1989

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

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CONTROL OVER PREVENTION OF POLLUTION BY VESSELS IN SEA WATERS

REGULATIONS ON CONTRACTS OF PROPERTY INSURANCE

Regulations of the PRC on Contracts of Property Insurance

    

(Effective Date 1983.09.01)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II CONCLUSION, ALTERATION AND ASSIGNMENT OF CONTRACT OF

INSURANCE

CHAPTER III OBLIGATIONS OF THE INSURED

CHAPTER IV THE LIABILITY OF THE INSURER FOR COMPENSATION

CHAPTER V SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   ARticle 1. The Regulations of the People’s Republic of China on Contracts of Property Insurance are drawn up in accordance with
relevant provisions of the Economic Contract Law of the People’s Republic of China.

   Article 2. The property insurance referred to in the present Regulations includes various kinds of insurance on either
property or interest as the subject matter of insurance, such as property insurance, agricultural insurance,
liability insurance, surety bond, credit insurance etc.

The event mentioned in the present Regulations refers to and event coming within the scope of cover under the contract of insurance.

   Article 3. An applicant for cover of property insurance (called the Insured in the policy or the certificate of insurance) shall
be owner or the operating manager of the insured property or a person who has an insurable interest in the subject
matter insured. In applying to the Insurer for the conclusion of a contract of insurance, the applicant shall
be obligated to pay the insurance premium.

   Article 4. The parties to the contract of insurance applying to the organ for control of contracts for reconciliation or
arbitration in accordance with the provisions of Article 50 of the Economic Contract Law of the People’s Republic
of China shall make their submission within a period of one year from the date on which the incidence of an insured
event is known or ought to be known by them.

CHAPTER II CONCLUSION, ALTERATION AND ASSIGNMENT OF CONTRACT OF INSURANCE

   Article 5. A contract of insurance shall be deemed to be concluded when the applicant puts forward his proposal for insurance
by filling in an application and agrees with the Insurer on the method of payment of insurance premium and when
the Insurer signifies acceptance of the said application form by affixing his seal thereto. The Insurer shall
issue a policy or a certificate of insurance to the applicant in good time in accordance with the contract of
insurance.

   Article 6. An applicant may conclude an open cover with the Insurer, and the Insurer shall, in witness thereof issue an open policy
to the applicant according to the contract of insurance.

The open cover shall stipulate the scope of cover, the range of property insured, the maximum amount of insurance each
risk or at each place and the method of settling premium, etc.

During the currency of the open cover, the insured shall declare to the Insurer in writing, in good time each
and every risk falling within the scope of the open cover according to the stipulations. The Insurer shall treat
each written declaration by the Insured as a part of the open cover and shall be liable therefor in accordance with the
contract of insurance. The Insurer shall be enpost_titled to verify the contents of the declarations, and in case of any omission,
the Insured shall rectify it by filing the omitted declaration or declarations. The Insured may ask the Insurer to
issue a separate policy for any one risk declared.

   Article 7. At the time a contract of insurance is concluded, the Insurer shall advise the Insured of all matters related
to the way of effecting insurance, and the Insured shall, as required by the Insurer, disclose all material circumstances
which the Insurer requires to know in deciding whether or not to accept the risk or the premium to be charged.

Should, after the conclusion of the contract of insurance, there be any non-disclosure, concealment or misrepresentation
by the Insured of the material circumstances mentioned in the preceeding paragraph the Insurer shall be enpost_titled
to rescind the contract of insurance or disclaim liability.

   Article 8. The Insurer shall not be liable for any loss of or damage to the insured property in consequence of an insured event
caused by any intentional act of the Insured.

   Article 9. The contents of a contract of insurance may be altered by agreement between the Insured and the Insurer during the currency
thereof. Any agreement on the alteration of the contract of insurance shall be certified to by the Insurer
by endorsing the policy or the certificate of insurance or by affixing an endorsement thereto.

   Article 10. Once a contract of insurance is concluded, the Insurer shall not terminate it during its currency. In case the
contract of insurance is terminated by the Insurer prior to its expiry pursuant to law or to the agreement of the
contract of insurance, the premium to be calculated pro rata daily for the unexpired period shall be refunded to the
Insured.

When the contract is terminated at the request of the Insured, the Insurer shall be enpost_titled to charge the premium calculated
on the basis of the short period rating schedule set by the State Insurance Supervisory Authority for the time
the contract has been in force, and refund to the Insured the premium paid by him.

In no case can the insured ask for termination of cargo transportation insurance and insurance on conveyances
for voyages once they commence and for refund of premium, unless otherwise stipulated in the contract of insurance.

   Article 11. With the exception of the cargo transportation policy or certificate of insurance which may be transferred by the
Insured by endorsement without the necessity of obtaining the approval of the Insurer the insurance shall terminate
at the time of the transfer, assignment or sale of the subject-matter insured unless prior written notice is given
to the Insurer and his consent obtained, with the policy or the certificate of insurance duly endorsed.

CHAPTER III OBLIGATIONS OF THE INSURED

   Article 12. The Insured shall pay the insurance premium within the specified time. If he fails to do so, the Insurer may,
depending on specific circumstances either require the Insured to pay the premium due with interest or terminate the
contract of insurance. In case of termination of the contract, the Insurer shall remain enpost_titled to require
the Insured to pay the full amount of the premium in arrears and the interest due hereon before the contract is terminated.

   Article 13. The Insured shall safeguard the safety of workers and the insured property by observing the relevant rules and regulations
on fire-fighting, safety, productive operation and labour protection.

The Insurer shall be enpost_titled to make inspections as to the security condition of the insured property, and shall,
in case of any potential unsafe factors being discovered, make reasonable recommendation to the Insured in good time
for the removal thereof and the Insured shall take measures to eliminate them without delay, failing which he shall be liable
for any less arising from an insured event caused thereby, and the Insurer shall exenterate himself from liability.

   Article 14. In case of any change in the use of the insured property or increase in the risk exposure, the INsured shall immediately
notify the Insurer in writing and shall pay an additional premium according to stipulations when so required.
If the Insured fails to do so, the Insurer shall not be held liable for any loss arising from an insured event resulting
therefrom.

   ARticle 15. Upon the incidence of an insured event, the Insured shall take all necessary measures to prevent aggravation of the loss
and shall notify the Insurer immediately of full details of the event. If the Insured fails to take such measures,
the Insurer shall be enpost_titled to repudiate liability for any loss so aggravated.

CHAPTER IV THE LIABILITY OF THE INSURANCE OR COMPENSATION

   Article 16. The Insurer shall, in accordance with the stipulations of the contract of insurance perform the obligation of compensating
for loss of or damage to the subject matter insured or for liability caused by or arising from an insured event.

Unless otherwise agreed, the liability of the Insurer for compensation is for loss or damage actually suffered
by the Insurer at the time of an insured event subject to a maximum not exceeding the insured amount of the subject-matter
insured. If there are separate items with separate insured amounts the insurer’s maximum liability shall not exceed the
insured amount of each item of the subject-matter insured.

In compensating for loss of or damage to the insured property, the Insurer shall deduct from the amount of compensation
the salvage value of such property and the amount recovered by the Insured from third parties.

   Article 17. The Insurer will according to the stipulations of the contract of insurance be liable for reasonable costs necessarily
incurred by the Insured for salving, safeguarding, reconditioning or litigation to mitigate a loss within the
scope of cover and for reasonable expenses incurred for inspecting, assesing or selling of the damaged subject-matter
insured for the purpose of ascertaining the loss falling under the scope of cover, provided that such costs and expenses
shall not exceed the sum insured.

