INTERIM PROVISIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE FOR THE MANAGEMENT OF DEVELOPING AND EXPORTING NEW COMMODITIES IN FOREIGN TRADE

COMPULSORY EDUCATION LAW

Compulsory Education Law of the People’s Republic of China

Article 1. This Law is formulated, in accordance with the Constitution and the actual conditions in China, for the purpose of promoting elementary
education and the building of a socialist society that is advanced culturally and ideologically as well as materially.

Article 2. The state shall institute a system of nine-year compulsory education. The authorities of provinces, autonomous regions, and municipalities
directly under the Central Government shall decide on measures to promote compulsory education, in accordance with the degree of
economic and cultural development in their own localities.

Article 3. In compulsory education, the state policy on education must be implemented to improve the quality of instruction and enable children
and adolescents to achieve all-round development — morally, intellectually and physically — so as to lay the foundation for improving
the qualities of the entire nation and for cultivating well-educated and self-disciplined builders of socialism with high ideals
and moral integrity.

Article 4. The state, the community, schools and families shall, in accordance with the law, safeguard the right to compulsory education of
school-age children and adolescents.

Article 5. All children who have reached the age of six shall enroll in school and receive compulsory education for the prescribed number of
years, regardless of sex, nationality or race. In areas where that is not possible, the beginning of schooling may be postponed to
the age of seven.

Article 6. Schools shall promote the use of Putonghua (common speech based on Beijing pronunciation), which is in common use throughout the
nation.

Schools in which the majority of students are of minority nationalities may use the spoken and written languages of those nationalities
in instruction.

Article 7. Compulsory education shall be divided into two stages: primary school education and junior middle school education. Once primary
education has been made universal, junior middle school education shall follow. The department in charge of education under the
State Council shall decide on the duration of each stage.

Article 8. Under the leadership of the State Council, local authorities shall assume responsibility for compulsory education, and it shall
be administered at different levels.

The department in charge of education under the State Council shall, in accordance with the needs of the socialist modernization and
with the physical and mental development of children and adolescents, decide on the teaching methods, the courses to be offered and
their content, and the selection of textbooks for compulsory education.

Article 9. Local people’s governments at various levels shall establish primary schools and junior middle schools at such locations that children
and adolescents can attend schools near their homes.

Local people’s governments shall establish special schools (or classes) for children and adolescents who are blind, deaf-mute or retarded.

The state shall encourage enterprises, institutions and other segments of society to establish schools of the types prescribed by
this Law, under unified administration by local people’s governments and in compliance with the basic requirements of the state.

Appropriate facilities for compulsory education must be included in the plans for construction and development of both urban and rural
areas.

Article 10. The state shall not charge tuition for students receiving compulsory education.

The state shall establish a system of grants-in-aid to support the school attendance of poor students.

Article 11. When children have reached school age, their parents or guardians shall send them to school to receive compulsory education for
the prescribed number of years.

If, on account of illness or other special circumstances, school-age children or adolescents need to postpone enrollment or be exempted
from schooling, their parents or guardians shall submit an application to that effect to the local people’s government for approval.

No organization or individual shall employ school-age children or adolescents who should receive compulsory education.

Article 12. The State Council and the local people’s governments at various levels shall be responsible for raising funds for the operating
expenses and capital construction investment needed for the implementation of compulsory education, and the funds must be fully guaranteed.

State appropriations for compulsory education shall increase at a faster rate than regular state revenues, and the average expenditure
on education per student shall also increase steadily.

In accordance with the provisions of the State Council, the local people’s governments at various levels shall levy a surtax for education,
which shall be used mainly for compulsory education.

The state shall subsidize those areas that are unable to introduce compulsory education because of financial difficulties.

The state shall encourage individuals and all segments of society to make donations to help develop education.

The state shall assist areas inhabited by minority nationalities to implement compulsory education by providing them with teachers
and funds.

Article 13. The state shall take measures to strengthen and develop normal schools and colleges in order to accelerate the training of teachers,
so as to ensure, in a planned way, that all primary school teachers have received at least secondary normal school education and
that all junior middle school teachers have received at least higher normal school education.

The state shall establish a system to test the qualifications of teachers and shall issue qualification certificates to those who
pass the test.

All graduates of normal schools and colleges must engage in educational work, as required by the relevant regulations. The state shall
encourage teachers to make education their long-term career.

Article 14. Teachers should be respected by the public. The state shall safeguard the teachers’ lawful rights and interests, and take measures
to raise their social status and improve their material benefits. It shall reward outstanding educational workers.

Teachers should be committed to the cause of socialist education, endeavour to raise their own ideological and cultural levels as
well as professional competence, show concern for their students and be devoted to their duties.

Article 15. The local people’s governments at various levels must create conditions for all school-age children and adolescents to enrol in
schools and receive compulsory education. In cases where school-age children or adolescents do not enrol in school and receive compulsory
education, with the exception of those who, on account of illness or other special circumstances, are allowed by the local people’s
governments not to go to school, the local people’s governments shall admonish and criticize the parents or guardians of those children
or adolescents, and adopt effective measures to order them to send the children or wards to school.

In cases where organizations or individuals employ school-age children or adolescents for work, the local people’s governments shall
admonish and criticize them and shall order them to stop such employment. In serious cases, the offenders may be fined, ordered
to suspend their business operations or have their business licenses revoked.

Article 16. No organization or individual may appropriate, withhold or misuse funds earmarked for compulsory education, disrupt order in education,
or occupy or damage school buildings, grounds or facilities.

It shall be forbidden to insult or assault teachers. It shall be forbidden to inflict physical punishment on students.

No one may make use of religion to engage in activities which interfere with the implementation of compulsory education.

Persons who violate the provisions of the preceding two paragraphs shall be subject to administrative sanctions or penalties depending
on the circumstances. In case damages are caused, the offender shall be ordered to make compensation. If the circumstances are
serious and a crime is constituted, criminal responsibility shall be investigated in accordance with the law.

Article 17. The department in charge of education under the State Council shall, in accordance with this Law, formulate rules for its implementation,
which shall come into force after being submitted to and approved by the State Council,

The standing committees of the people’s congresses of provinces, autonomous regions, and municipalities directly under the Central
Government may formulate specific measures for implementation in accordance with this Law and their local conditions.

Article 18. This law shall go into effect as of July 1, 1986.

CONTROL OF THE ENTRY AND EXIT OF ALIENS

Law of the People s Republic of China on Control of the Entry and Exit of Aliens

Beijing,September 30chinacourt.org) (Adopted at the 13th Meeting of the Standing Committee of the Sixth National People’s Congress, promulgated by Order No.31 of the
President of the People’s Republic of China on November 22, 1985, and effective as of February 1, 1986)

Chapter I General Provisions

Article 1 This Law is formulated with a view to safeguarding the sovereignty of the People’s Republic of China, maintaining its security and
public order and facilitating international exchange. This Law is applicable to aliens entering, leaving and transiting the territory
of the People’s Republic of China and to those residing and traveling in China.

Article 2 Aliens must obtain the permission of the competent authorities of the Chinese Government in order to enter, transit or reside in
China.

Article 3 For entry, exit and transit, aliens must pass through ports open to aliens or other designated ports and must be subject to inspection
by the frontier inspection offices. For entry, exit and transit, foreign-owned means of transport must pass through ports open to
aliens or other designated ports and must be subject to inspection and supervision by the frontier inspection offices.

Article 4 The Chinese Government shall protect the lawful rights and interests of aliens on Chinese territory. Freedom of the person of aliens
is inviolable. No alien may be arrested except with the approval or by decision of a people’s procuratorate or by decision of a people’s
court, and arrest must be made by a public security organ or state security organ.

Article 5 Aliens in China must abide by Chinese laws and may not endanger the state security of China, harm public interests or disrupt public
order.

Chapter II Entry into the Country

Article 6 For entry into China, aliens shall apply for visas from Chinese diplomatic missions, consular offices or other resident agencies
abroad authorized by the Ministry of Foreign Affairs. In specific situations aliens may, in compliance with the provisions of the
State Council, apply for visas to visa-granting offices at ports designated by the competent authorities of the Chinese Government.
The entry of nationals from countries having visa agreements with the Chinese Government shall be handled in accordance with those
agreements. In cases where another country has special provisions for Chinese citizens entering and transiting that country, the
competent authorities of the Chinese Government may adopt reciprocal measures contingent on the circumstances. Visas are not required
for aliens in immediate transit on connected international flights who hold passenger tickets and stay for no more than24 hours in
China entirely within airport boundaries. Anyone desiring to leave the airport temporarily must obtain permission from the frontier
inspection office.

