INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT
REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON LABOUR MANAGEMENT IN JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT
RULES FOR THE IMPLEMENTATION OF THE INDIVIDUAL INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA
INTERIM REGULATIONS ON FOREIGN EXCHANGE CONTROL
| Category | BANKING | Organ of Promulgation | The State Council | Status of Effect | Invalidated |
| Date of Promulgation | 1980-12-18 | Effective Date | 1981-03-01 | Date of Invalidation | 1996-04-01 |
|
Interim Regulations on Foreign Exchange Control of the People’s Republic of China |
|---|
Chapter I General Provisions
Chapter II Foreign Exchange Control Relating to State Units and
Chapter III Foreign Exchange Control Relating to Individuals
Chapter IV Foreign Exchange Control Relating to Foreign Resident
Chapter V Foreign Exchange Control Relating to Enterprises with Overseas
Chapter VI Control Relating to Carrying Foreign Exchange, Precious Metals
Chapter VII Supplementary Provisions
(Promulgated by the State Council on December 18, 1980)(Editor’s Note:
These Regulations have been annulled by Regulations of the People’s Republic
of China on Foreign Exchange Control promulgated on January 29, 1996 and
effective as of April 1, 1996)
Chapter I General Provisions
Article 1 These Regulations are formulated for the purpose of
strengthening foreign exchange control, increasing national foreign
exchange income and economizing on foreign exchange expenditure so as to
facilitate the development of national economy and safeguard the rights and
interest of the country.
All foreign exchange income and expenditure, the issuance and circulation
of all kinds of payment instrument in foreign currency, and the carrying of
foreign exchange, precious metals and payment instruments in foreign currency
into and out of the territory of the People’s Republic of China shall be
governed by these regulations.
Article 2 Foreign exchange mentioned in these Regulations refers to:
a. foreign currencies,including banknotes, coins, etc.
b. securities in foreign currency, including government bonds, treasury
bills, corporate bonds and debentures, stocks, and interest coupons, etc.
c. instruments payable in foreign currency, including bills, drafts,
cheques, bank deposit certificates, postal savings certificates, etc.
d. other foreign exchange funds.
Article 3 The People’s Republic of China pursues the policy of
centralized control and unified management of foreign exchange by the State.
The administrative agency of the People’s Republic of China in change of
foreign exchange control is the State Administration of Foreign Exchange
Council (SAFEC) and its branch offices.
The specialized bank of the People’s Republic of China engaged in foreign
exchange business is the Bank of China. No other financial institution shall
engage in foreign exchange business, unless approved by the SAFEC.
Article 4 All Chinese and foreign organizations or individuals within the
territory of the People’s Republic of China must, unless otherwise stipulated
by law, decrees and these Regulations, sell their foreign exchange to the Bank
of China. Any foreign exchange they required is to be sold to them by the Bank
of China in accordance with the plans approved by the State or with relevant
provisions.
The circulation, use and mortgage of foreign currency, the unauthorized
sales and purchases of foreign exchange, and the unlawful procurement of
foreign exchange or evasion of foreign exchange control by whatever means are
prohibited within the territory of the People’s Republic of China.
Chapter II Foreign Exchange Control Relating to State Units and
Collective Economic Organizations
Article 5 All the foreign exchange incomes and expenditures of State
organs, units of the armed forces, nongovernmental bodies, schools, State
enterprises, institutions and urban and rural collective economic
organizations within China’s territory (hereinafter referred to as
organizations within territory) are all subject to planned control.
Organizations within territory are permitted to hold their retained
foreign exchange in accordance with the relevant provisions.
Article 6 Unless approved by the SAFEC or its branch offices,
organizations within territory shall not possess foreign exchange; deposit
foreign exchange abroad; offset foreign exchange expenditure against foreign
exchange income; or use the foreign exchange belonging to State organs
stationed abroad or enterprises and institutions established in foreign
countries or in the Hong Kong and Macao regions by the State, by way of
borrowing or acquisition.
Article 7 Unless approved by the State Council, organizations within
territory shall not issue securities with foreign exchange value inside or
outside China.
Article 8 With regard to loans to be accepted by organizations within
territory from banks or enterprises in foreign countries or in the Hong Kong
and Macao regions, the relevant competent departments under the State Council
or the relevant people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall consolidate and
draw up overall annual plans for such loans which must be submitted to the
SAFEC and the Foreign Investment Control Commission for examination and
transmission to the State Council for approval.
The measures for examining and approving such loans shall be prescribed
separately.
Article 9 Any foreign exchange held by organizations within territory,
including their retained foreign exchange, non-trade foreign exchange and
foreign exchange under compensatory trade received in advance and reserved for
later payments, funds borrowed in convertible foreign currencies and other
foreign exchange held with the approval of the SAFEC or its branch offices
must be placed in foreign currency deposit accounts or foreign currency quota
accounts to be opened with the Bank of China, and must be used within the
prescribed scope and be subject to the supervision of the Bank of China.
Article 10 When organizations within territory import or export goods,
the banks handling the transactions shall check their foreign exchange
receipts and payments either against the import or export licenses duly
verified by the Customs or against the Customs declaration forms for imports
or exports.
Article 11 State organs stationed abroad must use foreign exchange
according to the plan approved by the State.
The profits derived from their business operations by enterprises and
institutions established in foreign countries or in the Hong Kong and Macao
regions, except for the portion kept there as working funds according to the
plan approved by the State, must be transferred back on schedule and be sold
to the Bank of China.
No organization stationed abroad is permitted to keep foreign exchange
for organizations within territory without authorization.
Article 12 Delegations and working groups sent temporarily to foreign
countries or to the Hong Kong and Macao regions must use foreign exchange
according to their respective specific plans, and must, upon completion of
their missions and return, promptly transfer back to China their surplus
foreign exchange to be checked by and sold to the Bank of China.
Foreign exchange earned in their various business activities by the
delegations and working groups mentioned in the preceding paragraph and by
members thereof, must be promptly transferred back to China and must not be
kept abroad without the approval of the SAFEC or its branch offices.