   Article 18. The Insured shall when lodging a claim submit to the Insurer a statement of claim and statements for salvage charges,
etc. as well as necessary accounts, vouchers and documentary evidence. Upon receipt of the documents for such claim, the
Insurer shall decide whether or not to admit liability, and where an agreement on the amount payable is reached
with the Insured, shall effect payment within ten days from the date of such agreement. In case of failure to pay within
the prescribed time, the Insurer shall be liable for breach of the contract and subject to a penalty commencing from
the eleventh day following the date on which the amount of indemnity is determined, according to the interest rate then
prevailing for short term loans to enterprises as set by the People’s Bank of China.

   Article 19. If the insured property sustains a loss within the scope of cover for which a third party shall be held liable, the Insured
shall file a claim with such third party. The Insurer may make compensation in advance according to the provisions of the
contract if the Insured claims against him, in such case, however, the Insured shall subrogate to the Insurer the right of
recovery against the third party and assist the latter in pursuing such recovery.

CHAPTER V SUPPLEMENTARY PROVISIONS

   Article 20. The Present Regulations shall apply to contracts of insurance concluded between the Insurer and individuals.

   Article 21. The Present Regulations shall apply to contract of insurance on property involving foreign elements.

   Article 22. Unless otherwise stipulated by The Law, the present Regulations shall apply to contracts of marine insurance.

   Article 23. The present Regulations comes into force on the day of promulgation.

    






REGULATIONS ON THE ADMINISTRATION OF ENVIRONMENTAL PROTECTION IN THE EXPLORATION AND DEVELOPMENT OF OFFSHORE PETROLEUM

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1983-12-29 Effective Date  1983-12-29  


Regulations of the People’s Republic of China on the Administration of Environmental Protection in the Exploration and Development
of Offshore Petroleum



(Promulgated by the State Council on December 29, 1983)

    Article 1  These Regulations are formulated in order to implement the
Marine Environmental Protection Law
of the People’s Republic of China and
prevent pollution damage to marine environment resulting from offshore
petroleum exploration and development.

    Article 2  These Regulations are applicable to enterprises, institutions,
operators and individuals engaged in the exploration and development of
petroleum in the see areas under the jurisdiction of the People’s Republic of
China, and the stationary and mobile platforms and other relevant facilities
they use.

    Article 3  The departments in charge of environmental protection in
exploration and development of offshore petroleum are the State Oceanographic
Bureau of the People’s Republic of China and its agencies, hereinafter
referred to as the “competent departments”.

    Article 4  Enterprises or operators, while compiling the overall programs
for developing oil (gas) fields, must compile a marine environmental impact
report and submit it to the Ministry of Urban and Rural Construction and
Environmental Protection of the People’s Republic of China. The Ministry of
Urban and Rural Construction and Environmental Protection, in conjunction with
the State Oceanographic Bureau and the Ministry of Petroleum Industry, is to
organize examination and approval in accordance with the stipulations
governing the administration of environmental protection over the projects of
state capital construction.

    Article 5  The marine environmental impact report shall include the
following:

    (1) the name, geographical position and size of the oil field;

    (2) the natural environment and the conditions of marine resources of the
sea areas where the oil field is located;

    (3) the types, composition, amount and the means of disposal of the waste
materials to be discharged in developing the oil field;

    (4) an assessment of the impact on the marine environment; the possible
impact from development of offshore petroleum on the natural environment and
marine resources of the surrounding sea areas; the possible impact on the sea
fishery, shipping and other sea activities; measures for environmental
protection to be adopted to avoid and reduce various types of harmful impact;

    (5) the impact that can not be avoided in the final outcome and the
graveness and causes of the impact;

    (6) measures for preventing major oil pollution accidents; the
organization of prevention, provision of personnel, technical equipment and
communications and liaison.

    Article 6  Enterprises, institutions and operators shall have the
capacity of dealing with emergencies with regard to the prevention and control
of oil pollution accidents, formulate emergency plans, have oil recovery
facilities and equipment for containing oil and eliminating oil commensurate
with the scale of exploration and development of offshore petroleum in which
they are engaged.

    If oil-eliminating chemical agents are to be used, their brand names and
composition shall be reported to the competent departments for verification
and approval.

    Article 7  The requirements for the pollution-prevention equipment of the
stationary and mobile platforms are:

    (1) oil and water separation equipment shall be fitted;

    (2) the oil extraction platforms shall be fitted with the equipment for
treating oil-polluted water; the oil content of the polluted water, after
treatment by this equipment, shall reach the discharge standards set by the
State;

    (3) devices for monitoring and control of oil discharge shall be fitted;

    (4) facilities for retrieving residual oil and waste oil shall be fitted;

    (5) equipment for garbage pulverization shall be fitted;

    (6) the above equipment shall go through the examination by the shipping
inspection agencies of the People’s Republic of China and must satisfy the
standards before efficacy certiticates are issued.

    Article 8  The stationary and mobile platforms that already started
petroleum exploration and development in the sea areas under the jurisdiction
of the People’s Republic of China before March 1, 1983, if their
pollution-prevention equipment do not meet the stipulated requirements, shall
adopt effective measures to prevent pollution, and their pollution-prevention
facilities are to satisfy the stipulated requirements within three years of
the promulgation of these Regulations.

    Article 9  The enterprises, institutions and operators shall possess civil
liability insurance or other financial guarantees to cover pollution damage.

    Article 10  The stationary and mobile platforms shall be fitted with
anti-pollution record books in the format approved by the competent
departments.

    Article 11  The oil-polluted water of stationary and mobile platforms may
not be directly discharged or after dilution. The oil content of the
oil-polluted water discharged after treatment must meet the State’s relevant
standards of discharging oil-polluted water.

    Article 12  Requirements of control for other waste materials:

    (1) residual oil, waste oil, oil-based mud, garbage containing oil and
other toxic residual liquid and dregs must be recovered, and may not be
discharged or cast off into the sea;

    (2) the dumping of industrial garbage in large quantities is to be managed
in accordance with the stipulations of marine dumping of waste materials;
fragmentary industrial garbage may not be discarded into the fishery waters
and sea-lanes;

    (3) domestic garbage that need to be discharged within 12 nautical miles
from the nearest land shall undergo pulverization treatment with the granules
less than 25 millimetres in diameter.

    Article 13  Where exploration and development of offshore petroleum
require explosive demolitions by using explosives or other operations that are
harmful to fishery resources in the important fishery waters, effective
measures shall be adopted to avoid the spawning, breeding and fishing seasons
of the major fishes and shrimps of economic value; a report is to be made to
the competent departments before the operations and there shall be
clear signs and signals when the operations are under way.

    The competent departments, on receiving the report, shall notify the
relevant units of the place and time of the operations in good time.

    Article 14  Marine oil storage facilities and pipelines for the conveyance
of oil shall conform to anti-seepage, anti-leakage and anti-rotting
requirements, and shall constantly be checked and maintained in good
condition, so as to prevent oil leakage.

    Article 15  In testing oil on the sea, oil and gas shall be fully burned
out in the combustion devices. With regard to the oils and oil-based mixtures
falling into the sea in the course of testing oil, effective measures shall be
adopted to treat them, and accurate records are to be kept.

    Article 16  Enterprises, institutions and operators shall, immediately
upon detection of the occurrence of pollution accidents such as oil overflow
and oil leakage in operation, adopt measures for containing oil and oil
recovery to control, reduce and remove the pollution.

    In case of occurrence of major pollution accidents such as oil overflow,
oil leakage and well blowout in large quantities, report shall immediately be
made to the competent departments, and effective measures are to be adopted to
control and remove the pollution, and the matter shall be subject to
investigation and handling by the competent departments.