Article 7 When applying for various kinds of visas, aliens shall present valid passports and, if necessary, provide pertinent evidence.

Article 8 Aliens who have been invited or hired to work in China shall, when applying for visas, produce evidence of the invitation or employment.

Article 9 Aliens desiring to reside permanently in China shall, when applying for visas, present status-of-residence identification forms.
Applicants may obtain such forms from public security organs at the place where they intend to reside.

Article 10 The competent authorities of the Chinese Government shall issue appropriate visas to aliens according to the purposes stated in their
entry applications.

Article 11 When an aircraft or a vessel navigating international routes arrives at a Chinese port, the captain or his agent must submit a passenger
name list to the frontier inspection office;a foreign aircraft or vessel must also provide a name list of its crew members.

Article 12 Aliens who are considered a possible threat to China’s state security and public order shall not be permitted to enter China.

Chapter III Residence

Article 13 For residence in China, aliens must possess identification papers or residence certificates issued by the competent authorizes of
the Chinese Government.The term of validity of identification papers or residence certificates shall be determined according to the
purposes of entry. Aliens residing in China shall submit their certificates to the local public security organs for examination within
the prescribed period of time.

Article 14 Aliens who, in compliance with Chinese laws, find it necessary to establish prolonged residence in China for the purpose of investing
in China or engaging in cooperative projects with Chinese enterprises or institutions in the economic, scientific, technological
and cultural fields, or for other purposes, are eligible for prolonged or permanent residence in China upon approval by the competent
authorities of the Chinese Government.

Article 15 Aliens who seek asylum for political reasons shall be permitted to reside in China upon approval by the competent authorities of
the Chinese Government.

Article 16 Aliens who fail to abide by Chinese laws may have their period of stay in China curtailed or their status of residence in China annulled
by the competent authorities of the Chinese Government.

Article 17 For a temporary overnight stay in China, aliens shall complete registration procedures pursuant to the relevant provisions.

Article 18 Aliens holding residence certificates who wish to change their place of residence in China must complete removal formalities pursuant
to the relevant provisions.

Article 19 Aliens who have not acquired residence certificates or who are on a study programme in China may not seek employment in China without
permission of the competent authorities of the Chinese Government.

Chapter IV Travel

Article 20 Aliens who hold valid visas or residence certificates may travel to places open to aliens as designated by the Chinese Government.

Article 21 Aliens desiring to travel to places closed to aliens must apply to local public security organs for travel permits.

Chapter V Exit from the Country

Article 22 For exit from China, aliens shall present their valid passports or other valid certificates.

Article 23 Aliens belonging to any of the following categories shall not be allowed to leave China:(1) defendants in criminal cases or criminal
suspects confirmed by a public security organ, a people’s procuratorate or a people’s court;(2) persons who, as notified by a people’s
court, shall be denied exit owing to involvement in unresolved civil cases; and(3) persons who have committed other acts in violation
of Chinese law who have not been dealt with and against whom the competent authorities consider it necessary to institute prosecution.

Article 24 Frontier inspection offices shall have the power to stop aliens belonging to any of the following categories from leaving the country
and to deal with them according to law:(1) holders of invalid exit certificates;(2) holders of exit certificates other than their
own; and(3) holders of forged or altered exit certificates.

Chapter VI Administrative Organs

Article 25 China’s diplomatic missions, consular offices and other resident agencies abroad authorized by the Ministry of Foreign Affairs shall
be the Chinese Government’s agencies abroad to handle aliens’ applications for entry and transit. The Ministry of Public Security,
its authorized local public security organs, the Ministry of Foreign Affairs and its authorized loca foreign affairs departments
shall be the Chinese Government’s agencies in China to handle aliens’ applications for entry, transit, residence and travel.

Article 26 The authorities handling aliens’applications for entry, transit, residence and travel shall have the power to refuse to issue visas
and certificates or to cancel visas and certificates already issued or declare them invalid. The Ministry of Public Security and
the ministry of Foreign Affairs may, when necessary, alter decisions made by their respectively authorized agencies.

Article 27 An alien who enters or resides in China illegally may be detained for examination or be subjected to residential surveiance or deportation
by a public security organ at or above the county level.

Article 28 While performing their duties, foreign affairs police of the public security organs at or above the county level shall have the power
to examine the passports and other certificates of aliens.When conducting such examinations, the foreign affairs police shall produce
their own service certificates, and relevant organizations or individuals shall have the duty to offer them assistance.

Chapter VII Penalties

Article 29 If a person, in violation of the provisions of this Law, enters or leaves China illegally, establishes illegal residence or makes
an illegal stopover in China, travels to places closed to aliens without a valid travel document, forges or alters an entry or exit
certificate, uses another person’s certificate as his own or transfers his certificate, he may be penalized by a public security
organ at or above the county level with a warning, a fine or detention for not more than ten days. If the circumstances of the case
are serious enough to constitute a crime, criminal responsibility shall be investigated in accordance with the law. If an alien subject
to a fine or detention by a public security organ refuses to accept the penalty, he may, within 15 days of receiving notification,
appeal to the public security organ at the next higher level, which shall make the final decision; he may also directly file suit
in the local people’s court.

Article 30 In cases where a person commits any of the acts stated in

Article 29 of this Law, if the circumstances are serious, the Ministry of Public Security may impose a penalty by ordering him to leave the
country within a certain time or may expel him from the country.

Chapter VIII Supplementary Provisions

Article 31 For the purposes of this Law the term “alien” means any person not holding Chinese nationality according to the Nationality Law of
the People’s Republic of China.

Article 32 Transitory entry into and exit from China by aliens who are nationals of a country adjacent to China and who reside in areas bordering
on China shall be handled according to any relevant agreements between the two countries or, in the absence of such agreements, according
to the relevant provisions of the Chinese Government.

Article 33 The Ministry of Public Security and the Ministry of Foreign Affairs shall, pursuant to this Law, formulate rules for its implementation,
which shall go into effect after being submitted to and approved by the State Council.

Article 34 Affairs concerning members of foreign diplomatic missions and consular offices in the People’s Republic of China and other aliens
who enjoy diplomatic privileges and immunities, after their entry into China, shall be administered in accordance with the relevant
provisions of the State Council and its competent departments.

Article 35 This Law shall go into effect on February 1, 1986.

Source:China Internet Information Center

EDITOR:Victor

REGULATIONS ON QUALITY RESPONSIBILITY FOR INDUSTRIAL PRODUCTS (NOTE1)

Category	TECHNOLOGICAL CONTROL	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1986-04-05	Effective Date	1986-07-01

Regulations on Quality Responsibility for Industrial Products (Note1)

Chapter I  General Provisions
Chapter II  Quality Responsibility of the Product Manufacturer
Chapter III  Quality Responsibility of Enterprises for Storing or
Chapter IV  Quality Responsibility of the Marketing Firm of the Product
Chapter V  Supervision and Control over the Quality of Product
Chapter VI  Settlement of Disputes over Quality Responsibility for the
Chapter VII  Penalties
Chapter VIII  Supplementary Provisions
Note:

(Promulgated by the State Council on April 5, 1986)

Chapter I  General Provisions

Article 1 The present Regulations are enacted in order to define the
quality responsibility for industrial products (“products” for short
hereinafter), safeguard the legitimate right of the customer and consumer
(“customer” for short hereinafter), ensure the healthy development of
commodity economy in a planned way, and promote socialist modernization.

Article 2 “Quality of product” refers to the requirement for the
applications, safety and other properties of the products stipulated in
related laws and regulations, quality standards and contracts.

“Quality responsibility for products” refers to the responsibility that
shall be born due to the product’s failure to satisfy the above-mentioned
requirements, which leads to loss on the part of the customer.

Article 3 The national standardization department is responsible for
drawing up the unified national standards. The national standards shall not
be lower than the international standards.

National standards may be classified and graded. The competent
authorities responsible for the enterprise shall fix a time limit for
achieving the highest grade of the national standards. The price department
of the Central Government shall fix the prices according to the grades of
standards and implement the principle of “price according to quality”.

