1989

PROVISIONS FOR THE USE OF CURRENCY IN CONTRIBUTING TAXES TO THE STATE AND IN SETTLEMENT ON ACCOUNTS WITH ENTERPRISES OR INDIVIDUALS RESIDING IN CHINA BY CHINESE-FOREIGN EQUITY JOINT VENTURES

The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China

Provisions for the Use of Currency in Contributing Taxes to the State and in Settlement on Accounts with Enterprises or Individuals
Residing in China by Chinese-foreign Equity Joint Ventures

The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China

February 24, 1983

(Issued by the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China on February
24, 1983)

In accordance with the pertinent stipulations laid down in the “Law of Chinese-foreign Equity Joint Ventures” and “Interim Regulations
for Control of Foreign Exchange”, the currency used by Chinese-foreign equity joint ventures (hereinafter referred to as joint ventures)
in contributing taxes to the State and in settlement on accounts with enterprises or individuals residing in China is stipulated
as follows:

Article 1

Joint ventures shall contribute taxes and pay legitimate fees in Renminbi in all cases. No governmental organizations should accept
foreign currency of foreign exchange certificate paid by joint ventures. These taxes and fees include:

(1)

import and export duty;

(2)

industrial and commercial tax (industrial and commercial consolidated tax);

(3)

enterprise income tax and local surtax, income tax on remitted profit of the foreign participant;

(4)

urban real estate tax;

(5)

enterprise site use fee;

(6)

enterprise registration fee or enterprise registration alteration fee;

(7)

commodity inspection fee;

(8)

vehicle or vessel license fee;

(9)

road toll, harbour due;

(10)

individual income tax of foreign employees working in joint ventures.

Article 2

Renminbi shall be used in the settlement on accounts between joint ventures and enterprises or individuals residing in China. No enterprises
or individuals should accept foreign currency or foreign exchange certificate paid by joint ventures. These include:

(1)

fees charged for water, electricity and heating;

(2)

fees charged for domestic telephone calls, telexes, telegrams and other cost on communications;

(3)

domestic communications and transportation fees (including vehicle, ship and aircraft), personal service and other services;

(4)

payments by joint ventures on raw materials, fuels (coal, oil, gas), auxiliary equipment and other needed commodities supplied by
enterprises or individuals residing in China;

(5)

charges on manufactured or semi-manufactured goods sold by joint ventures to enterprises or individuals residing in China.

Article 3

As circumstances alter, either Renminbi or foreign currency shall be used in the settlement on accounts between joint ventures and
banks, insurance companies and foreign trade corporations.

(1)

Should joint ventures borrow loans in Renminbi from Bank of China residing in China, the repayment of the loans and interest shall
be in Renminbi. While the loans are in foreign currency the repayment shall be in foreign currency accordingly.

(2)

The insurance appropriate the joint ventures shall be furnished by Chinese insurance companies. Should the property of joint ventures
is insured in foreign currency, the insurance premium shall be paid in foreign currency. Should the property is insured in Renminbi,
the insurance premium shall be in Renminbi. The Chinese insurance companies shall settle the claims according to the currency used
by joint ventures.

(3)

In accordance with the Categories of Export Commodities defined by the Ministry of Foreign Economic Relations and Trade, in their
purchase of the needed raw material, accessories, auxiliary equipment or other commodities from the foreign trade corporations or
other enterprises authorized to handle import and export business, joint ventures should be granted approval from the Ministry of
Foreign Economic Relations and Trade. The buyers and sellers may settle the price and payment of accounts in foreign currency through
consultations. The two sides may also calculate the price in foreign currency but arrange the payment in Renminbi; Should joint ventures
sell their manufactured or semi-manufactured goods subject to the approval by the foreign trade department in charge to the foreign
trade corporations or other enterprises authorized to handle import and export business, the two sides may either settle payment
of accounts in foreign currency or calculate the price in foreign currency but arrange the payment in Renminbi.

Joint ventures shall pay the freight rate in foreign currency to the General Administration of Civil Aviation of China, foreign trade
transportation corporations, Chinese ocean shipping companies or other enterprises approved to engage in business on transportation
of import and export commodities.

Article 4

Except the undertakings of tourist hotel projects using foreign funds, capital construction units residing in China shall contract
to build projects for joint ventures on the payment term of Renminbi.

With the exception of the aforesaid stipulations, it is impossible to enumerate all payment items in economic transactions between
the joint ventures and institutions, enterprises (including joint ventures, enterprises with overseas Chinese capital, enterprises
with foreign capital) and individuals residing in China. However the principle in general is that all transactions and payments of
accounts undertaken in China shall be paid in Renminbi except those subject to be examined and approved by the foreign exchange control
department. Joint ventures shall not pay foreign currency or foreign exchange certificate to the aforesaid establishments.

These stipulations are applicable to the Chinese-foreign contractual joint ventures, cooperative exploration projects and enterprises
established in China with overseas Chinese capital or foreign capital.

The four Special Economic Zones of Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province may, with the
reference of these regulations, formulate feasible provisions in the light of specific local conditions.



 
The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China
1983-02-24

 







DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE REVISION OF THE ORGANIC LAW OF THE PEOPLE’S PROCURATORATES

Decision of the Standing Committee of the National People’s Congress on the Revision of the Organic Law of the People’s Procuratorates
of the PRC

    

(Effective Date 1983.09.02–Ineffective Date )

The Second Meeting of the Standing Committee of the Sixth National People’s Congress decides to make the following revisions on the
Organic Law of the People’s Procuratorates of the People’s Republic of China:

1. Paragraph 1 of Article 2 which reads, ” The People’s Republic of China shall establish the Supreme People’s Procuratorate, the
people’s procuratorates at various local levels and the special people’s procuratorates ” is amended as: ” The People’s Republic
of China shall establish the Supreme People’s Procuratorate, the people’s procuratorates at various local levels, military procuratorates
and other special people’s procuratorates.”

Paragraph 4 which reads: ” Special people’s procuratorates shall include: military procuratorates, railway transport procuratorates,
waterway transport procuratorates and other special procuratorates ” is deleted.

2. Paragraph 1 of Article 20 which reads, ” The Supreme People’s Procuratorate shall establish procuratorial departments in charge
of criminal, legal and disciplinary, prison and reformatory, and economic affairs, and may also establish other professional agencies
as needed ” and paragraph 2 which reads, ” People’s procuratorates at various local levels and special people’s procuratorates may
establish corresponding professional agencies ” are amended as: ” The Supreme People’s Procuratorate shall establish a number of
procuratorial departments and other professional agencies as needed. The people’s procuratorates at various local levels may respectively
establish corresponding procuratorial divisions, sections and other professional agencies.”

3. Paragraph 2 of Article 22 which reads, ” The appointment and removal of the chief procurators, deputy chief procurators and members
of the procuratorial committees of the people’s procuratorates of provinces, autonomous regions, and municipalities directly under
the Central Government shall be reported to the Procurator-General of the Supreme People’s Procuratorate for submission to the Standing
Committee of the National People’s Congress for approval ” is amended as: ” The appointment and removal of the chief procurators
of the people’s procuratorates of provinces, autonomous regions, and municipalities directly under the Central Government shall be
reported to the Procurator-General of the Supreme People’s Procuratorate for submission to the Standing Committee of the National
People’s Congress for approval.”

