roads construction from enterprises or individuals should be undertaken under
the principle of free will and in accordance with true needs and possibilities and relevant regulations of the State Council. No
forcible apportioning is permitted.

Other means permitted by law or relevant regulations of the State Council can also be used in raising funds for highways construction.

Article 22

Highway construction should be undertaken in accordance with procedures for infrastructural construction as provided for by the State
and other related regulations.

Article 23

Systems of legal person responsibility, public bidding and project supervision should be introduced in projects of highway construction
according to the relevant regulations of the State.

Article 24

Units undertaking highway roads construction should, according to the characteristics and technical requirements of the projects,
choose qualified survey and designing units, construction units and projects supervisors and sign contracts with them to clearly
define respective rights and obligations of both sides in accordance with provisions of related laws, regulations and rules and the
requirements of the road engineering and technical standards.

Units undertaking feasibility studies, survey and designing, construction, project supervision for highway roads construction projects
must be accommodated with qualification certificates issued by the State.

Article 25

Undertakings of highway construction should be reported to the transportation departments of local people’s governments above the
county level for approval in accordance with the provisions of transportation department under the State Council.

Article 26

Highway construction shall be undertaken strictly in conformance with prescribed technical standards of highway construction.

Entities of designing, construction and project supervision of highway construction projects should establish capable Q/C systems
and strictly carry out the job responsibility system in accordance with related laws of the country and undertake to design, construct
and supervise the projects according to the requirements of related laws, regulations and rules and highway engineering technical
standards and the terms agreed upon in the contracts in order to ensure the quality of construction.

Article 27

The use of land for constructing highway roads shall be handled according to relevant laws and administrative regulations

Highway construction should follow the principle of farmland protection and economical use of land.

Article 28

No unit or individual is allowed to intrude or collect fees illegally for the use of State owned waste hills, wasteland or for the
digging of sand, stone or earth from the State owned waste hills, wasteland, river beds and beach lands for highway construction
only if necessary procedures as provided for by related laws and administrative regulations have been undertaken for the respective
actions.

Article 29

Local People’s Governments at all levels should provide necessary support and assistance to the lawful use of land and resettlement
of people for construction of highway roads.

Article 30

Design and work of highway construction should be done in conformance with requirements of the protection of environment, historical
relics and sites and the prevention of water loss and soil erosion.

Highway construction projects planned to adapt to the requirements of national defense should be undertaken strictly according to
the plans so as to meet the needs of national defense in transportation.

Article 31

Should road construction project affect the normal operation of railways, water conservancy, power, postal and telecommunications
and other facilities, the unit for the construction should convey prior agreements form related units. If the construction of road
has caused damages to the afore-said facilities, the unit responsible for carrying out the construction should undertake to give
a remedy to the facilities affected to help restore their technical standards to no lower than the originals or give them corresponding
economic compensations.

Article 32

In the reconstruction of highway roads, construction units concerned should post signs at both ends of the section under reconstruction.
If the reconstruction requires vehicles to bypass, signs should be posted at the entry of the road to indicate the way to bypass
and on condition that there is no way for bypassing the section, a temporary road should be built by the construction unit concerned
to facilitate the passage of vehicles and pedestrians.

Article 33

Upon completion, highway roads construction and repairing projects are subject to procedures of examination and acceptance according
to relevant regulations of the State. Those projects that have not been examined or have been found unqualified for acceptance shall
not be put to use.

Clear signs and lines should be created for completed highway roads according to the regulations of the transportation under the State
Council.

Article 34

Local People’s Governments above the county level should allocate land on the roadside within 1 meter width from the outer edges of
the side ditches (aqueducts and road protection channel, the same below) on both sides of a road for the use of the related highway.

Chapter IV Maintenance of Highway Roads

Article 35

Related administrative departments of highways should undertake to maintain highway roads according to the technical standards and
operational procedures as prescribed by the transportation department under the State Council to ensure the roads are in a good technical
state.

Article 36

Expenses for highway maintenance should be acquired through the collection of fuel oil surcharge paid by units and individuals in
purchase of fuel oil according to the relevant provisions by the State.

In cases where fuel oil surcharge is collected, no more road maintenance fees shall be collected. Specific procedures and steps shall
be formulated by the State Council for the purpose.

Before the enforcement of collection of fuel oil surcharges, the existing road maintenance fee collection regulations shall remain
in force.

Road maintenance fees should be used for maintaining and reconstructing highway roads. Receipts shall be given by departments in charge
of transportation to units and individuals that have paid road maintenance fees. Receipts of road maintenance fee should be attached
to a place of clear sight on the vehicles. Vehicles bearing no such receipts of road maintenance fees are not allowed to run on the
roads.

Article 37

People’s Governments at the county and township levels should give support and assistance in the fetch of sand, stone, earth or water
for road maintenance.

Article 38

People’s Governments at the county and township levels should organize free services of rural residents on both sides of roads for
highway construction and maintenance according to the related regulations of the State.

Article 39

To ensure the personal safety of road maintenance personnel, road-maintaining personnel should wear safety uniforms when maintaining
roads. Vehicles used in road maintenance should bear obvious signs indicating that there is road maintenance going on.

During road maintenance, vehicles shall not be subject to the restrictions of road signs and road marks in route and direction under
the condition that other vehicles passing by are not affected. Other vehicles running along the road should give way to road maintenance
vehicles and personnel.

If road maintenance operation affects the passage of vehicles and pedestrians, the provisions of Article 32 of this law shall apply.