Article 4 Those enterprises engaging in the production, storing,
transporting and marketing of the product must, in accordance with the
stipulations of the present Regulations, undertake the quality responsibility
for the products.

The various departments, various localities, especially the competent
authorities for the manufacturer must exercise strict control over the
quality of the products, supervise and see that the manufacturer concerned
abides by the principle of “quality first”, with a view to guaranteeing the
quality of product and undertaking quality responsibility. Those failing to
exercise effective control and supervision shall also undertake liability
arising therefrom.

Article 5 Quality-supervision agencies and the industry and commerce
administration departments must keep supervision over the quality of product
and protect the interest of the customer.

Article 6 The quality certificate, manuals, “high-quality” sign and
identity sign of a product must all be in conformity with the actual quality
level of the product.

The explanation in the advertisement of the product must conform to the
actual quality of the product.

Article 7 All the manufacturers and the marketing firms must observe
strictly the following rules:

(1) un-qualified product is forbidden from being dispatched from the
factory or marketed;

(2) un-qualified raw materials and parts and components are not allowed
to be put into production or be used for assembly;

(3) it is forbidden to manufacture the products whose elimination the
State has explicity ordered;

(4) product without the product-quality standard or without being tested
by the state quality-testing organ is not allowed to be manufactured and
marketed;

(5) it is forbidden to plot frauds, to pass of un-qualified product as
qualified, to forge trademarks, or to imitate the famous brand products.

All the manufacturers and marketing firms are not allowed to sell their
products by way of coupling-sale.
Chapter II Quality Responsibility of the Product Manufacturer

Article 8 The manufacturer of the product must make sure that the
quality of the product conforms to the requirements laid down by relevant
laws and regulations. quality standards and stipulations of the contract.

The manufacturer of the product must set up a strict, well-coordinated
and effective quality-guarantee system, with a view to fixing the quality
responsibility for the product in an explicit manner.

The manufacturer must see to it that the quality-inspecting organ can
independently perform its functions of supervision and testing. It is
strictly forbidden to retaliate against the quality inspectors.

Article 9 The product shall not leave the factory unless it satisfies
the following requirements:

(1) achieving the quality requirements stipulated in Article 2 of the
present Regulations, and obtaining the quality certificate of the product
issued by testing organ and testing personnel;

(2) having the written explanation of, according to specific
characteristics, the product’s name, size, model, ingredients, the percentage
of the ingredients, weight, direction for applications, lot No. of production,
date of production, name of manufacturer, address of the manufacturer, and
the serial number of the technical specifications of the said product;
explicitly specifying the date of expiry in case of a product with time
limit of efficacy. “High quality” product must bear the mark thereof;

(3) having the serial number, date of approval and the term of validity
of the production licence in case of a product manufactured under the
production licence system;

(4) machinery, equipment, devices, apparatus and durable consumer goods,
apart from satisfying the requirements in Items (1), (2) and (3) of this
Article, shall be accompanied with detailed instructions on the use of the
product. The content thereof includes: the product’s technical-economic
parameters, service life, range of application, term of guarantee, methods for
installation, methods of maintenance and conditions for storing, term of
technical maintenance and repair, and other effective data concerning the
design parameters of the product. Electric products shall be attached with
the circuit diagram and schematic diagram;

(5) the package must conform to the related state regulations and
standards. As regards the products that are drastically poisonous, dangerous,
fragile, can not be laid on by heavy load, needing protection against
moisture, can not be turned upside down, there must be, on both the external
and interior packing, obvious indication marks and notices for storing and
transportation. On the package of the product, there must be noted explicity
the actual weights (net and gross);

(6) on the product or the package thereof on which the trademark and
quality classification and grading system is applied, there shall be signs
for the said trademark, classification and grading;

(7) conforming to the requirements of the state laws and regulations
concerning safety, hygiene, protection of environment and measuring.

Article 10 The “substandard” goods that fail to achieve the requirements
of the related state standards, but still have some use value, cannot be
marketed at reduced price until having obtained the approval from the
competent authorities of the manufacturer; and on the package there must be
clearly marked with the words of “substandard goods”.

Products that fail to meet the requirements of the state laws and
regulations concerning safety, hygiene and environmental protection and
measuring must be destroyed or undergo necessary technical treatment in good
time. They are not allowed to enter the market in the name of “substandard
goods”.

“Substandard goods” are not allowed to be used to manufacture or assemble
market-oriented products.

Article 11 Within the guarantee period of the product, in case of the
quality found out of line with the requirements stipulated in Article 2,
the manufacturer shall, according to the following different circumstances,
undertake the quality liability to the customer and marketing firm:

(1) the common part or component loses efficacy and therefore, after
being replaced, the performance can immediately be restored; in this case,
the manufacturer shall be responsible for replacing with qualified parts or
components and for restoring the normal performance;

(2) in case that the main part or competent of the product has lost the
efficacy and cannot be repaired within the set period, the manufacturer
shall be responsible for replacing with qualified products;

(3) in case the major function fails to satisfy the requirements of
Article 2 due to such causes as designing and manufacture, if the customer
requires to return the goods, the manufacturer shall refund;

(4) in case of economic loss caused by the quality faults, the
manufacturer shall also compensate for the actual loss;

(5) if maintenance and repair service or marketing firm responsible for
the aftersale technical service, so required and manufacturer must, according
to the contract of after-sale service, supply sufficient standby products,
spare parts and necessary technical support.
Chapter III Quality Responsibility of Enterprises for Storing or
Transporting the Product

Article 12 The enterprises which undertake to store, transport, load
or unload the products must conduct the work of the storing, transportation,
loading and unloading in compliance with the relevant state stipulations
and the storing-transporting requirements indicated on the package of the
product.

Article 13 In the course of the product entering the warehouse for
storing or leaving the warehouse, undertaking to transport the product or
handing over the product, the enterprise that stores or transports the
product shall observe the pertinent state stipulations and the
storing-trans-system of handing-over and checking before acceptance, so as
to define the quality responsibility. In case it has been testified that
the damage of the product is due to the cause of storage, transport of
loading and unloading, the enterprises which store, transport or load and
unload the product shall bear their respective liabilities and, according
to related government regulations, compensate for the economic loss.
Chapter IV Quality Responsibility of the Marketing Firm of the Product

Article 14 When laying in a stock of merchandise, the marketing firm
shall, before acceptance, test the product, so that the quality responsibility
can be clearly defined. The products sold by the marketing firm must conform
to the requirements stipulated in Articles 7 and 9 of the present Regulations.

Article 15 In case the product sold by the marketing firm is found not
up to the conditions stipulated in Article 2 within the period of guarantee,
the marketing firm shall be responsible for guaranteed repairing, replacement,
taking back the product and refunding, and undertaking the responsibility of
compensating for the actual economic loss.
Chapter V Supervision and Control over the Quality of Product

Article 16 The various quality-supervising agencies shall, in accordance
with the relevant regulations of the state, organize independently, or
together with the industry and commerce administrative authorities, the
responsible departments of the various trades, and the responsible departments
of the various manufacturers, regular supervisional sample-checking on the
various links such as manufacture, storing, transportation, and marketing, and
regularly publicize the result of the testing of the samples. Enterprises must
honestly furnish the samples for checking and provide facilities with respect
to the testing means and working conditions.

Unless otherwise stated in state regulations, it is not allowed for the
quality-supervising agencies to collect fees from the enterprises for
sample-checking on the product, so as to guarantee the impartiality of the
supervising agencies. The expenses needed for the technical means and measures
and for the test by the quality-supervising agencies shall be covered by the
state or local financial allocations according to the actual needs. The
economic commission at various levels are responsible for leadership,
organization and coordination of the supervision and control over product
quality.

Article 17 Responsible departments of the trades and responsible
departments for the enterprises at various levels are responsible for the
control over the quality of products in the respective trades within their
authoritization, which covers: formulating or taking part in the formulation
of the quality standards for the products in their respective areas of
responsibility and the pertinent rules and regulations, being responsible
for supervision and control over the quality of products, urging the
enterprises to ensure the quality of product, perfecting the quality
guaranteeing system, and organizing the issuance of production licences.