4. Paragraph 2 of Article 23 which reads, ” The appointment and removal of the chief procurators, deputy chief procurators and members
of the procuratorial committees of the people’s procuratorates of autonomous prefectures, cities directly under the provincial governments,
counties, cities and municipal districts shall be reported to the chief procurators of the people’s procuratorates of provinces,
autonomous regions, and municipalities directly under the Central Government for submission to the standing committee of the people’s
congress at the corresponding level for approval is amended as: ” The appointment and removal of the chief procurators of the people’s
procuratorates of autonomous prefectures, cities directly under the provincial governments, counties, cities and municipal districts
shall be reported to the chief procurators of the people’s procuratorates at the next higher level for submission to the standing
committee of the people’s congress at the corresponding level for approval.”

APPENDIX:

ORGANIC LAW OF THE PEOPLE’S PROCURATORATES OF THE PEOPLE’S REPUBLIC OF CHINA

(Adopted at the Second Session of the Fifth National People’s Congress on July 1, 1979, and amended according to the Decision on the
Revision of the Organic Law of the People’s Procuratorates of the People’s Republic of China adopted at the Second Meeting of the
Standing Committee of the Sixth National People’s Congress on September 2, 1983)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II PROCEDURES FOR PEOPLE’S PROCURATORATES IN EXERCISING THEIR FUNCTIONS AND POWERS

CHAPTER III THE ORGANIZATIONAL STRUCTURE AND THE APPOINTMENT AND REMOVAL OF PERSONNEL OF PEOPLE’S PROCURATORATES

CHAPTER I GENERAL PROVISIONS

   Article 1. The people’s procuratorates of the People’s Republic of China are state organs for legal supervision.

   Article 2. The People’s Republic of China shall establish the Supreme People’s Procuratorate, the people’s procuratorates at various local
levels, military procuratorates and other special people’s procuratorates. (Amended on Sept. 2, 1983)

The people’s procuratorates at various local levels shall be divided into:

(1) people’s procuratorates of provinces, autonomous regions, and municipalities directly under the Central Government;

(2) branches of the people’s procuratorates of provinces, autonomous regions, and municipalities directly under the Central Government,
and people’s procuratorates of autonomous prefectures and cities directly under the provincial governments; and

(3) people’s procuratorates of counties, cities, autonomous counties and municipal districts.

People’s procuratorates at the provincial or county level may, according to work requirements and upon the approval of the standing
committee of the people’s congress at the corresponding level, set up people’s procuratorates as their agencies in industrial and
mining areas, agricultural reclamation areas, forest zones, etc. (A paragraph is deleted here on Sept. 2, 1983)

The establishment, organization and functions and powers of special people’s procuratorates shall be stipulated separately by the
Standing Committee of the National People’s Congress.

   Article 3. People’s procuratorates at all levels shall each have a chief procurator, a number of deputy chief procurators* and procurators.
The chief procurator exercises unified leadership over the work of the procuratorates.

* The leading officials of the Supreme People’s Procuratorate are the Procurator-General and Deputy Procurators-General.

People’s procuratorates at all levels shall each set up a procuratorial committee. The procuratorial committee shall apply the system
of democratic centralism and, under the direction of the chief procurator, hold discussions and make decisions on important cases
and other major issues. In the case of the chief procurator disagreeing with the majority’s opinion over a decision on an important
issue, the matter may be reported to the standing committee of the people’s congress at the corresponding level for final decision.

   Article 4. The people’s procuratorates shall, through exercising their procuratorial authority, suppress all treasonous activities, all activities
to dismember the state and other counterrevolutionary activities, and strike at counterrevolutionaries and other criminals, so as
to safeguard the unification of the country, the system of proletarian dictatorship and the socialist legal system; to maintain public
order and order in production, education, scientific research and other work, and in the life of the people; to protect the socialist
property owned by the whole people and by the collectives of the working masses, and the private property lawfully owned by citizens;
to protect the citizens’ rights of the person and their democratic and other rights; and to ensure the smooth progress of the socialist
modernization.

The people’s procuratorates, through procuratorial activities, educate the citizens to be loyal to their socialist motherland, to
consciously observe the Constitution and the laws and to actively fight against illegal activities.

   Article 5. People’s procuratorates at all levels shall exercise the following functions and powers:

(1) to exercise procuratorial authority over cases of treason, cases involving acts to dismember the state and other major criminal
cases severely impeding the unified enforcement of state policies, laws, decrees and administrative orders;

(2) to conduct investigations on criminal cases directly handled by themselves;

(3) to review cases investigated by public security organs and determine whether to approve arrest, to prosecute or to exempt from
prosecution; and to exercise supervision over the investigatory activities of public security organs, to determine whether they conform
to the law;

(4) to initiate public prosecutions on criminal cases and support such prosecutions; and to exercise supervision over the judicial
activities of people’s courts, to determine whether they conform to the law; and

(5) to exercise supervision over the execution of judgments and orders in criminal cases and over the activities of prisons, detention
houses and organs in charge of reform through labour, to determine whether such execution and activities conform to the law.

   Article 6. People’s procuratorates shall, in accordance with the law, protect the citizens right to lodge complaints against state functionaries
who break the law and shall investigate the legal responsibility of those persons who infringe upon other citizens’ right of the
person, and their democratic and other rights.

   Article 7. People’s procuratorates must, in executing their work, persistently seek truth from facts, follow the mass line, heed the opinions
of the masses and subject themselves to the supervision by the masses; make investigation and study, laying stress on evidence rather
than readily giving credence to oral statements, and strictly forbidding the obtainment of confessions by compulsion; and correctly
differentiate and handle contradictions between the enemy and the people, and those among the people themselves.

The functionaries of the people’s procuratorates at all levels must pay high regard to actual facts and the law, be faithful to the
socialist cause and serve the people wholeheartedly.

   Article 8. In the exercise of procuratorial authority by people’s procuratorates at all levels, the law shall be applied equally to all citizens,
and no privileges shall be allowed.

   Article 9. The people’s procuratorates shall exercise procuratorial authority independently, in accordance with the provisions of the law,
and shall not be subject to interference by any administrative organ, public organization or individual.

   Article 10. The Supreme People’s Procuratorate shall be responsible and report on its work to the National People’s Congress and its Standing
Committee. The people’s procuratorates at various local levels shall be responsible and report on their work to the people’s congresses
and their standing committees at corresponding levels.

The Supreme People’s Procuratorate shall direct the work of the people’s procuratorates at various local levels and of the special
people’s procuratorates; the people’s procuratorates at higher levels shall direct the work of those at lower levels.

CHAPTER II PROCEDURES FOR PEOPLE’S PROCURATORATES IN EXERCISING THEIR FUNCTIONS AND POWERS

   Article 11. If a people’s procuratorate finds and confirms that a criminal act has been committed, it shall place the case on file for investigation
in accordance with the procedure provided by law, or transfer it to a public security organ for investigation. If, upon conclusion
of the investigation, the people’s procuratorate deems it necessary to investigate criminal responsibility, it shall initiate a public
prosecution in the people’s court, or it shall rescind the case, if it deems it unnecessary to investigate criminal responsibility.