Article 40

When State highways and provincial roads are interrupted due to serious natural disasters, related highway administrative departments
should give timely repair. Should there be any difficulties for the related highway administration to undertake repair in time, local

People’s Governments above the county level should lose no time to organize local government institutions, people’s organizations,
enterprises and urban and rural residents for rush repairs. They may also ask for assistance from local army so as to restore the
operation of the roads as soon as possible.

Article 41

Highway administrative departments are responsible for soil and water preservation on hill slopes and wasteland at both sides of highways.

Article 42

Highway administration departments shall organize greening of highway roads according to the road engineering technical standards.

Trees at both sides of highways should not be felled without authorization. Required regenerative felling should go through prescribed
examination and approval procedures to get the consent of transportation departments of local people’s governments above the country
level and re-planting should be undertaken.

Chapter V Road Administration

Article 43

Appropriate measures should be undertaken by local people’s governments at all levels to strengthen the protection of the roads.

Departments in charge of transportation of local People’s Governments above the county level should work conscientiously to protect
highways according to law and strive to improve road management by employing scientific methods and advanced technologies, gradually
improve facilities for the road services and ensure good condition, safety, and smooth traffic of the roads.

Article 44

Without authorization, no unit or individual is allowed to occupy or dig the roads for their own uses.

If the construction of railways, airports, power plants, telecommunications facilities, water conservancy projects and other constructions
projects needs to occupy, dig or change the route of roads, prior consents should be obtained by construction unit concerned from
related departments in charge of transportation. If transport safety would also be affected, approval from the related public security
organs should also be sought. After occupying, digging or changing the routes of roads, construction units concerned should repair
or rebuild them at least up to their original technical standards or give corresponding economic compensations.

Article 45

Building of bridges and/or aqueducts or putting up or laying pipelines across over, at or under the roads or erecting or laying pipelines,
cables and other facilities in land for roads, prior consent should be sought from related departments in charge of transportation.
If transport safety would also be affected, prior consent from the related public security organs should also be sought.

Facilities being built, erected or laid should conform to technical standards for road engineering. Damages caused to the roads by
such undertaking should be compensated for according to the seriousness of the cases.

Article 46

No unit or individual is allowed to put up stands or stalls, store things, dump refuse, put up obstructions, dig ditches to divert
water, or use roadside ditches to discharge waste matters on highway roads or land for the roads or carry out any other activities
that would result in damages or pollution to the roads or affect the traffic of the roads.

Article 47

No sand collection, stone quarrying, earth digging or waste dumping, explosive operations or other activities threatening the safety
of roads, road bridges, road tunnels and road ferries is allowed within a perimeter of 200 meters of large and medium-sized road
bridges or ferries and within a perimeter of 100 meters above road tunnels or outside the mouths of road tunnels and within a certain
distance on both sides of the roads.

Building of dams, narrowing or widening of river beds for the purpose of rescue operations and flood prevention in the areas mentioned
in the preceding paragraph should get prior approval from transportation departments of the People’s Governments of respective provinces,
autonomous regions and municipalities and related water resources administrative departments, and effective measures should be carried
out to protect the related roads, road bridges, road tunnels and road ferries.

Article 48

Except short crossing by farm machineries to perform necessary operation in fields, iron-wheel carts, caterpillar vehicles and other
machines and tools that might damage road surface are not allowed to run on the roads. If the running of such vehicles is needed,
prior approval should be sought from transportation departments of the local people’s governments above the county level and effective
measures should be adopted to protect road surface and the running can only be carried out at the time and along the routes designated
by the related public security organs. Damages to the roads should be compensated for according to the seriousness of cases.

Article 49

The axle-load mass of vehicles running on roads should conform to the technical standards for road engineering.

Article 50

The vehicles that exceed the limit of load, height, width or length of roads, road bridges, road tunnels or auto ferries are not allowed
to run on such roads, road bridges or in such road tunnel or use such auto ferries. If it is actually necessary for a vehicle to
exceed the load limit for a road or road bridge, it shall be subject to approval of the competent transportation department of local
people’s government at or above the county level and shall adopt effective safety measures as required. If the goods carried by the
vehicle exceed the prescribed limits and can’t be divided into different parts, the vehicle should run at the specified time, along
a specified route and at a specified speed and shall carry an obvious sign

If the transport unit concerned is incapable of carrying out the protective measures prescribed in the preceding paragraph, transportation
departments in charge should assist in action with costs of the actions being borne by the transport unit concerned.

Article 51

Highway roads are not permitted to be used by motor vehicle manufacturers and other units as a testing ground for braking functions
of motor vehicles.

Article 52

No unit or individual is allowed to damage or move or alter ancillary facilities of roads.

Ancillary facilities of roads mentioned in the preceding paragraph refer to facilities, equipment and special buildings or structures
for road protection, water discharge, maintenance, management, services, traffic safety, ferrying, monitoring and control, telecommunications
and fee collection for the purpose of protecting, maintaining and ensuring traffic safety of roads.

Article 53

Those who have caused damages to roads should timely report the cases concerned to and accept on-the-spot investigations by road administrative
organizations.

Article 54

No unit or individual is allowed to erect signs other than road signs within the land for roads without the approval of the transportation
departments of local people’s governments above the county level.

Article 55

The addition of road crossings should get prior approval according to the related regulations of the State and the crossings should
be built according to the State-prescribed standards.

Article 56

Except required by road protection and maintenance, it is forbidden to construct buildings or ground structures within the control
areas on either side of roads. If it is necessary to lay pipelines or cables or other facilities within the control areas of roads,
prior approvals of the transportation departments of local people’s governments above the county level should be sought.

The control area for construction mentioned in the preceding paragraph should be demarcated by the local People’s Governments above
the county level according to the principle of ensuring traffic safety and economical use of land and the provisions of the State
Council.