Article 18 Exercise social supervision over the quality of product.
The customer can make inquiries about the quality of the product at the
manufacturer, the enterprises for storing and transporting, and the marketing
firms; and the social associations and organizations can help the customers
participate in the mediation, arbitration over quality disputes, and support
the customers to file lawsuits with the people’s court.

Article 19 The customer can, according to the mutual agreement between
the customer and manufacturer, send his representative to the manufacturer
to conduct on-the-spot-supervision over the process of the production and the
quality of the product.
Chapter VI Settlement of Disputes over Quality Responsibility for the
Product

Article 20 Any dispute arising from the quality of product shall,
provided there is an economic contract, observe the relevant stipulations in
the Economic Contract Law. In the absence of such contracts, either party to
the dispute can refer the dispute to a relevant quality-supervising agency for
mediation or settlement, or take the case to the people’s court.

Article 21 In case of any dispute over the data of technical testing
of the quality of product, the party concerned or the mediating or arbitrating
agencies can entrust legally designated quality-testing unit for arbitral
testing; and the said quality testing unit shall be responsible for the data
of the arbitral testing.

Article 22 Unless otherwise stipulated by the government, the request
for arbitration or prosecution over quality responsibility shall be raised
within one year from the date the party concerned is aware of or should be
aware of his interest and rights being damaged. Where the party bearing the
quality responsibility for the product is willing to bear the responsibility,
it is not limited by the term of validity.
Chapter VII Penalties

Article 23 Where the product of an enterprise fails to reach the
state-stipulated standards, the competent authoritative department of the
said enterprise shall order the enterprise to rectify production within a
fixed period. Where the said rectification within the fixed period turns out
to be of no effect, the competent authoritative department of the said
enterprise shall order it to stop production or switch over to a new line
of products, or even suggest that the relevant authorities revoke the
production licence and the business licence. In the period of rectification,
the competent authoritative department responsible for the said enterprise
may, according to different circumstances, deduct the bonus and wages of the
executive members of the enterprise and of the staff and workers.

Article 24 Where the manufacturer or marketing firm has committed one
of the following acts in violation of the stipulations of the present
Regulations, the authoritative department responsible for the enterprise or
firm shall mete out disciplinary punishment to the responsible persons of the
enterprise and to the persons bearing direct responsibility; and the industry
and commerce administrative organ shall confiscate all the illegal income,
and impose on it a fine equivalent to 15% to 20% of the illegal income
according to the degree of seriousness of the case; or even the legal
liabilities shall be fixed by the judicial organs through due investigation.

1. manufacture or market adulterated product or imitated product, or
pass off “substandard” product as qualified;

2. manufacture or market products without indicating the name and address
of the manufacturer;

3. manufacture or market products without quality certificate;

4. manufacture or market products of which the State has issued explicit
order for their elimination;

5. manufacture or market the products on which the State adopts the
system of production licence, but fails to renew the said production licence
after its expiry;

6. manufacture or market products manufactured or assembled with
un-qualified raw materials, parts or components;

7. manufacture or market products in violation of the requirements
stipulated by state laws and regulations concerning safety, hygiene,
environmental protection and measuring;

8. market products which have passed the expiry date.

The incomes collected from fines shall be handed to the state treasury.

Article 25 In the course of sample-check on quality supervision, in case
it is found that the manufacturer or marketing firm has committed the
act(s) listed in Article 24, the quality-supervising agency shall treat the
case according to the stipulation in Article 24. As regards the product not
in conformity to the provision of Item (7) of Article 9 of the present
Regulations, the product shall be destroyed on the spot by the quality-
supervising agency or be given the necessary technical treatment; and the
manufacturer and the marketing firm shall be ordered to recover within the
given time all the substandard products that have already been sold.

In case of violation of the stipulations in Article 8 of the present
Regulations, or retaliation against quality-testing personnel, or the working
personnel in quality-supervising and quality-testing agencies act wrongly out
of personal consideration, the responsible authoritative department shall mete
out disciplinary punishment. As regards those of extraordinary seriousness,
criminal liabilities shall be investigated and fixed according to law.

Article 26 Where the poor quality of the product has resulted in the
injury or death of the customer, and in his loss of property, hence violating
the criminal code, the judicial organs shall investigate and fix the legal
liability of the party concerned.

Article 27 The above-mentioned penalty does not acquit the party
bearing the quality responsibility of its responsibility for the guaranteed
repair, replacement, recovering the product with the money already paid, and
the compensation for the actual economic loss to the customer(s).
Chapter VIII Supplementary Provisions

Article 28 The relevant responsible authorities may, in line with the
provisions of the present Regulations, work out the implementing details.
The quality responsibility regulations for import & export products, for
goods with military application as well as goods for special requirements,
the relevant authorities may, with reference to the principles of the present
Regulations, enact separate specific regulations.

Article 29 The present Regulations apply to all enterprises with
ownership by the whole people, enterprises with ownership by the collective,
individual industrial and commercial operators as well as the Chinese-foreign
equity joint ventures, contractual joint ventures, and foreign-capital
enterprises.

Article 30 The State Economic Commission is authorized to interpret
the present Regulations.

Article 31 The present Regulations shall go into force on July 1, 1986.
Note:

Note 1 In case of discrepancy between these Regulations and the Law of
the People’s Republic of China on Product Quality promulgated by Order No.71
of the President of the People’s Republic of China on February 22, 1993,
the latter shall prevail. –The Editor

DECISION CONCERNING THE REVISION OF ARTICLE 100 IN REGULATIONS FOR THE IMPLEMENTATION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

Category	FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION	Organ of Promulgation	The State Council	Status of Effect	With An Amendment Existing
Date of Promulgation	1986-01-15	Effective Date	1986-01-15

Decision Concerning the Revision of Article 100 in Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures

(Promulgated by the State Council on January 15, 1986) (Editor’s Note:

For the revised text, see Circular of the State Council Concerning the
Revision of the Third Paragraph of Article 86 in Regulations for
Implementation of the Law of the People’s Republic of China on
Chinese-Foreign Equity Joint Ventures promulgated on December 21, 1987)

Article 100 in “Regulations for the 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, provides: “The
duration of a joint venture shall be decided upon through consultation among
all the parties to the joint venture according to the actual conditions of
the particular lines of business and projects. The duration of a joint venture
engaged in an ordinary project shall, in principle, be between 10 to 30 years.
Duration for those engaged in projects requiring large amounts of investment,
long construction cycles and low profit rates on the capital may be longer
than 30 years.” This Article has been revised and now it reads: “The duration
of a joint venture shall be decided upon through consultation among all the
parties to the joint venture according to the actual conditions of the
particular lines of business and projects. The duration of a joint venture
engaged in an ordinary project shall, in principle, be between 10 to 30 years.
Duration for those engaged in projects requiring large amounts of investment,
long construction cycles and low profit rates on the capital, or in projects
producing highly sophisticated products or products well selling in the
interational market,with advanced technology or key technology offered by the
foreign parties to the joint ventures, may extend to 50 years. The duration of
a joint venture may be longer than 50 years, if specially approved by the
State Council.”

CUSTOMS MEASURES FOR THE DECLARATION OF ARTICLES IMPORTED AND EXPORTED BY DIPLOMATIC MISSIONS AND THEIR MEMBERS IN CHINAA

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING DIPLOMATIC PRIVILEGES AND IMMUNITIES

Regulations of the People’s Republic of China Concerning Diplomatic Privileges and Immunities