Chapter III Foreign Exchange Control Relating to Individuals
Article 13 Foreign exchange remitted from foreign countries or from the
Hong Kong and Macao regions to Chinese, foreign nationals and stateless
persons residing in China must be sold to the Bank of China, except the
portion retained as permitted by the State.
Article 14 Chinese, foreign nationals and stateless persons residing in
China shall be permitted to keep in their own possession foreign exchange
already in China.
The foreign exchange mentioned in the preceding paragraph shall not,
without authorization, be carried or sent out of China either by owners or
by others or by post.
If the owners need to sell the foreign exchange, they must sell it to the
Bank of China and are permitted to retain a portion of the foreign exchange
according to the percentage prescribed by the State.
Article 15 When the foreign exchange that has been kept in foreign
countries or in the Hong Kong and Macao regions by Chinese residing in China
prior to the founding of the People’s Republic of China, by overseas Chinese
prior to their returning to and settling down in China, or by Hong Kong and
Macao compatriots prior to their returning to and settling down in their
native places, is transferred to China, the owners shall be permitted to
retain a portion of the foreign exchange according to the percentage
prescribed by the State.
Article 16 When the foreign exchange belonging personally to individuals
sent to work or study in foreign countries or in the Hong Kong and Macao
regions is remitted or brought back to China, the owners, upon the completion
of their missions and return, shall be permitted to retain the entire amount
of the foreign exchange.
Article 17 The percentages of foreign exchange retention permitted under
Articles 13, 14, and 15 of these Regulations shall be prescribed separately.
Foreign exchange retained by individuals as permitted under Articles 13,
14,15, and 16 of these Regulations must be deposited with the Bank of China.
These foreign exchange deposits may be sold to the Bank of China or remitted
out of China through the Bank of China, or taken out of China against
certification by the Bank of China. It is however not permitted, without
authorization, to carry or send deposit certificates out of China either by
holders or by others or by post.
Article 18 The foreign exchange remitted or brought into China from
foreign countries or from the Hong Kong and Macao regions by foreign nationals
coming to China, by overseas Chinese and Hong Kong and Macao compatriots
returning for a short stay, by foreign experts, technicians, staff members and
workers engaged to work in organizations within China, and by foreign students
and trainees, may be kept in their own possession, or sold to or deposited
with the Bank of China, or remitted or taken out of China.
Article 19 Chinese, foreign nationals and stateless persons residing
in China may apply to the local branch offices of the SAFEC for the purchase
of foreign exchange to be remitted or taken out of China. Upon approval of
such applications, the required foreign exchange shall be sold to the
applicants by the Bank of China.
When foreign experts, technicians, staff members and workers engaged to
work in organizations within territory are to remit or take out of China their
foreign exchange, the Bank of China shall handle the matter in accordance with
the stipulations as provided in the relevant contracts or agreements.
Chapter IV Foreign Exchange Control Relating to Foreign Resident
Representative Offices in China and Their Personnel
Article 20 Foreign exchange remitted or brought into China from foreign
countries or from the Hong Kong and Macao regions by foreign diplomatic
missions, consular posts, commercial offices, offices of international
organization and nongovernmental bodies resident office in China, foreign
diplomatic and consular officers as well as other resident staff members of
the aforesaid missions, posts and offices, may be kept in their own
possession, or sold to or deposited with the Bank of China, or remitted or
taken out of China.
Article 21 The conversion into foreign currency, if required, of visa
and certification fees received in Renminbi from Chinese citizens by foreign
diplomatic missions and consular posts in China, is subject to approval by
the SAFEC or its branch offices.
Chapter V Foreign Exchange Control Relating to Enterprises with Overseas
Chinese Capital, Foreign-Capital Enterprises, and Chinese-Foreign Equity
Joint Ventures and Their Personnel
Article 22 All foreign exchange receipts of enterprises with overseas
Chinese capital, foreign-capital enterprises and Chinese-foreign equity joint
ventures must be deposited with the Bank of China, and all their foreign
exchange disbursements must be effected from their foreign exchange deposit
accounts.
The enterprises mentioned in the preceding paragraph must periodically
submit their statements of foreign exchange business to the SAFEC or its
branch offices, all of which are empowered to check on the movements of the
foreign exchange receipts and payments of these enterprises.
Article 23 Except where otherwise approved by the SAFEC or its branch
offices, Renminbi shall in all cases be used in the settlement of accounts
between enterprises with overseas Chinese capital, foreign-capital
enterprises, Chinese-foreign equity joint ventures on the one hand and other
enterprises or individuals residing in the People’s Republic of China on the
other hand.
Article 24 Enterprises with overseas Chinese capital, foreign-capital
enterprises and foreign joint venturers in Chinese-foreign equity joint
ventures may apply to the Bank of China for remitting abroad their net profits
as well as other legitimate earnings after taxation according to law, by
debiting the foreign exchange deposit accounts of the enterprises concerned.
Where the enterprises and foreign joint venturers mentioned in the
preceding paragraph are to transfer foreign exchange capital abroad, they
shall apply to the SAFEC or its branch offices for the transfer by debiting
the foreign exchange deposit accounts of the enterprises concerned.
Article 25 An amount not exceeding 50% of their after-tax legitimate net
earnings from wages, etc. may be remitted or taken out of China in foreign
currency by staff members and workers of foreign nationality and those from
the Hong Kong and Macao regions employed by enterprises with overseas Chinese
capital, foreign-capital enterprises and Chinese-foreign equity joint ventures.
Article 26 Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures which wind up operations
in accordance with legal procedure, shall be responsible for the liquidation,
within the scheduled period, of their outstanding liabilities and taxes due in
China under the joint supervision of the relevant competent departments and
the SAFEC or its branch offices.
Chapter VI Control Relating to Carrying Foreign Exchange, Precious Metals
and Payment Instruments in Foreign Currency into and out of China
Article 27 No restriction as to the amount is imposed on the carrying
into China of foreign exchange, precious metals and objects made from them,
but declaration to the Customs is required at the place of entry.
To carry out of China foreign exchange or the foreign exchange previously
brought in shall be permitted by the Customs against certification by the
Bank of China or against the original declaration form filled out at the time
of entry.