After the control area for construction has been demarcated by the local people’s governments above the county level, the transportation
departments of local People’s Governments above the county level should put up signs and/or boundary markers. No unit or individual
is allowed to damage or move such signs or boundary markers without authorization.

Article 57

Except the provisions of the second paragraph of Article 47 of this law, the road administration functions exercised by the transportation
departments prescribed by this chapter should be exercised by road management organizations according to the provisions of Paragraph
4 of Article 8 of this law.

Chapter VI Toll Highways

Article 58

The State allows the opening of toll highways according to law and the number of toll highways shall be controlled.

Except highway roads that may collect tolls as prescribed by the provisions of Article 59 of this law, no other roads are allowed
to collect tolls.

Article 59

Collection of tolls is allowed according to law for the following roads that conform to the technical grading and size prescribed
by the transportation departments under the State Council:

Roads built by transportation departments of local People’s Governments above the county level on loans or funds raised from enterprises
and individuals;

Roads of domestic or foreign economic organizations that have got the right to collect tolls according to law;

Roads built with investment from domestic or foreign economic organizations according to law.

Article 60

Terms of collection of tolls of roads built by transportation departments of local people’s governments above the county level with
loans or funds raised should be determined by the people’s governments of respective provinces, autonomous regions and municipalities
according to the principle of return of the loans or funds raised through collection of tolls in line with the provisions of the
transportation department under the State Council.

After a transfer of the right of toll collection, the toll road concerned should be operated by the side to which the toll collection
right is transferred. Terms transfer of collection right should be agreed upon by the transferor and the transferee and submitted
to organ which approves the transfer for approval, but the term shall not exceed the time limit set by the State Council.

Joint construction of roads by domestic and foreign economic organizations should go through the examination and approval procedures
according to the relevant regulations of the State. After completion, the roads shall be managed and the tolls shall be collected
by the investors. Terms for toll collection should be agreed upon by related transportation departments and investors according to
the principle of “return of investment with reasonable profits” and submitted for examination and approval according to the relevant
regulations of the State, but the time limit shall not exceed that set by the State Council.

Article 61

The transfer of toll collection right of State roads as prescribed in Item 1 of Paragraph 1 of Article 59 shall be approved by the
transportation department under the State council. The transfer of toll collection right for other roads shall be approved by the
people’s governments of respective provinces, autonomous regions and municipalities and submitted to the transportation department
under the State Council for a record-filing purpose.

Minimum prices for the transfer of toll collection right prescribed in the preceding paragraph should be determined on the basis of
the value appraised by State property appraisal organizations.

Article 62

Domestic or foreign economic organizations to which the toll collection right has been transferred and which have invested in the
construction of roads should set up enterprises for developing and managing roads according to law (hereinafter referred to as “road
management enterprises”).

Article 63

The standards for toll collection should be proposed by toll collecting units and submitted to the people’s government of respective
provinces, autonomous regions and municipalities together with price departments at the same level for approval.

Article 64

The opening of toll gates for toll collection on the toll roads should get approval from local government of provinces, autonomous
regions or municipalities directly under the jurisdiction of the State Council.

The openings of toll gates that transcend provinces, autonomous regions and municipalities should be determined by the People’s Governments
of related provinces, autonomous regions or municipalities through consultation. Should consultation fail, related decisions shall
be made by transportation department under the State Council. When a single toll road is built by different transportation departments
or run by different road management enterprises, toll gates should be built based on an overall planning and in a rational manner
according to the principle of “unified collection and proportionate sharing of toll fees”.

The distance between two toll gates should not be less than the standards set by the transportation department under the State Council.

Article 65

When a toll collec

CIRCULAR OF THE MOF AND THE SAT ON STOPPING THE IMPLEMENTATION OF THE POLICY OF REFUND OF VALUE ADDED TAX ON THE IMPORT OF INTEGRATED CIRCUIT PRODUCTS DESIGNED AT HOME AND GOING ABROAD FOR WAFER FOUNDRY AND PROCESSING

the Ministry of Finance, the State Administration of Taxation

Circular of the MOF and the SAT on Stopping the Implementation of the Policy of Refund of Value Added Tax on the import of Integrated
Circuit Products Designed at Home and Going Abroad for Wafer Foundry and Processing

Cai Guan Shui [2004] No. 40

The General Administration of Customs and the Ministry of Information Industry,

Upon the approval of the State Council, from October 1, 2004, the Circular of the Ministry of Finance and the State Administration
of Taxation on the Policy of Import Taxation on Some Integrated Circuit Products Which Are Designed at Home and Going Abroad for
Wafer Foundry and Processing (Cai Shui [2002] No.140) shall cease to be implemented, and value added tax on the importation of the
integrated circuit products as listed in Document No.140 [2002] of the Ministry of Finance and the State Administration of Taxation
shall be computed and collected in light of the legal tax rate of 17% without exceptions.

Ministry of Finance

State Administration of Taxation

August 31st, 2004

the Ministry of Finance, the State Administration of Taxation
2004-08-31

REGULATION ON NATIONAL DEFENSE PATENT

the State Council, the Central Military Commission

Order of the State Council and Central Military Commission

No. 418

The Regulation on National Defense Patent is promulgated hereby and shall come into force as of November 1, 2004.

Premier of the State Council Wen Jiabao

Chairman of the Central Military Commission Jiang Zemin

September 17, 2004

Regulation on National Defense Patent

Chapter I General Provisions

Article 1

The present Regulation is formulated in accordance with the Patent Law of the People’s Republic of China for the purposes of protecting
the patent rights of the pertinent national defense inventions, safeguarding the state secrets, facilitating the popularization and
application of inventions and creations, promoting the development of science and technology for national defense and meeting the
demands of the modern construction of national defense.