	(Adopted at the 17th Meeting of the Standing Committee of Sixth National People’s Congress on September 5, 1986 and promulgated by Order No.44 of the President of the People’s Republic of China on September 5, 1986) Article 1 These Regulations are formulated for the purpose of defining the diplomatic privileges and immunities of the diplomatic missions in China and their members and facilitating the efficient performance of the functions of the diplomatic missions in China as representing States. Article 2 The members of the diplomatic staff of a mission shall in principle be of the nationality of the sending State. They may be appointed from among persons of Chinese or third-State nationality only with the consent of the competent Chinese authorities, which may be withdrawn at any time by the said authorities. Article 3 The mission and its head shall have the right to use the flag and emblem of the sending State on the premises of the mission and on the means of transport of the head of the mission. Article 4 The premises of the mission shall be inviolable. Chinese government functionaries may enter them only with the consent of the head of the mission or another member of the mission authorized by him. The Chinese authorities concerned shall take appropriate measures to protect the premises of the mission against any intrusion or damage. The premises of the mission, their furnishings and other property thereon and the means of transport of the mission shall be immune from search, requisition, attachment or execution. Article 5 The premises of the mission shall be exempt from dues and taxes, other than such as represent payment for specific services rendered. The fees and charges levied by the mission in the course of its official duties shall be exempt from all dues and taxes. Article 6 The archives and documents of the mission shall be inviolable. Article 7 The members of the mission shall enjoy freedom of movement and travel within Chinese territory except for areas the entry into which is prohibited or restricted by the regulations of the Chinese Government Article 8 The mission may for official purposes communicate freely with the Government and the other missions and consulates of the sending State. In so doing, it may employ all appropriate means, including diplomatic couriers, diplomatic bag, and messages in code or cipher. Article 9 The mission may install and use a wireless transmitter-receiver for the purpose of communication only with the consent of the Chinese Government. The import of the above-mentioned equipment shall be subject to the relevant procedure as specified by the Chinese Government. Article 10 The official correspondence of the mission shall be inviolable. The diplomatic bag shall not be opened or detained. The diplomatic bag may contain only diplomatic papers or articles intended for official use and must be sealed and bear visible external marks of its contents. Article 11 The diplomatic courier shall be provided with a courier certificate issued by the competent authorities of the sending State. He shall enjoy personal inviolability and shall not be liable to arrest or detention. Diplomatic couriers ad hoc shall be provided with certificates of courier ad hoc issued by the competent authorities of the sending State, and shall enjoy the same immunities as the diplomatic courier while charged with the carrying of the diplomatic bag. A diplomatic bag may be entrusted to the captain of a commercial aircraft. He shall be provided with an official document issued by the consigner State indicating the number of packages constituting the bag, but he shall not be regarded as a diplomatic courier. The mission shall send its members to receive the diplomatic bag from the captain of the aircraft or deliver it to him. Article 12 The person of a diplomatic agent shall be inviolable. He shall not be liable to arrest or detention. The Chinese authorities concerned shall take appropriate measures to prevent any attack on his personal freedom and dignity. Article 13 The residence of a diplomatic agent shall enjoy inviolability and protection. His papers, correspondence and, except as provided in Article 14, his property, shall be inviolable. Article 14 A diplomatic agent shall enjoy immunity from criminal jurisdiction. He shall also enjoy immunity from civil and administrative jurisdiction, except in the case of: (1) an action relating to succession in which he is involved as a private person; or (2) an action relating to any professional or commercial activity conducted by him in China outside his official functions in violation of paragraph 3 of Article 25. No measures of execution shall be taken in respect of a diplomatic agent except in cases coming under the preceding paragraphs of this Article, where the measures of execution do not constitute any violations of his person and residence. A diplomatic agent is not obliged to give evidence as a witness. Article 15 The immunity from jurisdiction of diplomatic agents and of persons enjoying immunity under Article 20 may be waived through explicit expression by the Government of the sending State. The initiation of proceedings by b diplomatic agent or by a person enjoying immunity from jurisdiction under Article 20 shall preclude him from invoking immunity from jurisdiction in respect of any counter-claim directly connected with the claim. Waiver of immunity from civil or administrative jurisdiction shall not imply waiver of immunity in respect of the execution of the judgment, for which a separate and explicit waiver shall be necessary. Article 16 A diplomatic agent shall be exempt from all dues and taxes, except: (1) dues and taxes of a kind which are normally incorporated in the price of goods or services; (2) estate, succession or inheritance duties, except for the movable property in China of a deceased diplomatic agent; (3)dues and taxes on private income having its source in China; (4) charges levied for specific services rendered. Article 17 Diplomatic agents shall be exempt from all personal and public services as well as military obligations. Article 18 Imported articles for the official use of the mission and those for the personal use of a diplomatic agent shall, in accordance with the relevant regulations of the Chinese Government, be exempt from customs duties and all other related dues and taxes. The personal baggage of a diplomatic agent shall be exempt from inspection, unless the competent Chinese authorities have serious grounds for presuming that it contains articles not covered by the exemptions specified in the previous paragraph, or articles the import or export of which is prohibited by Chinese laws and government regulations or controlled by the quarantine law and regulations. Such inspection shall be conducted in the presence of the diplomatic agent or of his authorized representative. Article 19 The diplomatic missions and their members may bring and import firearms and bullets into China for their personal use, subject to the approval of the Chinese government and to its relevant regulations. Article 20 The spouse and under-age children of a diplomatic agent forming part of his household shall, if they are not nationals of China, enjoy the privileges and immunities specified in Articles 12 through 18. The members of the administrative and technical staff of the mission, together with their spouses and under-age children forming part of their respective households, shall, if they are not nationals of or permanent residents in China, enjoy the privileges and immunities specified in Articles 12 through 17. However, the immunity from civil and administrative jurisdiction shall be confined to acts performed in the course of official duties. The members of the administrative and technical staff shall also enjoy the privilege of exemption from dues and taxes specified in paragraph one of Article 18 in respect of articles intended for their establishment which are imported within six months of the time of installation. The members of the service staff of the mission who are not nationals of or permanent residents in China shall enjoy immunity in respect of acts performed in the course of official duties and exemption from income tax on the emoluments they receive by reason of their employment. They shall enjoy the privilege of exemption from dues and taxes as specified in paragraph one of Article 18 of these Regulations in respect of articles intended for their establishment which are imported within six months of the time of installation. The private attendants of members of the mission shall, if they are not nationals of or permanent residents in China, be exempt from income tax on the emoluments they receive by reason of their employment. Article 21 Diplomatic agents who are nationals of China or who are foreigners having obtained permanent residence in China shall enjoy immunity from jurisdiction and inviolability only in respect of acts performed in the course of official duties. Article 22 The following persons shall enjoy immunity and inviolability necessary for their transit through or sojourn in China: (1) a diplomatic agent stationed in a third State who passes through China together with his spouse and underage children forming part of his household; (2) a visiting foreign official who has obtained a diplomatic visa from China or who holds a diplomatic passport of a State with which China has an agreement on the mutual exemption of visas; (3) other visiting foreigners to whom the Chinese Government has granted the privileges and immunities specified in this Article. The provisions of Articles 10 and 11 shall apply, mutatis mutandis, to a diplomatic courier of a third State passing through China and his accompanying diplomatic bag. Article 23 Visiting heads of State or government, foreign ministers and other officials of comparable status from foreign States shall enjoy the privileges and immunities specified in these Regulations. Article 24 Representatives of foreign States coming to China to attend international conferences sponsored by the United Nations or its specialized agencies, visiting officials and experts of the United Nations and its specialized agencies, and offices of the United Nations and its specialized agencies in China and their personnel shall enjoy such treatment as specified in the relevant international conventions to which China has acceded and agreements which China has concluded with the international organizations concerned. Article 25 Persons enjoying diplomatic privileges and immunities under these Regulations shall: (1) respect Chinese laws and regulations; (2) not interfere in the internal affairs of China; (3) not practise for personal profit any professional or commercial activity within Chinese territory; (4) not use the premises of the mission and the residence of the members of the staff of the mission for purposes incompatible with the functions of the mission. Article 26 In case the diplomatic privileges and immunities accorded by a foreign State to the Chinese mission and its members in that State and to visiting Chinese personnel concerned are fewer than those China would give under these Regulations to the mission of that State and its members in China and its visiting personnel concerned, the Chinese Government may accord them such diplomatic privileges and immunities as appropriate on a reciprocal basis. Article 27 Where there are other provisions in international treaties to which China is a contracting or acceding party, the provisions of those treaties shall prevail, with the exception of those provisions on which China has expressed reservations. Where there are other provisions in agreements on diplomatic privileges and immunities between China and other countries, the provisions of those agreements shall prevail. Article 28 For the purpose of these Regulations, the following expressions shall have the meanings hereunder assigned to them: (1) the “head of the mission” is the ambassador, minister, charge d’ affaires or other person of equivalent rank charged by the sending State with the duty of acting in that capacity; (2) the “members of the mission” are the head of the mission and the members of the staff of the mission; (3) the “members of the staff of the mission” are the members of the diplomatic staff, of the administrative and technical staff and of the service staff of the mission; (4) the “members of the diplomatic staff of the mission” are the members of the staff of the mission having diplomatic rank; (5) a “diplomatic agent” is the head of the mission or a member of the diplomatic staff of the mission; (6) the “members of the administrative and technical staff of the mission” are the members of the staff of the mission engaged in the administrative and technical work of the mission; (7) the “members of the service staff of the mission” are the members of the staff of the mission in the domestic service of the mission; (8) a “private attendant” is a person in the private employment of a member of the mission; (9) the “premises of the mission” are the buildings and the land ancillary thereto used for the purposes of the mission and the residence of the head of the mission. Article 29 These Regulations shall enter into force as of the date of promulgation.