To carry out of China precious metals and objects made from them or the
precious metals and objects made from them previously brought in shall be
permitted by the Customs according to the specific circumstances as prescribed
by State regulations or against the original declaration form filled out at
the time of entry.
Article 28 To bring into China Renminbi traveller’s cheques, traveller’s
letters of credit and other Renminbi payment instruments convertible into
foreign currency shall be permitted by the Customs against the declaration
form filled out at the Customs; and to take the same out of China shall be
permitted by the Customs against certification by the Bank of China or against
the original declaration form filled out at the time of entry.
Article 29 Unless otherwise approved by the SAFEC or its branch offices,
it is not permitted to carry or send out of China by holders or by others or
by post such certificates and deeds held by Chinese residing in China as
bonds, debentures, share certificates issued abroad; post_title deeds for real
estate abroad; other documents or deeds involving the disposal of creditor’s
right, inheritance, real estate or other foreign exchange assets abroad.
Article 30 The carrying or sending out of China of Renminbi instruments,
such as Renminbi cheques, drafts, passbooks and deposit certificates, held by
Chinese or foreign nationals or stateless persons residing in China, is not
permitted, either by holders or by others or by post.
Chapter VII Supplementary Provisions
Article 31 All units and individuals have the right to report any
violation of these Regulations. Rewards shall be given to such units or
individuals according to the merits of the report. Violators shall be
penalized by the SAFEC, its branch offices or by public security organs, or by
administrative departments of industry and commerce, or by the Customs. In
light of the seriousness of the offence, the penalties may take the form of
compulsory exchange of the foreign currency for Renminbi, or fine or
confiscation of the properties or both, or punishment by judicial organs
according to law.
Article 32 The exchange control measures for special economic zones, for
frontier trade and for personal dealings between inhabitants across the border
shall be formulated, in accordance with these Regulations, by the people’s
governments of the provinces, autonomous regions and municipalities directly
under the Central Government in the light of actual local conditions, be
submitted to the State Council for approval and be enforced thereupon.
Article 33 Rules for the implementation of these Regulations shall be
formulated by the SAFEC.
Article 34 These Regulations shall enter into effect on March 1, 1981.
REGULATIONS ON SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE
| Category | SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES | Organ of Promulgation | The Standing Committee of the National People’s Congress | Status of Effect | In Force |
| Date of Promulgation | 1980-08-26 | Effective Date | 1980-08-26 |
|
Regulations on Special Economic Zones in Guangdong Province |
|---|
Contents
Chapter I General Provisions
Chapter II Registration and Operation
Chapter III Preferential Treatment
Chapter IV Labour Management
Chapter V Administrative Organization
Chapter VI Supplementary Provisions
(Approved for implementation at the 15th Meeting of the Standing
Committee of the Fifth National People’s Congress on August 26, 1980)
Contents
Chapter I General Provisions
Chapter Il Registration and Operation
Chapter III Preferential Treatment
Chapter IV Labour Management
Chapter V Administrative Organization
Chapter VI Supplementary Provisions
Chapter I General Provisions
Article 1 In order to develop economic cooperation and technical
exchanges with foreign countries and to promote the socialist modernization
programme, certain areas shall be delineated respectively in the three cities
of Shenzhen, Zhuhai and Shantou in Guangdong Province for the establishment
of special economic zones (hereinafter referred to as “special zones”), The
special zones shall encourage foreign citizens, overseas Chinese, compatriots
from Hongkong and Macao and their companies and enterprises (hereinafter
referred to as” investors”) to open factories and set up enterprises and
other establishments with their own investment or in joint ventures with our
side, and shall protect their assets, the profits due them and their other
lawful rights and interests in accordance with the law.
Article 2 Enterprises and individuals in the special zones must abide by
the laws, decrees and pertinent provisions of the People’s Republic of China.
Where there are specific provisions in these Regulations, they shall be
observed accordingly.
Article 3 A Guangdong Provincial Committee for the Administration of
Special Economic Zones shall be set up to exercise unified administration of
the special zones on behalf of the Guangdong Provincial People’s Government.
Article 4 The special zones shall provide investors with a wide scope of
operation, create favourable operating conditions and guarantee them stable
business sites. Investors may establish, with their own investment or in
joint ventures with our side, all projects that have positive significance
for international economic cooperation and technical exchanges, including
industry, agriculture, animal husbandry, aquaculture, tourism, housing and
construction, and research and manufacture involving high technology, as
well as other
businesses of common interest to investors and to our side.
Article 5 Land-levelling projects and various public works in the
special zones such as water supply, drainage, power supply, roads, wharves,
communications and warehouses shall be undertaken by the Guangdong Provincial
Committee for the Administration of Special Economic Zones. When necessary,
foreign investment may be used in building these projects.
Article 6 Each of the special zones shall invite Chinese and foreign
specialists and relevant personages who are enthusiastic about China’s
modernization programme to form an advisory committee that will serve as a
consultative body for that special zone.
Chapter II Registration and Operation
Article 7 Investors wishing to open factories or set up various economic
undertakings in the special zones with their own investment shall apply to the
Guangdong Provincial Committee for the Administration of Special Economic
Zones, which shall issue them registration certificates and land use
certificates after examination and approval.
Article 8 Investors may open accounts and conduct their foreign exchange
transactions with the Bank of China established in the special zones or with
other banks established there with the approval of the Chinese side.
Investors may take out various kinds of insurance policies at the
People’s insurance Company of China in the special zones or at other
insurance companies established there with the approval of the Chinese side.
Article 9 Products of the enterprises in the special zones shall be sold
on the international market. If their products are to be sold in the interior
of China, they must have the approval of the Guangdong Provincial Committee
for the Administration of Special Economic Zones and go through the
procedures for paying customs duties.
Article 10 Investors may operate their enterprises independently in the
special zones and employ foreign personnel for technical and managerial work.
Article 11 If an enterprise established by an investor in the special
zones wishes to terminate operations before its scheduled expiration, it
shall report the reasons to the Guangdong Provincial Committee for the
Administration of Special Economic Zones, go through termination procedures
and settle claims and debts. After termination of operations, its assets may
be assigned and its funds may be remitted out of China.