Article 2

The “national defense patent” refers to the patent of any invention that relates to the national defense interests, which is potentially
important to the national defense construction and thus should be kept confidential.

Article 3

The national defense patent institution of the state (hereinafter to the NDPI) shall be responsible for accepting and examining the
applications for national defense patent. If, upon examination, the NDPI believes that an applicant meets the relevant requirements
of the present Regulation, the patent administrative department of the State Council shall grant the national defense patent right
to the applicant.

The administrative department of science, technology and industry for national defense of the State Council and the General Armament
Department of the People’s Liberation Army (hereinafter referred to as the GAD) shall be responsible for the management of national
defense patents of the local system and army system respectively.

Article 4

As for an invention that relates to the national defense interests or is determined as the top secret of the state for its potential
importance to national defense construction, no one may apply for determining it as a national defense patent

Prior to declassification, the applications for national defense patent and the work of keeping national patent confidential shall
be managed in accordance with the Law of the People’s Republic of China on Guarding State Secrets and other relevant provisions.

Article 5

The term of protection fora national defense patent shall be 20 years. It shall be calculated from the date of filing an application.

Article 6

Within the term of protection for a national defense patent, if it is necessary to change the security classification of the national
defense patent, to declassify the national defense patent or to extend term of confidentiality after the termination of the national
defense patent right, the NDPI may make a relevant decision accordingly. However, if it has been determined as a state secret before
an application is filed for determining it as a national defense patent, permission shall be obtained from the organ or entity that
previously determines the security classification and the term of confidentiality, or from its superior organ.

An entity or individual who has been granted the right of a national defense patent (hereinafter referred to as the patentee of a
national defense patent) may file a written application with the NDPI for changing the security classification, declassifying the
national defense patent or extending the term of confidentiality. If the entity is a state-owned enterprise or public institution
or military entity, such an application shall be accompanied by the opinions of the organ or entity that previously determines the
security classification and the term of confidentiality, or by the opinions of its superior organ.

The NDPI shall publish the decision of changing the security classification, declassifying the national defense patent or extending
the term of confidentiality on its Internal Bulletin for National Defense Patent, inform the patentee of the national defense patent
of it, and simultaneously submit the declassified national defense patent to the patent administrative department of the State Council
for changing it into a general patent. The patent administrative department of the State Council shall timely announce the declassified
national defense patent to the general public.

Article 7

The right to apply for a national defense patent and the right of a national defense patent may be transferred to a Chinese entity
or individual within China upon approval.

When transferring the right to apply for a national defense patent or the right of a national defense patent, one shall ensure that
the state secrets won’t be divulged, shall guarantee that construction of national defense and the army won’t be affected and shall
file a written application with the NDPI. The NDPI shall conduct a preliminary examination, and then it shall, in accordance with
the functions as prescribed in the second paragraph of Article 3 of the present Regulation, timely report it to the administrative
department of science, technology and industry for national defense of the State Council or the GAD for examination and approval.

The administrative department of science, technology and industry for national defense of the State Council or the GAD shall make
a decision of approval or disapproval within 30 days after the NDPI accepts an application. If it makes a decision of disapproval,
it shall give a written notice and an explanation therefor to the applicant.

Where an applicant is approved of transferring the right to apply for a national defense patent or the right of a national defense
patent, the parties concerned shall sign a written contract and shall have it registered in the NDPI. The NDPI shall publish it on
its Internal Bulletin for National Defense Patent. The right to apply for the national defense patent or the transference of the
right of the national defense patent shall be valid from the registration date.

Article 8

It is prohibited to transfer the right to apply for a national defense patent or the right of a national defense patent to an entity
or individual outside China, or to a foreigner or foreign institution within China.

Article 9

Anyone who needs to entrust a patent agency to apply for a national defense patent or to handle other matters related to national
defense patent shall entrust a patent agency designated by the NDPI to do so. The patent agency and its personnel shall be obliged
to keep confidential the state secrets they learn in handling the national defense patent application and other matters related to
national defense patent.

Chapter II Application, Examination and Authorization of National Patent

Article 10

Anyone who applies for a national defense patent shall submit an application, description and its abstracts, claims and other documents
to the NDPI.

The national defense applicant shall prepare the application documents according to the requirements and uniform formats as prescribed
by the NDPI and shall submit them to the NDPI by personal delivery, confidential correspondence or any other secret way. The applicant
may not post them by ordinary mail.

The day when the NDPI receives the national defense patent application documents shall be the date of filing an application. If the
application documents are submitted by confidential correspondence, the date of mailing indicated by the postmark shall be the date
of filing an application.

Article 11

The NDPI shall regularly appoint a person to examine the common patent applications in the patent administrative department of the
State Council. If it finds that an application involves the interests of national defense or is of potential importance to the construction
of national defense and thus it is necessary to keep it secret, then upon consent of the patent administrative department of the
State Council, this application shall be changed into an application for national defense patent and the applicant shall be informed
of the change.

After a common patent application has been changed into an application for national defense patent, the NDPI shall examine it in accordance
with the relevant provisions of the present Regulation.

Article 12

Any invention to which the right of national defense patent may be granted must possess novelty, inventiveness and practical applicability

Novelty means that, before the date of filing an application, no identical invention has been publicly disclosed in publications within
China or abroad or has been publicly used or made known to the public by any other means within China, nor has any other person previously
filed an application which described the identical invention or obtains the right of national defense patent after the date of filing
an application.

Inventiveness means that, as compared with the technology existing before the date of filing an application, the invention has prominent
substantive features and represents a notable progress.

Practical applicability means that the invention can be made or used and can produce effective results.