   Article 12. The arrest of any citizen, unless decided on by a people’s court, must be subject to the approval of a people’s procuratorate.

   Article 13. A people’s procuratorate shall review the cases for which a public security organ requests prosecution and decide whether to initiate
public prosecution, to exempt from prosecution or not to initiate prosecution. It may remand a case to the public security organ
for supplementary investigation, if the main facts of the crime are not clear or the evidence is insufficient.

If a people’s procuratorate discovers violations of the law in the investigatory activities of a public security organ, it shall instruct
that public security organ to rectify them.

   Article 14. If a public security organ considers that there is an error in a decision of a people’s procuratorate to disapprove arrest, not to
initiate prosecution or to grant exemption from prosecution on the cases transferred by it to the people’s procuratorate, it may
request reconsideration by the people’s procuratorate, and may also request review by the people’s procuratorate at the next higher
level. The higher-level people’s procuratorate shall make a timely decision and instruct the lower-level people’s procuratorate
and the public security organ to execute it.

   Article 15. In legal proceedings instituted by a people’s procuratorate, the chief procurator or a procurator shall attend the court session,
in the capacity of state prosecutor, to support the prosecution and exercise supervision over the court proceedings, and to determine
whether they conform to the law.

   Article 16. If a people’s court considers that the main facts of a crime are not clear or the evidence is insufficient or there are violations
of the law in a case in which the people’s procuratorate has initiated prosecution, it may remand the case to the people’s procuratorate
for supplementary investigation or notify it to make corrections.

   Article 17. If a local people’s procuratorate discovers any error in a judgment or order of a people’s court at the corresponding level in a
case of first instance, it shall lodge a protest in accordance with the procedure of appeal.

   Article 18. If the Supreme People’s Procuratorate discovers some definite error in a legally effective judgment or order of a people’s court
at any level, or if a people’s procuratorate at a higher level discovers some definite error in a legally effective judgment or order
of a people’s court at a lower level, it shall lodge a protest in accordance with procedures of judicial supervision.

People’s procuratorates must send personnel to appear in court when cases are heard, in accordance with procedures of judicial supervision.

   Article 19. If the people’s procuratorates discover violations of the law in the execution of judgments or orders in criminal cases, they shall
notify the executing organs to correct them.

If the people’s procuratorates discover violations of the law in the activities of prisons, detention houses or organs in charge of
reform through labour, they shall notify the organs responsible to correct them.

CHAPTER III THE ORGANIZATIONAL STRUCTURE AND THE APPOINTMENT AND REMOVAL OF PERSONNEL OF PEOPLE’S PROCURATORATES

   Article 20. The Supreme People’s Procuratorate shall establish a number of procuratorial departments and other professional agencies as needed.
The people’s procuratorates at various local levels may respectively establish corresponding procuratorial divisions, sections and
other professional agencies. (Amended on Sept. 2, 1983)

   Article 21. The Procurator-General of the Supreme People’s Procuratorate shall be elected and removed by the National People’s Congress.

The Deputy Procurators-General, members of the procuratorial committee and procurators of the Supreme People’s Procuratorate shall
be appointed and removed by the Standing Committee of the National People’s Congress upon the recommendation of the Procurator-General
of the Supreme People’s Procuratorate.

   Article 22. The chief procurators of the people’s procuratorates of provinces, autonomous regions, and municipalities directly under the Central
Government and their branches shall be elected and removed by the people’s congresses of provinces, autonomous regions, and municipalities
directly under the Central Government; the deputy chief procurators, members of procuratorial committees and procurators shall be
appointed and removed by the standing committees of the people’s congresses at corresponding levels upon the recommendation of the
chief procurators of the provinces, autonomous regions, and municipalities directly under the Central Government.

The appointment and removal of the chief procurators of the people’s procuratorates of provinces, autonomous regions, and municipalities
directly under the Central Government shall be reported to the Procurator-General of the Supreme People’s Procuratorate for submission
to the Standing Committee of the National People’s Congress for approval. (Amended on Sept. 2, 1983)

   Article 23. The chief procurators of people’s procuratorates of autonomous prefectures, cities directly under the provincial governments, counties,
cities and municipal districts shall be elected and removed by the people’s congresses at corresponding levels; the deputy chief
procurators, members of procuratorial committees and procurators shall be appointed and removed by the standing committees of the
people’s congresses at corresponding levels upon the recommendation of the chief procurators.

The appointment and removal of the chief procurators of the people’s procuratorates of autonomous prefectures, cities directly under
the provincial governments, counties, cities and municipal districts shall be reported to the chief procurators of the people’s procuratorates
at the next higher level for submission to the standing committee of the people’s congress at the corresponding level for approval.
(Amended on Sept. 2, 1983)

   Article 24. The chief procurators, deputy chief procurators, members of procuratorial committees and procurators of people’s procuratorates
set up in industrial and mining areas, agricultural reclamation areas and forest zones by people’s procuratorates at the provincial
or county level shall be appointed and removed by the standing committee of the people’s congress at the corresponding level upon
the recommendation of the chief procurators of the dispatching people’s procuratorates.

   Article 25. The term of office of the chief procurators of people’s procuratorates at all levels shall be the same as that of the people’s congresses
at corresponding levels.

   Article 26. The Standing Committee of the National People’s Congress and the standing committees of the people’s congresses of provinces, autonomous
regions, and municipalities directly under the Central Government may, upon proposals put forward by the Procurator-General and chief
procurators of people’s procuratorates at the corresponding level, replace the chief procurators, deputy chief procurators and members
of the procuratorial committees of people’s procuratorates at lower levels.

   Article 27. People’s procuratorates at all levels shall have a number of assistant procurators and clerks. With the approval of the chief procurator,
an assistant procurator may act in the function of a procurator. The clerks shall be responsible for keeping case records and other
related matters.

The assistant procurators and clerks shall be appointed and removed by the chief procurators of people’s procuratorates at all levels.

People’s procuratorates at all levels may install judicial police as needed.

   Article 28. The organizational structure and staff size of the people’s procuratorates at all levels shall be stipulated separately by the Supreme
People’s Procuratorate.