Chapter III Preferential Treatment
Article 12 Land in the special zones is owned by the People’s Republic of
China. The land to be used by investors shall be provided according to actual
needs, and preferential treatment shall be given with respect to the duration
of its use, the amount of the use fee and the method of payment according to
the different types of business and uses. Provisions for specific measures
shall be made separately.
Article 13 The machinery and equipment, spare parts, raw and
semi-processed materials, means of transportation and other capital goods
necessary for production that are imported by enterprises in the special zones
shall be exempted from import duties. The necessary consumer goods may either
be subjected to import duties or allowed a reduction or exemption therefrom,
depending on the specific situation of each case. When the above-mentioned
goods are imported or products of the special zones are exported, a customs
declaration shall be filed.
Article 14 The enterprise income tax rate in the special zones is 15
percent. Special preferential treatment shall be given to enterprises
established within two years of the promulgation of these Regulatins, to
enterprises with an investment US$ 5 million or more, and to enterprises
involving higher technology or having a longer period of capital turnover.
Article 15 The lawfuI profit that an investor receives after payment of
the enterprise income tax, and the wages and salaries and other legitimate
earnings that foreign, overseas Chinese and Hongkong and Macao workers and
staff members of an enterprise in the special zones receive after payment of
the individual income tax, may be remitted abroad through the Bank of China
or other banks in the special zones, in accordance with the provisions of the
foreign exchange control measures of the special zones.
Article 16 An investor that reinvests its share of the profit in the
special zones for a period of five years or longer may apply for a reduction
of or an exemption from income tax on the reinvested portion.
Article 17 Enterprises in the special zones shall be encouraged to use
machinery and equipment, raw and semi-processed materials and other materials
produced in China, and preferential prices shall be offered on the basis of
China’s current export prices for the same kinds of commodities, using
foreign exchange to settle accounts. These products and materials may be
shipped directly to the special zones with the sales vouchers of the selling
units.
Article 18 Entry and exit procedures shall be simplified and
conveniences given to the foreign personnel, overseas Chinese and
compatriots from Hongkong and Macao entering and leaving the special zones.
Chapter IV Labour Management
Article 19 A labour service company shall be set up in each of the
special zones. Chinese staff members and workers to be employed by
enterprises in the special zones, whether they are recommended by the local
labour service companies or recruited by the investors themselves with the
consent of the Guangdong Provincial Committee for the Administration of
Special Economic Zones, shall all be tested by the enterprises before
employment and labour contracts shall be signed with the staff members
and workers.
Article 20 The staff members and workers employed by enterprises in the
special zones shall be managed by the enterprises according to their business
requirements and, when necessary, may be dismissed, after going through the
procedures provided in the labour contracts.
Staff members and workers of the enterprises in the special zones may
submit their resignations to the enterprises in accordance with the
provisions of the labour contracts.
Article 21 The wage levels, types of wages, award measures and the
labour insurance and various state subsidies for the Chinese staff members
and workers of the enterprises in the special zones shall be included in the
contracts signed by the enterprises with the staff members and workers as
stipulated by the Guangdong Provincial Committee for the Administration of
Special Economic Zones.
Article 22 Enterprises in the special zones shall adopt the necessary
measures for labour protection to ensure that staff members and workers work
in safe and hygienic conditions.
Chapter V Administrative Organization
Article 23 The Guangdong Provincial Committee for the Administration of
Special Economic Zones shall exercise the following functions and powers:
(1) to draw up development plans for the special zones and organize their
imple-mentation;
(2) to examine and approve the investment projects of investors in the
special zones;
(3) to handle registration of industrial and commercial enterprises and
land allotment in the special zones;
(4) to coordinate working relations among the banking, insurance,
taxation, Customs, frontier inspection, postal and telecommunications and
other organizations in the special zones;
(5) to provide the staff members andd workers needed by enterprises in
the special zones and protect the legitimate rights and interests of the
staff members and workers;
(6) to establish educational, cultural, health and various public welfare
institutions in the special zones; and
(7) to maintain law and order in the special zones and protect, in
accordance with the law, the persons and property in the special zones
against encroachment.
Article 24 The Shenzhen Special Zone shall be under the direct
management and administration of the Guangdong Provincial Committee for the
Administration of Special Economic Zones. Necessary offices shall be set up
in the Zhuhai and Shantou Special Zones.
Article 25 A Guangdong Provincial Special Economic Zones Development
Company shall be set up to suit the expanding economic activities in the
special zones. Its scope of business shall include: undertaking to raise
funds and handle trust investment business; operating, or jointing with
investors in operating, relevant enterprises in the special zones; acting
as agent for investors in the special zones in transactions relating to
sales and purchases in trade with the interior; and providing services for
business talks.
Chapter VI Supplementary Provisions
Article 26 These Regulations shall go into effect after they have been
adopted by the People’s Congress of Guangdong Province and submitted to and
approved by the Standing Committee of the National People’s Congress of the
People’s Republic of China.?
INTERIM REGULATIONS ON LAWYERS
| Category | JUDICIAL ADMINISTRATION | Organ of Promulgation | The Standing Committee of the National People’s Congress | Status of Effect | Invalidated |
| Date of Promulgation | 1980-08-26 | Effective Date | 1982-01-01 | Date of Invalidation | 1997-01-01 |
|
Interim Regulations of the People’s Republic of China on Lawyers |
|---|
Contents
Chapter I The Task and Rights of Lawyers
Chapter II The Qualifications of Lawyers
Chapter III Business Organizations of Lawyers
Chapter IV Supplementary Provisions
(Adopted at the 15th Meeting of the Standing Committee of the Fifth
National People’s Congress and promulgated by Order No.5 of the Standing
Committee of the National People’s Congress on August 26, 1980, and effective
as of January 1, 1982) (Editor’s Note: These Regulations were annulled by the
Law of the People’s Republic of China on Lawyers promulgated on May 15, 1996.)