    Article 17  The use of oil-eliminating chemical agents shall be
controlled:

    (1) When oil pollution accidents occur, measures for recovery shall be
adopted; with regard to the small amount of oil that is actually beyond
recovery, it is permitted to use a small amount of oil-eliminating chemical
agents.

    (2) With regard to the amount of irretrievable oil-eliminating chemical
agents (including the solvent) to be used, separate specific stipulations
shall be worked out by the competent departments according to different
conditions in different sea areas. The operators shall report to the competent
departments according to stipulations, and may only use these chemical agents
after approval has been obtained.

    (3) In emergencies where oil floating on the surface of the sea may cause
fire or may gravely endanger human lives and property, and the matter is
unable to be handled with the method of recovery, but, by using
oil-eliminating chemical agents, pollution can be reduced and the consequences
of the accidents be contained, the amount of oil-eliminating chemical agents
used and the reporting procedures may go beyond the restrictions as stipulated
in paragraph (2) of this Article. However, a detailed report on the
circumstances of the accident and the circumstances of using oil-eliminating
agents shall be made to the competent departments afterwards.

    (4) Only those oil-eliminating chemical agents which have been verified
and approved by the competent departments may be used.

    Article 18  The operators shall make detailed and accurate entries of the
following circumstances in the anti-pollution record books of the platform:

    (l) the operation of the anti-pollution equipment and facilities;

    (2) the treatment and discharge of the oil-polluted water;

    (3) the treatment, discharge and disposal of other waste materials;

    (4) the occurrence of oil-pollution accidents such as oil spill, oil
leakage and well blowout and the handling;

    (5) the details about the demolition operations;

    (6) details about the use of oil-eliminating chemical agents;

    (7) other items stipulated by the competent departments.

    Article 19  The enterprises and operators shall, within 15 days from the
end of each quarter of the year, make a comprehensive report in the format
approved by the competent departments on anti-pollution and the circumstances
of pollution accidents of that quarter.

    The competent departments shall be informed in good time of the positions
of the stationery and mobile platforms.

    Article 20  Government functionaries of the competent departments or the
personnel designated by them may board the stationery and mobile
platforms and other relevant facilities to conduct monitoring and
investigation, including:

    (1) collecting various kinds of samples;

    (2) inspecting the fitting out, operating and using of various
anti-pollution equipment, facilities and materials;

    (3) inspecting relevant documents and certification papers;

    (4) checking up on the anti-pollution record books and the relevant
operation records, making copies and extracts when necessary, and demanding
that the responsible persons of the platform sign their names in confirmation
of the copies and extracts in question as correct duplicates;

    (5) gathering information about pollution accidents among the persons
concerned;

    (6) other related matters.

    Article 21  The ships that conduct official business of the competent
departments shall have clear signs. Government functionaries or the designated
personnel, in carrying out official affairs, must wear official uniforms and
carry identity papers.

    Those who are investigated shall provide facility for the aforesaid ships,
government functionaries and the designated personnel, and provide accurate
information and statements about the accidents.

    Article 22  Units and individuals that have suffered pollution damage
caused by exploration and development of offshore petroleum and are to claim
compensation shall, in accordance with the stipulation of Article 32 of the
Environmental Protection Law of the People’s Republic of China and the
stipulation of Article 42 of the Marine Environmental Protection Law of the
People’s Republic of China, apply for handling to the competent departments
and claim compensation for the losses from the party that is responsible for
the pollution damage. The claimant shall submit a report on claiming
compensation for damage sustained; this report shall include the following:

    (1) the time, place, scope and the objects of the pollution damage caused
by the exploration and development of offshore petroleum;

    (2) a detailed list of the losses caused by pollution damage, including
the names of objects, quantity, unit price, method of calculating, and such
matters as the breeding or natural conditions;

    (3) an appraisal by the relevant scientific research department or
endorsement by a notary office in confirmation of the damage actually
sustained;

    (4) the original documents of evidence of the pollution damage, the
photographs of the related circumstances and other documents and materials of
testimony relevant to the claim for compensation shall be provided as complete
as possible.

    Article 23  Units and individuals (those having commercial contracts
excluded) that demand reimbursement of the expenses for removing pollutants
stemming from the exploration and development of offshore petroleum shall, in
applying to the competent departments for attention to the case, submit a
report of claiming reimbursement of the expenses for removal to the competent
departments. This report shall include the following:

    (1) the time, place and objects of the elimination of pollutants;                    

    (2) the manpower, machines and tools and vessels employed, and the
quantities, the unit price and the method of calculating of the materials used
in effecting the removal;

    (3) the administrative expenses, transport cost, and othe relevant
expenses in organizing the removal effort;

    (4) the results of and the situation after the removal;

    (5) other relevant evidence and certification papers.

    Article 24  Where devastating pollution accidents have occurred due to
force majeur, the enterprises, institutions and operators wishing to free
themselves from the indemnity liabilities thereof shall submit to the
competent departments a report which must be able to testify that the damage
resulting from the pollution accident falls under one of the circumstances
described in Article 43 of the Marine Environmental Protection Law of the
People’s Republic of China, and that the accident remained unavoidable despite
rational measures promptly taken.

    Article 25  In handling cases of disputes concerning liability for
compensation and the amount of compensation for the pollution damage in the
exploration and development of offshore petroleum, the competent departments
shall, on the basis of investigation and finding out the facts, resort to
mediation.

    If a party does not want mediation or does not agree to handling of the
matter through mediation by the competent departments, the matter may be
handled in accordance with the stipulation of Article 42 of the Marine
Environmental Protection Law of the People’s Republic of China.

    Article 26  Where enterprises, institutions and operators violate the
Marine Environmental Protection Law of the People’s Republic of China and
these Regulations, the competent departments may order that they take remedial
measures to rectify the situation within a given period of time, pay the
removal costs, and compensate the State for the damage; in cases of discharge
of pollutants in excess of the standard, the payment of a pollutant discharge
fee may be demanded.

    Article 27  In cases where enterprises, institutions, operators and
individuals violate the Marine Environmental Protection Law of the People’s
Republic of China and these Regulations, the competent departments may punish
the violators by giving warnings or imposing fines according to the
seriousness of the case.

    Fines fall into the following categories:

    (1) The maximum amount of a fine imposed on an enterprise, institution or
operator that has caused marine environmental pollution is 100,000 RMB yuan.

    (2) The maximum amount of a fine imposed on an enterprise, institution and
operator that has contravened the relevant rules and regulations in the
following ways is 5,000 RMB yuan:

    a. not reporting a major oil-pollution accident to the competent
departments according to stipulations;

    b. using oil-eliminating chemical agents not according to stipulations.

    (3) The maximum amount of a fine imposed on an enterprise, institution or
operator that has contravened the relevant rules and regulations in the
following ways is 1,000 RMB yuan:

    a. not having the anti-pollution record book equipped according to
stipulations;

    b. the entries in the anti-pollution record book are irregular or false;

    c. not reporting to or informing the competent departments of their real
situation according to stipulations;

    d. obstructing the government functionaries or the designated personnel
from performing their official duties.

    (4) With regard to the directly responsible persons, fines may be imposed
according to the seriousness of the case.

    Article 28  If a party does not agree to the penalty by the competent
departments, the matter shall be handled in accordance with the stipulations
of Article 41 of the Marine Environmental Law of the People’s Republic of
China.

    Article 29  The competent departments shall grant commendations and
rewards to the units and individuals that on their own initiative report and
expose enterprises, institutions and operators that have concealed pollution
accidents in the exploration and development of offshore petroleum, or provide
evidence, or adopt measures to reduce the damage arising therefrom.