Article 13

Under any of the following circumstances, an invention for which a national defense patent is applied does not lose its novelty within
six months before the date of filing an application:

(1)

It is, for the first time, exhibited at an internal exhibition sponsored by the corresponding administrative department of the State
Council or the corresponding administrative department of the People’s Liberation Army;

(2)

It is, for the first time, made public at a academic or technological conference internally held by the administrative department
of the State Council or the pertinent administrative department of the People’s Liberation Army; or

(3)

It is disclosed by any other person without the consent of the applicant.

Under any of the circumstances as listed in the preceding paragraph, the applicant for national defense patent shall make a statement
when it files an application, and shall provide the relevant documentary evidence within 2 months from the date of filing an application.

Article 14

If, upon examination over an application for national defense patent, the NDPI considers that the application doesn’t meet the requirements
of the present Regulation, it shall inform the applicant for national defense patent to present an argument or revise or make supplements
and corrections to its application for national defense patent within a specified time limit. If the applicant fails to make a response
within the specified time limit without any reasonable ground, it shall be regarded as having withdrawn its application for national
defense patent.

Within 6 months from the date of filing an application, or when the applicant for national defense patent make a response to the notice
of opinions on preliminary examination, the applicant for national defense patent may, on its own initiative, requests to revise
its application for national defense patent.

The revisions made by the applicant to its national defense patent application documents may not exceed the scope of disclosure contained
in the initial description and claims.

Article 15

After the applicant for national defense patent has presented an argument or has revised or has made supplements and corrections to
the national defense patent application documents, if the NDPI still considers that the application doesn’t meet the requirements
of the present Regulation, it shall dismiss the application.

Article 16

The NDPI shall set up a National Defense Patent Reexamination Board, which shall be responsible for reexamining the national defense
patents and announcing invalid ones.

The National Defense Patent Reexamination Board shall consist of technical experts and legal experts. Its position of director member
shall be concurrently held by the person-in-charge of the NDPI.

Article 17

If an applicant for national defense patent refuses to accept the decision of the NDPI on dismissing the application, it shall, within
3 months from receipt of the notice, ask the National Defense Patent Reexamination Board to conduct reexamination. After the National
Defense Patent Reexamination Board conducts reexamination and makes a decision, it shall notify the applicant for national defense
patent of the said decision.

Article 18

If it is held that there is no reason to dismiss a national defense application upon examination, or it is improper to dismiss a national
defense application upon reexamination, the patent administrative department of the State Council shall decide to grant the applicant
the right of a national defense patent, authorize the NDPI to issue a national defense patent certificate to the applicant and simultaneously
disclose the date of filing an application for the national defense patent, the date of granting the right of national defense patent
and the number of the national defense patent through the patent bulletin published by the patent administrative department of the
State Council. The NDPI shall register the matters relating to the national defense patent and publish them on the Internal Bulletin
for National Patent.

Article 19

Where an entity or individual considers that the grant of the right of a national defense patent is not consistent with the present
Regulation, it (he) may ask the National Defense Patent Reexamination Board to declare the right of the national defense patent invalid.

Article 20

After the National Defense Patent Reexamination Board examines an application for announcing a national defense patent invalid and
makes a decision, it shall notify the applicant and the patentee of a national defense patent of the said decision. The NDPI shall
publish the decision on declaring the right of a national defense patent invalid on the Internal Bulletin for National Patent, and
the patent administrative department of the State Council shall publish it on the patent bulletin.

Chapter III The Exploitation of National Defense Patents

Article 21

The NDP shall, within 3 months from the day when it grants the applicant the right of a national defense patent, submit the duplicates
of the relevant documents of the national defense patent to the corresponding administrative department of the State Council or the
corresponding administrative department of the People’s Liberation Army, which shall, within 4 months from the day after receipt
of the duplicates of the relevant documents, put forward opinions in writing about the exploitation of the national defense patent
and inform the NDPI of its opinions.

Article 22

The corresponding administrative department of the State Council or the corresponding administrative department of the People’s Liberation
Army may permit its designated entities to exploit the national defense patents of its own system or department. If it is necessary
to designate entities to exploit a national defense patent other than those of its own system or department, it shall file a written
application to the NDPI, which shall, in accordance with the functions as stipulated in the second paragraph of Article 3 of the
present Regulation, report that to the administrative department of science, technology and industry for national defense of the
State Council or the GAD for approval. Upon approval, the said patent may be exploited.

The NDPI shall register the information concerning the designated exploitation of national defense patents and shall publish it on
the Internal Bulletin for National Defense Patent.

Article 23

An entity exploiting a national defense patent of others shall sign a written contract with the patentee of this national defense
patent, shall pay fee to the patentee of the national defense patent in accordance with Article 25 of the present Regulation and
shall report that to the NDPI for archival purposes. Except the entities as stipulated in the contract, the exploiting entity may
not allow any other entity to exploit the national defense patent.

Article 24

Where a patentee of a national defense patent permits an overseas entity or individual to exploit its national defense patent, it
shall ensure that the state secrets won’t be divulged, shall guarantee that the construction of national defense and the army won’t
be affected and shall file a written application with the NDPI. The NDPI shall conduct a preliminary examination in pursuance of
the functions as stipulated in the second paragraph of Article 3 of the present Regulation, and then timely submit it for examination
and approval to the administrative department of science, technology and industry for national defense of the State Council, or the
GAD.

The administrative department of science, technology and industry for national defense of the State Council, or the GAD shall, within
30 days after the NDPI accepts the application, make a decision of approval or disapproval. If it makes a decision of disapproval,
it shall give a written notice and an explanation therefor to the applicant .