Contents
Chapter I The Task and Rights of Lawyers
Chapter II The Qualifications of Lawyers
Chapter III Business Organizations of Lawyers
Chapter IV Supplementary Provisions
Chapter I The Task and Rights of Lawyers
Article 1 Lawyers are state legal workers whose task is to give legal
assistance to state organs, enterprises and institutions, public
organizations, people’s communes and citizens in order to ensure the correct
implementation of the law and protect the interests of the state and
collectives as well as the lawful rights and interests of citizens.
Article 2 The principal duties of lawyers shall be:
(1) to accept the mandate of state organs, enterprises and institutions,
public organizations and people’s communes to serve as their legal advisers;
(2) to accept the mandate of a party to a civil action to serve as his
representative in litigation;
(3) to accept the mandate of a defendant or the assignment of a people’s
court to serve as his defender in a criminal case; to accept the mandate of a
private prosecutor or of the victim and his near relatives in a public
prosecution to serve as their representative in litigation;
(4) to accept the mandate of a party in a nonlitigious matter to give legal
assistance or serve as its representative in mediation or arbitration;
(5) to give consultative advice on legal questions and draft documents in
connection with litigation or other legal matters.
Lawyers shall publicize the socialist legal system through all their
professional activities.
Article 3 In performing their duties, lawyers shall serve the cause of
socialism and the interests of the people, act on the basis of facts and take
the law as the criterion.
In the performance of their functions according to law, lawyers shall be
protected by the law of the state, subject to no interference by any
organization or individual.
Article 4 When being retained by an organization as its legal adviser, a
lawyer shall have the responsibility to give advice on legal questions arising
from the client organization, draft and examine legal documents for it,
represent it in litigation, mediation or arbitration, and safeguard its lawful
rights and interests.
Article 5 When acting as representatives in litigation and nonlitigious
matters, lawyers shall have the responsibility to safeguard the lawful rights
and interests of the client within the scope of the mandate.
Within the scope of the mandate, the lawyer’s procedural and legal acts
shall have the same effect as those of the client.
Article 6 When acting as defenders in criminal cases, lawyers shall have
the responsibility to safeguard the lawful rights and interests of the
defendants on the basis of facts and the law. A lawyer may refuse to act as the
defender of a defendant if he believes that the defendant has not truthfully
stated the facts of the case to him.
Article 7 In legal proceedings, lawyers shall have the right, to consult
the materials of the case and may make enquiries from organizations and persons
concerned in accordance with relevant regulations. When acting as defenders in
criminal cases, lawyers may meet and correspond with the defendants held in
custody.
The organizations and persons concerned shall have the duty to render
assistance to the lawyers engaged in the activities mentioned in the preceding
paragraph.
Lawyers shall have the responsibility to keep confidential state secrets
and matters of personal privacy which they come into contact with in their work.
Chapter II The Qualifications of Lawyers
Article 8 The undermentioned citizens who cherish the People’s Republic of China, support the socialist system and have the right
to vote and stand for
election shall be eligible as lawyers after passing an examination:
(1) those who have graduated from law faculties of universities or colleges
and have been engaged for two or more years in judicial work, legal
instruction or jurisprudential studies;
(2) those who have had professional legal training and have worked as
judges in people’s court or as procurators in people’s procuratorates;
(3) those who have received college education, have completed three or more
years of economic, scientific and technological work, are proficient in their
professions and the relevant laws and decrees thereof, and have gone through
professional legal training and who are fit for the work of a lawyer; and
(4) those who have attained the same level of knowledge of practical legal
work as is required of persons prescribed in Items (l) and (2) above and the
same level of learning as is given by college education and who are fit for the
work of a lawyer.
Article 9 To be eligible as a lawyer, a person must be examined and
approved by the judicial department (bureau) of a province, autonomous region,
or municipality directly under the Central Government and issued a lawyer’s
certificate, and a report shall be made to the Ministry of Justice of the
People’s Republic of China for the record. Upon discovery of an improper
examination and approval, the Ministry of Justice shall instruct the relevant
judicial department (bureau) to conduct a reexamination.
Article 10 Those who are eligible as lawyers but are unable to leave their
present positions to practise law may act as part-time lawyers. The current
organizations in which they are working shall support such arrangements.
Personnel presently attached to the people’s courts, people’s
procuratorates and people’s public security organs may not act as part-time
lawyers.
Article 11 Those who have graduated from law faculties of universities or
colleges or have gone through professional legal training may act as apprentice
lawyers after examination and approval by the judicial departments (bureaus)
of provinces, autonomous regions, or municipalities directly under the Central
Government.
The training period for apprentice lawyers shall be two years. Upon
completion of the training period, apprentice lawyers shall be given lawyers
credentials in accordance with the procedure prescribed in Article 9 of these
Regulations; the training period may be extended if an apprentice lawyer fails
to pass the examination.
Article 12 Lawyers who are incompetent shall be disqualified as lawyers by
decision of the judicial departments (bureaus) of provinces, autonomous
regions, or municipalities directly under the Central Government and with the
approval of the Ministry of Justice.
Chapter III Business Organizations of Lawyers
Article 13 Legal advisory offices shall be the business organizations from
which lawyers perform their duties.
Legal advisory offices shall be public institutions under the
organizational leadership and professional supervision of the judicial
administrative organs of the state.
Article 14 Legal advisory offices shall be established in counties, cities
and municipal districts. When necessary, specialized legal advisory offices
may be established with the approval of the Ministry of Justice.
Legal advisory offices shall not be subordinate to one another.
Article 15 The principal functions of a legal advisory office shall be to
direct lawyers in the development of their professional work, to organize their
political studies and professional studies in law and to sum up and exchange
their work experience.
Article 16 A legal advisory office shall have one director and may have
deputy directors where necessary. The director and deputy directors shall be
elected by the lawyers in that office, subject to approval by the judicial
department (bureau) of a province, autonomous region, or municipality directly
under the Central Government. They shall be elected for a term of three years
and may be reelected to successive terms in office.
The director and deputy director(s) of a legal advisory office shall direct
the work of the office and at the same time perform their duties as lawyers.
Article 17 The mandates for lawyers to handle cases shall be accepted and
service fees collected exclusively by the legal advisory office.