    






REGULATIONS FOR THE USE OF CURRENCY IN CONTRIBUTING TAXES TO THE STATE AND IN SETTLEMENT ON ACCOUNTS WITH ENTERPRISES OR INDIVIDUALS RESIDING IN CHINA BY JOINT VENTURES WITH CHINESE AND FOREIGN INVESTMENT

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING REVISION OF THE INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OFCHINA CONCERNING CHINESE-FOREIGN EQUITY JOINT VENTURES

Category  TAXATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1983-09-02 Effective Date  1983-09-02 Date of Invalidation  1991-07-01


Decision of the Standing Committee of the National People’s Congress Regarding Revision of the Income Tax Law of the People’s Republic
ofChina Concerning Chinese-foreign Equity Joint Ventures



(Adopted at the Second Meeting of the Standing Committee of the Sixth

National People’s Congress, promulgated by Order No. 8 of the President of the
People’s Republic of China on September 2, 1983, and effective as of the same
date) (Editor’s Note: Income Tax Law of the People’s Republic of China
Concerning Chinese-Foreign Equity Joint Ventures has been annulled by the
Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises promulgated on April 9, 1991 and effective
as of July 1, 1991)

    The Second Meeting of the Standing Committee of the Sixth National
People’s Congress has decided to revise the Income Tax Law of the People’s
Republic of China Concerning Chinese-Foreign Equity Joint Ventures as follows:

    1. The first paragraph of Article 5, which reads: “A newly established
joint venture scheduled to operate for a period of 10 years or more shall,
upon approval by the tax authorities of an application filed by the venture,
be exempted from income tax in the first profit-making year and allowed a 50%
reduction in income tax in the second and third years,” is revised to read:
“A joint venture scheduled to operate for a period of 10 years or more shall,
upon approval by the tax authorities of an application filed by the venture,
be exempted from income tax in the first two years after it has begun to make
a profit and allowed a 50% reduction in the third through the fifth years.”

    2. Article 8 reads: “Income tax on joint ventures shall be computed and
levied on an annual basis and paid in advance in quarterly instalments. Such
advance payments shall be made within 15 days after the end of each quarter,
and the final settlement shall be made within three months after the end of
each tax year, with a refund for any, overpayment and a supplementary payment
for any deficiency. ” The phrase” within three months after the end of each
tax year” contained therein is revised to read: “within five months after the
end of each tax year”.

    3. Article 9 reads: “Joint ventures shall file their income tax returns in
respect of advance payments with the local tax authorities within the period
prescribed for advance payments and shall file their annual income tax
returns together with the statements of final accounts within three months
after the end of the tax year”. The phrase “within three months after the end
of the tax year” contained therein is revised to read: “within four months
after the end of the tax year.”






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE PROCEDURE FOR PROMPT ADJUDICATION OF CASES INVOLVING CRIMINALS WHO SERIOUSLY ENDANGER PUBLIC SECURITY

Category  LITIGATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1983-09-02 Effective Date  1983-09-02 Date of Invalidation  1997-01-01


Decision of the Standing Committee of the National People’s Congress Regarding the Procedure for Prompt Adjudication of Cases Involving
Criminals Who Seriously Endanger Public Security



(Adopted at the Second Meeting of the Standing Committee of the Sixth

National People’s Congress and promulgated for implementation by Order No.4 of
the President of the People’s Republic of China on September 2, 1983)
(Editor’s note: This Decision was annulled by the Decision of the National
People’s Congress on Amendments of the Criminal Procedure Law of the People’s
Republic of China promulgated on March 17, 1996 and effective as of January 1,
1997)

    In order to quickly and severely punish criminals who seriously endanger
public security and to safeguard the interests of the state and the people, it
is hereby decided:

    1. In cases of criminals who cause explosions or commit murder, rape,
robbery or other crimes seriously endangering public security and who are
punishable by death, where the main facts of the crimes are clear, the
evidence is conclusive and the popular indignation is exceedingly great, they
shall be quickly brought to trial, and the restrictions provided in Article
110 of the Criminal Procedure Law regarding the time limit for the delivery to
the defendant of a copy of the bill of prosecution and the time limit for the
delivery of the summons and notices may be overstepped.

    2. The time limit for appeal by the criminals listed in the preceding
paragraph and the time limit for the people’s procuratorates to present a
protest shall be changed to three days from the ten days provided in Article
131 of the Criminal Procedure Law.

    Appendix:
The Relevant Articles in the Criminal Procedure Law

    Article 110  After a people’s court has decided to open a court session,
it shall proceed with the following work:

    ……

    (2) to deliver to the defendant a copy of the bill of prosecution of the
people’s procuratorate no later than seven days before the opening of the
court session and inform the defendant that he may appoint a defender or, when
necessary, designate a defender for him;

    (3) to notify the people’s procuratorate of the time and place of the
court session three days before the opening of the session;

    (4) to summon the parties and notify the defenders, witnesses, expert
witnesses and interpreters, with the summons and notices to be delivered no
later than three days before the opening of the court session;

    ……

    Article 131  The time limit for an appeal or a protest against a judgment
shall be ten days and the time limit for an appeal or a protest against an
order shall be five days; the time limit shall be counted from the day after
the written judgment or order is received.






REGULATIONS FOR THE IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON CHINESE-FOREIGN EQUITY JOINT VENTURES






19860115

The State Council

Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures

the State Council

September 20, 1983

Chapter I General Provisions

Article 1

These Regulations are formulated with a view to facilitating the smooth implementation of the Law of the People’s Republic of China
on Chinese-foreign Equity Joint Ventures (hereinafter referred to as the Law on Chinese-foreign Equity Joint Ventures).

Article 2

Chinese-foreign equity joint ventures (hereinafter referred to as joint ventures) established within China’s territory in accordance
with the Law on Chinese-foreign Equity Joint Ventures are legal persons in China and are subject to the jurisdiction of Chinese laws
and enjoy protection thereof.

Article 3

Joint ventures established within China’s territory shall be able to promote the development of China’s economy and the raising of
scientific and technological levels for the benefit of socialist modernization. Joint ventures permitted to be established are mainly
in the following industries:

(1)

energy development, the building material, chemical and metallurgical industries;

(2)

machine manufacturing, instrument and meter industries and offshore oil exploitation equipment manufacturing;

(3)

electronics and computer industries, and communication equipment manufacturing;

(4)

light, textile, foodstuffs, medicine, medical apparatus and packaging industries;

(5)

agriculture, animal husbandry and aquiculture;

(6)

tourism and service trades.

Article 4

Joint ventures to be applied for their establishment shall lay stress on economic results and shall comply with one or several of
the following requirements:

(1)

they shall adopt advanced technical equipment and scientific managerial methods which help increase the variety, improve the quality
and raise the output of products and save energy and materials;

(2)

they shall prove to be conducive to technical renovation of enterprises and be able to bring about quicker returns and bigger profits
with less investment;

(3)

they shall help expand exports and thereby increase foreign currency receipts;

(4)

they shall help train technical and managerial personnel.

Article 5

Application for establishing joint ventures shall not be approved if they involve any of the following circumstances:

(1)

detriment to China’s sovereignty;

(2)

violation of Chinese Law;

(3)

nonconformity with the requirements of the development of China’s national economy;

(4)

environmental pollution;

(5)

obvious inequity in the agreements, contracts and articles of association signed, impairing the rights and interests of one of the
parties.

Article 6

Unless otherwise stipulated, the government department in charge of the Chinese joint venturer in a joint venture shall be the department
in charge of the joint venture (hereinafter referred to as the department in charge). If a joint venture has two or more Chinese
joint venturers which are under different departments or from different regions, the departments and regions concerned shall, through
consultation, designate a department in charge.

Departments in charge are responsible for providing guidance and assistance and exercising supervision over the joint ventures.

Article 7

A joint venture has the right to independently conduct business operations and management within the scope as prescribed by Chinese
laws and regulations, and by the agreement, contract and articles of association of the joint venture. The departments concerned
shall provide support and assistance.