PROVISIONAL REGULATIONS ON THE CONTROL OF ENERGY CONSERVATION

Provisional Regulations on the Control of Energy Conservation

(Promulgated on January 12, 1986 by the State Council)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II ENERGY CONSERVATION MANAGEMENT SYSTEM

CHAPTER III FUNDAMENTALS OF ENERGY CONSERVATION CONTROL

CHAPTER IV MANAGEMENT OF ENERGY SUPPLIES

CHAPTER V CONTROL OF ENERGY CONSUMPTION IN INDUSTRY

CHAPTER VI CONTROL OF THE USE OF ENERGY IN URBAN-RURAL LIFE

CHAPTER VII PROMOTING TECHNOLOGICAL PROGRESS

CHAPTER VIII REWARDS AND PENALTIES

CHAPTER IX POPULARISATION AND EDUCATION

CHAPTER I GENERAL PRINCIPLES

Article 1. These Regulations are formulated in order to implement the State policy on attaching equal importance to tapping and conserving,
to use energy resources rationally, reduce energy consumption, boost economic benefits and ensure the sustained, steady and co-ordinated
development of the State economy.

Article 2. All urban and rural enterprises and institutions, as well as all organs, armed forces, group organisations and individuals shall
abide by these Regulations.

Article 3. Energy resources mentioned in these Regulations refer to coal, crude oil, natural gas, electric power, coke, gas, steam, petroleum,
kerosene, diesel oil, fuel oil, firewood, etc.

The term “energy conservation” referred to in these Regulations means obtaining the greatest economic benefits with the least energy
consumption in such ways as improved technology, rational use, scientific management, rationalisation of the economic structure,
etc.

CHAPTER II ENERGY CONSERVATION MANAGEMENT SYSTEM

Article 4. The State Council is responsible for establishing a meeting schedule for discussions on energy conservation work, for studying and
examining the guiding principles, policies, legislation, plans and reform measures that are concerned with energy conservation and
arranging and co-ordinating the work tasks of energy conservation. The State Planning Commission and the State Economic Commission
are each responsible for the daily routine work in their respective areas.

Article 5. The various People’s Governments of the provinces, autonomous regions and directly administered municipalities and the relevant
departments of the State Council shall designate key personnel to be in charge of energy conservation work, and may establish a meeting
schedule for discussions on energy conservation work. The administrative body for energy conservation will be responsible for routine
affairs.

Major energy consumption departments,bureau, districts and cities of the various provinces, autonomous regions and directly administered
municipalities shall appoint key personnel to be in charge of energy conservation work and designate their corresponding administrative
bodies.

Local and departmental administrative bodies for energy conservation will be mainly responsible for the implementation of the guiding
principles, policies, legislation and standards of the State on energy conservation. They will formulate policies and plans on energy
conservation technology for their respective districts, businesses or departments, organise and direct technical development and
innovation in energy conservation work, inspect, supervise and promote the improvement of energy conservation management by their
respective districts, businesses or enterprises and other units of their departments, and fulfil the task of energy conservation
work through overall planning and co-ordination.

Article 6. Enterprises with an annual overall energy consumption in excess of the equivalent of 10,000 tonnes of standard grade coal (hereinafter
referred to as major energy consumption enterprises) shall appoint key personnel to be in charge of energy conservation work, and
designate corresponding administrative bodies. In the case of enterprises with an annual energy consumption of less than the equivalent
of 10, 000 tonnes, regulations will be made by their respective regions and departments according to their specific circumstances
to the above provisions.

The energy conservation administrative bodies of enterprises are mainly responsible for the implementation of the guiding principles,
policies, legislation and standards of the State on energy conservation and regulations on energy conservation promulgated by respective
regions and departments, as well as being responsible for formulating and organising the implementation of technical measures for
energy conservation, for the improvement of scientific management of energy conservation, for minimising the energy consumption per
product unit and fulfilling energy conservation work tasks.

Article 7. Localities, departments and enterprises must develop a responsibility system for all energy conservation work.

Energy conservation administrative bodies at the various levels shall be manned by cadres and technicians who have professional knowledge
and who are capable and devoted to energy conservation work.

Article 8. Energy conservation administrative bodies of local People’s Governments and the relevant departments of the State Council, together
with supervisory organs within their respective areas of jurisdiction or enterprises will implement these Regulations.

Local and departmental energy conservation administrative bodies, apart from carrying out their supervisory duty as stipulated in
Article 5 of these Regulations, may also commission energy conservation technical service centres or other relevant units to conduct
monitoring and inspection of the consumption of energy in production and daily life within their respective areas of jurisdiction
or enterprises.

CHAPTER III FUNDAMENTALS OF ENERGY CONSERVATION CONTROL

Article 9. The State Statistical Bureau shall establish and improve energy statistical systems. The statistical departments at various levels,
together with the departments in charge within enterprises, shall properly carry out energy statistical work.

Enterprises shall establish and strengthen their daily energy consumption records and accumulative statistical records. In accordance
with The Statistics Law of the People’s Republic of China and other State regulations on statistical work, statistical statements
concerning energy shall be regularly submitted to statistics departments. energy conservation administrative bodies and departments
in charge within enterprises.

Article 10. In accordance with The Weights and Measures Law of the People’s Republic of China and other State regulations on weights and measures,
enterprises shall be equipped with energy measuring equipment to strengthen control over work concerning the measurement of energy.

Article 11. The State Bureau of Standardisation shall organise the formulation of various basic energy standards, energy management standards
and standards concerning energy consumption with regard to the production of goods. Local regions and departments shall formulate
local and departmental energy conservation standards in accordance with State standards and in conjunction with their specific circumstances.
Enterprises should conscientiously implement the various energy conservation standards.

Article 12. The department in charge within an enterprise shall, in conjunction with an energy supply department, regularly formulate up-to-date
and feasible energy consumption quotas for the enterprise’s major energy consumption products, in accordance with the overall energy
consumption testing quota and individual consumption quotas set by the departments in charge under the State Council, and conduct
careful assessments. Enterprises shall distribute and explain the various energy consumption quotas to all workshops, teams and
machine operators and establish a responsibility system for the utilisation of energy.

Article 13. Enterprises shall conduct energy consumption analysis and balance energy use with needs. The major energy consumption enterprises
shall establish an examination system of overall energy consumption and individual consumption.

CHAPTER IV MANAGEMENT OF ENERGY SUPPLIES

Article 14. In conjunction with energy supply departments and departments in charge within enterprises, the local energy conservation administrative
bodies shall organise enterprises to correctly supply energy requirements and carry out conservation work. Energy will be supplied
in accordance with an enterprise’s energy management standards, energy consumption rates for the production of goods and overall
economic benefits, and the best qualified enterprises will have priority supply. Enterprises with energy mainly acquired through
State allocation shall, according to the individual circumstances, contract a fixed quantity or quota. Any energy allocation conserved
will be retained by the enterprise for future use.

Article 15. The coal industry shall develop coal screening and process washing and sorting, improve the quality of the coal supplied and carry
out the planned supply of coal to the correct parties.

Coal production departments and communications and transportation departments shall organise the supply of coal of a pre-determined
quality and quantity, in accordance with the distribution schedule and the enterprises’ supply, marketing and transportation contracts.
As for the use of coal by large scale metallurgical, electric power, chemical industry and construction enterprises, and by railway
locomotives, coal will be supplied according to the specific needs of the different users and supply stations will be established
progressively to cater to users at various localities.

Urban fuel companies shall supply coal as a power supplement in accordance with the requirements of medium and small scale enterprises.

Article 16. The price of coal supplies will be set on the basis of quality. The price of steaming coal will be based on calorific value.