    Article 30  The meanings of the following terms in these Regulations are:

    (1) “Stationary and mobile platforms” refers to the well drilling ships,
well drilling platforms and oil extraction platforms referred to in the
Marine Environmental Protection Law of the People’s Republic of China, and
includes other platforms.

    (2) “Exploration and development of offshore petroleum” refers to such
operational activities as exploration, development, production, storage and
pipeline conveyance.

    (3) “Operators” refers to the entities that perform the operations of
exploration and development of offshore petroleum.

    Article 31  These Regulations shall go into effect as of the date of
promulgation.






REGULATIONS ON FOREIGN CURRENCY DEPOSITS AND SPECIAL RENMINBI DEPOSITS BY THE BANK OF CHINA

Regulations on Foreign Currency Deposits and Special Renminbi Deposits by the Bank of China

    

(Issued by the Bank of China on January 1, 1983)

CONTENTS

I. BANK OF CHINA REGULATIONS FOR FOREIGN CURRENCY DEPOSITS (CATEGORY A)

II. BANK OF CHINA REGULATIONS FOR FOREIGN CURRENCY DEPOSITS (CATEGORY B)

III.BANK OF CHINA REGULATIONS FOR SPECIAL RENMINBI DEPOSITS

I. BANK OF CHINA REGULATIONS FOR FOREIGN CURRENCY DEPOSITS (CATEGORY A)

   Article 1. Deposits under these regulations are handled by the Banking Department of the Head Office of the Bank of China and the bank’s domestic
branches and sub-branches.

   Article 2. An account for deposits may be opened by the following bodies, enterprises and organizations:

(1) Foreign diplomatic, consular and commercial missions, organs of international bodies and offices of non-governmental organizations
stationed in China;

(2) Chinese and foreign enterprises and organizations set up in foreign countries or the Hongkong and Macao regions;

(3) Enterprises operating in China with overseas Chinese capital or foreign capital or joint Chinese and foreign capital;

(4) State organs, organizations,schools, state-owned enterprises and establishments and collective urban and rural economic bodies
in China;

(5) Others with the approval of the Bank of China.

   Article 3. Foreign exchange of the following kinds may be deposited in the aforesaid account:

(1) Foreign exchange in convertible currency remitted brought, or sent into China from abroad or the Hongkong and Macao regions.
Where the foreign exchange is in foreign bank-notes, the banknotes shall have to be first sold to the bank at its current buying
rate and the proceeds converted into foreign currency as its current selling rate before the account can be credited. Where a foreign
currency bill is not payable immediately, the amount can be credited to the account only after collection by the bank;

(2) Foreign exchange funds of enterprises operating with overseas Chinese capital or foreign capital or joint Chinese and foreign
capital;

(3) Foreign exchange kept by Chinese state organs, enterprises, establishments and organizations with the approval of the government
department in charge of foreign exchange control;

(4) Other kinds of foreign exchange which the Bank of China has agreed to accept for deposit.

   Article 4. Deposits are of two types, namely, fixed deposit and current deposit. Interest shall be paid at the rates published by the Head
Office of the Bank of China.

(1) A fixed deposit takes the form of a deposit certificate issued in the name of the depositor and must be established and withdrawn
in its entirety in one lump sum. Maturity may be of 3 months, half a year, 1 year or 2 years. The initial deposit must not be less
than the equivalent of RMB 10, 000. Where the interest rate changes prior to maturity, interest on the deposit shall still be paid
at the rate originally fixed at the time of deposit. If the deposit is renewed after maturity, the interest rate ruling on the date
of renewal is to apply.

(2) A current deposit takes two forms, namely, deposit book and current account. The initial deposit must not be less than the equivalent
of RMB 1, 000. Withdrawals may be made at any time either by presentation of the deposit book or by a withdrawal slip, but no overdraft
is allowed. Approval must be obtained from the bank in case the holder of a current account in China wishes to use cheques because
of special need, but no interest is allowed for current accounts using cheques.

Deposits are restricted to 5 kinds of currencies, namely, the US dollar, Pound sterling, Hongkong dollar, Deutsche mark and Japanese
yen. Deposits in other currencies shall be credited to the account only after the currency concerned has been converted into one
of the aforesaid 5 currencies at the ruling exchange rate.

   Article 5. A request for opening an account for deposit must be accompanied by an identification document, a letter of application and a specimen
signature. If what is established is a fixed deposit, the bank shall issue to the depositor a fixed deposit certificate in depositor’s
name, whereas if it is a current deposit, the bank shall issue to the depositor a deposit book or an advice notifying it of the opening
of the account.

   Article 6. The Use of Deposits:

(1) Funds in a deposit may be remitted to place within or outside China.

(2) Funds in a deposit may be converted into Renminbi at the ruling exchange rate.

(3) Funds in a deposit may be transferred to another foreign currency account kept with the bank.

(4) With the approval of the bank, foreign banknotes may be sold to the personnel of the depositor to meet the needs of their departure
from China. In principle, transfers abroad should be made in the same kind of currency as that deposited. If transfers are made
in any other foreign currency, they shall be dealt with as where foreign exchange is bought and sold by the bank.

The use of a deposit by state organs, organizations, schools state-owned enterprises and establishments, collective urban and rural
economic bodies and enterprises operating with joint Chinese and foreign capital in China shall be in conformity with the foreign
exchange control regulations of the country.

   Article 7. On maturity, a fixed deposit may be withdrawn against the deposit certificate and the specimen signature previously left with the
bank or according to a pre-arranged procedure. A current deposit may be withdrawn against the deposit book and a withdrawal slip
or according to a pre-arranged procedure.

   Article 8. A fixed deposit may be renewed on maturity by presenting the deposit certificate and furnishing the specimen signature to the bank
or according to the pre-arranged procedure. In case a fixed deposit is not withdrawn or renewed on maturity, interest for the period
after maturity shall be calculated at the rate for current deposits ruling on the date of maturity. Where a fixed deposit is withdrawn
before maturity because of special need, the interest paid shall be that for current deposits ruling on the date of withdrawal.

   Article 9. In case of loss of the deposit certificate, deposit book, cheques or signature stamp (seal), the depositor shall immediately file
a written request for stop-payment with the bank against a certificate issued by the depositor’s unit or other documents originally
agreed upon. Upon the bank’s approval, a new deposit document may be issued to the depositor or a new specimen signature allowed
to replace the old one. If a deposit has been withdrawn by other persons prior to receipt by the bank of the request for stop-payment,
the bank shall not bear any responsibility.

   Article 10. On closing an account, the depositor shall return to the bank the deposit book, certificate or unused cheques together with other
related documents, if any.

   Article 11. The bank has the responsibility for the confidentiality of the deposit of the depositor.

   Article 12. These regulations are promulgated and put into force by the Head Office of the Bank of China.

II. BANK OF CHINA REGULATIONS FOR FOREIGN CURRENCY DEPOSITS (CATEGORY B)

   Article 1. Deposits under these regulations are handled by the Banking Department of the Head Office of the Bank of China and the bank’s domestic
branches and sub-branches.

   Article 2. An account for deposits may be opened in their own names by foreign nationals, foreign nationals of Chinese descent, overseas Chinese
and Hongkong and Macao compatriots resident abroad or in the Hongkong and Macao regions, persons making short visit in China, foreign
personnel of foreign diplomatic and consular missions and of foreign representations stationed in China, foreign technicians, correspondents,
scholars, experts, seamen, students and trainees resident in the country, and Chinese nationals who are allowed by state regulations
to retain foreign exchange for themselves.