Chapter II Establishment and Registration

Article 8

The establishment of a joint venture in China is subject to examination and approval by the Ministry of Foreign Economic Relations
and Trade of the People’s Republic of China (hereinafter referred to as the MOFERT). Upon approval, an Approval Certificate shall
be issued by the MOFERT.

The MOFERT may entrust the people’s governments in the related provinces, autonomous regions, and municipalities directly under the
Central Government or relevant ministries or bureaus under the State Council (hereinafter referred to as the entrusted office) with
the power to examine and approve the establishment of joint ventures that comply with the following conditions:

(1)

the total amount of investment is within the limit set by the State Council and the source of capital of the Chinese venturers has
been ascertained;

(2)

no additional allocation of raw materials by the State is required and the national balance as to fuel, power, transportation and
foreign trade export quotas is not affected.

The entrusted office, after approving the establishment of a joint venture, shall report the same to the MOFERT for the record. An
Approval Certificate shall be issued by the MOFERT.

(The MOFERT and the entrusted office will hereinafter be generally referred to as the examining and approving authorities.)

Article 9

The following procedures shall be followed in the establishment of a joint venture:

(1)

it is the Chinese joint venturer in a joint venture that shall submit to its department in charge a project proposal and a preliminary
feasibility study report of the joint venture to be established with foreign joint venturer. The proposal and the preliminary feasibility
study report. upon examination and approval by the department in charge, shall be submitted to the examining and approving authorities
for final approval. The parties to the venture shall then conduct work centering around the feasibility study, and then proceed on
this basis, to negotiate and sign joint venture agreement, contract and articles of association;

(2)

when applying for the establishment of a joint venture, the Chinese joint venturer is responsible for the submission of the following
documents to the examining and approving authorities:

(a)

a written application for the establishment of the joint venture;

(b)

the feasibility study report jointly prepared by the parties to the venture;

(c)

joint venture agreement, contract and articles of association signed by representatives authorized by the parties to the venture;

(d)

list of candidates for chairman and vice-chairman of board of directors and directors nominated by the parties to the venture;

(e)

written opinions concerning the establishment of the said venture of the department in charge and the people’s government of the province,
autonomous region or municipality directly under the Central Government where the joint venture is located.

The aforesaid documents shall be written in Chinese. Documents (b), (c) and (d) may be written simultaneously in a foreign language
agreed upon by the parties to the joint venture. Both versions are equally authentic.

Article 10

Upon receipt of the documents stipulated in Article 9 (2). the examining and approving authorities shall, within 3 months, decide
whether to approve or disapprove them. Should anything inappropriate be found in any of the aforementioned documents, the examining
and approving authorities shall demand an amendment within a limited time. Otherwise, no approval shall be granted.

Article 11

The applicant shall, within one month as of the receipt of the Approval Certificate, register with the administrative department for
industry and commerce of the province, autonomous region or municipality directly under the Central Government in accordance with
the provisions of the Measures of the People’s Republic of China for the Administration of the Registration of Chinese-foreign Equity
Joint Ventures (hereinafter referred to as registration administration office). The date of the issuance of its business licence
is the date of the formal establishment of the joint venture.

Article 12

Any foreign investor who intends to establish a joint venture in China but is unable to find a specific co-operator in China may submit
a preliminary plan for the joint venture project and entrust the China International Trust and Investment Corporation (CITIC) or
a trust and investment corporation of a province, autonomous region or municipality directly under the Central Government, or a relevant
government department or a non-governmental organization, to recommend Chinese co-operators.

Article 13

The “joint venture agreement” mentioned in this Chapter refers to the document agreed upon by the parties to the joint venture on
some major points and principles governing the establishment of the joint venture.

“Joint venture contract” refers to the document agreed upon and concluded by the parties to the joint venture on their mutual rights
and obligations.

“Articles of association” refers to the document agreed upon by the parties to the joint venture specifying the purpose, organizational
principles and method of management of the joint venture in compliance with the principles of the joint venture contract.

Where the joint venture agreement comes into conflict with the contract, the latter shall prevail.

The parties to the joint venture may agree to sign the contract and articles of association only, without signing an agreement.

Article 14

A joint venture contract shall include the following main items:

(1)

the names, the countries of registration, the legal addresses of parties to the joint venture, and the names, positions and nationalities
of the legal representatives thereof;

(2)

name of the joint venture, its legal address, purpose and the scope and scale of business;

(3)

total amount of investment and registered capital of the joint venture, amount, proportion and forms of investment to be contributed
by each party to the joint venture, the time limit for contributing investment, stipulations concerning incomplete contributions,
and assignments of investments;

(4)

the proportion of profit to be shared and losses to be borne by each party;

(5)

the composition of the board of directors, the distribution of the number of directors, and the responsibilities, powers and means
of employment of the general manager, deputy general manager and high-ranking managerial personnel;

(6)

the main production equipment and technology to be adopted and their source of supply;

(7)

the ways and means of purchasing raw materials and selling finished products, and the ratio of products sold within Chinese territory
to those sold abroad;

(8)

arrangements for receipts and expenditures in foreign currency;

(9)

principles governing the handling of finance, accounting and auditing;

(10)

stipulations concerning labour management, wages, welfare, and labour insurance;

(11)

the duration of the joint venture, its dissolution and the procedures for liquidation;

(12)

the liabilities for breach of contract;

(13)

ways and procedures for settling disputes between the parties to the joint venture;

(14)

the language(s) used for the contract and the conditions for putting the contract into force.

The Attachment to the contract of a joint venture shall be equally authentic as the contract itself.

Article 15

Chinese laws shall apply to the conclusion, validity, interpretation and execution of a joint venture contract, as well as to the
settlement of disputes.

Article 16

The Articles of association of a joint venture shall include the following main items:

(1)

the name of the joint venture and its legal address;

(2)

the purpose, business scope and duration of the joint venture;

(3)

the names, countries of registration and legal addresses of parties to the joint venture, and the names, positions and nationalities
of the legal representatives thereof;

(4)

the total amount of investment, registered capital of the joint venture, each party’s investment proportion, stipulations concerning
the assignment of investment, the proportions of profit distribution and losses to be borne by parties to the joint venture;

(5)

the composition of the board of directors, its responsibilities, powers and rules of procedure, the term of office of the directors,
and the responsibilities of its chairman and vice-chairman;

(6)

the setting up of management organizations, rules for handling routine affairs, the responsibilities of the general manager, deputy
general manager and other high-ranking managerial personnel, and the method of their appointment and dismissal;

(7)

principles governing financial, accounting and auditing systems;

(8)

dissolution and liquidation;

(9)

procedures for amendment of the articles of association.

Article 17

The agreement, contract and articles of association shall come into force upon approval by the examining and approving authorities.
The same applies to amendments thereof.

Article 18

The examining and approval authorities and the registration administration office are responsible for supervising and checking on
the execution of the joint venture contracts and articles of association.

Chapter III Form of Organization and Registered Capital

Article 19

A joint venture is a limited liability company.

Each party to the joint venture is liable to the joint venture within the limit of the capital subscribed by it.