Concerning the quantity of coal, a system of commodity coal being measured according to its actual weight and standard coal being
evaluated according to its reduced mass will be gradually implemented.

Article 17. The system of planned electricity supply and consumption will be strictly implemented. The scope of rights and obligations on the
part of both the suppliers and consumers of electricity will be enforced in accordance with the Rules on the National Supply and
Consumption of Electricity, drawn up by the departments in charge under the State Council.

A number of different prices for electricity will be implemented and enterprises will be encouraged to use electricity during periods
of abundant water when excess is being discharged and during off-peak loading periods when the demand for electricity is at its lowest.
The calculation of electricity costs will be done in accordance with the Provisional Regulations on Encouraging the Generation of
Electrical Power through Pooled Resources and the Implementation of a Number of Different rices for Electricity which has been approved
by the State Council and passed on to the State Economic Commission and other departments.

Article 18. The burning of oil will be strictly controlled. Where new oil burning enterprises are established, approval procedures shall be
carried out in accordance with relevant State regulations. Enterprises which have decided to replace oil with coal must undertake
the changeover within a given time.

Parity price crude and fuel oil for use in boilers and industrial kilns will have a special oil burning tax levied in accordance with
Tax Law provisions.

Article 19. The use of oil in diesel generators will be strictly controlled. Apart from the use of electricity in production operations carried
out in non-power resource areas and in border regions and pastoral areas, together with areas where a power supply unit is essential,
such as hospitals, broadcasting, post and telecommunications and scientific research, no guarantee will be given for the supply of
oil to other diesel generators.

Article 20. Petroleum supply departments shall join with the relevant departments to rationally plan the construction of urban and rural petrol
stations and ways to reduce wastage involved in the storage and transportation of oil products.

CHAPTER V CONTROL OF ENERGY CONSUMPTION IN INDUSTRY

Article 21. In the construction of industrial enterprises, natural energy resource conditions, the regional balance between production and sales
of energy resources and their appropriate destination shall be taken collectively into consideration so that a rational layout can
be implemented. In areas deficient in energy resources, plans to consuming industrial projects will not be permitted unless they
are priority requirements of the State.

It is prohibited to restore or develop small scale blast furnaces, converters, electric furnaces, rolling mills and thermal electricity,
or to undertake the smelting of non-ferrous metals, electrolysis and other high energy consuming production except in areas with
abundant energy resources or where communications are inconvenient, in which case production will be allowed after approval is given
by the People’s Government of the province, autonomous region or directly administered municipality or by their authorised organs.

Article 22. As long as social needs are guaranteed, the structure of industry, enterprises and products shall be adjusted in accordance with
the principle of the rational use of energy.

Article 23. Enterprises shall act in accordance with the principle of rational use of energy in order to organise production in a balanced,
stable, centralised and co-ordinated fashion and to avoid losses or wastage of energy.

Article 24. The circulation and control of heat supply systems and the use of leftover heat by enterprises shall be carried out in accordance
with the relevant provisions of the Guiding Technological Principles on Estimation of the Rational Use of Heat Within Enterprises,
formulated by the State Bureau of Standardisation.

Article 25. It is prohibited to expand the capacity of boilers without authorisation. Should an enterprise need to expand its evaporative capacity
due to newly added boilers or the rebuilding of old ones, it must report in advance to the local energy conservation administrative
body which, in conjunction with the department in charge of the enterprise, the labour department and the fuel supply department,
will grant approval after examination.

Article 26. The departments in charge of the enterprises shall conduct regular inspections and appraisals of the major kilns of their respective
enterprises and raise the grade of the kilns in accordance with the examination standards of their particular industry regarding
the grading of kilns.

Article 27. Coking by indigenous methods is strictly prohibited. However, in special circumstances these methods may be retained with the approval
of the respective provincial, autonomous region or directly administered Municipal People’s Governments or their authorised organs
where the enterprise is located.

Article 28. Electricity departments shall undertake the rational construction and reform electricity networks in order to raise the capacity
of electricity supplies and to ensure the quality of supply. Measures shall be adopted to make rational use of water energy and
highly effective firepower electrical units to produce electricity and to strengthen the economic management of the electricity network
so as to minimise the consumption of water and coal and to economise on fuel.

The technical requirements for the supply and use of electricity in enterprises will be handled in accordance with the relevant provisions
of the Guiding Technological Principles on Estimation of the Rational Use of Electricity Within Enterprises, formulated by the State
Bureau of Standardisation.

Article 29. The co-ordinated production of heat and power must be developed. Where the amount of steam used in production by a consumer of
heat reaches a certain level, and a steady thermal load is maintained throughout the year, the electricity department and local areas
shall carry out the co-ordinated production of heat and power in accordance with the principle of “determining electricity by heat”.

Enterprises must be encouraged to generate electricity from surplus heat and voltage. Electricity departments shall follow State
provisions in rendering support to enterprises’ self-provided thermal power stations, as well as locally built small thermal power
stations, in their sale of electricity through the electric power network.

Article 30. In areas where industry is relatively concentrated, the local economic administrative department shall organise, in a planned way,
the professional production of heat treatment, electroplating, casting, forging and oxygen production in order to maximise the rate
of energy utilisation.

Article 31. Ignitable gases diffused by metallurgical, petroleum, chemical and coal industry enterprises shall be actively recovered and appropriately
used.

Collieries and nearby industrial enterprises shall develop the comprehensive use of gangue where economically viable. In areas rich
in bone coal, poor quality coal and oil shale resources, the local low grade heat fuel shall be put into comprehensive use in accordance
with economic benefits.

CHAPTER VI CONTROL OF THE USE OF ENERGY IN URBAN-RURAL LIFE

Article 32. The range of coal resources for civilian use shall be extended by progressively introducing the use of moulded coal for coal consumption
in daily life and popularising the use of honeycomb briquettes, together with actively developing smokeless combustion technology
for soft coal.

Article 33. Forests for firewood and charcoal will be actively developed and stoves which make economical use of firewood and coal should be
popularised. Areas with the necessary conditions will actively develop and make positive use of new energy sources such as methane,
solar energy, wind power and geothermal energy.

Article 34. Urban gas will be developed by utilising various gas resources. Departments of urban and rural construction and environment protection
shall formulate plans, in conjunction with the relevant departments, to progressively promote the use of gas in urban areas.

Article 35. On the premise that an appropriate interior living environment is ensured, comprehensive measures shall be adopted in the design
of building structures to appropriately determine the type of building and its positioning, improve the structure of protective enclosures,
select low energy consuming facilities and make full use of natural light sources to minimise the use of energy for lighting, heating
and refrigeration.

Article 36. Central heating will be developed. All newly constructed residences and public buildings with heating systems shall be uniformly
planned, and central heating adopted. With regard to the decentralised heating system currently in use, measures must be actively
adopted to gradually eliminate low efficiency boilers and to implement central heating.

According to the principle of economic rationale, heating facilities for buildings shall use or be converted to hot water heating
systems.

Article 37. Meters shall be installed to collect fees for the amount of electricity, water and gas used by urban and rural residents and the
system of one set fee and free transferral of supplies will be abolished.

CHAPTER VII PROMOTING TECHNOLOGICAL PROGRESS

Article 38. Newly built, renovated and extended engineering projects must adopt up-to-date technology and facilities with a rational energy
consumption which should not exceed the advanced domestic target. Relevant departments in the course of formulating or modifying
design specifications, norms and regulations within their respective industries, must meet specific requirements for energy conservation.
Feasibility studies and initial designs of engineering projects must include special proof of rational energy use. Where engineering
projects do not conform with energy conform with energy conservation requirements set out in the design specifications, norms and
regulations, examining and approval units will not grant approval for construction.

Article 39. Local areas, departments and enterprises shall draw up medium and long-term plans and annual schedules for the improvement of energy
conservation, in accordance with the particular industry’s technological policies for energy conservation, and organise implementation.
Major energy consumption enterprises shall construct, in a planned way, a group of technically advanced, economically viable and
easily popularised projects demonstrating energy conservation.

Article 40. Funds to be used by an enterprise for the technical improvement of energy conservation will primarily come from the enterprise’s
depreciation fund and remaining production funds. Should a key energy consumption enterprise consume more energy than the average
for that particular industry during the production of its major products, energy conservation must become the main target in its
technical innovation, and priority must be given to its inclusion in the plan for the arrangement of funds.