In the distribution of cases to lawyers, the legal advisory office shall,
as best as possible and according to actual conditions, assign lawyers as
requested by clients.
Article 18 A legal advisory office may appoint lawyers to carry out
professioal activities in other localities, and the legal advisory office there
shall provide them with assistance.
Article 19 A lawyers association shall be established to protect the
lawful rights and interests of lawyers, to exchange work experience, to further
the progress of lawyers work and to promote contacts between legal workers
both at home and abroad.
The lawyers association is a social organization. It shall formulate its
own articles of association.
Chapter IV Supplementary Provisions
Article 20 The standards for the post_title of lawyer, the regulations on
awards and penalties for lawyers and the measures for the collection of service
fees shall be stipulated separately by the Ministry of Justice.
Article 21 These Regulations shall go into effect on January 1, 1982.?
RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON APPROVING THE REGULATIONS ON SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE
|
Resolution of the Standing Committee of the National People’s Congress on Approving the Regulations on Special Economic Zones in Guangdong Province |
|
| (Adopted on August 26, 1980) | |
|
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| Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress. | |||||||||||
PROVISIONS ON LABOUR MANAGEMENT IN CHINESE-FOREIGN EQUITY JOINT VENTURES
| Category | LABOUR ADMINISTRATION | Organ of Promulgation | The State Council | Status of Effect | In Force |
| Date of Promulgation | 1980-07-26 | Effective Date | 1980-07-26 |
|
Provisions on Labour Management in Chinese-foreign Equity Joint Ventures |
|---|
Notes:
(Promulgated by the State Council on July 26, 1980)
Article 1 Labour management problems concerning Chinese-foreign equity
joint ventures (hereinafter referred to as “joint ventures”) shall all be
handled in accordance with these Provisions, in addition to the pertinent
stipulations in Article 6 of the Law of the People’s Republic of China on
Chinese-Foreign Equity Joint Ventures.
Article 2 Matters pertaining to employment, dismissal and resignation of
the workers and staff members, tasks of production and other work, wages and
awards and punishment, working time and vacation, labour insurance and
welfare, labour protection and labour discipline in joint ventures shall be
stipulated in the labour contracts signed.
A labour contract is to be signed by a joint venture and the trade union
organization in the joint venture collectively. A relatively small joint
venture may sign contracts with the workers and staff members individually.
A signed labour contract must be submitted to the labour management
department of the government of the province, autonomous region or
municipality directly under the Central Government for approval.
Article 3 (Note (1)) The workers and staff members of a joint venture
either recommended by the authorities in the locality in charge of the joint
venture or the labour management department, or recruited by the joint venture
itself with the consent of the labour management department, shall all be
selected by the joint venture through rigorous examinations.
Joint ventures may run workers’ schools and training courses to train
managerial personnel and skilled workers.
Article 4 With regard to the workers and staff members who become
redundant as a result of changes in production and technical conditions of the
joint venture, those who fail to meet the requirements after training and are
not suitable for other jobs in the joint venture can be discharged. However,
this must be done in accordance with the stipulations in the labour contract
and the enterprise must give compensation to these workers.
The dismissed workers and staff members will be assigned to other jobs by
the authorities in charge of the joint venture or the labour management
department.
Article 5 (Note (2)) The joint venture may, according to the degree of
seriousness of the case, take action against those workers or staff members
whose violation of the rules and regulations of the enterprise has resulted in
certain bad consequences. Punishment by discharge must be reported to the
authorities in charge of the joint venture and the labour management
department for approval.
Article 6 (Note (3)) With regard to the dismissal and punishment of
workers and staff members by the joint venture, the trade union has the right
to raise objections if it considers them unreasonable, and send
representatives to seek a solution through consultation with the board of
directors. Should the consultation fail to arrive at a solution, the matter
shall be handled in accordance with the procedures set forth in Article 14 of
these Provisions.
Article 7 When workers and staff members of a joint venture, on account
of special circumstances, submit their resignation to the enterprise through
the trade union in accordance with the labour contract, the enterprise shall
give its consent.
Article 8 The pay levels of workers and staff members in a joint venture
shall be determined at 120-150% of the real wages of workers and staff members
of state-owned enterprises of the same trade in the locality.
Article 9 The wage standards, the forms of payment, and bonus and subsidy
systems are to be discussed and decided by the board of directors.
Article 10 The rewards and welfare funds drawn by the joint venture from
the profits must be used as rewards and collective welfare and shall not be
diverted to other uses.
Article 11 A joint venture must pay for the Chinese workers’ and staff
members’ labour insurance, cover their medical expenses and various kinds of
government subsidies in the line with the standards obtaining in state-owned
enterprises.
Article 12 The employment of foreign workers and staff members and their
dismissal, resignation, pay, welfare and social insurance and other relevant
matters shall all be specified in the employment contracts.
Article 13 Joint ventures must implement the relevant rules and
regulations of the Chinese Government on labour protection and ensure safety
in production and civilized production. The labour management department of
the Chinese Government has the right to supervise and inspect their
implementation.
Article 14 Labour disputes occurring in a joint venture shall first of
all be solved through consultation by the two parties. If consultation fails
to arrive at a solution, either party or both parties may request arbitration
by the labour management department of the people’s government of the
province, autonomous region or municipality directly under the Central
Government where the joint venture is located. Either party that disagrees to
the arbitration award may file a suit at a people’s court.
Article 15 The power of interpretation of these Provisions resides in the
State Bureau of Labour of the People’s Republic of China.
Article 16 These Provisions shall come into force as of the date of
promulgation.
Notes:
Note (1) The provisions of this Article are no longer effective. The
relevant provisions now in force are those contained in Article 1 of the
Circular of the General Office of the State Council on the Approval and
Transmission of the Proposals Submitted by the Ministry of Labour and the
Ministry of Personel Concerning Further Implementation of the Policy of
Granting Decision-making Power to Enterprises with Foreign Investment for the
Employment of Working Personel, issued on May 5, 1988. – The Editor
Note (2) The provision “Punishment by discharge must be reported to the
authorities in charge of the joint venture and the labour management
department for approval” as stipulated in this Article is no longer effective.