   Article 3. Foreign exchange of the following kinds may be deposited in the aforesaid account:

(1) Foreign exchange in convertible currency remitted or brought into China from abroad or from the Hongkong and Macao regions;

(2) Where the foreign exchange brought in is in foreign bank-notes, the bank-notes shall have to be first sold to the bank at its
ruling buying rate and the proceeds converted into foreign currency at its ruling selling rate before the account can be credited.
Where a foreign currency bill is not payable immediately, the amount can be credited to the account only after collection by the
bank;

(3) Overseas Chinese remittances for buying houses;

(4) Other kinds of foreign exchange which the Bank of China has agreed to accept for deposit.

   Article 4. Deposits are of two types, namely, fixed deposit and current deposit. Money can be freely credited to or withdrawn from them. Interest
shall be paid at the rate published by the Head Office of the Bank of China. The principal and interest may be remitted abroad on
maturity.

(1) A fixed deposit takes the form of a deposit certificate issued in the name of the depositor and must be established and withdrawn
in its entirety in one lump sum. Maturity may be of 3 months, half a year, 1 year or 2 years. The initial deposit must not be less
than the equivalent of RMB50. Where the interest rate changes prior to maturity, interest on the deposit shall still be paid at
the rate originally fixed at the time of deposit. If the deposit is renewed after maturity, the interest rate ruling on the date
of renewal is to apply.

(2) A current deposit takes the form of a deposit book. Withdrawals may be made at any time by presentation of the deposit book. The
initial deposit must not be less than the equivalent of RMB20.

(3) Deposits are restricted to 5 kinds of currencies, namely,the US dollar, Pound sterling, Hongkong dollar, Deutsche mark and Japanese
yen. Deposits in other currencies shall be credited to the account only after the currency concerned has been converted into one
of the aforesaid 5 currencies at the ruling exchange rate.

   ARticle 5. A request for opening an account for deposits must be accompanied by a letter of application and a specimen signature. If what
is established is a fixed deposit, the bank shall issue to the depositor a fixed deposit certificate in the depositor’s name, whereas
if it is a current deposit, the bank shall issue to the depositor a deposit book. Persons resident abroad or in the Hongkong and
Macao regions may contact the bank by post and an account for deposits will be opened for them according to arrangements. In such
a case the deposit certificate or deposit book may be kept in the custody of the bank and a certificate of custody shall be issued
to the depositor.

   Article 6. On maturity, a fixed deposit may be withdrawn against the deposit certificate and the specimen signature previously left with the
bank or according to a pre-arranged procedure. A current deposit may be withdrawn against the deposit book and a withdrawal slip
or according to a pre-arranged procedure.

   Article 7. The Use of Deposits

(1) A deposit may be transferred abroad.

(2) A deposit may be converted into Renminbi at the ruling exchange rate to be used in China or remitted to relatives in the country
with the special privileges accorded to overseas Chinese remittances according to regulations.

(3) A deposit may be used to pay the travelling expenses of visitors in China;

(4) When a depositor leaves China, foreign banknotes may be sold to him according to circumstances upon his application and with the
approval of the bank. The currency to be remitted abroad shall, in principle, be of the same kind as that deposited. If another
kind of currency is remitted, the case shall be dealt with as where foreign exchange is bought and sold by the bank.

   Article 8. If a fixed deposit is not withdrawn on maturity, the bank may renew it for another similar period.

Where withdrawal is made before maturity because of special need, the interest on the amount drawn shall be paid at the rate for current
deposits ruling on the date of withdrawal, while the amount remaining undrawn shall continue to bear interest at the rate allowed
at the time of deposit.

   Article 9. In case of loss of the deposit book, deposit certificate or signature stamp (seal), the depositor shall file a written request with
the bank for stop-payment against his identification certificate or other documents originally agreed upon. Upon the bank’s approval,
a new deposit document may be issued to the depositor or a new specimen signature allowed to replace the old one. If the deposit
has been withdrawn by fraud prior to receipt by the bank of the request for stop-payment the bank shall not bear any responsibility.

   Article 10. On closing an account, the depositor shall return to the bank the deposit book or deposit certificate together with other related
documents, if any.

   Article 11. The bank has the responsibility for the confidentiality of the deposit of the depositor.

   Article 12. These regulations are promulgated and put into force by the Head Office of the Bank of China.

III. BANK OF CHINA REGULATIONS FOR SPECIAL RENMINBI DEPOSITS

   Article 1. Deposits under these regulations are handled by the Banking Department of the Head Office of the Bank of China and the bank’s domestic
branches and sub-branches.

   Article 2. An account for deposits may be opened by the following bodies, enterprises, organizations and individuals:

(1) Foreign diplomatic, consular and commercial missions, organs of international bodies and offices of non-governmental organizations
stationed in China;

(2) Enterprises and organizations set up abroad or in the Hongkong and Macao regions;

(3) Enterprises operating in China with overseas Chinese capital or foreign capital or joint Chinese and foreign capital;

(4) Foreign nationals, overseas Chinese and Hongkong and Macao compatriots resident in or outside China;

(5) Chinese nationals who are allowed by state regulations retain foreign exchange for themselves.

(6) Others with the approval of the Bank of China.

   Article 3. Foreign exchange of the following kinds may be converted into Renminbi at the ruling exchange rates and credited to the aforesaid
account:

(1) Remittances from abroad or the Hongkong and Macao regions in favour of a depositing unit or individual;

(2) Where the foreign exchange brought or sent into the country from abroad or from the Hongkong and Macao regions is in foreign bank-notes,
the account shall be credited only after the bank-notes have been converted into Renminbi at the ruling buying rate for foreign bank-notes.
A foreign currency bill which is not payable immediately shall be credited to the account only after collection by the bank;

(3) Other kinds of foreign exchange with the approval of the bank.

   Article 4. Deposits are kept in the name of the depositor and are of two kinds, namely, current deposit and deposit book. Interest shall be
calculated at the rate for current deposits published by the People’s Bank of China. Where the depositing unit or individual requires
the use of cheques because of special need, approval must be obtained from the bank, but no interest is allowed for current deposits
using cheques. The initial deposit shall not be less than RMB 1,000 for representative bodies, enterprises and organizations, and
RMB 20 for individuals.

   Article 5. To open an account, the depositor must provide the bank with an identification document a letter of application and a specimen signature
or follow procedures already agreed upon.

   Article 6. The Use of Deposits

(1) The principal and interest of a deposit may be converted into foreign currency at the ruling exchange rate to be remitted abroad;

(2) Funds in a deposit may be transferred to a Renminbi account or withdrawn in Renminbi banknotes with the special privileges accorded
to overseas Chinese remittances according to regulations. The funds so transferred or withdrawn are not allowed to be re-deposited
in the account.

(3) A deposit may be transferred to another special Renminbi account kept with the bank.

The use of a deposit by enterprises operating with joint Chinese and foreign capital in China shall be in conformity with the foreign
exchange control regulations of the country.

   Article 7. In case of loss of the deposit book or signature stamp (seal), the depositor must notify the bank in writing to stop payment against
an identification certificate or other documents, originally agreed upon. Upon the bank’s approval, a new deposit document may be
issued to the depositor or a new specimen signature allowed to replace the old one. If the deposit has been withdrawn by other persons
prior to receipt by the bank of the stop-payment notice, the bank shall not bear any responsibility.

   ARticle 8. On closing an account, the depositor shall return to the bank the deposit book and unused cheques together with other related documents,
if any.

   Article 9. The bank has the responsibility for the confidentiality of the deposit of the depositor.

   Article 10. These regulations are promulgated and put into force by the Head Office of the Bank of China.

    






REGULATIONS ON THE ARBITRATION OF DISPUTES OVER ECONOMIC CONTRACTS

Regulations of the PRC on the Arbitration of Disputes Over Economic Contracts

    

(Effective Date 1983.08.22)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II JURISDICTION

CHAPTER III ORGANISATION

CHAPTER IV PROCEDURES

CHAPTER V APPENDIX

CHAPTER I GENERAL PRINCIPLES

   Article 1. Pursuant to the “Economic Contract Law of the People’s Republic of China”, the present regulations are hereby formulated to correctly
handle disputes over economic contracts, protect the legitimate rights and interests of disputing parties and maintain social and
economic order.

   Article 2. The State General Administration for Industry and Commerce and the economic contract arbitration boards established by local administrations
for industry and commerce are organs of arbitration for economic contracts.

   Article 3. Arbitration organs shall handle cases of disputes over economic contracts within their terms of reference and practise the system
of arbitration award being final and conclusive.

   Article 4. In handling cases of disputes over economic contracts, organs of arbitration upholds the principle of carrying out investigations
to find out facts and abide by the laws, administrative regulations and policies of the state. Disputing parties are equals in the
application of the law and they are ensure of exercising equal rights.

   Article 5. In places where minority nationality people live in compact community,languages, oral or written, of local minority people shall
be used in mediating, arbitrating and writing mediation documents and arbitration awards. Disputing parties who do not understand
local languages commonly in use by local minority nationalities shall be provided with interpreters.

   Article 6. Disputing parties should apply for arbitration with the organs of arbitration within one year starting from the date when they get
to know or ought to have known that their rights have been encroached upon. But no time limit is imposed on cases where the party
which has encroached upon the rights of others is willing to assume liabilities.

   Article 7. Disputing parties or their legal representatives may entrust one or two persons to take action on their behalf. In entrusting others
to take action, they must present to the arbitration board a power of attorney which should specify matters to be entrusted and their
terms of reference.

   Article 8. The regulations apply to disputes over economic contracts between legal persons as well as to disputes over economic contracts signed
by legal persons with self-employed or rural peasants.

CHAPTER II JURISDICTION

   Article 9. Cases of disputes over economic contracts shall be handled by arbitration organizations in places where the contracts are implemented
or signed. If there is difficulty in execution, it may be referred to arbitration organizations in places of the accused.

Disputes over construction engineering contracts shall be handled by arbitration organizations in places where the project is built.

Disputes over economic contracts arising from the course of transportation by rail,road, water or through transport, shall be handled
by arbitration organizations in places where the transportation control organization responsible for handling the cases are located.

Disputes over economic contracts arising from air transport shall be handled by arbitration organizations in places where the contracts
are signed, or where the goods are dispatched or the place of destination or where the accidents occur.

   Article 10. Disputes over economic contracts shall be handled by arbitration organizations of counties (cities) and city districts, with the
exception of the following cases:

(1) Cases that have a big influence or involve a sum of over 500, 000 to 5 million Yuan shall be handled by arbitration organizations
of cities under the direct administration of provinces, or prefectures and autonomous prefectures;

(2) Major economic disputes of great impact or involving a sum of 5 million to 10 million yuan shall be handled by provincial, municipal
or autonomous regional arbitration organizations;

(3) Disputes over economic contracts that will have great impact nationwide or disputes between provinces,municipalities and autonomous
regions or between central departments on the one hand and provinces, municipalities or autonomous regions on the other or between
central departments and involve a sum of above 10 million yuan shall be handled by the arbitration board of the State Administration
for Industry and Commerce.

   Article 11. Arbitration organizations at a higher level have the right to handle cases within the jurisdiction of arbitration organizations
at a lower level and they may also hand over cases within their own jurisdiction down to arbitration organizations at a lower level.

Arbitration organizations at a lower level may submit cases within their jurisdiction to arbitration organizations at a higher level
if they deem it necessary.

   Article 12. Cases within the jurisdiction of two arbitration organizations may be accepted by the arbitration organization which first received
the letter of appeal.

Arbitration organizations shall not accept cases where one of the disputing parties has applied for arbitration while the other has
brought the cases before the law court.

   Article 13. Disputes arising from jurisdiction shall be settled through Consultation between disputing parties. Should consultation fails, the
cases should be submitted to arbitration organizations at a higher level to decide on jurisdiction.

CHAPTER III ORGANIZATION

   Article 14. Economic contract arbitration boards of the state administration for industry and commerce at all levels are composed of one chairman,
one to two vice-chairmen and a number of members. The chairman, vice-chairmen and members of the arbitration boards should be assumed
by people with rich experience and professional knowledge.

Economic contract arbitration boards designate a number of arbitrators to handle cases of disputes over economic contracts.

   Article 15. Arbitration organizations at all levels may appoint according to needs part-time arbitrators from among prominent figures, professional
technicians or judicial workers as part-time arbitrators, who shall enjoy equal rights with professional arbitrators in fulfilling
their duties.

Part-time arbitrators should have the support of their own units in performing their duties.

   Article 16. In handling cases of disputes over economic contracts, arbitration organizations shall form arbitration tribunals each composed
of two arbitrators and one umpire appointed by the arbitration board concerned.

In discussing cases, the arbitration tribunal should follow the principle of the minority subordinating to the majority. Records should
be kept for the discussions and signed by members of the tribunal. Differences of opinions should be faithfully recorded.

Difficult cases may be submitted for discussion and decision by the arbitration boards. The decisions by the arbitration boards shall
be executed by the tribunals.

Simple cases may be handled by one arbitrator appointed.

   Article 17. If any member of the arbitration tribunal is deemed unsuitable for handling a case, he should apply for “withdrawal”, If any of
the disputing parties discovers any member of the tribunal is associated with the case, it has the right to apply, orally or in writing,
for his or her withdrawal.

   Article 18. The withdrawal of the umpire shall be determined by the arbitration board. The withdrawal of arbitrators shall be decided by the
Chairman or vice-chairmen of the arbitration board.

An arbitration organization may inform the disputing parties orally or in written form of its decision on withdrawal.

CHAPTER IV PROCEDURES

   Article 19. Application should be filed with the arbitration organization for arbitration according to the provisions of the regulations and
duplicated copies of the application should be provided according to the number of people accused.

The application must specify the follow items:

(1) Name and address of the accuser, name and function of the legal representative.

(2) Name and address of the accused, name and function of the legal representative.

(3) Reasons and claims of the application.

(4) Evidence and the name and address of witnesses.

   Article 20. The arbitration organization should put the case on file for investigation and prosecution within seven days after the application
for arbitration is received if it proves in conformity with the provisions of the present regulations after examination. If the
application does not accord with the provisions, the accuser should be notified within seven days of the unacceptability of the case,
with reasons stated.

After a case is accepted, the duplicates of the application should be delivered to the accused within five days from the date of acceptance.
The accused should, within 15 days of the receipt of the duplicates of the application presents a letter of reply and related evidence.

The handling of a case is not affected whether the accused has presented the letter of reply or not within the prescribed period of
time.

   Article 21. An arbitrator must make a careful study of the application, reply and carry out investigations to collect evidence.

In order to obtain evidence, an arbitration organization may request the permission to examine files related to the case, data and
original vouchers or documents related to the case. The units concerned should present the materials as they are and assist it in
the investigations and, if necessary, produce certificates.

Arbitration organizations must keep secret evidences involving state secrets.

   Article 22. When conducting the spot survey or technical examinations, the disputing parties and personnels involved should be informed present;
if necessary, the arbitration organization can ask for help from the personnels of the departments concerned.

The records on the spot survey and technical examinations should specify the time, place and the result of the survey or examination
and have the signatures or seals of the personnel involved in the survey or examination.

If a unit is entrusted to carry out the technical examination by an arbitration organization, it should conduct the testing according
to the item and standards as entrusted.

   Article 23. If an arbitration organization is required to carry out the investigations, items and requirements should be specified. The arbitration
organization entrusted should conduct the investigations carefully and may carry out additional investigations within the required
limits and gives a timely reply. If the investigations cannot be carried out within 3 days after the letter of trust is received,
the trustee must notify the trustee of it while continuing the investigations and striving for an earliest possible reply.

   Article 24. While the handling of a case is in process, the arbitration organization may rule to take measures to prevent more serious property
losses according to the applications of the disputing parties. Measures to save from damage is confined to the property within the
scope covered by arbitration as applied or associated with the case.

In deciding measures to save damage,the arbitration organization may demand the applicant of providing a guarantor. If the applicant
refuses to provide the guarantor, the application shall be turned down.

If the applicant loses the case, he should compensate for the losses in property inflicted by taking the measures to save from damage.

Measures to save from damage may include termination of the execution of the contract, sealing up and detain the goods, selling of
the goods difficult to preserve and keeping the proceeds, ordering the object of application to provide a guarantor or other methods
allowed by law.

   Article 25. An arbitration organization should first exercise mediation in handling a case, either by an arbitrator or by an arbitration tribunal.

   Article 26. An arbitration organization should mediate on the basis of finding out facts and affixing responsibilities so as to promote mutual
understanding and reach agreement.

The agreement should be reached on a voluntary basis and should not be forced upon the disputing parties.

The contents of the agreements shall not violate the law, administrative regulations or other rules and regulations and policies or
at the expense of the public interests or the interests of others.

   Article 27. When an agreement is reached through mediation, a letter of mediation should be written, which should specify the names and addresses
of the disputing parties and the names and addresses of the representatives or agents, main facts about the disputes, responsibilities,
contents of agreement and the bearer of expenses. The letter of mediation should have the signatures of the disputing parties, the
arbitrators and the secretaries and the seal of the arbitration organization.

   Article 28. When the mediation letter is delivered, the disputing parties should automatically observe it.

   Article 29. If no agreement is reached through mediation or one disputing party or both parties have backed up their commitments, the arbitration
tribunal should conduct arbitration.

   Article 30. Before an arbitration tribunal hears a case, the disputing parties should be informed in written form of the time, place of the
hearing of the tribunal. If any of the disputing parties refuses to show up at the tribunal without justifiable reasons after it
is informed twice, arbitration may be conducted by default.

   Article 31. In hearing a case, the umpire should announce the list of arbitrators and secretaries and ask whether the disputing parties request
withdrawal.

The tribunal should carefully listen to the statements and replies of the disputing parties and the presenting of evidences, then
inquire about for the last time the opinions of the accuser, the accused in that order before another round of mediation is carried
out. If the mediation still fails, arbitration awards shall be passed after discussion by the tribunal.

   Article 32. Arbitration awards should specify:

(1) The names, addresses of the representatives or agents of the accuser and the accused.

(2) Reasons for application, facts about the disputes and claims.

(3) Facts established by the ruling, reasons and the law provisions applied.

(4) Result of the ruling and the bearer of the arbitration fees.

(5) Time limit for appeal if the ruling is not accepted.

The arbitration awards must be signed by the arbitrations and sealed by the arbitration organizations.

   Article 33. If one of the disputing parties or both refuse to accept the arbitration award, he or they may bring the case before the people’s
court within 15 days from the date of receiving the arbitration award. If no action is taken within the prescribed time limit, the
arbitration award becomes legally binding.

   Article 34. If the chairman or vice-chairmen of the economic contract arbitration board find there is indeed errors in the ruling which has
already become legally binding, he or they may submit it for discussion and decision by the economic contract arbitration board if
a re-arbitration is necessary.

If an arbitration organization at a higher level discovers errors in an arbitration award that has already become legally binding,
it has the right to revoke the award and demand re-arbitration.

A new arbitration tribunal should be formed in re-arbitration.

   Article 35. Parties to an economic contract should automatically implement the mediation instruments or arbitration awards that have already
become legally binding according to regulations. If one party refuses to implement within the prescribed time limit, the other party
may apply for enforcing the implementation with the people’s court within its jurisdiction.

CHAPTER V APPENDIX

   Article 36. Disputing parties shall be charged arbitration fees, which include acceptance fees and handling fees.

Case handling fees (including fees for testing, survey and investigation, examination, travel expenses and the subsidy for witnesses
for absence in work) should be paid in the actual amount spent.

Case acceptance fees are paid in advance by the applicant.

After the case is completed, the arbitration fees should be borne by the losing party. If the disputing parties partially lose or
win, the expenses should be borne according to a certain percentage each.

The standard of arbitration fees shall be fixed by the State Administration for Industry and Commerce.

   Article 37. If the mediation works, the arbitration fees should be borne by both parties through consultation.

   Article 38. The present regulations becomes effective from the date of promulgation. Other regulations on economic contract arbitration promulgated
by the people’s governments at all levels and State Council departments shall be superseded.

    






RULES FOR THE IMPLEMENTATION OF FOREIGN EXCHANGE CONTROL REGULATIONS RELATING TO ENTERPRISES WITH OVERSEAS CHINESE CAPITAL, FOREIGN-CAPITAL ENTERPRISES AND CHINESE-FOREIGN EQUITY JOINT VENTURES

Category  BANKING Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1983-08-01 Effective Date  1983-08-01 Date of Invalidation  1996-04-01


Rules for the Implementation of Foreign Exchange Control Regulations Relating to Enterprises With Overseas Chinese Capital, Foreign-capital
Enterprises and Chinese-foreign Equity Joint Ventures



(Approved by the State Council of the People’s Republic of China on July

19, 1983 and promulgated by the State Administration of Foreign Exchange
Control on August 1, 1983)(Editor’s Note: These Rules have been annulled
by Regulations of the People’s Republic of China on Foreige Exchange Control
promulgated on January 29, 1996 and effective as of April 1, 1996)

    Article 1  These Rules are formulated for implementing the provisions of
Chapter V of the Interim Regulations on Foreign Exchange Control of the
People’s Republic of China.

    Article 2  In Chapter V of The Interim Regulations on Foreign Exchange
Control of the People’s Republic of China, the term “enterprises with overseas
Chinese capital” refers to corporations, enterprises or other economic
entities registered in China with overseas Chinese capital or capital of
compatriots in the Hong Kong and Macao regions, and managed independently or
jointly with Chinese enterprises; the term “foreign-capital enterprises”
refers to corporations, enterprises or other economic entities registered in
China with foreign capital, and managed independently or jointly with Chinese
enterprises; the term “Chinese-foreign equity joint ventures” refers to
enterprises jointly established, owned and run in China by corporations,
enterprises, other economic entities or individuals with overseas Chinese
capital, capital of compatriots in the Hong Kong and Macao regions or foreign
capital and Chinese corporations, enterprises or other economic entities.

    Article 3  For all foreign exchange receipts and payments, enterprises
with overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures must act in accordance with the provisions in the
Interim Regulations on Foreign Exchange Control of the People’s Republic of
China as well as these Rules.

    Article 4  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures shall open Renminbi
deposit accounts and foreign exchange deposit accounts in China with the Bank
of China or its branch banks or any other banks approved by the State
Administration of Foreign Exchange Control (SAFEC) or its branch offices,
payments and receipts in these accounts being subject to the supervision of
the bank with which the enterprises have established accounts. When applying
for the opening of the accounts, the enterprises shall submit for verification
their business licenses issued by the State Administration for Industry and
Commerce of the People’s Republic of China.

    Article 5  The exploration fund and the fund for cooperative development
and cooperative production provided unilaterally by a foreign-capital
enterprise engaged in cooperative exploitation of offshore petroleum resources
in China are permitted to be deposited with the agreement of the Chinese side
in a bank, of a foreign country or of the Hong Kong or Macao region.

    Article 6  Should they find it necessary to open foreign exchange deposit
accounts with banks abroad or in the Hong Kong and Macao regions other than
the accounts opened in accordance with Article 5 of these Rules, enterprises
with overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures shall apply to SAFEC or its branch offices for approval.
The enterprises concerned shall submit to SAFEC or its branch offices
quarterly statements of payments into and withdrawal from such accounts within
30 days as of the end of each and every quarter.

    Article 7  All foreign exchange receipts of enterprises maintaining
foreign exchange accounts with banks in China in accordance with Article 4 of
these Rules, must be deposited in the said accounts and all their foreign
exchange disbursements incurred in normal business operations can be effected
through these accounts.

    Article 8  For the implementation of the petroleum operations specified in
their contracts, the foreign-capital enterprises engaged in cooperative
exploitation of offshore petroleum resources may pay directly outside China
wages, salaries, cost of procurements, various labour costs and service
charges to foreign workers and staff members, foreign subcontractors and
suppliers. The foreign workers and staff members and foreign subcontractors
shall pay taxes on their income derived from China in accordance with the
provisions of the tax law of the People’s Republic of China.

    Article 9  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures shall submit within the
prescribed time limit to the SAFEC or its branch offices the following
statements with explanatory notes in detail:

    (1) Balance sheet as of December 31 of the previous year, profit and loss
statement and statement of receipts and payments of foreign exchange for the
previous year shall be submitted before March 31 of each year, along with
audit reports by accountants registered in the People’s Republic of China.

    (2) Budget of foreign exchange receipts and payments for the coming year
shall be submitted before December 1 of each year (subsequent amendments, if
any, shall be reported immediately).

    The SAFEC and its branch offices are authorized to request the enterprises
with overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures to provide information about their business activities
involving foreign exchange, and to check on their foreign exchange incomes and
expenditures.

    Article 10  Any currency conversion of enterprises with overseas Chinese
capital, foreign-capital enterprises and Chinese-foreign equity joint ventures
must be conducted according to the official rates of foreign exchange quoted
by the SAFEC; the export of the products of these enterprises may be dealt
with in accordance with the relevant provisions governing China’s foreign
trade exchange conversions.

    Article 11  Except where otherwise approved by the SAFEC or its branch
offices, the foreign exchange receipts realized from exports by the
enterprises with overseas Chinese capital, foreign-capital enterprises and
Chinese-foreign equity joint ventures shall be transferred back and credited
to their foreign exchange deposit accounts with banks in China and the
enterprises shall also go through the procedure of cancelling their
commitments for foreign exchange receipts from these exports.

    Article 12  Renminbi shall be used in the settlement of accounts between
enterprises with overseas Chinese capital, foreign-capital enterprises or
Chinese-foreign equity joint ventures on the one hand, and agencies,
enterprises (including enterprises with overseas Chinese capital,
foreign-capital enterprises, Chinese-foreign equity joint ventures), or
individuals in China on the other, except in the following cases:

    (1) For products manufactured by these enterprises and sold to Chinese
entities or enterprises engaged in foreign trade which would otherwise have
to import, foreign currencies may be used in pricing and in settlement of
accounts, provided that prior approval by Chinese foreign trade authorities
has been obtained and that agreement on this arrangement has been reached
between seller and buyer; the prices of the products may be such as to be
commensurate with those current in world markets.

    (2) If enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures purchase, for the sake
of production, the commodities to be exported or imported by Chinese entities
engaged in foreign trade, foreign currencies may be used in pricing the said
commodities with reference to those current in world markets and in settlement
of accounts, with prior approval of Chinese foreign trade authorities and
arrangement between seller and buyer.

    (3) Foreign currencies may be used in pricing and in the settlement of
accounts related to construction work performed by Chinese construction
entities according to contracts, provided that prior approval from the SAFEC
or its branch offices has been obtained.

    (4) Other items which can be priced and settled in foreign currencies
are prescribed by the State Council or approved by the SAFEC or its branch
offices.

    For all transactions which can be priced and settled in foreign currencies
as approved, the receipts and payments may be made through foreign exchange
deposit accounts.

    Article 13  Overseas Chinese investors of enterprises with overseas
Chinese capital or foreign investors of foreign-capital enterprises or of
Chinese-foreign equity joint ventures may apply to the banks with which they
have opened accounts for remitting abroad their profits as well as other
justified earnings after taxation, by debiting the foreign exchange deposit
accounts of the enterprise concerned. At the time of application, the
investors concerned shall submit for examination the written decision on
profit distribution adopted by the board of directors or by another organ of
power equivalent to the board of directors, documentary evidence showing that
all taxes have been duly paid as well as the contracts containing stipulations
with regard to the distribution of profits or earnings.

    Overseas Chinese investors of enterprises with overseas Chinese capital
or foreign investors of foreign-capital enterprises or of Chinese-foreign
equity joint ventures shall apply to the SAFEC or its branch offices for
transferring their foreign exchange capital abroad by debiting the foreign
exchange deposit accounts of the enterprises concerned.

    Article 14  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures engaged in cooperative
exploitation of such resources as offshore petroleum and coal, and in other
contractual or equity joint ventures, whose capital is to be recovered and
profits to be realized in kind as stipulated in their contracts, may transport
out of China the products as their shares of recovered capital and realized
profits, but such enterprises shall remit back the amount of tax to be paid in
the People’s Republic of China as well as other required payments. If the
products are to be sold within China, the case shall be handled in accordance
with provisions of Article 12 of these Rules, and the foreign exchange
proceeds derived from these sales may be remitted out after taxation and other
required payments.

    Article 15  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 may remit abroad their wages and other justified earnings, after
taxation according to law, and if the remittance exceeds 50% of their wages
and other earnings, they may apply to the SAFEC or its branch offices. The
amounts remitted shall all be debited to the foreign exchange deposit accounts
of the enterprises concerned.

    Article 16  Foreign exchange expenses required in the normal business
operations of the branches or offices abroad or in the Hong Kong and Macao
regions set up with the approval of competent authorities by enterprises with
overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures may be remitted to these branches or offices, debiting
to the foreign exchange deposit accounts of the enterprises concerned, with
the approval of the SAFEC or its branch offices.

    Article 17  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures may borrow foreign
exchange directly from banks or enterprises of foreign countries or of the
Hong Kong and Macao regions, but they must report such borrowing to the SAFEC
or its branch offices for the record.

    Article 18  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures winding up operations
in accordance with legal procedures, shall carry out liquidation within the
scheduled period, under the joint supervision of China’s finance, taxation
and foreign exchange control authorities. Overseas Chinese investors or
foreign investors shall be responsible for their taxes due and their
outstanding liabilities within China. After completion of the liquidation,
overseas Chinese investors and foreign investors may apply to the SAFEC or its
branch offices for remitting out the funds owned by or distributed to them.
And the remittance shall be debited to the foreign exchange accounts
of the liquidated enterprises.

    Article 19  The measures to control foreign exchange receipts and payments
of banks with overseas Chinese capital, banks with foreign capital,
Chinese-foreign equity joint banks and other financial institutions shall be
formulated by the SAFEC separately.

    Article 20  These Rules shall be promulgated and put into effect by the
SAFEC upon approval of the State Council.






CONSTITUTION ACT, 1982 – page 22

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