AMENDMENT TO ARTICLE 100 OF THE “REGULATIONS FOR THE IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON CHINESE-FOREIGN EQUITY JOINT VENTURES”

The State Council

Amendment to Article 100 of the “Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-foreign
Equity Joint Ventures”

the State Council

January 15, 1986

Article 100 of the “Regulations for Implementation of the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures”
promulgated by the State Council on September 20, 1983 stipulates: “The duration of a joint venture shall be decided upon through
consultation of all parties to the joint venture according to actual conditions of the particular lines of business and projects.
The duration of a joint venture engaged in an ordinary project requiring large amount of investment, long construction periods and
low interest rate on funds can be extended to more than 30 years.”The above mentioned Article is now amended as follows:

“The duration of a joint venture shall be decided upon through consultation of all parties to the joint venture according to actual
conditions of the particular lines and projects. The duration of a joint venture engaged in ordinary projects is ten to thirty years
while the duration of a joint venture engaged in projects requiring large amount of investment, long construction periods and low
interest rates on funds, producing highly sophisticated products with advanced or key technology supplied by foreign partner, or
producing competitory products on world market, can be extended to 50 years. The said duration can be extended to more than 50 years
with the special approval by the State Council.”