The relevant provisions now in force are those contained in Article 10 of the
Measures for Implementation of the Regulations on Labour Management in
Chinese-Foreign Equity Joint Ventures, promulgated by the Ministry of Labour
and Personnel with the approval of the State Council on January 19, 1984.
– The Editor
Note (3) The provisions of this Article are no longer effective. The
relevant provisions now in force are those contained in Article 5 of the
Circular of General Office of the State Council on the Approval and
Transmission of the Proposals Submitted by the Ministry of Labour and the
Ministry of Personel Concerning Further Implementation of the Policy of
Granting Decision-making Power to Enterprises with Foreign Investment for the
Employment of Working Personel, issued on May 5, 1988. – The Editor
MEASURES FOR PROVIDING SHORT-TERM LOANS IN FOREIGN CURRENCY BY THE BANK OF CHINA
| Category | BANKING | Organ of Promulgation | The State Council | Status of Effect | In Force |
| Date of Promulgation | 1980-08-30 | Effective Date | 1980-08-30 |
|
Measures for Providing Short-term Loans in Foreign Currency by the Bank of China |
|---|
Chapter I Eligible Borrowers and the Purposes for which Loans are to
Chapter II Conditions for Borrowing
Chapter III Applications for and Utilization of Loans, and Examination
Chapter VII Loan Administration
Chapter VIII Supplementary Provisions
(Approved and promulgated by the State Council on August 30, 1980)
These Measures for providing short-term loans in foreign currency are
hereunder formulated with a view to speeding up the socialist modernization
programme and, on the basis of self-reliance and by using the foreign currency
funds absorbed by the Bank of China, developing production of exports and
other economic under-takings and increasing foreign exchange earnings as well.
Chapter I Eligible Borrowers and the Purposes for which Loans are to
be Used
Article 1 Loans are to be granted to export-oriented industries and
other enterprises earning foreign exchange income directly or indirectly
who can meet the conditions for borrowing. The loans are primarily for
encouraging export-oriented industries to tap production potential and to
support their renovations and retooling old plants and equipments.
Article 2 The loans are to be used for:
a. financing imports of advanced technology, equipment and materials
essential to upgrading the borrower’s productivity and the quality, variety
and packaging of export goods;
b. financing imports of raw materials and components to be processed for
export;
c. developing transportation and tourism and carrying out engineering
projects contracted in foreign countries;
d. supporting the processing of raw materials and assembling of parts
supplied by foreign buyers, and supporting compensatory trade; and
e. providing short-term working capital to production projects that
generate foreign exchange directly or indirectly.
Chapter II Conditions for Borrowing
Article 3 Applicants for loans must meet the following requirements:
a. Marked economic results: Preference is given to borrowers who are able
to earn more foreign exchange in proportion to the money invested and repay
bank loans sooner. Borrowers should be able to run their enterprises
efficiently, make the most of the imported advanced technology, equipment
and raw materials, tap their production potential, renovate obsolete plants
and equipment, enhance the competitiveness of their export goods in the
international markets, thereby earning more foreign exchange and accumulate
more funds for the country.
b. Assurance of repayment: Borrowers must give evidence of a reliable
source of foreign exchange income and the ability to repay loans plus
interest for which they are required to submit a schedule of repayment.
Where loans are granted to the export-goods industry, the increased
output attributed to the loan should be primarily for export and not be
included in the state domestic marketing plan. The income from the increased
output and the export proceeds in foreign exchange should first be set aside
for repayment of the bank loan. In case the goods are to be turned over to
a foreign trade corporation for export, the borrower should sign a sales
contract with this corporation which commits the latter to repay the bank
loan in foreign exchange for the borrower.
Enterprises not directly related to the export trade must submit a
document of approval signed by the competent department committing the
latter to repay the loan from its own foreign exchange income. When
necessary, the bank may demand that some organization that has a regular
foreign exchange income stands surety for the borrower.
c. Availability of domestic factors of production to make imported
materials and equipment operational: Domestic factors of production refer
to factory buildings, equipment, steam, water, electricity and fuel, raw
materials, labour force, technological expertise and funds in Renminbi
requisite to making the imported equipment and materials operational. These
items must be duly arranged and approved by the Planning Commission or the
competent authorities who have to list them in their plans or sign contracts
with the borrower.
d. With respect to the items mentioned above, borrowers should obtain
prior approval of higher authorities for those items that require allotment of
funds for capital construction or technological installations.
Chapter III Applications for and Utilization of Loans, and Examination
and Approval of Applications
Article 4 Applications for loans should be submitted to the Bank of
China (or People’s Bank of China where the Bank of China does not operate)
together with the following supporting documents: a document evidencing the
approval of the proposed project by the department in charge; a list of
imports the loan is to finance; a schedule proving the domestic factors of
production are available and a copy of the contract; a document approved by
the department in charge showing that counterpart funds in Renminbi have
been earmarked for repayment of the amount of Renminbi required for the
import of the equipment. In the case of a project where the producer needs
to repay the loan with earnings from the export of its products, the
producer should conclude with a foreign trade department a contract or an
agreement on production and sales, and on the repayment of the foreign
currency borrowed.
Article 5 Applications for loans by the departments under the State
Council shall be examined item by item against the prerequisites for
borrowing by the head office of the Bank of China. Applications by local
departments and enterprises shall be reviewed by the Bank of China’s regional
branches in the provinces, municipalities and autonomous regions within the
bounds of their respective loan quotas assigned by the head office. Cases
that need to be reviewed by the head office or ministries concerned should
be submitted to them for approval. In examining the applications, the Bank
should keep in touch with the departments in charge and work in close
cooperation with them.
Article 6 After the application is approved, the borrower should sign a
loan agreement, open a loan account with the Bank of China and place an order
for imports. If the borrower fails to sign the loan agreement or submit a
list of imports within the specified time, the Bank may revoke its approval
of the loan. The list of imports must be signed by the Bank before the
order is placed. Without the approval of the Bank, neither the purpose
for which the loan is to be used nor the descriptions and quantities of
imports should be changed. The borrower should submit to the Bank a copy of
the contract signed with a foreign trader who provides the goods. The Bank
should help the borrower to make the best use of the loan.