Article 25

Anyone who exploits the national defense patent of others shall pay the national patent exploitation fee to the patentee of a national
defense patent. If the exploitation of a national defense patent, which is derived from using the scientific research funds directly
allocated by the state for national defense or from the scientific research activities by using other national defense funds, is
consistent with the purposes of the funds from which the national defense patent is derived, it (he) may only be required to pay
the necessary national defense patent exploitation fee except there are otherwise stipulations in the scientific research contract
or in the description of scientific research project.

The “national defense patent exploitation fee” as mentioned in the preceding paragraph refers to the essential expenditure incurred
in the exploitation of a national defense patent for offering technical materials, training personnel and further technical development.

Article 26

The amount of the fee for exploiting or using a national defense patent shall be determined by the patentee of a national defense
patent and exploiting entity through negotiation. If they fail to come to an agreement, the issue shall be arbitrated by the NDPI.

Article 27

The state shall compensate the patentee of a national defense patent. After the NDPI issues a national defense patent certificate,
it shall pay the compensation fee for national defense patent to the patentee of the national defense patent. The amount of compensation
fee shall be determined by the NDPI. If the patent is for a service invention, the patentee of the national defense patent shall
pay at least 50 % of the compensation fee for national defense patent to the inventor.

Chapter IV Management and Protection of National Defense Patents

Article 28

The Internal Bulletin for National Defense Patent published by the NDPI falls within the scope of state secret documents. The range
of its readers shall be decided by the NDPI.

The Internal Bulletin for National Defense Patent may publish the following contents:

(1)

The items as recorded in an application for national defense patent;

(2)

The claims for a national defense patent;

(3)

The abstracts of the description of an invention;

(4)

The grant of a national defense patent;

(5)

The termination of a national defense patent;

(6)

The announcement on invalidity of a national defense patent;

(7)

The right to apply for a national defense or the transference of a national defense patent;

(8)

The designated exploitation of a national defense patent;

(9)

The records of a license contract on the use of a national defense patent;

(10)

The change of the security classification or declassification of a national defense patent;

(11)

The extension of the term for the confidentiality of a national defense patent;

(12)

The change of name or address of a patentee of a national defense patent; and

(13)

Other relevant items.

Article 29

After the grant of a national defense patent, one may, upon permission of the NDPI, consult the descriptions of the national defense
patent under any of the following circumstances:

(1)

Requesting to declare the national defense patent invalid;

(2)

Being in the need of exploiting a national defense patent;

(3)

Occurrence of any dispute over the national defense patent; or

(4)

Due to the needs of scientific research for national defense.

A consulter shall be obliged to keep secret the state secrets he learns during the consulting.

Article 30

The corresponding administrative department of the State Council, the corresponding administrative department of the People’s Liberation
Army and the administrative departments of science, technology and industry for national defense of the provinces, autonomous regions,
and municipalities directly under the Central Government shall each designate an institution to be responsible for the management
of national defense patents and shall notify the NDPI of it. All such institutions shall be subject to the operating guidance of
the NDPI.

The army entities undertaking tasks of scientific research or production for national defense or participating in armament orders,
entities for which the State Council performs the obligations of the investor, and public institutions directly under the State Council
shall each designate a corresponding department to manage their respective national defense patents.

Article 31

The NDPI may mediate the following disputes over national defense patent at the request of a party concerned:

(1)

Any dispute over the ownership of the right to apply for national defense patent and the national defense patent right;

(2)

Any dispute over the qualification of the inventor or creator of a national defense patent;

(3)

Any dispute over the award and remuneration of the inventor or creator of a service invention-creation; and

(4)

Any dispute over the fees for using or exploiting the national defense patent.

Article 32

Except when it is otherwise provided in the Patent Law of the People’s Republic of China and the present Regulation, anyone who exploits
a national defense patent without the permission of the patentee of the national defense patent, it (he) infringes upon its (his)
national defense patent right, the parties concerned shall solve it through negotiation if any dispute is caused. If the parties
concerned refuse to negotiate, or if they fail to reach an agreement through negotiation, the patentee of a national defense patent
may file a lawsuit in the people’s court or require the NDPI to solve the issue.

Article 33

Anyone who divulges the state secrets in violation with the present Regulation shall be punished in pursuance of the Law of the People’s
Republic of China on Guarding State Secrets and other relevant provisions of the state.

Chapter V Supplementary Provisions

Article 34

Anyone who applies for a national defense patent to the NDPI and go through other formalities with it shall pay the fees according
to the relevant provisions.

Article 35

The pertinent provisions in the Patent Law of the People’s Republic of China and the Detailed Rules for the Implementation of the
Patent Law of the People’s Republic of China are applicable to the national defense patents, but the specific provisions in the present
Regulation shall prevail.

Article 36

The present Regulation shall come into force as of November 1, 2004. The Regulation on the National Defense Patents approved by the
State Council and the Central Military Commission on July 30, 1990 shall be simultaneously abolished.

the State Council, the Central Military Commission
2004-09-17

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON STRENGTHENING THE SUPERVISION OVER VERIFICATION AND WRITING-OFF OF THE EXPORT PROCEEDS IN FOREIGN EXCHANGE

State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Strengthening the Supervision over Verification and Writing-off of the
Export Proceeds in Foreign Exchange

Hui Fa [2004] No. 98

September 30, 2004

To the branch offices of the State Administration of Foreign Exchange and the departments for foreign exchange control of various
provinces, autonomous regions and municipalities directly under the Central Government, and the branch offices of the State Administration
of Foreign Exchange of municipalities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; and to the various designated foreign exchange
banks with Chinese investment:

Recently some local branch offices have in succession reported the acts of some enterprises’re-selling instruments for verification
and writing-off of the export proceeds in foreign exchange within their jurisdiction. Moreover, departments concerned reported to
the State Council that some people in Zhejiang, Jiangxi and Sichuan were defrauding the State of the refunded tax in the name of
earning foreign exchange through exports by acquiring a lot of dollars and then depositing such dollars into accounts of export enterprises.
In view of these circumstances, related leaders of the State Council have given an official reply of great importance, requiring
relevant departments to promptly conduct investigation together and improve the administration. Therefore, the State Administration
of Foreign Exchange hereby notify related matters on further strengthening the supervision over the verification and writing-off
of export proceeds in foreign exchange as follows:

On the precondition of continuous support to trade facilitation, the administration of the issuance of instruments for verification
and writing- off of the export proceeds in foreign exchange shall be strengthened in strict accordance with related provisions of
the Implementation of the Measures for the Administration of Verification and Writing-off of the Export Proceeds in foreign Exchange,
especially to focus on the supervision over export enterprises that collect the said instruments in a large quantity and quite frequently,
and to trace and urge such enterprises to deal with verification and writing-off of export proceeds in foreign exchange in time.
Local branch offices of the State Administration of Foreign Exchange shall be on the alert, in time report abnormalities during the
collection of the said instruments by export enterprises, conduct investigation and verification thereafter and take steps to handle
the problems that are found in violation of provisions, if any.

Local branch offices of the State Administration of Foreign Exchange shall take one step ahead in strengthening the administration
of export items that require settlement with foreign currency notes by urging banks to handle the formalities of exchange settlement
and entry into account in terms of exchange collection under export items in strict compliance with Article 27 of the Rules for
the Implementation of the Measures for the Administration of Verification and Writing-off of the Export Proceeds in foreign Exchange..
Should exchange settlement or entry into account be prohibited to be effected by foreign currency notes according to provisions,
no banks may issue coupons special for verification and writing-off of the export proceeds in foreign exchange to export enterprises
for handling formalities of verification and writing-off of the export proceeds in foreign exchange.

Personnel at the counter of branch offices of the State Administration of Foreign Exchange shall, upon handling the formalities of
verification and writing-off of the export proceeds in foreign exchange for export enterprises, strictly observe related internal
control system and deal with businesses according to specified procedure; shall pay attention to examine with due care the pertinent
certificates submitted by export enterprises so as to ensure the truthfulness and completeness of instruments for verification and
writing-off, and conduct data post record by hand according to provisions as well as review such data.

Branch offices of the State Administration of Foreign Exchange of all localities shall, under the leadership of the People’s Banks
in places where such offices are located, consciously and initiatively strengthen the inspection and supervision over the compliance
of business concerning verification and writing-off of the export proceeds in foreign exchange, which is handled inside such offices,
and shall, according to internal control system, organize to well conduct spot check and audit after verifying and canceling counter
service, establish and improve internal audit system and carry out supervision over verification and writing-off in strict accordance
with the relevant provisions laid down in the Measures for the Administration of Verification and Writing-off of the Export proceeds
in foreign exchange. In case of many failings in the administration as a result of non-compliance with provisions, personnel responsible
therefor shall be investigated subject to related provisions.

Branch offices of the State Administration of Foreign Exchange of all localities shall issue coupons special for tax refund on the
verification and writing-off of the export proceeds in foreign exchange, actively carry out close cooperation with the Customs and
tax authorities in plugging up loopholes of verification and writing-off of the export proceeds in foreign exchange and tax refund.

Local branch offices of the State Administration of Foreign Exchange of all localities shall, upon the receipt of this Circular, transmit
it to sub-braches in areas under their jurisdiction, carefully organize and implement it and promptly report to the State Administration
of Foreign Exchange any new situation or problem occurred in the verification and writing-off of the export proceeds in foreign exchange
within the aforesaid areas.

State Administration of Foreign Exchange
2004-09-30

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON TRANSMITTING THE CATALOGUE OF PRIORITY INDUSTRIES FOR FOREIGN INVESTMENT IN THE CENTRAL-WESTERN REGION (REVISED IN 2004)

General Administration of Customs

Circular of the General Administration of Customs on Transmitting the Catalogue of Priority Industries for Foreign Investment in the
Central-western Region (Revised in 2004)

Shu Shui Fa [2004] No. 347

Guangdong sub-administration of the General Administration of Customs, Tianjin and Shanghai special commissioners offices and all
the customs directly under the General Administration of Customs:

Upon the approval of the State Council, the National Development and Reform Commission and the Ministry of Commerce jointly promulgated
the Catalogue of Priority Industries for Foreign Investment in the Central-western Region (Revised in 2004) (hereinafter referred
to as the Catalogue, see the appendix for detail), which was implemented as of September 1, 2004. The Catalogue is hereby transmitted,
and the relevant issues concerning the implementation are notified as follows:

The Catalogue was implemented as of September 1, 2004, that is, the project with foreign investment in the central-western region
(including capital increased projects) approved after September 1 shall be implemented according to the Catalogue. As for the project
with foreign investment subject to the Catalogue, tariff and import link VAT may be exempted in accordance with the provisions of
the Urgent Notice of the General Administration of Customs on the Implementation of the Circular of the State Council on Adjusting
the Taxation Policies of Import Equipment (Shu Shui [1997] No. 1062).

For the purpose of ensuring the succession of policy, as for the project with foreign investment approved according to the former
Catalogue of Priority Industries for the Foreign Investment in Central-western Region before September 1, 2004, taxation preferential
policies on import may be still enjoyed continuously according to the former provisions.