Article 20

The total amount of investment (including loans) of a joint venture refers to the sum of capital construction funds and the circulating
funds needed for the joint venture’s production scale as stipulated in the contract and the articles of association of the joint
venture.

Article 21

The registered capital of a joint venture refers to the total amount of investment registered at the registration administration office
for the establishment of the joint venture. It shall be the total amount of investment subscribed by parties to the joint venture.

The registered capital shall generally be represented in Renminbi, or may be in a foreign currency agreed upon by the parties to the
joint venture.

Article 22

A joint venture shall not reduce its registered capital during the term of the joint venture.

Article 23

If one party to the joint venture intends to assign all or part of its investment subscribed to a third party, consent shall be obtained
from the other party to the joint venture, and approval from the examining and approving authorities is required.

When one party assigns all or part of its investment to a third party, the other party has pre-emptive right.

When one party assigns its investment subscribed to a third party, the terms of assignment shall not be more favourable than those
to the other party to the joint venture.

No assignment shall be effective should there be any violation of the above stipulations.

Article 24

Any increase, assignment or other disposal of the registered capital of a joint venture shall be approved at a meeting of the board
of directors and submitted to the original examining and approving authorities for approval.

Registration procedures for changes shall be handled at the original registration administration office.

Chapter IV Ways of Contributing Investment

Article 25

Each joint venturer may invest in cash or may contribute buildings, factory premises, equipment or other materials, industrial property,
proprietary technology, or right to the use of a site, appraised at appropriate prices, as investment. If the investment is in the
form of buildings, premises, equipment or other materials, industrial property or proprietary technology, the prices shall be determined
through consultation by the parties to the joint venture on the basis of fairness and reasonableness, or they shall be evaluated
by a third party accepted and invited by the parties to the joint venture.

Article 26

The foreign currency contributed by the foreign joint venturer shall be converted into Renminbi according to the exchange rate quoted
by the State Administration of Foreign Exchange Control of the People’s Republic of China (hereinafter referred to as the State Administration
of Foreign Exchange Control) on the day of its submission or be cross exchanged into the foreign currency as agreed upon.

Should the cash Renminbi contributed by the Chinese joint venturer be converted into foreign currency, it shall be converted according
to the exchange rate quoted by the State Administration of Foreign Exchange Control on the day of its submission.

Article 27

The machinery, equipment and other materials contributed as investment by the foreign joint venturer shall meet the following conditions:

(1)

they are indispensable to the production of the joint venture;

(2)

China is unable to manufacture them, or can manufacture them only at too high a price, or their technical performance and time of
availability cannot meet the requirement;

(3)

the price fixed shall not be higher than the current international market price for similar equipment or materials.

Article 28

The industrial property or proprietary technology contributed by the foreign joint venturer as investment shall meet one of the following
conditions:

(1)

capable of manufacturing new products urgently needed in China or products suitable for export;

(2)

capable of markedly improving the performance, quality of existing products and raising productivity;

(3)

capable of notably saving raw materials, fuel or power.

Article 29

Foreign joint ventures who contribute industrial property or proprietary technology as investment shall present relevant documentation
on the industrial property or proprietary technology, including photocopies of the patent certificates or trademark registration
certificates, statements of validity, their technical characteristics, practical value, the basis for calculating the price and the
price agreement signed with the Chinese joint ventures. All these shall serve as an Attachment to the contract.

Article 30

The machinery, equipment or other materials, industrial property or proprietary technology contributed by foreign joint venturer as
investment shall be examined and approved by the department in charge of the Chinese joint venturer and then submitted to the examining
and approving authorities for further approval.

Article 31

The parties to the joint venture shall pay in all the investment subscribed according to the time limit stipulated in the contract.
Delay in payment or partial delay in payment shall be subject to a payment of investment on arrears or a compensation for the loss
as defined in the contract.

Article 32

After the investment is paid by the parties to the joint venture, a Chinese registered accountant shall verify it and provide a certificate
of verification, in accordance with which the joint venture shall issue to them investment certificates, which include the following
items: name of the joint venture; date, month and year of the establishment of the joint venture; names of the joint venturers and
the investment contributed; date, month and year of the contribution of the investment; and date, month and year of the issuance
of investment certificates.

Chapter V Board of Directors and Management Structure

Article 33

The highest authority of the joint venture shall be its board of directors, which shall decide all major issues concerning the joint
venture.

Article 34

The board of directors shall consist of no less than three members. The distribution of the number of directors shall be determined
through consultation by the parties to the joint venture with reference to the proportions of investment contributed.

The directors shall be appointed by the parties to the joint venture. The chairman of the board shall be appointed by the Chinese
joint venturer and its vice-chairman by the foreign joint venturer.

The term of office for the directors is four years. Their term of office may be renewed with the re-appointment by the parties to
the joint venture.

Article 35

The board of directors shall convene at least one meeting every year.The meeting shall be called and presided over by the chairman
of the board. Should the chairman be unable to call the meeting, he shall authorize the vice-chairman or a director to call and preside
over the meeting. The chairman may convene an interim meeting on the suggestion of more than one-third of the directors.

A board meeting requires a quorum of over two-thirds of the directors. Should a director be unable to attend, he may make a proxy
authorizing someone else to represent him and vote in his stead.

A board meeting shall usually be held at the location of the joint venture’s legal address.

Article 36

Decisions on the following items shall be made only after being unanimously agreed upon by the directors present at the board meeting:

(1)

amendment to the articles of association of the joint venture;

(2)

suspension or dissolution of the joint venture;

(3)

increase in or assignment of the registered capital of the joint venture;

(4)

merger of the joint venture with other economic organization.

Decision on other matters may be made according to the rules of procedure stipulated in the articles of association.

Article 37

The chairman of the board is the legal representative of the joint venture. Should the chairman be unable to perform his duties, he
shall authorize the vice-chairman of the board or a director to represent the joint venture.

Article 38

A joint venture shall establish a management office which shall be responsible for the day-to-day management and operations. The management
office shall have a general manager and several deputy general managers who assist the general manager in his work.

Article 39

The general manager shall carry out the decisions of the board meeting and organize and conduct the day-to-day management and operations
of the joint venture. Within the scope of authorization by the board, the general manager shall, externally, represent the joint
venture, and internally, have the right to appoint and dismiss his subordinates and exercise other powers as authorized by the board.

Article 40

The general manager and deputy general managers shall be engaged by the board of directors of the joint venture. These positions may
be held either by Chinese or foreign citizens.

At the instance of the board of directors, the chairman, vice-chairman or other directors of the board may concurrently be the general
manager, deputy general managers or other high-ranking managerial personnel of the joint venture.

In handling major issues, the general manager shall consult with the deputy general managers.

The general manager or deputy general managers shall not hold posts concurrently as general manager or deputy general managers of
other economic organizations. They shall not get involved in other economic organizations’ commercial competition against their own
joint venture.

Article 41

In case of graft or serious dereliction of duty on the part of the general manager, deputy general managers or other high-ranking
managerial personnel, they may be dismissed at any time by a decision of the board of directors.

Article 42

Establishment of branch offices (including sales offices) outside China or in regions of Hong Kong or Macao is subject to approval
by the MOFERT.