Article 7 For a substantial loan, the borrower should submit a quarterly
withdrawal plan according to which the Bank will arrange the funds. In case
the plan needs to be adjusted because of poor planning or unexpected changes
of circumstances, the borrower should apply to the Bank for adjustment a
month before the end of the quarter. For failure to carry out the plan, the
borrower shall bear additional bank charges on the amount of the withdrawal
falling short of, or in excess of, the planned amounts so as to compensate
the Bank for losses in raising funds from abroad.
Chapter IV Term of Loans and Rates of Interest
Article 8 The term of the loan is to begin from the day of the
withdrawal to the day of repayment of the principal and interest. The term
of loans for importing raw materials and components to be processed for
export is normally 1 year. The term of loans for importing equipment or
materials to be used in making equipment, and that of loans for other
purposes shall not exceed 3 years. Where loans take the form of buyers’
credits, the maturity shall not exceed 5 years.
Article 9 The interest rates for loans are to be determined and made
public by the head office of the Bank of China on the basis of the cost of
raising funds on the international money markets plus its handling charges.
Chapter V Repayment of Loans
Article 10 The borrower shall, in keeping with the loan agreement,
repay the principal before the loan runs out, and pay the interest regularly
to the Bank. If the borrower fails to repay, the surety is responsible for
repayment. If necessary, the Bank of China or the People’s Bank of China
may force repayment by debiting the foreign currency deposit account of the
borrower or the surety (or by writing of the foreign exchange quota alloted
to the borrower and seizing his counterpart funds in Renminbi earmarked for
the purchase of the foreign exchange quota).
Article 11 A borrower who has a regular foreign exchange income should
repay the loan from its foreign exchange earnings. A borrower who is not
directly involved in the export trade should repay the loan from export
proceeds received through a foreign trade corporation.
This corporation or some other organization which stands surety for the
borrower should issue a certificate to “repay foreign exchange quota”
against which the borrower may purchase foreign exchange with Renminbi from
the Bank of China to repay the loan.
Foreign exchange earnings from processing raw materials and assembling
parts provided by foreign buyers or earnings from compensatory trade must
first be set aside for repayment of the loan.
Article 12 Loans made to finance a construction project by a state-owned
enterprise may be repaid out of profits derived from the increased output, out
of depreciation reserves for fixed assets, or out of changes payable to the
government for the use of fixed assets. Enterprises that are authorized to
retain a portion of their profits may make repayment from the retained profits
after deductions for the staff’s welfare fund and bonus fund. However,
deductions for the production development fund and for retention of increased
profits are not allowed. Loans to collectively owned township enterprises may
be repaid out of profits derived from the increased output (profits before tax)
or from depreciation reserves for fixed assets. The department in charge is
not allowed to collect profits or demand payment out of the project financed
by the bank loan before the loan is repaid. If the above-mentioned funds are
sufficient to repay the loan and a surplus remains, income tax shall be paid
on the surplus or a percentage of profits shall be turned over to the
government as required. If not, the deficit may, with the consent of the tax
authorities, be covered by the industrial and commercial tax on the increased
output which would otherwise be collected. When applying for the loan, the
borrower should send a copy of the application to the tax authorities for the
record.
Chapter VI Buyers’ Credits
Article 13 When loans are provided in the form of the buyers’ credits,
the following rules shall apply, apart form other provisions in the Measures:
a. The borrower must abide by the provisions in the buyer’s credit
agreement that the Bank of China has signed with a foreign bank and must
place orders for imports from the country in which the foreign bank is
located.
b. The borrower must indicate in the order for imports that the buyer’s
credit is to be used for payment. The commercial contract signed between a
Chinese foreign trade corporation and the foreign seller should indicate
the name of the bank providing the buyer’s credit.
c. At the time the commercial contract is signed, the Bank of China
shall negotiate with the foreign bank providing the buyer’s credit and sign
an agreement on the drawdown of the credit. The agreement shall be signed
by head office of the Bank of China or by one of its branches with its
authorization.
Chapter VII Loan Administration
Article 14 Choosing the best possible loanees. The Borrower must
maximize the effective productivity of the loan by relying on cost
accounting. Preference is given to the borrower who earns more foreign
exchange in proportion to the amount of the loan granted and makes repayment
sooner. The borrower who performs poorly or who is unable to repay his loan
upon maturity, will not receive further loans until he shows improvement in
management.
Article 15 Clearly specifying the responsibilities. Both the Bank and
the borrower shall abide by the loan agreement: the Bank undertakes to
provide the loanable funds; the borrower undertakes to draw on the loan and
utilize its productive potential effectively. The Bank shall raise the
interest by 10-50% for overdue loans counting from the maturity date, and
by 100% for loans diverted to uses other than those authorized by the bank.
Article 16 Exercising bank supervision. The Bank shall inquire into each
project before financing it, examine the borrower’s application before
approving it and oversee the performance of the borrower after the loan is
granted. The Bank has the duty to help the borrower achieve its economic
goals. In this way the bank shall fulfil its role of promoting, regulating
and supervising the economic activities of the borrower.
For large loans, the Bank shall sit in on the negotiations between the
borrower and the foreign supplier and make suggestions as to the preferred
currency for making payment and the method of payment. The borrower must
provide the bank with all necessary information, documents, statistics and
a duplicate of the relevant contract.
The borrower shall be held accountable for violation of government
decrees and policies; failure to abide by the regulations, the contract or
the agreement; dissipation of foreign exchange; or failure to repay the loan
when due. At the same time the Bank may take such disciplinary actions as
suspending or recalling the loan before maturity, raising the interest rate
or even suing the borrower in a court of law.
Chapter VIII Supplementary Provisions
Article 17 On the date these Measures come into force, Regulations for
Providing Short-term Loans in Foreign Currency, issued by the Ministry of
Finance on September 29, 1978, shall no longer be valid except for loans and
loan agreements previously approved and signed. Rules for the implementation
of these Measures shall be formulated separately by the Bank of China.