Where any project being established and not exempted from tax complies with the provisions of the Catalogue, an application for making
up the Confirmation Letter of the Project with Chinese and Foreign Investment that the State Encourages to Develop may be filed to
the competent department of investment under the State Council or to the authorized competent department of investment at provincial
level. After the Confirmation Letter of the Project with Chinese and Foreign Investment that the State Encourages to Develop is gained,
the imported self-used equipment of the project being established may enjoy taxation preferential policies on import according to
the former provisions, but the tax that has been levied from the imported equipment shall not be refunded.

As for the project approved by the examination and approval department to enjoy taxation preferential policies on import, all the
customs shall strictly check the scope of the commodities exempted from tax according to the Catalogue of Import Commodity Not Exempted
from Tax of the Project with Foreign Investment.

After the implementation of the Catalogue, the code of Project Item of the Industry Policy Examination and Approval shall be G,
for instance, the second item of Shanxi province shall be filled in as: Subsequent industrial development of such national key ecological
projects as reclaiming farmland to forests and pastures, and protecting natural forests (G1402); the fifth item of Jiangxi province
shall be filled in as: Manufacture of top grade ceramics for daily use (G3605).

The issues concerning the adjustment of the parameter library in the System for Administration of Tax Reduction and Exemption will
be notified separately.

Other issues not covered in this Circular shall still be carried out in accordance with the provisions of the Circular of the State
Council on Adjusting the Taxation Policies of Import Equipment (Guo Fa [1997] No.37) and the Urgent Notice of the General Administration
of Customs on the Implementation of the Circular of the State Council on Adjusting the Taxation Policies of Import Equipment (Shu
Shui [1997] No. 1062).

General Administration of Customs

October 14, 2004

General Administration of Customs
2004-10-14

MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION SUPPLEMENTARY NOTICE ON TRIAL IMPLEMENTATION OF TAX REFUND (EXEMPTION) FOR EXPORT OF GOODS UNDER SMALL-SCALE BORDER TRADE SETTLED IN RENMINBI

Ministry of Finance, State Administration of Taxation

Ministry of Finance and the State Administration of Taxation Supplementary Notice on Trial Implementation of Tax Refund (Exemption)
for Export of Goods under Small-scale Border Trade Settled in Renminbi

Cai Shui [2004] No. 178

The Department of Finance and the Bureau of State Taxation of Yunnan Province:

With a view to further handling well the pilot work in the trial implementation in Yunnan of tax refund for export of goods under
small-scale border trade settled in Renminbi, upon the approval of the State Council to, as of October 1, 2004, the rate of refundable
amount of taxes has been adjusted from the present 70% to 100% if the export of goods under small-scale border trade in Yunnan is
settled in Renminbi by means of banking transfer; and the present rate of refundable amount of taxes maintains at 40% if the export
of goods under small-scale border trade in Yunnan is settled in cash. The specific time for implementation shall accord with the
date of export indicated on the “Customs Declaration Form for Export of Goods (the Sheet for Tax Refund for Exports)” issued by the
Customs.

Other matters relating to tax refund (exemption) for export of goods under small-scale border trade settled in Renminbi shall still
be implemented in light of the provisions set by Ministry of Finance and the State Administration of Taxation Notice on Trial Implementation
of Tax Refund (Exemption) for Export of Goods under Small-scale Border Trade Settled in Renminbi (Cai Shui [2003] No. 245).

Hereby notify.

Ministry of Finance

State Administration of Taxation

October 29, 2004

Ministry of Finance, State Administration of Taxation
2004-10-29

1...567...29 Page 6 of 29

Brazilian Laws

CONSTITUTIONAL AMENDMENTS part 4 – 1988 Constitution

CONSTITUTIONAL AMENDMENTS part 3 – 1988 Constitution

NOTICE OF THE STATE COUNCIL ON ADJUSTING THE PROPORTIONS OF REGISTERED CAPITAL IN FIXED ASSET INVESTMENT PROJECTS OF SOME INDUSTRIES

ANNOUNCEMENT OF THE MINISTRY OF COMMERCE AND THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE

REPLY OF THE STATE ADMINISTRATION OF TAXATION ON ISSUES CONCERNING THE APPLICATION OF PREFERENTIAL TAX POLICY BY FOREIGN-FUNDED ENTERPRISES FOR THEIR UNDERTAKING OF TAXI BUSINESS AND OTHER PASSENGER TRANSPORTATION BUSINESSES

MEASURES FOR THE ADMINISTRATION OF EXAMINATION AND APPROVAL OF FOREIGNERS’ PERMANENT RESIDENCE IN CHINA

HIGHWAY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (2004 REVISION)

CIRCULAR OF THE MOF AND THE SAT ON STOPPING THE IMPLEMENTATION OF THE POLICY OF REFUND OF VALUE ADDED TAX ON THE IMPORT OF INTEGRATED CIRCUIT PRODUCTS DESIGNED AT HOME AND GOING ABROAD FOR WAFER FOUNDRY AND PROCESSING

REGULATION ON NATIONAL DEFENSE PATENT

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON STRENGTHENING THE SUPERVISION OVER VERIFICATION AND WRITING-OFF OF THE EXPORT PROCEEDS IN FOREIGN EXCHANGE

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON TRANSMITTING THE CATALOGUE OF PRIORITY INDUSTRIES FOR FOREIGN INVESTMENT IN THE CENTRAL-WESTERN REGION (REVISED IN 2004)

MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION SUPPLEMENTARY NOTICE ON TRIAL IMPLEMENTATION OF TAX REFUND (EXEMPTION) FOR EXPORT OF GOODS UNDER SMALL-SCALE BORDER TRADE SETTLED IN RENMINBI

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7