Chapter VI Introduction of Technology

Article 43

The introduction of technology mentioned in this Chapter refers to the acquisition of necessary technology by the joint venture by
means of technology transfer from a third party or a joint venturer.

Article 44

The technology to be introduced to the joint venture shall be appropriate and advanced and enable the venture’s products to display
conspicuous social economic results domestically or to be competitive on the international market.

Article 45

The right of the joint venture to do business independently shall be maintained when concluding such technology transfer agreements,
and relevant documentations shall be provided by the technology exporting party with reference to the provisions of Article 29 of
these Regulations.

Article 46

The technology transfer agreements concluded by a joint venture shall be examined and agreed to by the department in charge of the
joint venture and then submitted for approval to the examining and approving authorities.

Technology transfer agreements shall comply with the following stipulations:

(1)

Fees for the use of technology shall be fair and reasonable. Payments are generally made in royalties, and the royalty rate shall
not be higher than the obtaining standard international rate, which shall be calculated on the basis of net sales of the products
turned out with the relevant technology or in other reasonable ways agreed upon by both parties.

(2)

Unless otherwise agreed upon by both parties, the technology exporting party shall not put any restrictions on the quantity, price
or region of sale of the products that are to be exported by the technology importing party.

(3)

The term for a technology transfer agreement is generally not longer than 10 years.

(4)

After the expiration of a technology transfer agreement, the technology importing party shall have the right to continue to use the
technology.

(5)

Conditions for mutual exchange of information on the improvement of technology by both parties of the technology transfer agreement
shall be reciprocal.

(6)

The technology importing party shall have the right to buy the equipment, parts and raw materials needed from sources they deem suitable.

(7)

No irrational restrictive clauses prohibited under Chinese law and regulations shall be included.

Chapter VII Right to the Use of Site and Fees

Article 47

Joint ventures shall practise economy in the use of land for their premises. Any joint venture requiring the use of a site shall file
an application with local departments of the municipal (county) government in charge of land and obtain the right to use a site after
securing approval and signing a contract. The acreage, location, purpose and contract period and fee for the right to use a site
(hereinafter referred to as site use fee), rights and obligations of the two contracting parties and penalty provisions for breach
of contract shall be stipulated in explicit terms in the contract.

Article 48

If the Chinese joint venturer already has the right to the use of site for the joint venture, it may use the right as part of its
investment. The monetary equivalent of this investment shall be the same as the site use fee otherwise paid for acquiring a site
of similar conditions.

Article 49

The standards for site use fee shall be set by the people’s government of the province, autonomous region or municipality directly
under the Central Government where the joint venture is located in the light of the purpose of use, geographic and environmental
conditions, expenses for requisition, demolition and resettlement and the joint venture’s requirements for infrastructure, and filed
with the MOFERT and the state department in charge of land for the record.

Article 50

Joint ventures engaged in agriculture and animal husbandry may, with the consent of the people’s government of the province, autonomous
region or municipality directly under the Central Government, pay a percentage of the joint venture’s revenues from its business
operations as site use fees to the local department in charge of land.

Projects of a development nature in economically under-developed areas may receive special preferential treatment in respect of site
use fees with the consent of the local people’s government.

Article 51

The rates of site use fees shall not be subject to adjustment in the first 5 years beginning from the day the land is used. After
that, the interval in between the necessary adjustments to be made according to the development of the economy, changes in supply
and demand, and changes in geographic and environmental conditions shall not be less than three years.

Site use fee as part of the investment by the Chinese joint venture shall not be subject to adjustment during the contract period.

Article 52

The fee for the right to the use of a site obtained by a joint venture according to Article 47 of these Regulations shall be paid
annually from the day to use the land stipulated in the contract. For the first calendar year, the venture will pay a half-year fee
if it has used the land for over 6 months; if less than 6 months, the site use fee shall be exempted. During the contract period,
if the rate of site use fee is adjusted, the joint venture shall pay it according to the new rate from the year of adjustment.

Article 53

Joint ventures that have permission to use a site shall only have the right to the use of it but no ownership. Assignment of the right
to use land is forbidden.

Chapter VIII Planning, Purchasing and Selling

Article 54

A joint venture shall work out a capital construction plan (including labour force required for the construction, building materials,
water, power and gas supply) according to the approved feasibility study report, and the plan shall be included in the capital construction
plan of the department in charge of the joint venture, which shall give priority in arranging supplies and ensured the execution
of the plan.

Article 55

Funds earmarked for capital construction of a joint venture shall be put under unified management of the bank where the venture has
opened an account.

Article 56

A joint venture shall work out a production and operating plan in accordance with the scope of operation and scale of production stipulated
in the contract. The plan shall be carried out with the approval of the board of directors and filed with the department in charge
of the joint venture for the record.

Departments in charge of the joint ventures and planning administration departments at all levels shall not prescribe mandatory production
and operation plans for joint ventures.

Article 57

In its purchase of required machinery, equipment, raw materials, fuel, parts, means of transport and office equipment, etc. (hereinafter
referred to as materials), a joint venture has the right to decide whether it buys them in China or from abroad. However, where t

REGULATIONS FOR THE IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

MEASURES FOR THE IMPLEMENTATION OF THE PROVISIONS FOR LABOUR MANAGEMENT IN CHINESE-FOREIGN EQUITY JOINT VENTURES

The Ministry of Labour and Personnel

Measures for the Implementation of the Provisions for Labour Management in Chinese-foreign Equity Joint Ventures

the Ministry of Labour and Personnel

December 24, 1983

These Measures are specially formulated in order to facilitate the smooth implementation of the “Provisions for Labour Management
in Chinese-foreign Equity Joint Ventures” (hereinafter referred to as “Management Provisions”) and to facilitate the development
of Chinese-foreign equity joint ventures (hereinafter referred to as “joint ventures”).

Article 1

The labour plans of a joint venture, after being decided by the board of directors, shall be filed with the department in charge of
the venture and the local labour personnel department and shall be brought into line with the state labour plan.

Article 2

New workers to be employed by a joint venture according to its labour plan shall be openly recruited in line with the relevant policies
of the State in the region defined by the labour personnel department and shall be selected for employment on the basis of their
qualifications through testing.

If the newly-recruited workers have to undergo training, the joint venture may fix a period of time for training according to its
needs. All the trainees must be tested by the joint venture at the end of the training period and selected for employment on the
basis of their qualifications. Those still unqualified shall be retrained or sent back.

Article 3

If the engineers technicians and managing personnel in the locality cannot satisfy the quantitative needs of the joint venture, the
joint venture may recruit them from outside the region upon approval by the labour personnel department in the relevant province,
municipality or autonomous region and with the consent of the labour personnel departments in the regions concerned.

The joint venture may fix a probation period for the newly-recruited personnel and the personnel recommended by the department in
charge of the venture or the local labour personnel department in line with the Article 3 of the Management Provisions. They must
be formally employed if they are proved to be qualified during the probation period. Those unqualified shall be sent back and should
be accepted by their original units if they are permanent staff and workers.

Article 4

Apart from the agents of the foreign participant in a joint venture, all the staff and workers of a joint venture shall be recruited
from among Chinese people, provided the Chinese side can provide the qualified Chinese people.

