REGULATIONS OF THE SHENZHEN SPECIAL ECONOMIC ZONE CONCERNING THE MANAGEMENT OF COMMODITY HOUSE PROPERTY

Regulations of the Shenzhen Special Economic Zone Concerning the Management of Commodity House Property

(Effective Date 1984.01.23)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II SALE (PURCHASE) IN ADVANCE OF HOUSE PROPERTY

CHAPTER III TRANSFER OF HOUSE PROPERTY RIGHT

CHAPTER IV HOUSE PROPERTY MORTGAGE

CHAPTER V HOUSE LEASING

CHAPTER VI HOUSE PROPERTY REGISTRATION

CHAPTER VII PENALTY CLAUSES

CHAPTER VIII SUPPLEMENTARY ARTICLES

CHAPTER I GENERAL PRINCIPLES

Article 1. The present regulations are formulated in line with relevant laws land decrees of the People’s Republic of China and the
“Regulations Concerning the Special Economic Zones in Guangdong Province”, in order to strengthen the management
of commodity house property in the Shenzhen Special Economic Zone and protect the legitimate rights and interests
of house property managers and householders.

Article 2. Commodity house property mentioned in the present regulations refers to residential houses, industrial and
commercial buildings, warehouses, parking lots and other houses built independently or jointly for sale or to let by
state-owned enterprises, foreign nationals, overseas Chinese, compatriots from Hongkong, Macao and Taiwan as well
as their corporations and enterprises (hereinafter referred to as overseas firms) which have been approved by the
People’s Government of the Shenzhen Special Economic Zone of managing house property.

The term “house property right” mentioned hereinbelow refers to the ownership of houses (roofed) and the right
to the use of land occupied by the houses.

Article 3. The Shenzhen City People’s Government encourages overseas firms to engage in house property management (construction,
sales and renting of houses etc.) in the Shenzhen Special Economic Zone independently or jointly with state-owned
enterprises authorized by the Shenzhen City People’s Government to manage house property. Overseas firms are encouraged
to buy house property.

The Shenzhen City People’s Government will, in line with the relevant regulations of the state and Guangdong province
concerning Shenzhen Special Economic Zone, give proferential treatment to foreign citizens, overseas Chinese, compatriots
from Hongkong, Macao and Taiwan in their purchase of residential houses and villas in the special economic zone.

Article 4. Partners of house property joint ventures and cooperative enterprises should sign contracts on the basis of the
principles of equality and mutual benefit and of reaching unanimity through consultation.

Article 5. If the houses are built with exclusive investment, the house property right belongs to the investors.

If the houses are built through joint venture or cooperative efforts, the house property right shall be shared by
parties to the joint ventures or cooperative enterprises.

If the housing, villas and other commodity houses are purchased by natural persons or legal persons, the house property
right belongs to the buyers.

Article 6. The Shenzhen City People’s Government shall protect the house property right of householders according to law,
allow them to transfer their house property right to others (natural persons or legal persons) through sale (including
advance sale and purchase and auction), giveaway, exchange, bequeathal, inheritance and other legal acts, and
permit house property mortgage and leasing of houses.

Householders have the right to renovate and repair their houses. But if they change the structure, purpose and appearance
of the houses or expand or rebuild them, they must have the approval of the department designated by the Shenzhen City People’s
Government.

Article 7. The Shenzhen City People’s Government may requisition house property with reasonable compensation and proper arrangements
when needs in the construction of the special economic zone arise.

Article 8. House property management, transfer of house property right, house property mortgage and house leasing shall be conducted
in compliance with the laws of the People’s Republic of China and relevant laws and decrees of Guangdong Province
concerning the special economic zones.

The conclusion of contracts for the transfer of house property right, sale (purchase) in advance of house property, house property
mortgage and house leasing shall be notarized by the Shenzhen City Public Notary.

Article 9. The house property Administrative Department of the Shenzhen City People’s Government shall put commodity house property in
the special economic zone under its unified management and is responsible for the enforcement of the present regulations.

CHAPTER II SALE (PURCHASE) IN ADVANCE OF HOUSE PROPERTY

Article 10. A house property operator may sell in advance houses, but under the following conditions:

(1) The house operator has received the “Land Use Certificate” and the “House Building Permit”;

(2) House construction contracts have been signed;

(3) The house property operator has opened a special account with the bank registered in Shenzhen City for collecting
the advanced payment on his own behalf;

(4) 20% of the total budget for the present stage construction has been remitted to the bank in Shenzhen City with which
accounts have been opened.

Advance sale of jointly owned house property must have written agreements between the co-owners.

Article 11. House barter contract shall be signed before sale (purchase) in advance. The content of the contract should be decided
by the two contracting parties through consultation. It must, however, contain the following points:

(1) The names of the two contracting parties (or the names of the legal persons), addresses (or location) of the legal persons;

(2) The total floor space covered by the houses, the location (position) of the houses and their boundary lines (with
maps attached);

(3) The size (or proportion) and time limit of the land used;

(4) Purpose of house property;

(5) Price of house property;

(6) Methods of payment for advanced sales (purchase);

(7) The date or predicted date for commissioning house property;

(8) Liabilities for breach of contract;

(9) Methods of settling contract disputes and the name of the department to accept the case; and

(10) Other matters deemed necessary by both parties.

Article 12. A house property buyer must deposit his advanced payments in the bank with which the house property operator has opened
special account in accordance with Article 10 (3).

Advanced payments for house property must be used for the construction of the houses sold in advance.

The draft of the advanced payments or house property shared in common by several house operators can be made only
with the common endorsement or the endorsement by the agent commonly appointed by them.

Article 13. Upon receiving the certificate for the completion of houses, the house property operators should notify in advance house buyers
of it in good time and file an application with the House Property Administrative Department of the Shenzhen City
People’s Government for going through the formalities required for the transfer of the house property right.

CHAPTER III TRANSFER OF HOUSE PROPERTY RIGHT

Article 14. In buying and selling house property, barter contracts shall be signed by parties involved in pursuance of Article
11 of the present regulations.

In presenting his house property as gifts to others, the householder should sign with the gift receiver contracts for
giving the house property.

Article 15. The buying, selling and exchange of jointly possessed house property must have the unanimous consent of the co-owners
supported by a written agreement. The co-owners bear joint liability for the house property they have unanimously
agreed to sell or exchange.

In case no written agreement has been reached, the co-owners may sell or exchange their respective shares of the houses.

If a co-owner of the houses sells his share of the house property, the other co-owners enjoy the priority,
under equal conditions, to buy over that share.

Article 16. One of house co-owners may give away or bequeath his share of the house property to others without the prior consent
of the other co-owners.

The above provisions apply to the inheritance of jointly-owned houses properly.

Article 17. Before the house property right is transferred in accordance with item two of Article 15 and Article 16, the
co-owners must divide their house property and sign a contract thereof.

CHAPTER IV HOUSE PROPERTY MORTGAGE

Article 18. In applying for house property mortgage loans, a house property owner must go through the formalities at the bank
located in the Shenzhen Special Economic Zone and have the following prerequisites:

(1) A contract for the sale of house property has been concluded;

(2) The householder has received the “Certificate for House Property Right.”

Article 19. When house property is to be mortgaged, a contract must be concluded. The content, which should be decided by both sides
through consultation, must specify:

(1) The name of the mortgagor and the name of the mortgagee;

(2) The name, floor space, location (position) and the boundary of the houses (with maps attached);

(3) The amount of the mortgage loans and methods of payment;

(4) The interest rate of the mortgage rate of the mortgage loans;

(5) The time and the amount of loan repayment;

(6) The liability of compensation for the damage caused by the mortgagor to the house property mortgaged;

(7) Responsibility for breach of contract;

(8) The methods for settling disputes over the contract and the name of the organ to accept the case; and

(9) Other matters deemed necessary by both sides.

The mortgage can entrust the legal Advisory Office of Shenzhen City with the signing of the contract of house property
mortgage upon the strength of a letter of attorney.

Article 20. The mortgage of house property sold (purchased) in advance should follow the following procedures:

(1) The mortgagor signs a house property mortgage contract with the mortgagee;

(2) The mortgagor receives the “Certificate for House Property Right” from the House Property Administrative Department
of the Shenzhen City People’s Government upon the strength of the house property contracts.

(3) The mortgagor gives the mortgagee the “Certificate for House Property Right” for preservation and the mortgagee
should make payments according to the amount specified in the house property mortgage contract.

Article 21. Should the mortgagor fail to repay the mortgage according to the provisions of the house property mortgage contract, the
mortgagee has the right to sell the mortgaged houses by auction.

Article 22. Before auctioning the houses, the mortgagee get the mortgagor notified and set the time limit for the mortgagor
to move out. The time limit should not be less than 30 days beginning from the date when the mortgagor receives the notification.

If the mortgagor fails to move out within the set time limit, the mortgagee or his agent may apply with the people’s
court to have it implemented according to the provisions of the “Civil Procedure Law of the People’s Republic of China
(for Trial Implementation)”. The mortgagor shall be held responsible for compensating for the losses caused upon the mortgagee.

Article 23. In renting out the mortgaged houses to others, the mortgagor should get the prior approval of the mortgagee.

Article 24. The auctioning of mortgaged houses shall be conducted by the Materials and Property Management Corporation of Shenzhen
City on a commissioned basis. The mortgagee and the Shenzhen City Materials and Property Management Corporation
should sign a contract for entrusting with the auctioning of the mortgaged house property.

Article 25. The mortgagee should use the proceeds from auctioning for the purposes in the following order:

(1) To pay for all the expenses arising from the auctioning of the mortgaged houses;

(2) To pay overdue taxes;

(3) To repay the loans and interests owed by the mortgagor;

(4) The surplus after the above-mentioned payments are made should be given to the mortgagor.

If the proceeds from the auctioning is not enough to cover the payments, the mortgagee has the right to make separate claims.

Article 26. Mortgage of jointly owned house property shall be conducted in reference to provisions of Article 15.

CHAPTER V HOUSE LEASING

Article 27. Contract must be signed for house leasing (or sub-leasing) and the content of the contract, which should be decided
by both parties concerned through consultation, must contain the following points:

(1) The location (position) of the houses, floor space, decorations and fittings;

(2) The purpose of the houses;

(3) The leasing period (fixed or unfixed);

(4) The amount of rent and methods of payment;

(5) Terms and liabilities for renouncing a contract ahead of schedule;

(6) Responsibility for breach of contract; and

(7) Other matters deemed necessary by both sides.

Article 28. The period for leasing should not exceed the time limit set for the use of the land covered by the houses.

Article 29. The co-owners must reach unanimity through consultation, conclude a written agreement and assume joint liabilities
for the signing, renunciation and continuation of the house property leasing contract and sub-leasing by the lessee.

If one of the co-owners leases his own share of commonly-owned house property, the provisions of Article 17
of the present regulations shall be followed.

Article 30. A lessee may sub-lease the house to others, with prior consent of the house owner.

The time limit for sub-lease should not exceed that set in the original lease contract.

Article 31. The lessor may cancel the house leasing contract ahead of schedule in one of the following cases:

(1) When the lessor, due to unforeseeable reasons, really has the need to use the houses;

(2) When the lessee has changed the purpose of the leased houses in violation of the contract;

(3) When the lessee fails to pay rents for three months or longer than the time limit specified in the contract;

(4) When the lessee violates the provisions of Article 30 of the present regulations;

(5) When the lessee damages the houses or house facilities and refuse to do repairs or make compensation;

(6) When the houses have been proved to be in danger of collapsing due to major damages.

Article 32. The lessee may renounce the house property leasing contract in one of the following cases:

(1) When the lessee has built or bought houses and there is no need to continue the leasing;

(2) When the whole family of a lessee moves out of Shenzhen City;

(3) When the houses are in danger of collapsing due to major damages and the lessor refuses to do repairs;

Article 33. When the lessor fails within three months to rebuild the houses it has recovered in pursuance of (1) or (6) of Article
31 and has no justifiable reasons, he should compensate the lessee for the losses arising from the removal.

A lessee should compensate to the lessor for the losses when he terminates the house leasing contract before the
expiry date according to (1) and (2) of Article 32 of the present regulations.

Article 34. The original lessee has the priority to lease the house again after they have been recovered and rebuilt
according to (6) of Article 31.

Article 35. If without good reasons the lessor refuses to accept rents duly paid by the lessee according to the contractual
stipulations, the lessee may ask the Notary Public of Shenzhen City for notarization so as to free himself from the liability
for delaying the payment.

The fees spent on the afforesaid notarization shall be stopped from the house rents.

Article 36. Expenditure for repairing the houses on lease should be borne by the lessor; and if any loss has been caused deliberately
or by error on the part of lessee, the losses shall be borne by the lessee.

Article 37. When one of the parties to the leasing contract cancels the contract, he should notify the other party one month in advance
for civil houses on fixed period of leasing, two months in advance for civil houses on current lease, and six months in
advance for industrial and commercial buildings.

If the lessee refuses to move out within the set time limit after the renunciation of the lease contract, the
lessor may apply with the people’s court to have the lessee move out according to the provisions of the “Civil Procedure
Law of the People’s Republic of China (for Trial Implementation)” and the loss caused therefrom to the lessor shall be compensated
for by the lessee.

Article 38. The leasing of houses shall not hinder the transfer of house property right.

The house leasing contract remains effective after the transfer of house property right, and the old and new householders
should jointly notify the lessee in writing.

When leased houses are sold, the lessee has the priority, under the same conditions, to buy them over.

CHAPTER VI HOUSE PROPERTY REGISTRATION

Article 39. Owners or obligees of commodity house property should register their house property with the House property Administrative
Department of Shenzhen City according to the following provisions:

(1) Registration for affixing house property right: householders apply for the fixing of house property right,
receive the “Certificate for House Property Right” and go through registration procedures;

(2) Registration for property transfer: transfer of house property right should be registered by both parties involved,
except in cases of property bequeathal and inheritance which may be registered by the bequeathed or the inheritor independently
upon the strength of presentation of certificates;

(3) Registration for changes: if the house property right changes hands due to expansion, reconstruction, dismantle,
devision or merger, the householders should apply for registration and, if the changes involve other persons,
he must go through the registration procedure together with the people involved;

(4) Registration for other rights: if other rights including preference right, mortgage right, land service right
(right-of-way) are involved in the house property, the registration should be done by the obligee and the obligor.

(5) Registration for alteration: if the holding “Certificate for House Property Right” has become inconsistent with reality,
or owing to change in address and house number plates and alterations are necessary, the householder or the
obligee should apply for registration.

(6) Registration for cancellation: if, owing to ravage by natural calamities or dismantlment of the houses,
the house property right has ceased to exist or other rights involved have ceased to be effective upon the expiration
of the contractual time limit, the householders or the obligees and persons involved should apply for registration
for cancellation.

Article 40. House property registration requires the presentation of the following documents:

(1) An application form for registration;

(2) Identification card of the applicant; and

(3) All the documents for acquiring, changing and transfering house property right.

The registration for the house property right jointly possessed may be done by one of the co-owners who must have
the power of attorney and other relevant certificates produced by the other co-owners.

Article 41. House property may be registered by proxy who should produce, apart from the documents required in Article 40, notarized
documents certifying the proxy.

If the applicant is a legal person, registration may be conducted by its agent, who must submit documents certifying his
identity as an agent of the legal person.

Article 42. For householders or obligees, persons involved and agents who reside in Hongkong, Macao and Taiwan province or in foreign
countries, apart from having their house property registration documents certified by the notary public, attestation
formalities are required in accordance with the following provisions:

(1) Those living in Hongkong and Macao should go through attestation procedures at the representative office
in Hongkong of Shenzhen Special Economic Zone.

(2) Those living in Taiwan province should go through the attestation procedures upon the strength of
identification documents at the representative office in Hongkong of the Shenzhen Special Economic Zone.

(3) Those living in foreign countries should go through attestation procedures at the Chinese embassies (or
consulates) in these countries.

Article 43. Registration fees should be paid for house property registration. The rate shall be determined by the House
property Administrative Department of the Shenzhen City People’s Government.

If house property is registered by both parties, registration fees shall be borne by the party receiving the rights.

Article 44. Should the certificate for house property right received by the householder after registration be destroyed or lost, the
householder must file a report immediately to the House Property Registration Department, applying for a reissue.

Article 45. The obligee shall apply for registration within three months after he obtains the various kinds of house property
rights. Failing this within six months, the houses shall be left to the care of the House Property Administrative Department
of the Shenzhen City People’s Government. If no registration is done within three years, the house property
will be regarded as being ownerless and the House Property Administrative Department shall submit the case to the judicial
organ for disposal according to law.

Article 46. When the term for the use of the land occupied by the commodity house property expires, the owner should apply with the
Shenzhen City People’s Government for extension. If no application is filed within six months, the house (roofed)
shall be disposed of in reference to the provisions of Article 45 of the present regulations.

CHAPTER VII PENALTY CLAUSES

Article 47. Any contract signed in violation against the present regulations shall be invalid and losses arising therefrom shall
be borne by the violator.

Article 48. Those who willfully change the structure, purpose and appearance of the houses or expand or dismantle them for
reconstruction without the approval of the Shenzhen City People’s Government or the organ designated by it shall, apart
from being ordered to stop or restore the original appearance, be fined for less than 5,000 yuan Renminbi according to
the seriousness of the cases.

Article 49. For those who register house property by resorting to deception, assumption of other’s name, forgery of documents,
bribery and other unlawful means, a fine ranging from 2,000 yuan to 5,000 yuan Renminbi shall be imposed according
to the seriousness of the cases in addition to nullifying the registration. If a crime is committed in violation of the
“Criminal Law of the People’s Republic of China”, criminal responsibility shall be affixed on the person directly responsible
by the judicial organs.

Article 50. For those who fail to register the house property in due time, a fine from one to five yuan Renminbi shall be imposed for
each day overdue.

For those who fail to apply for extension of the time for the use of land after the term expires, a fine up to one per
thousand of the land use fees shall be imposed for each day overdue.

CHAPTER VIII SUPPLEMENTARY ARTICLES

Article 51. When the various legal documents pertinent to the present regulations must be available in Chinese and a foreign language,
the Chinese version should be regarded as authentic.

Article 52. The Regulations shall be put into effect from the date of promulgation.

INTERIM PROVISIONS OF THE STATE COUNCIL CONCERNING THE REDUCTION OF AND EXEMPTION FROM ENTERPRISE INCOME TAX AND CONSOLIDATED INDUSTRIAL ANDCOMMERCIAL TAX IN THE SPECIAL ECONOMIC ZONES AND THE FOURTEEN COASTAL PORT CITIES

Category	TAXATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1984-11-15	Effective Date	1984-12-01

Interim Provisions of the State Council Concerning the Reduction of and Exemption From Enterprise Income Tax and Consolidated Industrial andCommercial Tax in the Special Economic Zones and the Fourteen Coastal Port Cities

Chapter I  Special Economic Zones
Chapter II  The Economic and Technological Development Zones of the
Chapter III  The Old Urban Districts of the Fourteen Coastal Port Cities
Chapter IV  Effective Date

(Promulgated by the State Council on November 15, 1984)

In order to enable the four special economic zones, namely Shenzhen,
Zhuhai, Xiamen, and Shantou and the fourteen coastal port cities, namely
Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong,
Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang, and Beihai to expand
economic cooperation and technical exchange with foreign countries, attract
foreign capital, introduce advanced technology and accelerate the construction
of socialist modernization, companies, enterprises, and individuals from
foreign countries, Hong Kong, Macao, and other regions (hereinafter referred
to collectively as “external investors”) that invest in the above mentioned
special zones and cities by setting up Chinese-foreign equity joint ventures,
Chinese-foreign contractual joint ventures and foreign-capital enterprises
shall be accorded preferential treatment in the form of reduction of or
exemption from enterprise income tax and consolidated industrial and
commercial tax.
Chapter I Special Economic Zones

1. Chinese-foreign equity joint ventures, Chinese-foreign contractual
joint ventures and foreign-capital enterprises (hereinafter referred to as
“special zone enterprises”) established in the special economic zones
(hereinafter referred to as “special zones”) shall be subject to enterprise
income tax at the reduced rate of 15% on income from production and business
operations and other income. Of such enterprises:

(1) enterprises engaged in industry, communications and transport,
agriculture, forestry, animal husbandry and other production-oriented
industries that are scheduled to operate for a period of ten years or more,
shall, upon approval by the special zone tax authorities of applications filed
by them, be exempt from income tax for the first and second years commencing
the first profit-making year, and shall be allowed a 50% reduction of income
tax from the third through the fifth years.

(2) enterprises engaged in service trades that are scheduled to operate
for 10 years of more, if the investments of foreign investors exceed 5 million
US$, shall, upon approval by the special zone tax authorities of applications
filed by them be exempt from income tax in the first profit-making year and
shall be allowed a 50% reduction of income tax in the second and third years.

2. With respect to the local income tax imposed on the special zone
enterprises, the people’s governments of the special zones shall determine
whether preferential treatment in the form of tax reduction or exemption needs
to be granted.

3. The share of profit distributed to external investors by
Chinese-foreign equity joint ventures in special zones and remitted abroad
shall be exempt from income tax.

4. With the exception of income which is exempt from income tax in
accordance with the law, dividends, interest, rentals, royalties and other
income derived from sources within the special zones by foreign investors
having no establishments in China shall be subject to tax at a reduced tax
rate of 10%. Foreign investors that provide capital or equipment on
preferential terms or transfer advanced technology and need to be given
additional preferential treatment with regard to tax reductions or tax
exemptions shall be decided by the people’s governments of the respective
special zones.

5. With respect to goods subject to consolidated industrial and
commercial tax which are imported by the special zone enterprises prior to
the establishment of the administrative borders of the special zones,
machinery, equipment, raw materials, spare parts and fittings; means of
transport and other production materials essential for production shall be
exempt from consolidated industrial and commercial tax. Means of transport
and durable consumer goods the importation of which is restricted by the
State shall be subject to consolidated industrial and commercial tax
according to the tax law. Consolidated industrial and commercial tax shall
be imposed at one half of the stipulated tax rates on various kinds of
imported mineral oils, tobacco, alcoholic beverages, and various other kinds
of articles for daily use. Following the establishment of the administrative
borders of the special zones, various kinds of imported mineral oils, tobacco
and alcoholic beverages, shall continue to be subject to consolidated
industrial and commercial tax at one half of the stipulated tax rates; the
remaining imported goods shall all be exempt from consolidated industrial and
commercial tax. Reasonable quantities of tobacco, alcoholic beverages, luggage,
articles for daily use and settling-in articles personally carried in by
individual external investors or personal use shall be exempt from
consolidated industrial and commercial tax.

6. All products for export produced by special zone enterprises, except
for those whose export is restricted by the State and the small number of
products otherwise prescribed by the State, shall be exempt from consolidated
industrial and commercial tax.

7. Mineral oils, tobacco, alcoholic beverages and other such products
manufactured by special zone enterprises and sold within the same special zone
shall be subject to consolidated industrial and commercial tax at one half of
the tax rates stipulated in the tax laws. The people’s government of the
special zone may also decide independently products at regular or reduced
rates. Other products shall no longer be subject to consolidated industrial
and commercial tax.

8. Special zone enterprises that transport inland imported goods in
respect of which reductions of or exemptions from consolidated industrial and
commercial tax have been granted or products produced in the special zones
shall, at the time such goods are transported inland, make good such
reductions of or exemptions from consolidated industrial and commercial tax in
accordance with the provisions of the tax laws. Reasonable quantities of
luggage and articles for daily use that individuals or external investors
personally carry inland from the special zones for personal use shall be
exempt from consolidated industrial and commercial tax.

9. The income of special zone enterprises engaged in commerce,
communication and transport and service trades shall be subject to
consolidated industrial and commercial tax according to the tax rates
stipulated in the tax laws. Consolidated industrial and commercial tax shall
be imposed at the rate of 3% on income derived from banking and insurance
operations. The special zone people’s governments shall determine whether
special treatment in respect of reductions of or exemptions from consolidated
industrial and commercial tax needs to be granted to the above-mentioned
enterprises for a specified period of time during the initial period of
operations.

10. Reductions of and exemptions from enterprise income tax and
consolidated industrial and commercial tax on Chinese-foreign equity joint
ventures, Chinese-foreign contractual joint venture and foreign-capital
enterprises established in the Hainan Administrative Region of Guangdong
Province shall be implemented with reference to the relevant provisions
applying to the special zones.
Chapter II The Economic and Technological Development Zones of the
Fourteen Coastal Port Cities

1. Production-oriented enterprises organized as Chinese-foreign equity
joint ventures, Chinese-foreign contractual joint ventures and
foreign-capital enterprises (hereinafter referred to as “development zone
enterprises”) established in the economic and technological development
zones (hereinafter referred to as “development zones”) shall be subject to
enterprise income tax at the reduced tax rate of 15% on income from
production and business operations and on other income. Among these
enterprises, those scheduled to operate for a period of 10 years or more,
upon approval by the municipal tax authorities of an application filed by the
enterprise, shall be exempt from income tax in the first and second years,
commencing the first profit-making year, and be allowed a 5% reduction in the
third through the fifth years.

2. With respect to the local income tax imposed on the development zone
enterprises, the municipal people’s governments in the locations of the
development zones shall determine whether preferential treatment in the form
of tax reduction or exemption needs to be granted.

3. The share of profits distributed to external investors by
Chinese-foreign equity joint ventures in the development zones and remitted
abroad shall be exempt from income tax.

4. With the exception of income which is exempt from income tax in
accordance with the law, dividends, interest, rentals, royalties and other
income derived from sources within the development zones by external investors
having no establishments in China shall be subject to tax at the reduced tax
rate of 10%. Of such external investors, with respect to those that provide
capital or equipment on preferential terms or transfer technology which is
advanced, their preferential treatment with regard to further tax reductions
or tax exemptions shall be decided by the municipal people’s government
located in the respective development zone.

5. Building materials, production equipment, raw materials, spare parts
and fittings, components, means of transport and office supplies imported by
development zone enterprises for their own use shall be exempt from
consolidated industrial and commercial tax. Development zone enterprises
that divert for sale on the domestic market products processed from imported
raw materials, spare parts and fittings and components that were exempt from
tax shall, in accordance with the tax laws, make up consolidated industrial
and commercial tax on imported material and parts used for such products.

6. Products for export produced by development zone enterprises, other
than those whose export is restricted by the State, shall be exempt from
consolidated industrial and commercial tax; products for domestic sale shall
be taxed according to the tax laws.

7. Reasonable quantities of settling-in articles and means of transport
that are personally brought in by external business personnel who work in
development zone enterprises or reside in development zones for their own
use shall, on the basis of certificate issued by the municipal development
zone administrative committee, be exempt from consolidated industrial and
commercial tax.
Chapter III The Old Urban Districts of the Fourteen Coastal Port Cities
and the Urban Districts of Shantou, Zhuhai and Xiamen Municipalities

1. Production-oriented enterprises organized as Chinese foreign equity
joint ventures, Chinese-foreign contractual joint ventures and
foreign-capital enterprises (hereinafter referred to collectively as “old
urban district enterprises”) established in the old urban districts of the
fourteen coastal port cities and the urban district of Shantou, Zhuhai and
Xiamen municipalities (hereinafter referred to collectively as “old urban
districts”) shall, upon approval of the Ministry of Finance, be subject
enterprise income tax at the reduced rate of 15% in respect of projects which
are technology-intensive or knowledge-intensive, or in which the amount
invested by foreign investors is 30 million US$ or more and the investment
recovery period is long or which involve energy development or the construction
of communications or port facilities.

Old urban district enterprises that do not qualify for the tax reductions
prescribed in the preceding paragraph, but which involve one of the industries
listed below, may, upon approval by the Ministry of Finance, be subject to
enterprise income tax calculated at 80% of the tax rate stipulated in the tax
laws:

(1) machine manufacturing and electronics industries;

(2) metallurgical, chemical and building materials industries;

(3) light industries, textiles and packaging industries;

(4) medical apparatus and instruments and pharmaceutical industries;

(5) agriculture, forestry, animal husbandry and aquaculture industries
and the related processing industries;

(6) construction industries.

Reductions of and exemptions from enterprise income tax for old urban
district enterprises shall be dealt with according to the above-mentioned
preferential tax rates and in conformity with the time limits and scope
stipulated in the Income Tax Law of the People’s Republic of China for
Chinese-Foreign Equity Joint Ventures and the Income Tax Law of the People’s
Republic of China for Foreign Enterprises.

2. With respect to the local income tax imposed on old urban district
enterprises, the municipal people’s government shall determine whether
preferential treatment in the form of tax reduction or exemption needs to
be granted.

3. With the exception of income which is exempt from income tax in
accordance with the law, dividends, interest, rentals, royalties and other
income derived from sources within the old urban districts by external
investors not having establishments in China shall be subject to income tax
at the reduced tax rate of 10%. Of such external investors, with respect to
those that provide capital or equipment on preferential terms or transfer
technology which is advanced, their preferential treatment in regard to
further tax reductions or tax exemptions shall be decided by the municipal
people’s government.

4. Production equipment, equipment for business operations and building
materials imported as investment contributions or additional investment, as
well as means of transport and office supplies imported by old urban district
enterprises for their own use shall be exempt from consolidated industrial
and commercial tax.

5. Products for export produced by old urban district enterprises,
excluding those whose export is restricted by the State, shall be exempt from
consolidated industrial and commercial tax; products that are sold
domestically shall be taxed according to the tax laws.

6. The portion of raw materials, spare parts and fittings, components,
packaging materials and other such materials imported by old urban district
enterprises which is used in the production of export products shall be exempt
from consolidated industrial and commercial tax; the portion of imported
materials used in the production of products for domestic sale shall be taxed
in accordance with the tax laws.

7. Reasonable quantities of settling-in articles and means of transport
personally brought in by external business personnel for their own use shall,
on the basis of a certificate issued by the relevant departments of the
municipal people’s governments, be exempt from consolidated industrial and
commercial tax.
Chapter IV Effective Date

The stipulations of these Provisions concerning the reduction of and
exemption from income tax shall become effective as of the year of 1984;
the stipulations of these Provisions concerning the reduction of and
exemptions from consolidated industrial and commercial tax shall become
effective as of December 1, 1984.

REGULATIONS ON LABOR MANAGEMENT IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on Labor Management in the Xiamen Special Economic Zone

(Effective Date 1984.07.14)

Article 1. The present regulations are formulated in accordance with the relevant laws and decrees of the People’s Republic of China.

Article 2. SEZ enterprises decide their own labor plans and composition of their staff and report to the Xiamen City Bureau of Labor for the
record.

Article 3. The workers and staff members of an enterprise may be recruited by the enterprise itself or may be recommended by the labor service
company of the special economic zone, and shall be selected by the enterprise through examination on the strength of their individual
qualifications.

Those recruited may undergo a probation period lasting three to six months.

Article 4. SEZ enterprises should not employ school children or those under 16, and if they recruit those from the rural areas or inland areas,
they must have the approval of the Xiamen City Bureau of Labor.

Article 5. SEZ enterprises should conclude contracts with workers and staff members for their employment. The labor contract should include
terms on the following: employment, dismissal, resignation of the workers and staff members, contract duration, job responsibilities
in production and other work, wages, rewards and punishment, working time and vacations, labor insurance and welfare, labor protection
and discipline. The labor contracts must be reported to the Xiamen City Bureau of Labor for the record.

Article 6. SEZ enterprises have the right of management over their own employees in accordance with the terms of the labor contracts. The
employees enjoy all the rights protected by law and stipulated in the contracts.

Article 7. The structure and scale of wages, and the ways of reward and subsidy for the workers and staff members are determined by the SEZ
enterprises themselves.

Article 8. The labor insurance system the SEZ practises is one which is provided by a social labor insurance fund.

SEZ enterprises must each contribute every month to a social labor insurance fund the equivalent of 25% of the enterprise’s total
monthly wages of the Chinese workers. Payment of the contribution is to be made to the organization designated by the Xiamen City
People’s Government to be used as pension for the retired, spendings for funerals of those whose death is due to causes other than
accidents, pension for the disabled or for the family of the deceased, medical fee for the retired, and allowance for those waiting
for re-employment after dismissal.

Article 9. SEZ enterprises should draw a certain amount of money from their profits to be paid into a workers’ welfare fund for such purposes
as welfare, medical care and assistance for those who are in difficulty.

Article 10. SEZ enterprises must each take out an employer responsibility policy at the insurance company designated by the Xiamen City People’s
Government. On-the-job injuries, disability and deaths and occupational diseases of workers and staff members shall be handled by
the insurance company in accordance with relevant regulations.

Article 11. SEZ enterprises follow the six-day work-week and eight-hour work-day practice. Overtime work must not be longer than 12 hours a
week and extra pay will not be lower than 150% of the wage of the individual concerned and extra pay for those who work on holidays
will not be lower than 200% of the wage.

Article 12. Public holidays and paid vacations of the workers and staff members of the SEZ enterprises are as follows:

General holiday: one day per week

Statutory holidays: seven days with pay, namely New Year’s Day (one day), the Spring Festival (three days), the International Labor
Day (one day), and the National Day (two days)

Wedding leave: three days with pay

Maternity leave: not less than 56 days with pay

Sick leave: full pay to those whose sick leave is less than 13 days, and 60%, 70% and 80% of the pay to those whose sick leave is
13 to 24 days and whose length of service is less than ten years, ten to 15 years, and more than 15 years, respectively. The length
of time and the amount of pay shall be decided by the enterprises themselves for the yearly vacation, leave for attending the funerals
of the employee’s next of kin and sick leave exceeding 24 days.

Article 13. Workers and staff members of the SEZ enterprises have the right to establish grassroots trade union organizations and organize activities
in accordance with the Trade Union Law of the People’s Republic of China.

The main tasks for these trade unions are: to safeguard the legitimate rights of the workers and staff members, help the enterprise
to plan the use of welfare funds, organize sports, cultural and recreational activities for the workers and staff members, educate
them to observe labor discipline and work hard to fulfil the various economic tasks of the enterprise.

The SEZ enterprises should actively support the work of the trade unions, and allocate an equivalent of 2% of the total wages of the
workers and staff members as the trade union fees every month.

Article 14. A SEZ enterprise may dismiss its workers and staff members in line with its labor contracts, but it must inform the individual concerned,
the enterprise trade union and the SEZ labor service company of the dismissal one month in advance. No dismissal is allowed when
a worker or a staff member is receiving medical care for injuries as a result of on-the-job accidents and occupational diseases,
and for illness and non-accident injuries, and when women workers who are pregnant for more than six months or who are spending their
maternity leave.

When a worker or a staff member is dismissed before or upon the expiration of the labor contract, the SEZ enterprise concerned is
to pay a compensation fee calculated on the basis of the individual’s seniority in the enterprise and average monthly pay of the
six months prior to his resignation.

The norms for the compensation fee are: 50% of the average monthly pay if the individual has worked for less than half a year; one
month’s pay for one year, including those who have worked for more than six months but less than one year; one-and-a-half months’
pay for one year starting from the 11th year for those who have worked for more than ten years.

Article 15. Workers and staff members may resign according to the labor contract and they should notify the enterprise one month in advance.

Workers and staff members who have worked for less than two years and who have been released for training by the enterprise but want
to resign after training should pay the enterprise a certain amount of training expenses. What the amount should be and other conditions
may be covered by the labor contract.

The SEZ enterprise should submit a list of those who have resigned to the special economic zone’s labor service company.

Article 16. The employment contract should include regulations on employment, dismissal, resignation, pay, welfare, reward and punishment as
well as social insurance of the foreign and Hongkong, Macao and Taiwan workers and staff members in the enterprise of the zone, and
a duplicate of the contract should be submitted to the Xiamen City Bureau of Labor for the record.

Article 17. The SEZ enterprises must follow the laws and decrees of the People’s Republic of China on labor protection and special protection
for women workers, guarantee safe operations and health of the workers and staff members, over which the Xiamen City Bureau of Labor
has the right to examine and supervise.

Article 18. The SEZ enterprise may, according to the seriousness of each case, give the necessary punishment and even dismissal to those workers
and staff members who violate rules and regulations and cause certain consequences. The enterprise should inform the dismissed and
the enterprise trade union of the decision in writing, and report to the Xiamen City Bureau of Labor for the record.

Article 19. Labor disputes that occur in the SEZ enterprises may be solved by the parties involved through consultation; the enterprise trade
union may take part in the consultation when it deems necessary; those who are involved in the labor disputes may ask for arbitration
from the Xiamen City Bureau of Labor if the disputes cannot be solved; and if those involved are dissatisfied with the arbitration
ruling the case may be brought before the people’s court.

Article 20. The regulations shall come into force on the date of promulgation.

DETAILED RULES FOR THE IMPLEMENTATION OF THE INTERIM REGULATIONS ON LICENSING SYSTEM FOR IMPORT COMMODITIES OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONAL REGULATIONS PROMULGATED BY THE STATE COUNCIL OF THE PEOPLE’S REPUBLIC OF CHINA ON REDUCTION AND EXEMPTION OF ENTERPRISES

REGULATIONS ON THE ADMINISTRATION OF THE REGISTRATION OF ENTERPRISES IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on the Administration of the Registration of Enterprises in the Xiamen Special Economic Zone

(Effective Date 1984.07.14)

Article 1. These Regulations are formulated in accordance with the relevant laws and statutory regulations of the People’s Republic
of China.

Article 2. Enterprises established in the Special Zone must carry out registration procedures with the Xiamen Municipal Industry
and Commerce Administration Bureau. Any enterprise which is not registered will not be permitted to go into operation.

Article 3. In applying for registration, a Special Zone enterprise shall produce the following documents:

(i) a document of approval issued by the Xiamen Municipal People’s Government or the organ in charge authorised
by the Municipal People’s Government;

(ii) copies of the approved agreement, contract and articles of association signed by the various parties to the enterprises;

(iii) copies of the business licence or other relevant documents issued by the government department in charge in
the country (or region) in which each of the parties to the enterprise is based.

A Special Zone enterprise shall also submit the approval document issued by the relevant department in charge should
its undertaking be classified by the State as a specialised line of business or trade.

Article 4. In applying for registration, a Special Zone enterprise shall fill out a registration form in triplicate in Chinese
or in both Chinese and foreign languages. The main items to be registered are: the name of the enterprise, the address,
the scope of production or business, the form of production or business, the registered capital, the shares of the respective
joint equity or co-operative parties, or the chairman and vice-chairmen of the board of directors, the general manager
and deputy general manager, or the director and deputy directors of the factory, the number of employees, the number
of foreign employees, the document approving organ, the approval document’s number and date of approval.

Article 5. Resident representative offices to be established in the Special Zone by foreign enterprises, enterprises run by
Overseas Chinese, or persons from Hong Kong, Macao and Taiwan, and Sino-foreign joint ventures based outside China
shall, within 30 days of the date of approval, register with the Xiamen Municipal Industry and Commerce Administration
Bureau by presenting copies of the approval document and the registration certificate issued by the organ in charge
in the country (or region) in which the enterprise is located or other evidence of credit-worthiness, together with the
representative’s letter of authorisation. Without registration, a resident office will not be permitted to engage
in business activities.

Article 6. Special Zone enterprises and resident offices are deemed to be officially established on the day on which their business
licence or registration certificate is obtained. Their proper business activities and legitimate rights and interests
are protected by the law of the People’s Republic of China.

Article 7. A Special Zone enterprise or resident office, shall present its business licence or registration certificate for opening
an account with a bank established in the Xiamen Special Zone and register with the Xiamen Municipal Taxation Bureau
for taxation purposes.

Article 8. When a Special Zone enterprise changes its name or location, its line of production, increases, decreases or transfers its
registered capital, changes the scope of its production or business, or extends the duration of its contract, the
enterprise shall register the change with the Xiamen Municipal Industry and Commerce Administration Bureau within 30
days of the change being approved by the original examining and approval organ. In the event of the replacement of
an enterprise’s chairman or general manager, the enterprise shall register the change within seven days of the decision
of the board of directors. The registration of other changes shall be submitted in writing to the Xiamen Municipal
Industry and Commerce Administration Bureau at the end of each year.

Article 9. The registration certificate for a resident office will be renewed every year. When changing the name of the resident
office, the resident representative(s), the scope of operations, the location of the resident office and the
term of residency, the registration of the same shall be made by producing the approval document to the Xiamen Municipal
Industry and Commerce Administration Bureau within seven day of the changes being approved by the original approval organ.

Article 10. When applying for registration or the registration of changes, Special Zone enterprises or resident offices shall
pay the fee for registration or the registration of changes in accordance with regulations.

Article 11. Upon the expiry of the term of operations or residency period, or upon the approved pre-term closure or termination of
business, a Special Zone enterprise or resident office shall undertake the cancellation of registration, and hand
in for cancellation the business licence or registration certificate with the Xiamen Municipal Industry and Commerce
Administration Bureau.

Article 12. The Xiamen Municipal Industry and Commerce Administration Bureau shall examine, verify and give an official reply
to Special Zone enterprises or resident offices, within seven days of receiving the various documents from the enterprises
or offices concerning registration or the registration of changes.

Article 13. The Xiamen Municipal Industry and Commerce Administration Bureau supervises and inspects Special Zone enterprises
and resident offices in accordance with the law. In the case of violation of these Regulations, the enterprise
or resident office concerned shall, on the basis of the seriousness of each specific case, be given a warning, a fine,
be ordered to suspend operations, or have is business licence or registration certificate revoked. In the case
of suspension of operations or revocation of the business licence or registration certificate, the matter must be
reported to the Xiamen Municipal People’s Government for examination and approval and be filed with the Industry
and Commerce Administration Bureau.

Article 14. These Regulations will be effective from the date fo promulgation.

CUSTOMS RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON THE IMPORT OF LEGACIES

REGULATIONS ON THE IMPORT OF TECHNOLOGY TO THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on the Import of Technology to the Xiamen Special Economic Zone

(Effective Date 1984.07.14)

Article 1. The present set of regulations is drawn up in accordance with relevant laws and decrees of the People’s Republic of China.

Article 2. The regulations apply to the SEZ enterprises and institutions and other economic organizations (hereinafter referred to as the licensee)
import or transfer of technology with payment from foreign or Hongkong, Macao and Taiwan enterprises, other economic organizations
and individuals (hereinafter referred to as the licensor).

Article 3. The technology thus acquired must be both practical and advanced, and may bring about marked economic benefits. Technology here
is meant to include:

(1) technology with valid patent right;

(2) technology with its patent right being applied for; and

(3) proprietary technology.

Article 4. Technology that produces the following effects is forbidden to be imported:

(1) that which harms public order of society or violates social ethics; and

(2) that which undermines ecological balance and harms the environment.

Article 5. Technology transfer or acquisition may take any of the following forms:

(1) licensing;

(2) technical consultancy or technical service;

(3) using patented technology or proprietary know-how as capital contribution in investment, or entering into joint operation with
the licensee;

(4) compensation trade or co-production; and

(5) projects under contract or other forms.

Article 6. The licensee (recipient) may enjoy special preferential terms set by the Xiamen City People’s Government if the imported technology
meets one of the following conditions, and may apply to a SEZ-based state bank for low-interest loans or financial assistance:

(1) technology which is examined and proved by the state scientific and research department as up to the world advanced level;

(2) that which can markedly improve the competitiveness of the products on the international market;

(3) that which may bring about marked economic results when applied to the technical upgrading of enterprises; and

(4) that which is indispensable to the requirements of the Xiamen City People’s Government.

Article 7. In technology acquisition, the licensee should apply in writing to an organization authorized by the Xiamen City People’s Government
and should attach a letter of intent about the technology to be acquired and a report on the feasibility study. When examined and
approved, a contract is to be signed between the licensee and licensor (supplier) and submitted to the higher authorities for approval.
The approval department should reply within 44 days after receipt of the application.

The contract comes into force on the date of approval, and it may be cancelled by the approval department if it is not implemented
within six months. The parties involved are allowed to apply for an extension before expiry if they have a valid reason(s).

Article 8. Contracts must also have the following provisions apart from those that are generally included in Sino-foreign economic contracts:

(1) definition of key terms;

(2) subject and scope of the technology involved, list of technical information and the date of delivery;

(3) progress of implementation, technical service and technical training;

(4) the use of trademark;

(5) warranty, checking and acceptance of the technology;

(6) the rights and obligations of both sides to use and improve the technology;

(7) secrecy clause;

(8) the way to work out and pay the remuneration for the technology; and

(9) liquidated liabilities (damages).

Article 9. Invalidation of technology transfer agreement clauses if they are formed to include any of the following provisions:

(1) payment for expired or invalid patent rights;

(2) restrictions on the licensee to licensing-in technology from other sources;

(3) restrictions on improvement or development of the technology in the course of application;

(4) obviously unreasonable conditions attached.

Article 10. In transferring patented technology of an unexpired life, the licensor should provide the licensee with a manual on the patent and
a duplicate or a copy of the letters patent. The certificate of patent right transfer, if any, should also be provided.

In transferring technology for which the patent is pending, the licensor should provide the licensee with such patent application
documents as the letter of application, a manual on the invention and its abstracts, charts, and the letter requesting proprietary
rights, and a progress report on the application process. Documentary evidence on the right to transfer one’s eligibility, if any,
of patent application should also be provided.

In transferring proprietary know-how, the licensor should provide the licensee with the relevant design blueprints, the rules for
the manufacturing processes, illustrated instructions, technical data, prescriptions, formulae, key equipment, models, samples, list
of materials and materials specifications, operating instructions, detailed regulations on on-site operations, and the relevant information
and data regarding technical demonstrations, on-site guidance, product quality control and inspection procedures, repair procedures
and equipment, and other commercial information.

Article 11. The licensor should, within the time limit set by the contract, conduct training for the required number of people specified by
the licensee with regard to technology, design, management and marketing so that the licensee may master the full range of the technology
provided.

Article 12. If the licensor is re-licensing the same technology, the licensee has the right to demand that a duplicate of the original licensing
agreement be provided as well.

Article 13. If the licensor’s patent lapses before the expiration of the agreement, or the application for patent right is rejected, or if it
is found that the know-how does not belong to the licensor, the licensee has the right to demand for changing or terminating the
agreement. The licensor is to be held responsible for any losses arising therefrom, and answerable to any legal proceedings concerning
the patent rights instituted by the third party concerned.

The licensor should make sure that the technical data are complete, correct and reliable. If, for reasons the responsibility for
which rests solely on licensor himself (herself), the technology is found to be not up to the requirements as stipulated in the contract,
the licensor should bear the responsibility for violations of the contract and for payment of the liquidated damages.

Article 14. The licensee undertakes to discharge the secrecy clause obligations as stipulated in the contract regarding the imported technology.
In case of violations of the secrecy clause, the licensor has the right to withdraw all the relevant information and data, terminate
the contract, and demand compensation from the licensee for the losses resulting therefrom.

Anyone who has access to the technical secrets because of his (her) duties or job responsibilities must not divulge the secrets or
use them without authorization; violations as such shall be legally accountable.

Article 15. The relevant department of the Xiamen City People’s Government undertakes the necessary monitoring of and control over the effects
of the transfer and application of the technology. In cases where environmental pollution is found or where the expected technical
and economic targets cannot be reached, the department shall demand that the Xiamen City People’s Government suspend the preferential
terms granted to the parties concerned, and take the appropriate actions to rectify the situations.

Article 16. The present regulations come into force on the date of promulgation.

RULES GOVERNING THE CONTROL OVER INWARD AND OUTWARD-BOUND OCEAN-GOING VESSELS OF FOREIGN REGISTRY OF CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF OFFSHORE PETROLEUM, GOODS AND PERSONAL EFFECTS BELONGING TO FOREIGN PERSONNEL WORKING IN

STATISTICS LAW

Statistics Law of the People’s Republic of China

CHAPTER I GENERAL PROVISIONS

CHAPTER II PLANS FOR STATISTICAL INVESTIGATIONS AND THE STATISTICAL SYSTEM

CHAPTER III THE ADMINISTRATION AND PUBLICATION OF STATISTICAL DATA CHAPTER IV STATISTICS INSTITUTIONS AND STATISTICIANS

CHAPTER V LEGAL RESPONSIBILITY

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 1 This Law is formulated in order to organize statistical work in an effective and scientific manner, to ensure accuracy and timeliness
of statistical data, to bring into play the important role of statistics in comprehending the actual condition and strength of the
country as well as in guiding national economic and social development, and to promote the smooth progress of the socialist modernization.

Article 2 The fundamental task of statistical work is to make statistical investigation and analysis of national economic and social development,
to provide statistical data and advice and to exercise statistical supervision.

Article 3 State organs, public organizations, enterprises, institutions, and self-employed industrialists and businessmen that are under statistical
investigation shall, in accordance with the provisions of this Law and State regulations, provide truthful statistical data. They
may not make false entries or conceal statistical data, and they may not refuse to submit statistical reports or report statistical
data belatedly. Falsification of or tampering with statistical data shall be prohibited.

Autonomous mass organizations at the grass-roots level and citizens shall have the duty to provide truthful information needed for
State statistical investigations.

Article 4 The State shall establish a centralized and unified statistical system, with a statistical administrative structure under unified
leadership and with each level assuming responsibility for its own work.

A State Statistics Bureau shall be established under the State Council to be responsible for organizing, directing and coordinating
the statistical work throughout the country.

People’s governments at all levels and all departments, enterprises and institutions may, according to the needs of their statistical
work, set up statistics institutions and staff them with statisticians.

Article 5 The State shall strengthen scientific research of the system for statistical indices and constantly improve the method of statistical
investigation in order to make statistics more scientific and authentic.

The State shall make plans to introduce modern techniques of processing and transmission of statistical information as well as a modern
data bank system.

Article 6 Leading members of local authorities, departments and units shall direct and supervise statistics institutions and statisticians
and other persons concerned in enforcing this Law and the rules governing statistical work.

Statistical work shall be subject to public supervision. Any unit or individual shall have the right to expose or report unlawful
activities in statistical work, such as fraud and deception, and any unit or individual that has rendered meritorious service by
exposing or reporting shall be rewarded.

Article 7 Leading members of local authorities, departments and units may not revise the statistical data provided by statistics institutions
and statisticians in accordance with the provisions of this Law and the rules governing statistical work; if they find any error
in data computation or in data sources, they shall instruct the statistics institutions and statisticians and other persons concerned
to make verification and corrections.

No leading members of local authorities, departments or units may compel or prompt statistics institutions or statisticians to tamper
with or fabricate statistical data. Statistics institutions and statisticians shall refuse to submit to or oppose such compulsion
or prompting and, in accordance with this Law and regulations on statistics, submit authentic statistical data and be responsible
for their authenticity.

Statistics institutions and statisticians shall perform their duties according to law, which shall be protected by law. No leading
members of local authorities, departments or units may retaliate against the statisticians who refuse to tamper with or fabricate
statistical data or oppose doing it.

Article 8 Statistics institutions and statisticians shall adopt the system of responsibility for work. They shall, in accordance with the provisions
of this Law and the rules governing statistical work, truthfully provide statistical data, accurately and promptly accomplish the
task of statistical work and protect State secrets.

In accordance with the provisions of this law, statistics institutions and statisticians shall exercise, independently and free from
interference, their functions and powers with regard to statistical investigations, statistical reports and statistical supervision.

CHAPTER II PLANS FOR STATISTICAL INVESTIGATIONS AND THE STATISTICAL

Article 9 Statistical investigations shall be conducted in accordance with an approved plan. A statistical investigation plan shall be drawn
up according to statistical investigation items.

State statistical investigation items shall be worked out by the State Statistics Bureau, or by the State Statistics Bureau jointly
with the relevant department or departments of the State Council, and shall be submitted to the State Council for examination and
approval.

Statistical investigation items of a department shall be worked out, if the units to be investigated lie within its jurisdiction,
by the department itself and shall be reported to the State Statistics Bureau or to a statistics institution of a local people’s
government at the same level for the record; if the units to be investigated lie beyond its jurisdiction, the investigation items
shall be worked out by the department and shall be reported to the State Statistics Bureau or to a statistics institution of a local
people’s government at the same level for examination and approval, but important items shall be reported to the State Council or
a local people’s government at the same level for examination and approval.

Local statistical investigation items shall be worked out by statistics institutions of local people’s governments at or above the
county level, or by statistics institutions of local people’s governments at or above the county level jointly with the relevant
department or departments, and shall all be reported to local people’s governments at the same level for examination and approval.

In the even of serious natural calamities or other unforeseeable situations, local people’s governments at or above the county level
may decide to make interim investigations beyond the original plan.

In drawing up a plan for statistical investigation items, it is necessary to draw up simultaneously appropriate statistical investigation
forms, which shall be reported to the State Statistics Bureau or a statistics institution of a local people’s government at the same
level for examination or for the record.

State, departmental and local statistical investigations must be explicitly divided in their functions. They shall be made to dovetail
with each other and not overlap.

Article 10 Statistical investigation shall be conducted to collect and sort out basic statistical data mainly through regular sampling surveys
on the basis of cyclic general surveys and supplemented by statistical reports, major surveys and comprehensive analysis.

For important general surveys of the national conditions and strength where the joint efforts of different quarters are required,
the State Council and local people’s governments at various levels shall exercise unified leadership and organize joint execution
by statistics institutions and other departments concerned.

Before conducting regular sampling surveys, it is necessary to find out about the basic statistics units and their geographical distribution
and to establish a scientific sampling framework in accordance with an approved plan for sampling surveys.

The issue of regular overall statistics forms to the grass-roots units shall be strictly limited. Where it is possible to obtain statistical
data through sampling surveys, major surveys and administrative records, no regular overall statistics forms shall be drawn up or
issued.

Article 11 The State shall formulate unified statistical standards to ensure standardization of definitions of statistical items, computing
methods, classification catalogues, investigation forms and statistical coding employed in statistical investigations.

The State statistical standards shall be formulated by the State Statistics Bureau or by the State Statistics Bureau jointly with
the State Bureau of Standards.

The various departments of the State Council may formulate supplementary departmental statistical standards. Departmental statistical
standards may not conflict with the State statistical standards.

Article 12 The units and individuals under statistical investigation shall have the right to refuse to fill in statistical investigation forms
drawn up and issued in violation of this Law and relevant State regulations.

It is forbidden to make use of statistical investigation to steal State secrets, jeopardize public interests and engage in fraud.

CHAPTER III THE ADMINISTRATION AND PUBLICATION OF STATISTICAL DATA

Article 13 Statistical data within the scope of State and local statistical investigations shall be separately placed under the unified administration
of the State Statistics Bureau, the statistics institutions of local people’s governments at or above the county level or the statisticians
of townships and towns.

Statistical data within the scope of departmental statistical investigations shall be placed under the unified administration of statistics
institutions or persons in charge of statistics of competent departments.

Statistical data of enterprises and institutions shall be placed under the unified administration of statistics institutions or persons
in charge of statistics of the enterprises and institutions.

Article 14 Statistical data shall, in accordance with State regulations, be published periodically by the State Statistics Bureau and statistics
institutions of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.

Statistical data to be published by local authorities, departments and units shall be checked and ratified by the statistics institutions
or persons in charge of statistics as prescribed in Article 13 of this Law, and shall be submitted for examination and approval according
to procedures stipulated by the State.

Statistical data published by the State Statistics Bureau shall be the standard data.

Article 15 Statistical data pertaining to State secrets must be kept confidential. Single item investigation data concerning any individual
or his/her family shall not be divulged without the consent of the said person.

Statistics institutions and statisticians shall have the obligation to maintain commercial secrets of the units and individuals under
their statistical investigation, which they have come to know in the process.

CHAPTER IV STATISTICS INSTITUTIONS AND STATISTICIANS

Article 16 Independent statistics institutions shall be established in local people’s governments at or above the county level, and people’s
governments of townships and towns shall be staffed with full-time or part-time statisticians, who shall be responsible for organizing,
guiding and coordinating the statistical work in their respective administrative areas.

Article 17 The administrative structure with regard to statistics institutions of local people’s governments at or above the county level and
statisticians of townships and towns shall be specifically prescribed by the State Council.

The sizes of the staff of statistics institutions of local people’s governments at various levels shall be prescribed by the State
in a unified way.

Article 18 The departments of the State Council and local people’s governments at various levels shall, according to the needs of their statistical
work, establish statistics institutions, or staff relevant departments with statisticians, and appoint persons in charge of statistics.
These statistics institutions and persons in charge of statistics are, in statistical work, under the direction of the State Statistics
Bureau or statistics institutions of local people’s governments at the corresponding level.

Article 19 Enterprises and institutions shall, according to the needs of their statistical work, establish statistics institutions or staff
relevant departments with statisticians, and appoint persons in charge of statistics.

Enterprises and institutions shall fulfill State or local statistical investigation tasks and accept the direction of statistics institutions
of local people’s governments.

Enterprises and institutions shall keep original statistical records and standing books, establish and improve the management systems
for checking, transferring and filing statistical data.

Article 20 The main functions of the State Statistics Bureau and statistics institutions of local people’s governments at various levels are
as follows:

(1) to draw up plans for statistical investigations and map out and inspect statistical work throughout the country or in their respective
administrative areas;

(2) to organize State and local statistical investigations and to collect, compile and provide statistical data of the whole country
or of their respective administrative areas;

(3) to make statistical analysis of national economic and social development, to exercise statistical supervision and, in accordance
with the regulations of the State Council, to conduct national economic accounting.

(4) to administer and coordinate work concerning the statistical investigation forms and statistical standards worked out by various
departments.

The State Statistics Bureau shall be in charge of the nation’s automated system of statistical information and statistical data bank
system.

Statisticians of townships and towns shall, together with persons concerned, take charge of the statistical work in rural areas at
the grassroots level, and accomplish the tasks of State and local statistical investigations.

Article 21 The main functions of statistics institutions or persons in charge of statistics of departments of the State Council and local people’s
governments at various levels are as follows:

(1) to organize and coordinate the statistical work of various functional organs of such departments, to execute the tasks of State
and local statistical investigations, to draw up and carry out statistical investigation plans of such departments and to collect,
compile and provide statistical data;

(2) to make statistical analysis of and exercise statistical supervision over the implementation of plans of such departments and
of the enterprises and institutions under their jurisdiction; and

(3) to organize and coordinate the statistical work of enterprises and institutions under the jurisdiction of such departments and
handle statistical investigation forms of such departments.

Article 22 The main functions of statistics institutions and persons in charge of statistics of enterprises and institutions are as follows:

(1) to organize and coordinate the statistical work of such units, to execute the tasks of State, departmental and local statistical
investigations, and to collect, compile and provide statistical data;

(2) to make statistical analysis of and exercise statistical supervision over the implementation of plans of such units; and

(3) to handle statistical investigation forms of such units, to establish and improve statistical master-file systems and to establish
and improve, jointly with organs or persons concerned, original record systems.

Article 23 Statistics institutions and statisticians shall have the power:

(1) to require units or persons concerned to provide truthful statistical data in accordance with State regulations;

(2) to check the accuracy of statistical data and to ask for correction of inaccurate statistical data; and

(3) to expose and report any violations of law committed in statistical investigation.

When performing their duties in accordance with the provisions of the preceding paragraph and conducting statistical investigation
of units or individuals, statisticians shall produce their official papers issued by statistics institutions of the people’s governments
at or above the county level.

Article 24 Statisticians shall adhere to the principle of seeking truth from facts, abide by professional ethics and possess the professional
knowledge necessary for carrying out statistical tasks. Statistics institutions shall provide more professional training for statisticians
and organize them for professional studies.

Article 25 Statistics institutions of the State Council and of local people’s governments at various levels, various departments, enterprises
and institutions shall, in accordance with relevant State regulations, evaluate statisticians and confer on them appropriate professional
post_titles in order to ensure a fixed number of statisticians holding professional post_titles.

Article 26 Leading members of local authorities, departments or units who alter statistical data without authorization, or fabricate statistical
data, or compel or prompt statistics institutions or statisticians to tamper with or fabricate statistical data shall be given administrative
sanctions according to law and criticized in a circulated notice by the statistics institutions of the people’s governments at or
above the county level.

Any leading member of local authorities, departments or units who retaliates against the statisticians who refuses to fabricate statistical
data or opposes doing so shall be given administrative sanctions according to law; if the case constitutes a crime, he shall be investigated
for criminal responsibility according to law.

Statisticians who participate in tampering with or fabricating statistical data shall be criticized in a circulated notice and given
administrative sanctions in accordance with law by the statistics institutions of the people’s governments at or above the county
level; or the said institutions may suggest that the departments concerned give them administrative sanctions in accordance with
law.

Article 27 Any unit or individual under statistical investigation that commits one of the following violations shall be ordered to put it right
and criticized in a circulated notice by the statistics institutions of the people’s governments at or above the county level; if
the violation is relatively serious, administrative sanctions shall be given to the persons who are directly in charge and other
persons who are directly responsible for it:

(1) making false entries in statistical data or concealing statistical data;

(2) falsifying or tampering with statistical data; or

(3) refusing to submit statistical reports or repeatedly delaying their submission.

Any enterprise, institution and self-employed industrialist or businessman that commits any of the violations mentioned in the preceding
paragraph shall be given a disciplinary warning by the statistics institution of the people’s government at or above the county level,
and may also be fined. However, if the same party has been fined for the same violation according to other laws, it shall not be
fined a second time.

Article 28 If a person, in violation of the provisions of this Law, tampers with or fabricates statistical data and thus gains post_titles of honour,
material rewards or promotion, the institution that made such decision or the institution at a higher level, or a supervisory institution
shall have the post_titles of honour annulled, the material rewards recovered and the promotion canceled.

Article 29 Whoever makes use of statistical investigation to steal State secrets or violates the provisions of this Law regarding the maintenance
of secrets shall be punished according to provisions of relevant laws.

Whoever makes use of statistical investigation to jeopardize public interests or engage in fraud shall be ordered by the statistics
institution of the people’s government at or above the county level to set it right and his illegal gains shall be confiscated, and
he may also be fined; if the case constitutes a crime, he shall be investigated for criminal responsibility according to law.

Article 30 Statistics institutions or statisticians that, in violation of the provisions of this Law, disclose single-item personal or family
investigation data or commercial secrets of an investigated unit or individual and thus cause losses shall bear civil liability,
and the persons who are directly in charge and other persons who are directly responsible for the case shall be given administrative
sanctions according to law.

Article 31 Any State organ that, in violation of the provision of this Law, draws up and issues statistical investigation forms without submitting
the matter for examination or for the record shall be ordered by the statistics institution of the people’s government at or above
the county level to set it right and criticized in a circulated notice.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 32 Measures for administration of non-governmental statistical investigation shall be formulated by the State Council.

To conduct a statistical investigation within the territory of the People’s Republic of China, organizations and individuals from
outside the territory of the People’s Republic of China shall submit a report for examination and for approval in advance according
to regulations. Specific measures shall be formulated by the State Council.

Article 33 The State Statistics Bureau shall, in accordance with this Law, formulate rules for its implementation and submit them to the State
Council for approval before they are put into effect.

Article 34 This Law shall go into effect as of January 1, 1984. The Regulations on Statistical Work for Trial Implementation promulgated by
the State Council in 1963 shall be invailidated therefrom.

1...345 Page 4 of 5

1990

DETAILED RULES FOR THE IMPLEMENTATION OF THE REGULATIONS ON THE CONTROL OF GOLD AND SILVER OF THE PEOPLE’S REPUBLIC...

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AUTHORIZING THE STATE COUNCIL TO REFORM THE SYSTEM...

REGULATIONS OF THE SHENZHEN SPECIAL ECONOMIC ZONE CONCERNING THE MANAGEMENT OF COMMODITY HOUSE PROPERTY

INTERIM PROVISIONS OF THE STATE COUNCIL CONCERNING THE REDUCTION OF AND EXEMPTION FROM ENTERPRISE INCOME TAX AND CONSOLIDATED INDUSTRIAL ANDCOMMERCIAL TAX IN THE SPECIAL ECONOMIC ZONES AND THE FOURTEEN COASTAL PORT CITIES

REGULATIONS ON LABOR MANAGEMENT IN THE XIAMEN SPECIAL ECONOMIC ZONE

DETAILED RULES FOR THE IMPLEMENTATION OF THE INTERIM REGULATIONS ON LICENSING SYSTEM FOR IMPORT COMMODITIES OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONAL REGULATIONS PROMULGATED BY THE STATE COUNCIL OF THE PEOPLE’S REPUBLIC OF CHINA ON REDUCTION AND EXEMPTION OF ENTERPRISES

REGULATIONS ON THE ADMINISTRATION OF THE REGISTRATION OF ENTERPRISES IN THE XIAMEN SPECIAL ECONOMIC ZONE

CUSTOMS RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON THE IMPORT OF LEGACIES

REGULATIONS ON THE IMPORT OF TECHNOLOGY TO THE XIAMEN SPECIAL ECONOMIC ZONE

RULES GOVERNING THE CONTROL OVER INWARD AND OUTWARD-BOUND OCEAN-GOING VESSELS OF FOREIGN REGISTRY OF CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF OFFSHORE PETROLEUM, GOODS AND PERSONAL EFFECTS BELONGING TO FOREIGN PERSONNEL WORKING IN

STATISTICS LAW

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7