A fixed proportion shall be withdrawn annually from the depreciation funds held by localities and departments for use by enterprises
undertaking energy conservation measures, and the proportion of funds withdrawn for energy receiving areas and key energy consumption
departments must not be lower than 20 per cent of the depreciation fund held by their respective areas and departments.

Article 41. Preferential rates of interest will be given to energy conservation loans listed within the State credit plan and relevant departments
in charge may also grant discounts on interest in accordance with State regulations. Enterprises which receive such loans are permitted
to repay them with newly generated profit prior to the payment of income tax.

Relevant departments in charge, in accordance with the State regulations, may grant partial or full exemption from repayment of the
principal and interest to energy conservation projects where capital construction costs have changed from appropriation to loans
and where such undertakings would be more beneficial to society than to the enterprise.

Concerning the capital construction of State planned energy conservation projects, the State will offer part of the investment and
will encourage local areas, departments and enterprises to pool resources for use in the construction of such projects.

Measures such as the invitation and submission of tenders shall be adopted in the construction of energy conservation projects.

Article 42. For major energy conservation projects a design and consulting unit approved by energy conservation management bodies must produce
technical and economic proof or a feasibility study. The design and consulting units shall follow the provisions of the contracts
and bear corresponding legal liabilities for the technical reliability and economic rationality of the projects under construction.

Article 43. Major technical development projects for energy conservation shall be included in the State’s key scientific research plan. The
energy conservation management bodies of local areas and departments shall actively organise the study and popularisation of applied
technology in energy conservation.

Article 44. Following examination and approval by the department in charge under the State Council, goods produced with obvious energy-saving
results and which are in great demand by society will be given a preferential price for being of high quality.

In accordance with the Provisional Regulations on Several Policies in Promoting the Technological Progress of State Owned Enterprises,
approved by the State Council and passed on to the State Economic Commission and other departments, new energy-saving products appraised
and approved by the relevant departments will be exempt from Product Tax and Value Added Tax for a fixed period.

Article 45. Where overseas technology and equipment are introduced, the technical conditions, economic benefits and level of energy consumption
must all be comprehensively taken into consideration. Preference will be given to the introduction of those with high energy-saving
results, and restrictions will be placed on those with high energy consumption.

Article 46. Energy-saving machinery and equipment, testing apparatus, instruments, etc., that are introduced for use in an enterprise’s technical
upgrading, will be exempt from Import Duty and Product Tax (or Value Added Tax) in accordance with the provisions of the State Tax
Law.

Article 47. Manufacturing enterprises must within the stipulated time period cease manufacturing and selling mechanical and electrical products
that have been pronounced obsolete by the State.

Mechanical and electrical products that have been pronounced obsolete by the State and facilities that over reach energy consumption
standards but which are still in use in an enterprise in accordance with the provisions of the department in charge, must be withdrawn
from use within a given time or be subject to replacement or renovation, and their transferral to other uses is also prohibited.

Article 48. Local areas and departments shall actively develop a market for energy-saving technology and carry out compensatory technology transfer.
According to needs and conditions, energy-saving technology service centres may be established to offer services in consultancy
and information, energy resource assessments and other matters to enterprises.

CHAPTER VIII REWARDS AND PENALTIES

Article 49. The State will hold regular activities where advanced energy-saving units are chosen through public appraisal and incentive awards
are presented to the units that have achieved outstanding results in energy conservation.

Article 50. The State will encourage people to take part in energy conservation. Units which have benefited from adopting a rationalisation
proposal for energy conservation will give incentive awards in accordance with the economic benefits and State provisions to persons
who put forward such proposals. The State will protect the legal rights of persons who criticise energy wastage and no vindictive
retaliation will be permitted.

Article 51. All State-owned industries and communications enterprises which comply with Articles 9, 10, 11 and 12 of these Regulations, following
approval by the energy conservation management bodies and other relevant departments, may draw energy conservation bonuses in accordance
with the relevant State provisions on incentive awards for the conservation of specific fuels and raw materials.

Article 52. Incentive awards given for urban water conservation and hydroelectricity will be formulated separately by the Ministry of Urban
and Rural Construction and Environment Protection and the Ministry of Water Resources and Electric Power and will be promulgated
for implementation following examination and approval.

Article 53. Any unit or individual who violates these Regulations will be criticised and educated by energy conservation management bodies if
the case is not very serious but, if otherwise, punishment will be dealt in accordance with the severity of the case, based on the
following principles:

(1) Where an enterprise violates the first provision of Article 18 by continuing to burn oil after the stipulated time period, oil
supplies will be cut. The decision to halt supplies will be given by the organ in charge of reducing the burning of oil, and it
will notify fuel supply departments to implement the decision.

(2) Where an enterprise violates the second provision of Articles 21 and 27 by restoring and further developing high energy-consuming
small blast furnaces, converters, electric furnaces, rolling mills and firepower electricity, or undertaking smelting of non-ferrous
metals, electrolysis and other such production, together with enterprises which continue to retain indigenous coking methods, the
local energy conservation management body will decide whether to halt energy supplies and the administrative departments of industry
and commerce will revoke the business licence.

(3) Where an enterprise violates the provision of Article 25 through the unauthorised expansion of boiler capacity, a fine will be
imposed by the local energy conservation management body and fuel supply departments will not provide energy resources to supply
boilers that have without authorisation had their capacity expanded.

(4) Where an enterprise violates the provisions of Article 47 by continuing to produce, sell, use or transfer mechanical and electrical
products and equipment referred to in that Article, the bank will cease to grant loans and the local energy conservation management
body will decide whether to halt energy supplies and impose a fine.

(5) Where an enterprise has violated the provisions of the above-mentioned Articles, with resulting serious energy wastage, apart
from the above-mentioned penalties, energy conservation management bodies shall also assist the relevant departments in investigating
the administrative responsibility of the persons in charge of the enterprise and others directly responsible.

Having been dealt the above-mentioned penalties does not exempt the unit or individual from continuing to fulfil the relevant obligations
stipulated in these Regulations.

Article 54.. An enterprise that has consumed energy in excess of the quota shall be charged a higher price for the extra energy used. This additional
expense is not permitted to be included in calculation of expenditure for production costs and non-operating expenses. The extra
income arising from the raised price will be held by the local energy conservation management body for use in undertaking energy
conservation measures.

An enterprise that has made an extra payment for over-using energy is not excluded from the responsibility of paying fines for violation
of these Regulations.

CHAPTER IX POPULARISATION AND EDUCATION

Article 55. Propaganda departments shall actively propagate the guiding principles, policies and technical knowledge concerning energy conservation
by making full use of broadcasting, television, newspapers, periodicals, lectures and other forms of dissemination so as to heighten
the awareness of the whole nation about energy conservation work and to enha

AMENDMENT TO ARTICLE 100 OF THE REGULATIONS FOR IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

PROVISIONAL RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON INDIVIDUAL INCOME ADJUSTMENT TAX

1992

GENERAL PRINCIPLES OF THE CIVIL LAW OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONS OF THE CUSTOMS GOVERNING THE IMPORT OF MATERIALS AND PARTS NEEDED BY ENTERPRISES WITH FOREIGN INVESTMENT TO PERFORM...

INTERIM PROVISIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE FOR THE MANAGEMENT OF DEVELOPING AND EXPORTING NEW COMMODITIES IN FOREIGN TRADE

COMPULSORY EDUCATION LAW

CONTROL OF THE ENTRY AND EXIT OF ALIENS

REGULATIONS ON QUALITY RESPONSIBILITY FOR INDUSTRIAL PRODUCTS (NOTE1)

DECISION CONCERNING THE REVISION OF ARTICLE 100 IN REGULATIONS FOR THE IMPLEMENTATION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

CUSTOMS MEASURES FOR THE DECLARATION OF ARTICLES IMPORTED AND EXPORTED BY DIPLOMATIC MISSIONS AND THEIR MEMBERS IN CHINAA

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING DIPLOMATIC PRIVILEGES AND IMMUNITIES

PROVISIONAL REGULATIONS ON THE CONTROL OF ENERGY CONSERVATION

AMENDMENT TO ARTICLE 100 OF THE REGULATIONS FOR IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

PROVISIONAL RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON INDIVIDUAL INCOME ADJUSTMENT TAX

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