Article 5

The employment of personnel of a joint venture shall be conducted in the form of signing a labour contract which, apart from the relevant
matters listed in the first clause of the Article 2 of the Management Provisions shall stipulate the effective period of contract,
conditions for its modification and termination and the rights and obligations of the venture and its staff and workers.

The labour contract shall be concluded by the joint venture and the venture’s trade union organization through consultations (or by
the joint venture and representatives of its staff and workers if the trade union is not yet organized). and in accordance with Article
2 of the Management Provisions the contract shall be submitted to the labour personnel department in the province, municipality
or autonomous region for approval. The labour personnel department in the province, municipality or autonomous region may authorize
the labour personnel department in the county where the venture is located to ratify the contract.

The joint venture may sign a collective labour contract with the venture’s trade union organization or sign contracts with individual
staff and workers. Once a contract is signed it should be observed by both sides. The modification of a contract at the request of
one side must be agreed upon by both sides and submitted for approval to the original approving organ.

In addition to the labour contracts, the joint venture may sign labour service contracts with the units which provide personnel or
the local labour service companies on recruitment, employment and dismissal of workers and staff.

Article 6

The joint venture shall strengthen the work of regularly training the staff and workers to improve their technical skills. Expenses
incurred in training may be handled in accordance with the “Supplementary Circular on the Interim Provisions for Control and Spending
of Educational Funds for Staff and Workers” issued by the Ministry of Finance in 1982.

Article 7

When a joint venture wants to dismiss redundant staff and workers as a result of a change in production and technical conditions or
other reasons during the contractual period, it must notify the venture’s trade union organization and the dismissed staff and workers
one month before the dismissal. The dismissal decision shall be submitted for the record to the department in charge of the venture
and the local labour personnel department.

Workers and staff should not be dismissed during the period of their treatment or recuperation for industrial injury and occupational
diseases or during the period of their treatment at hospitals for illness and injury irrelevant to their work. Women workers and
staff also should not be dismissed during their pregnancy over six months or during maternity leave.

The joint venture should give compensation to those workers and staff who are dismissed during the period of the labour contract or
after the expiration of the contract according to their length of work in the venture. The dismissed worker may be paid one month
of the average wage of the venture for each full year’s work. Those who have worked more than 10 years shall be paid one-and-half
months of the average wage of the venture for each full year’s work, starting from the 11th years.

Article 8

Workers and staff of a joint venture may resign for special reasons during the period of the labour contract and shall submit their
application to the venture through their trade union organization one month before their resignation. The venture shall permit the
resignations of workers and staff who have just reasons, but shall not give them compensation.

If the workers and staff, who received training provided by the venture want to resign during the contractual period, they shall compensate
the venture for an agreed amount of the expenses incurred in their training.

Article 9

The joint venture shall give moral encouragement or material reward to those workers and staff who observe the venture’s rules and
regulations in an exemplary way and make fine achievements in fulfilling their tasks of production or other work, carrying on technical
innovation and improving management. Those who have made outstanding achievements shall be promoted or their wage levels increased.
The decision for such awards shall be made by the general manager and vice-general managers.

Article 10

The joint venture may, in accordance with the seriousness of the case, impose criticism or punishment on staff and workers who violate
the rules, regulations or labour discipline with adverse effects to the joint venture necessary, may impose a fine or economic sanction.
Those who commit serious mistakes and refuse to mend their ways despite repeated admonition may be expelled.

The sanctions shall be decided upon by the general manager and vice-general managers after seeking opinion from the venture’s trade
union organization and listening to the argument from the persons concerned. The sanction of discharge must be reported to the department
in charge of the venture and the labour personnel department for the record.

Article 11

When the joint venture administers reward or punishment to those workers and staff appointed by the administrative organs of the government,
the power and procedures for the ratification shall be handled in accordance with the “Interim Provisions of the State Council on
Awarding and Punishment of Personnel in the State Administrative Organs” issued in 1957.

Article 12

The joint venture shall pay the Chinese workers and staff in accordance with the wage levels stipulated in Article 8 of the Management
Provisions. The increase in wages shall be decided upon by the board of directors in the light of the regulations of contract, articles
of association and the state of the venture’s production and management. It is not necessary to keep to the scales set by state-run
enterprises.

The real wages of the workers and staff of state-run enterprises in the locality in the same line of business stated in Article 8
of the Management Provisions means the average wages of the workers and staff in the state-run enterprises in the locality in the
same line of business and with similar production scales and technical conditions. The concrete amounts of the wages shall be examined
and approved by the local labour personnel department together with the financial department and the department in charge of the
venture.

Workers and staff who leave a joint venture and join another unit shall be paid in accordance with the system of wage standards, bonuses
and subsidies of the unit.

Article 13

The joint venture must pay the Chinese workers and staff, in accordance with Article 11 of the Management Provisions, labour insurance,
welfare benefits and various government subsidies on house rent, prices of basic daily necessities, culture, education, health protection,
etc. for staff and workers. The amount of these funds shall be examined and approved by the labour personnel department in the province,
municipality or autonomous region together with the financial department and the department concerned, and readjusted in line with
changes in the standards of the labour insurance, welfare benefits and various government subsidies in state-run enterprises.

The labour insurance welfare benefits of a joint venture paid to the Chinese participants in a joint venture shall be used under the
supervision of the venture’s trade union organization. The subsidies shall be handled according to the relevant regulations of the
government.

Article 14

The labour insurance and welfare benefits of the staff and workers in a joint venture shall be handled in accordance with the relevant
regulations of the Chinese government for state-run enterprises. The joint venture may express its opinion on the clauses or items
in the regulations if it considers them unsuitable and may make proposals which shall be implemented after approval by the labour
personnel department in the province, municipality or autonomous region for ratification with the consent of the financial department
and the trade union at the same level.

Article 15

The joint venture should pay attention to strengthening labour protection for its staff and workers and appoint proper and sufficient
personnel in charge of the labour protection work. Effective measures must be taken to improve the labour conditions of the staff
and workers and ensure safety in production and civilized production. The expenses in this field may be settled in accordance with
the “Circular On Strengthening Protection from Silicon Dust and Toxic Materials” issued by the State Planning Commission in 1973.

Article 16

The joint venture shall implement the systems of work schedules, holidays and paid leave of absence which are carried on in China’s
state-run enterprises. It must distribute labour protection appliances to the staff and workers with reference to the standards in
state-run enterprises.

Article 17

When staff and workers die or suffer injuries from industrial accidents or sustain severe occupational poisoning and other injurious
occupational accidents, the joint venture shall report the matter promptly to the department in charge of the venture and local labour
personnel department and trade union organization, and accept their investigation and treatment.

Article 18

The joint venture in special economic zones should implement the labour management provisions stipulated by the zone.

Article 19

These Measures shall be implemented under the supervision of the labour personnel departments at various levels.

Article 20

These Measures shall enter into force as of the date of promulgation.

 
The Ministry of Labour and Personnel
1983-12-24

 




PROCEDURES FOR THE IMPLEMENTATION OF THE PROVISIONS FOR LABOUR MANAGEMENT IN JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT