1990

MARITIME TRAFFIC SAFETY LAW OF THE PEOPLE’S REPUBLIC OF CHINA

REGIONAL NATIONAL AUTONOMY

Law of the People’s Republic of China on Regional National Autonomy

     (Effective Date:1984.10.01–Ineffective Date:)

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON REGIONAL NATIONAL AUTONOMY

(Adopted at the Second Session of the Sixth National People’s Congress, promulgated by Order No.13 of the President of the People’s
Republic of China on May 31, 1984, and effective as of October 1, 1984)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II ESTABLISHMENT OF NATIONAL AUTONOMOUS AREAS AND THE STRUCTURE OF THE ORGANS OF SELF-GOVERNMENT

CHAPTER III THE POWER OF AUTONOMY OF THE ORGANS OF SELF-GOVERNMENT

CHAPTER IV THE PEOPLE’S COURTS AND PEOPLE’S PROCURATORATES OF NATIONAL AUTONOMOUS AREAS

CHAPTER V RELATIONS AMONG NATIONALITIES WITHIN A NATIONAL AUTONOMOUS AREA

CHAPTER VI LEADERSHIP AND ASSISTANCE FROM STATE ORGANS AT HIGHER LEVELS

CHAPTER VII SUPPLEMENTARY PROVISIONS

PREFACE

The People’s Republic of China is a unitary multinational state created jointly by the people of all its nationalities. Regional national
autonomy is the basic policy adopted by the Communist Party of China for the solution of the national question in China through its
application of Marxism-Leninism; it is an important political system of the state.

Regional national autonomy means that the minority nationalities, under unified state leadership, practise regional autonomy in areas
where they live in concentrated communities and set up organs of self-government for the exercise of the power of autonomy. Regional
national autonomy embodies the state’s full respect for and guarantee of the right of the minority nationalities to administer their
internal affairs and its adherence to the principle of equality, unity and common prosperity for all its nationalities.

Regional national autonomy has played an enormous role in giving full play to the initiative of all nationalities as masters of the
country, in developing among them a socialist relationship of equality, unity and mutual assistance, in consolidating the unification
of the country and in promoting socialist construction in the national autonomous areas and the rest of the country. The system of
regional national autonomy will have a still greater role to play in the country’s socialist modernization in the years to come.

It has been proven by practice that adherence to regional national autonomy requires that the national autonomous areas be given effective
guarantees for implementing state laws and policies in the light of existing local conditions; that large numbers of cadres at various
levels and specialized personnel and skilled workers of various professions and trades be trained from among the minority nationalities;
that the national autonomous areas strive to promote local socialist construction in the spirit of self-reliance and hard work and
contribute to the nation’s construction as a whole; and that the state strive to help the national autonomous areas speed up their
economic and cultural development in accordance with the plans for national economic and social development. In the effort to maintain
the unity of the nationalities, both big-nation chauvinism, mainly Han chauvinism, and local national chauvinism must be opposed.

Under the leadership of the Communist Party of China and the guidance of Marxism-Leninism and Mao Zedong Thought, the people of various
nationalities in the autonomous areas shall, together with the people of the whole country, adhere to the people’s democratic dictatorship
and to the socialist road, concentrate their efforts on socialist modernization, speed up the economic and cultural development of
the national autonomous areas, work towards their unity and prosperity and strive for the common prosperity of all nationalities
and for the transformation of China into a socialist country with a high level of culture and democracy.

The Law of the People’s Republic of China on Regional National Autonomy is the basic law for the implementation of the system of regional
national autonomy prescribed in the Constitution.

CHAPTER I GENERAL PROVISIONS

   Article 1. The Law of the People’s Republic of China on Regional National Autonomy is formulated in accordance with the Constitution of the
People’s Republic of China.

   Article 2. Regional autonomy shall be practised in areas where minority nationalities live in concentrated communities.

National autonomous areas shall be classified into autonomous regions, autonomous prefectures and autonomous counties.

All national autonomous areas are integral parts of the People’s Republic of China.

   Article 3. Organs of self-government shall be established in national autonomous areas as local organs of state power at a particular level.

The organs of self-government of national autonomous areas shall apply the principle of democratic centralism.

   Article 4. The organs of self-government of national autonomous areas shall exercise the functions and powers of local organs of state as specified
in Section 5 of CHAPTER III of the Constitution. At the same time, they shall exercise the power of autonomy within the limits of
their authority as prescribed by the Constitution, by this Law and other laws, and implement the laws and policies of the state in
the light of existing local conditions.

The organs of self-government of autonomous prefectures shall exercise the functions and powers of local state organs over cities
divided into districts and cities with counties under their jurisdiction and, at the same time, exercise the power of autonomy.

   Article 5. The organs of self-government of national autonomous areas must uphold the unity of the country and guarantee that the Constitution
and other laws are observed and implemented in these areas.

   Article 6. The organs of self-government of national autonomous areas shall lead the people of the various nationalities in a concentrated effort
to promote socialist modernization.

On the principle of not contravening the Constitution and the laws, the organs of self-government of national autonomous areas shall
have the power to adopt special policies and flexible measures in the light of local conditions to speed up the economic and cultural
development of these areas.

Under the guidance of state plans and on the basis of actual conditions, the organs of self-government of national autonomous areas
shall steadily increase labour productivity and economic results, develop social productive forces and gradually raise the material
living standards of the people of the various nationalities.

The organs of self-government of national autonomous areas shall inherit and carry forward the fine traditions of national cultures,
build a socialist society with an advanced culture and ideology and with national characteristics, and steadily raise the socialist
consciousness and scientific and cultural levels of the people of the various nationalities.

   Article 7. The organs of self-government of national autonomous areas shall place the interests of the state as a whole above anything else
and make positive efforts to fulfil the tasks assigned by state organs at higher levels.

   Article 8. State organs at higher levels shall guarantee the exercise of the power of autonomy by the organs of self-government of national
autonomous areas and shall, in accordance with the characteristics and needs of these areas, strive to help them speed up their socialist
construction.

   Article 9. State organs at higher levels and the organs of self-government of national autonomous areas shall uphold and develop the socialist
relationship of equality, unity and mutual assistance among all of China’s nationalities. Discrimination against and oppression of
any nationality shall be prohibited; any act which undermines the unity of the nationalities or instigates national division shall
also be prohibited.

   Article 10. The organs of self-government of national autonomous areas shall guarantee the freedom of the nationalities in these areas to use
and develop their own spoken and written languages and their freedom to preserve or reform their own folkways and customs.

   Article 11. The organs of self-government of national autonomous areas shall guarantee the freedom of religious belief to citizens of the various
nationalities.

No state organ, public organization or individual may compel citizens to believe in, or not to believe in, any religion, nor may they
discriminate against citizens who believe in, or do not believe in, any religion.

The state shall protect normal religious activities. No one may make use of religion to engage in activities that disrupt public order,
impair the health of citizens or interfere with the educational system of the state.

Religious bodies and religious affairs shall not be subject to any foreign domination.

CHAPTER II ESTABLISHMENT OF NATIONAL AUTONOMOUS AREAS AND THE STRUCTURE OF THE ORGANS OF SELF-GOVERNMENT

   Article 12. Autonomous areas may be established where one or more minority nationalities live in concentrated communities, in the light of local
conditions such as the relationship among the various nationalities and the level of economic development, and with due consideration
for historical background.

Within a national autonomous area, appropriate autonomous areas or nationality townships may be established where other minority nationalities
live in concentrated communities.

Some residential areas and towns of the Han nationality or other nationalities may be included in a national autonomous area in consideration
of actual local conditions.

   Article 13. With the exception of special cases, the name of a national autonomous area shall be composed of the name of the locality and the
name of the nationality and the administrative status, in that order.

   Article 14. The establishment of a national autonomous area, the delineation of its boundaries and the elements of its name shall be proposed
by the state organ at the next higher level jointly with the state organ in the relevant locality, after full consultation with representatives
of the relevant nationalities, before they are submitted for approval according to the procedures prescribed by law.

Once defined, the boundaries of a national autonomous area may not be altered without authorization. When an alteration is found necessary,
it shall be proposed by the relevant department of the state organ at the next higher level after full consultation with the organ
of self-government of the national autonomous area before it is submitted to the State Council for approval.

   Article 15. The organs of self-government of national autonomous areas shall be the people’s congresses and people’s governments of autonomous
regions, autonomous prefectures and autonomous counties.

The people’s governments of national autonomous areas shall be responsible and report on their work to the people’s congresses at
corresponding levels and to the administrative organs of the state at the next higher level. When the people’s congresses at corresponding
levels are not in session, they shall be responsible and report on their work to the standing committees of these people’s congresses.
The people’s governments of all national autonomous areas shall be administrative organs of the state under the unified leadership
of the State Council and shall be subordinate to it.

The organization and work of the organs of self-government of national autonomous areas shall be specified in these areas’ regulations
on the exercise of autonomy or separate regulations, in accordance with the Constitution and other laws.

   Article 16. In the people’s congress of a national autonomous area, in addition to the deputies from the nationality exercising regional autonomy
in the administrative area, the other nationalities inhabiting the area are also enpost_titled to appropriate representation.

The number and proportion of deputies to the people’s congress of a national autonomous area from the nationality exercising regional
autonomy and from the other minority nationalities shall be decided upon by the standing committee of the people’s congress of a
province or an autonomous region, in accordance with the principles prescribed by law, and shall be reported to the Standing Committee
of the National People’s Congress for the record.

Among the chairman and vice-chairmen of the standing committee of the people’s congress of a national autonomous area shall be one
or more citizens of the nationality exercising regional autonomy in the area.

   Article 17. The chairman of an autonomous region, the prefect of an autonomous prefecture or the head of an autonomous county shall be a citizen
of the nationality exercising regional autonomy in the area concerned. Other posts in the people’s government of an autonomous region,
an autonomous prefecture or an autonomous county should, whenever possible, be assumed by people of the nationality exercising regional
autonomy and of other minority nationalities in the area concerned.

The people’s governments of national autonomous areas shall apply the system of giving overall responsibility to the chairman of an
autonomous region, the prefect of an autonomous prefecture or the head of an autonomous county, who shall direct the work of the
people’s governments at their respective levels.

   Article 18. The cadres in the departments under the organs of self-government of a national autonomous area should, whenever possible, be chosen
from citizens of the nationality exercising regional autonomy and of the other minority nationalities in the area.

CHAPTER III THE POWER OF AUTONOMY OF THE ORGANS OF SELF-GOVERNMENT

   Article 19. The people’s congresses of national autonomous areas shall have the power to enact regulations on the exercise of autonomy and separate
regulations in the light of the political, economic and cultural characteristics of the nationality or nationalities in the areas
concerned. The regulations on the exercise of autonomy and separate regulations of autonomous regions shall be submitted to the Standing
Committee of the National People’s Congress for approval before they go into effect. The regulations on the exercise of autonomy
and separate regulations of autonomous prefectures and autonomous counties shall be submitted to the standing committees of the people’s
congresses of provinces or autonomous regions for approval before they go into effect, and they shall be reported to the Standing
Committee of the National People’s Congress for the record.

   Article 20. If a resolution, decision, order or instruction of a state organ at a higher level does not suit the conditions in a national autonomous
area, the organ of self-government of the area may either implement it with certain alterations or cease implementing it after reporting
to and receiving the approval of the state organ at a higher level.

   Article 21. While performing its functions, the organ of self-government of a national autonomous area shall, in accordance with the regulations
on the exercise of autonomy of the area, use one or several languages commonly used in the locality; where several commonly used
languages are used for the performance of such functions, the language of the nationality exercising regional autonomy may be used
as the main language.

   Article 22. In accordance with the needs of socialist construction, the organs of self-government of national autonomous areas shall take various
measures to train large numbers of cadres at different levels and various kinds of specialized personnel, including scientists, technicians
and managerial executives, as well as skilled workers from among the local nationalities, giving full play to their roles, and shall
pay attention to the training of cadres at various levels and specialized and technical personnel of various kinds from among the
women of minority nationalities.

The organs of self-government of national autonomous areas may adopt special measures to provide preferential treatment and encouragement
to specialized personnel joining in the various kinds of construction in these areas.

   Article 23. When recruiting personnel, enterprises and institutions in national autonomous areas shall give priority to minority nationalities
and may enlist them from the population of minority nationalities in rural and pastoral areas. When recruiting personnel from the
population of minority nationalities in rural and pastoral areas, autonomous prefectures and autonomous counties must report to and
secure the approval of the people’s governments of the provinces or autonomous regions.

   Article 24. The organs of self-government of national autonomous areas may, in accordance with the military system of the state and practical
local need and with the approval of the State Council, organize local public security forces for the maintenance of public order.

   Article 25. Under the guidance of state plans, the organs of self-government of national autonomous areas shall independently arrange for and
administer local economic development.

   Article 26. Under the guidance of state plans, the organs of self-government of national autonomous areas shall work out the guidelines, policies
and plans for economic development in the light of local characteristics and needs.

   Article 27. Given the prerequisite of adherence to the principles of socialism, the organs of self-government of national autonomous areas shall,
in accordance with legal stipulations and in the light of the characteristics of local economic development, rationally readjust
the relations of production and reform the structure of economic administration.

In accordance with legal stipulations, the organs of self-government of national autonomous areas shall define the ownership of, and
the right to use, the pastures and forests within these areas.

   Article 28. In accordance with legal stipulations, the organs of self-government of national autonomous areas shall manage and protect the natural
resources of these areas.

The organs of self-government of national autonomous areas shall protect and develop grasslands and forests and organize and encourage
the planting of trees and grass. Destruction of grasslands and forests by any organization or individual by whatever means shall
be prohibited.

In accordance with legal stipulations and unified state plans, the organs of self-government of national autonomous areas may give
priority to the rational exploitation and utilization of the natural resources that the local authorities are enpost_titled to develop.

   Article 29. Under the guidance of state plans, the organs of self-government of national autonomous areas shall independently arrange local capital
construction projects according to their financial and material resources and other specific local conditions.

   Article 30. The organs of self-government of national autonomous areas shall independently administer the enterprises and institutions under
local jurisdiction.

   Article 31. The organs of self-government of national autonomous areas shall independently arrange for the use of industrial, agricultural and
other local and special products after fulfilling the quotas for state purchase and for state distribution at a higher level.

   Article 32. In accordance with state provisions, the organs of self-government of national autonomous areas may pursue foreign economic and trade
activities and may, with the approval of the State Council, open foreign trade ports.

National autonomous areas adjoining foreign countries may develop border trade with the approval of the State Council.

While conducting foreign economic and trade activities, the organs of self-government of the national autonomous areas shall enjoy
preferential treatment by the state with regard to the proportion of foreign exchange retained by them and in other respects.

   Article 33. The finance of a national autonomous area constitutes a particular level of finance and is a component of state finance.

The organs of self-government of national autonomous areas shall have the power of autonomy in administering the finances of their
areas. All revenues accruing to the national autonomous areas under the financial system of the state shall be managed and used by
the organs of self-government of these areas on their own.

The revenues and expenditures of national autonomous areas shall be specified by the State Council on the principle of giving preferential
treatment to such areas.

In accordance with stipulations concerning the state financial system, if the revenues of a national autonomous area exceeds its expenditures,
a fixed amount of the surplus shall be delivered to the financial department at a higher level. Once fixed, the amount to be delivered
may remain unchanged for several years. If the expenditures of a national autonomous area exceeds its revenues, a subsidy shall be
granted by the financial department at a higher level.

A national autonomous area shall, in accordance with state stipulations, lay aside a reserve fund for expenditure in its budget. The
proportion of the reserve fund in its budget shall be higher than that in the budgets of other areas.

While implementing its fiscal budget, the organ of self-government of a national autonomous area shall arrange for the use of extra
income and savings from expenditures at its own discretion.

   Article 34. In accordance with the principles set by the state and in the light of local conditions, the organs of self-government of national
autonomous areas may work out supplementary provisions and concrete procedures with regard to the standards of expenditure, the sizes
of the staff and the quotas of work for their respective areas. The supplementary provisions and concrete procedures worked out by
autonomous regions shall be reported to the State Council for the record; those worked out by autonomous prefectures and autonomous
counties shall be reported to the people’s governments of the relevant provinces or autonomous regions for approval.

   Article 35. While implementing the tax laws of the state, the organs of self-government of national autonomous areas may grant tax exemptions
or reductions for certain items of local financial income which should be encouraged or given preferential consideration in taxation,
in addition to items on which tax reduction or exemption require unified examination and approval by the state. The decisions of
autonomous prefectures and autonomous counties on tax deduction and exemption shall be reported to the people’s governments of the
relevant provinces or autonomous regions for approval.

   Article 36. In accordance with the guidelines of the state on education and with the relevant stipulations of the law, the organs of self-government
of national autonomous areas shall decide on the plans for the development of education in these areas, on the establishment of various
kinds of schools at different levels, on their educational system, forms, curricula, the language used in instruction and enrollment
procedures.

   Article 37. The organs of self-government of national autonomous areas shall independently develop education for the nationalities by eliminating
illiteracy, setting up various kinds of schools, spreading compulsory primary education, developing secondary education and establishing
specialized schools for the nationalities, such as teachers schools, secondary technical schools, vocational schools and institutes
of nationalities to train specialized personnel from among the minority nationalities.

The organs of self-government of national autonomous areas may set up public primary schools and secondary schools, mainly boarding
schools and schools providing subsidies, in pastoral areas and economically under developed, sparsely populated mountain areas inhabited
by minority nationalities.

Schools where most of the students come from minority nationalities should, whenever possible, use textbooks in their own languages
and use these languages as the media of instruction. Classes for the teaching of Chinese (the Han language) shall be opened for senior
grades of primary schools or for secondary schools to popularize Putonghua, the common speech based on Beijing pronunciation.

   Article 38. The organs of self-government of national autonomous areas shall independently develop literature, art, the press, publishing, radio
broadcasting, the film industry, television and other cultural undertakings in forms and with characteristics unique to the nationalities.

The organs of self-government of national autonomous areas shall collect, sort out, translate and publish books of the nationalities
and protect the scenic spots and historical sites in their areas, their precious cultural relics and their other important historical
and cultural legacies.

   Article 39. The organs of self-government of national autonomous areas shall make independent decisions on local plans for developing science
and technology and spreading knowledge of science and technology.

   Article 40. The organs of self-government of national autonomous areas shall make independent decisions on plans for developing local medical
and health services and for advancing both modern medicine and the traditional medicine of the nationalities.

The organs of self-government of national autonomous areas shall see to a more effective prevention and treatment of endemic diseases,
provide better protection for the health of women and children, and improve sanitary conditions.

   Article 41. The organs of self-government of national autonomous areas shall independently develop sports, promote the traditional sports of
the nationalities and improve the physical fitness of the people of the various nationalities.

   Article 42. The organs of self-government of the national autonomous areas shall strive to develop exchanges and cooperation with other areas
in education, science and technology, culture and art, public health, sports, etc.

In accordance with relevant state provisions, the organs of self-government of autonomous regions and autonomous prefectures may conduct
exchanges with foreign countries in education, science and technology, culture and art, public health, sports, etc.

   Article 43. In accordance with legal stipulations, the organs of self-government of national autonomous areas shall work out measures for control
of the transient population.

   Article 44. In accordance with legal stipulations, the organs of self-government of national autonomous areas shall, in the light of local conditions,
work out measures for family planning.

   Article 45. The organs of self-government of national autonomous areas shall protect and improve the living environment and the ecological environment
and shall prevent and control pollution and other public hazards.

CHAPTER IV THE PEOPLE’S COURTS AND PEOPLE’S PROCURATORATES OF NATIONAL AUTONOMOUS AREAS

   Article 46. The people’s courts and people’s procuratorates of national autonomous areas shall be responsible to the people’s congresses at corresponding
levels and their standing committees. The people’s procuratorates of national autonomous areas shall also be responsible to the people’s
procuratorates at higher levels.

The administration of justice by the people’s courts of national autonomous areas shall be supervised by the Supreme People’s Court
and by people’s courts at higher levels. The work of the people’s procuratorates of national autonomous areas shall be directed by
the Supreme People’s Procuratorate and by people’s procuratorates at higher levels.

Members of the leadership and of the staff of the people’s court and of the people’s procuratorate of a national autonomous area shall
include people from the nationality exercising regional autonomy in that area.

   Article 47. In the prosecution and trial of cases, the people’s courts and people’s procuratorates of national autonomous areas shall use the
language commonly used in the locality. They shall guarantee that citizens of the various nationalities enjoy the right to use the
spoken and written languages of their own nationalities in court proceedings. The people’s courts and people’s procuratorates should
provide translation for any party to the court proceedings who is not familiar with the spoken or written languages commonly used
in the locality. Legal documents should be written, according to actual needs, in the language or languages commonly used in the
locality.

CHAPTER V RELATIONS AMONG NATIONALITIES WITHIN A NATIONAL AUTONOMOUS AREAS

   Article 48. The organ of self-government of a national autonomous area shall guarantee equal rights for the various nationalities in the area.

The organ of self-government of a national autonomous area shall unite the cadres and masses of the various nationalities and give
full play to their initiative in a joint effort to develop the area.

   Article 49. The organ of self-government of a national autonomous area shall persuade and encourage cadres of the various nationalities to learn
each other’s spoken and written languages. Cadres of Han nationality should learn the spoken and written languages of the local minority
nationalities. While learning and using the spoken and written languages of their own nationalities, cadres of minority nationalities
should also learn Putonghua and the written Chinese (Han) language commonly used throughout the country.

Awards should be given to state functionaries in national autonomous areas who can use skillfully two or more spoken or written languages
that are commonly used in the locality.

   Article 50. The organ of self-government of a national autonomous area shall help other minority nationalities living in concentrated communities
in the area establish appropriate autonomous areas or nationality townships.

The organ of self-government of a national autonomous area shall help the various nationalities in the area develop their economic,
educational, scientific, cultural, public health and physical culture affairs.

The organ of self-government of a national autonomous area shall give consideration to the characteristics and needs of nationalities
living in settlements scattered over the area.

   Article 51. In dealing with special issues concerning the various nationalities within its area, the organ of self-government of a national autonomous
area must conduct full consultation with their representatives and respect their opinions.

  

MINIMUM SANITARY REQUIREMENTS FOR FACTORIES AND STOREHOUSES OF FOOD FOR EXPORT

REGULATIONS ON THE GENERALISED SYSTEM OF PREFERENCE CERTIFICATES FOR EXPORT PRODUCTS OF BUSINESSES WHICH UNDERTAKE PROCESSING AND ASSEMBLY FOR FOREIGNERS, AND OF COMPENSATION TRADE, SINO-FOREIGN EQUITY AND CONTRACTUAL JOINT VENTURES AND WHOLLY

REGULATIONS OF THE CUSTOMS GENERAL ADMINISTRATION, THE MINISTRY OF FINANCE AND THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE CONCERNING SUPERVISION AND CONTROL OVER, AND LEVYING AND EXEMPTION OF DUTIES ON IMPORTS AND EXPORTS OF CHINESE-FOREIGN

INCOME TAX AND CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX FOR 14 COASTAL PORT CITIES, AS WELL AS THE FOUR SPECIAL ECONOMIC ZONES AND HAINAN ISLAND

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