CIVIL LAW OF THE PEOPLE’S REPUBLIC OF CHINA

RULES OF PROCEDURE FOR THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS

Rules of Procedure for the Standing Committee of the National People’s Congress of the PRC

(Effective Date:1987.11.24–Ineffective Date:)

RULES OF PROCEDURE FOR THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS OF THE PEOPLE’S REPUBLIC OF CHINA

(Adopted at the 23rd Meeting of the Standing Committee of the Sixth National People’s Congress on November 24, 1987, promulgated by
Order No. 60 of the President of the People’s Republic of China on November 24, 1987, and effective as of the same date)

CONTENTS

CHAPTER I CONVENING OF MEETINGS

CHAPTER II SUBMISSION OF AND DELIBERATION ON BILLS AND PROPOSALS

CHAPTER III HEARING AND EXAMINING WORK REPORTS

CHAPTER IV ADDRESSING QUESTIONS

CHAPTER V SPEAKING AND VOTING

Article 1. These Rules are formulated in accordance with the provisions of the Constitution and the Organic Law of the National People ‘s Congress
and in the light of the practical experience of the Standing Committee of the National People’s Congress.

Article 2. In deliberating on bills and proposals and making decisions, the Standing Committee of the National People’s Congress shall give
full play to democracy and apply the principle of democratic centralism.

CHAPTER I CONVENING OF MEETINGS

Article 3. The Standing Committee of the National People’s Congress shall meet in session once every other month; an interim session may be
convened when necessary.

Meetings of the Standing Committee shall be convened and conducted by its Chairman. The Chairman may entrust any of the Vice-Chairmen
to conduct a meeting on his behalf.

Article 4. Meetings of the Standing Committee may not be held unless more than half of the members of the Committee are present.

Article 5. The Council of Chairmen shall draft the agenda for a meeting of the Standing Committee and refer it to a plenary meeting of the Standing
Committee for decision.

Article 6. When the Standing Committee is to hold a meeting, its members shall be notified, seven days in advance, of the date of the meeting
and the main items proposed for discussion. They may be notified of an interim session within a shorter time.

Article 7. When the Standing Committee meets, leading members of the State Council, the Central Military Commission, the Supreme People’s Court
and the Supreme People’s Procuratorate shall attend the meeting as nonvoting participants.

The chairmen and vice-chairmen of all the special committees of the National People’s Congress, members and advisers of the relevant
special committees and leading members of the relevant departments shall attend the meeting as nonvoting participants.

Article 8. When the Standing Committee meets, the chairman or one of the vice-chairmen of the people’s congress of each province, autonomous
region and municipality directly under the Central Government shall attend the meeting as a nonvoting participant; when necessary,
the relevant deputies to the National People’s Congress may be invited to the meeting as nonvoting participants.

Article 9. When the Standing Committee is in session, it shall hold plenary meetings, group meetings and joint group meetings.

Article 10. When members of the Standing Committee are going to deliberate on bills or proposals or work reports at group meetings, the departments
concerned shall be notified to send people to attend the meetings to listen to comments and answer questions.

When members of the Standing Committee are going to deliberate on bills or proposals or work reports at joint group meetings, leading
members of the departments concerned shall be notified to attend the meetings to listen to comments and answer questions.

Article 11. When the Standing Committee meets, its members shall attend the meeting, except for those who ask to be excused on account of poor
health or for other reasons.

CHAPTER II SUBMISSION OF AND DELIBERATION ON BILLS AND PROPOSALS

Article 12. The Council of Chairmen may submit to the Standing Committee for deliberation at its meetings bills and proposals that are within
the scope of the functions and powers of the Standing Committee.

The State Council, the Central Military Commission, the Supreme People’s Court, the Supreme People’s Procuratorate, and the special
committees of the National People’s Congress may submit to the Standing Committee bills and proposals that are within the scope of
its functions and powers. The Council of Chairmen shall decide whether to refer them to the Standing Committee for deliberation at
its meetings or to refer them to the relevant special committees for deliberation and the submission of reports before deciding whether
to refer them to the Standing Committee for deliberation at its meetings. Bills and proposals that are within the scope of the functions
and powers of the Standing Committee may be submitted to it by 10 or more of its members. The Council of Chairmen shall decide whether
to refer them to the Standing Committee for deliberation at its meetings or to refer them to the relevant special committees for
deliberation and the submission of reports before deciding whether to refer them to the Standing Committee for deliberation at its
meetings. Bills and proposals that are not to be referred to the Standing Committee for deliberation at its meetings shall be reported
to the Standing Committee at its meetings, or explanations shall be made to the sponsors.

Article 13. The Council of Chairmen may, on the basis of needs in work, entrust the working commissions and the General Office of the Standing
Committee to draft bills and proposals on behalf of the Standing Committee and make explanations to the Standing Committee at its
meetings.

Article 14. With regard to the bills and proposals that have been placed on the agenda of a session of the Standing Committee, the sponsor organs,
the special committees and the working bodies of the Standing Committee concerned shall provide relevant information.

For proposals on appointments, the sponsor organs shall provide basic information on the appointees; when necessary, the responsible
persons concerned shall attend the meetings to answer questions.

Article 15. The Standing Committee shall hold plenary meetings to hear explanations about the bills and proposals.

After that, the bills and proposals shall be deliberated on at group meetings and also by the special committees concerned.

Article 16. With respect to the draft laws placed on the agenda of a session, after hearing the explanations and making preliminary deliberations,
the Standing Committee shall refer them to the relevant special committees for deliberation and to the Law Committee for overall
deliberation. The Law Committee shall submit a report on the results of deliberation to the next session or a later session of the
Standing Committee and the Standing Committee shall print the deliberation reports prepared by the relevant special committees and
distribute them at a meeting of the Standing Committee.

After deliberating on the bills and proposals involving decisions on or amendments to laws, the Law Committee may submit a report
on the results of deliberation to the current session or to the next session or a later session of the Standing Committee.

Article 17. A joint group meeting of the Standing Committee may hear and deliberate on the special committees’ reports on their deliberations
on bills and proposals and discuss the items on the agenda of the session.

Article 18. Leading members of organs sponsoring the bills or proposals may make supplementary explanations about them at plenary meetings or
joint group meetings of the Standing Committee.

Article 19. Deliberations on a bill or proposal already placed on the agenda of a session of the Standing Committee may be cancelled upon approval
by the Council of Chairmen at the request made by the sponsor for its withdrawal before it is put to vote.

Article 20. If important issues requiring further study are raised during deliberations on a bill or proposal placed on the agenda of a session
of the Standing Committee, decision on the bill or proposal by vote may be postponed, upon a proposal by the Chairman of the Standing
Committee or the Council of Chairmen and its approval by a joint group meeting or a plenary meeting, until further deliberations
are made and reports on the results are provided by special committees.

Article 21. The Standing Committee may, when it deems it necessary, organize investigation committees on particular issues and make decisions
in the light of the reports prepared by the investigation committees.

CHAPTER III HEARING AND EXAMINING WORK REPORTS

Article 22. The Standing Committee shall hear the work reports made to it by the State Council, the ministries and commissions under the State
Council, the Supreme People’s Court and the Supreme People’s Procuratorate.

Article 23. After hearing the work reports at its plenary meetings, members of the Standing Committee may examine them at group meetings or joint
group meetings.

The Council of Chairmen may decide to refer such work reports to relevant special committees for deliberation and comments.

Article 24. The Standing Committee may, when it deems it necessary, adopt resolutions on the work reports.

CHAPTER IV ADDRESSING QUESTIONS

Article 25. During a session of the Standing Committee, 10 or more members of the Standing Committee may jointly submit to the Standing Committee
a written proposal for addressing questions to the State Council, the ministries and commissions under the State Council, the Supreme
People’s Court and the Supreme People’s Procuratorate.

Article 26. In the proposals for the addressing of questions, the objects to be questioned and the topics and contents to be questioned about
must be clearly stated.

Article 27. The Council of Chairmen shall decide to refer the proposals for the addressing of questions to the relevant special committees for
deliberation or submit them to a session of the Standing Committee for deliberation.

Article 28. With respect to proposals for the addressing of questions, the Council of Chairmen shall decide whether responsible persons of the
organs questioned shall give oral replies at a session of the Standing Committee or at meetings of the relevant special committees,
or the organs questioned shall make written replies. For questions answered at meetings of the relevant special committees, these
special committees shall submit a report to the Standing Committee or the Council of Chairmen.

Written replies to the questions addressed shall be signed by responsible persons of the organs questioned, then printed and distributed
to members of the Standing Committee and to the relevant special committees.

When the special committees concerned deliberate on proposals for the addressing of questions, the Standing Committee members who
raised such proposals may attend the meetings to express their opinions.

CHAPTER V SPEAKING AND VOTING

Article 29. Speeches made at plenary meetings by members of the Standing Committee and nonvoting participants shall not exceed 10 minutes; at
joint group meetings, speeches made for the first time by such persons shall not exceed 15 minutes, and speeches made for the second
time by the same persons on the same topics shall not exceed 10 minutes. Speeches may be longer if approved by the person conducting
the meetings at requests put forward in advance.

Article 30. Bills and proposals shall be adopted if they are voted for by a simple majority of all the members of the Standing Committee. The
person who presides over the meeting shall announce the result of the vote on the spot.

Article 31. If amendments are proposed to the bills and proposals to be put to vote, such amendments shall be voted on first.

Article 32. Proposals regarding appointments or removals shall be voted on person by person or may, in the light of specific circumstances, be
voted on together.

Article 33. The voting on bills and proposals shall be conducted at sessions of the Standing Committee by secret ballot, a show of hands or other
methods.

Article 34. These Rules shall come into force as of the date of their promulgation.

REGULATIONS ON PRICE CONTROL

Regulations of the PRC on Price Control

(Promulgated by the State Council of China on September 11, 1987)

CHAPTER I GENERAL PRINCIPLES

CHAPTER II PRICE DETERMINATION AND PRICE CONTROL

CHAPTER III PRICE CONTROL DUTIES

CHAPTER IV ENTERPRISE RIGHTS AND OBLIGATIONS

CHAPTER V PRICE SURVEILLANCE

CHAPTER VI PENALTIES

CHAPTER VII SUPPLEMENTARY PRINCIPLES

Article 1 These Regulations are formulated to implement State price guidelines and policies, tighten price control, maintain the basic stability
of market prices, ensure the smooth implementation of economic reform and improve the development of a socialist planned commodity
economy.

Article 2 As long as State interests are protected, price control efforts shall safeguard the legitimate economic interests of producers, sellers
and consumers and enable the correct handling of economic interests among the central government, local governments, departments
and enterprises.

Article 3 The State shall adopt the principle of combining direct price administration and indirect price control, whereby three types of prices,
namely a State stipulated price, a State guided price and a market adjusted price, are implemented.

Article 4 The State shall implement a system of uniform leadership and graded control with regard to price control matters.

Commodity price control organizations, (hereinafter referred to as commodity price departments) of people’s governments at the various
levels, the competent departments of people’s governments at the various levels, as well as price control organizations and employees
of enterprises and public institutions shall strictly abide by State laws, regulations and policies on prices and shall effectively
conduct price control and supervision.

CHAPTER II PRICE DETERMINATION AND PRICE CONTROL

Article 5 Prices referred to in these Regulations include:

(i) various commodity prices;

(ii) rates of fees for various service items (hereinafter referred to as service fee rates).

Article 6 The price of a commodity shall be made up of the average production cost of the commodity, as well as tax, profits, and normal circulation
costs.

Article 7 The determination and adjustment of the price of a commodity which is subject to State stipulated prices or State guided prices shall
be approximately the same as the value of the commodity, and shall reflect supply and demand conditions, meet State policy requirements
and comply with the following principles:

(i) maintain a reasonable relative price relationship between the various commodity prices;

(ii) provide explicit quality levels or grade criteria and implement quality pricing;

(iii) implement reasonable purchase and sale price differentials, wholesale and retail price differentials, regional price differentials
and seasonal price differentials, on the precondition of a reduction of the number of marketing stages through which goods must pass
and a reduction of costs incurred in this circulation of goods.

Article 8 State stipulated prices refer to commodity prices and service fee rates determined by the commodity price departments and the competent
departments of the various people’s governments at county level and above in accordance with their area of jurisdiction as stipulated
by the State.

State guided prices refer to commodity prices and service fee rates determined by enterprises within the guidelines prescribed by
the commodity price departments and the competent departments of the various people’s governments at county level and above in accordance
with their area of jurisdiction as stipulated by the State, through the setting of a fundamental price fluctuation range, a rate
differential, a profit rate, a ceiling price and a minimum reserve price.

Market adjusted prices refer to commodity prices and service fee rates determined by producers and sellers.

Article 9 A list of commodities and service fee items which are subject to division of control and under State stipulated pricing and State
guided pricing shall be formulated and adjusted by the State commodity price department and provincial, autonomous region and directly
administered municipal commodity price departments designated by the State commodity price department.

Article 10 Assessment and adjustment of commodity prices and service fee rates shall be conducted in accordance with their area of jurisdiction
and the procedures as stipulated by the State. No regional department, unit or individual shall exceed its jurisdiction by determining
or adjusting commodity prices or service fee rates without authorization.

Article 11 The relevant State Council departments in charge and the various local people’s governments shall keep informed on market commodity
prices and shall, through organizing supplies from State-run industrial and commercial enterprises, commodity supply enterprises
and supply and marketing co-operatives, participate in market adjustment and the control of market commodity prices. When market-adjusted
commodity prices undergo sharp rises or falls, the commodity price departments may set a maximum and minimum reserve price for fixed
commodities for a certain period of time and may implement a price rise application system.

Article 12 The commodity price departments shall strengthen control and supervision of prices of urban and rural markets and individual household
industrial and commercial operations.

Article 13 The State commodity price department shall perform the following duties in areas of price control:

(i) research and draft State price guidelines, policies, plans and reform programmes and organize the implementation of such items
following their approval by the State Council;

(ii) research and draft laws and regulations on prices;

(iii) take responsibility for the control and overall balancing of prices throughout the country;

(iv) outline guidelines and methods for commodity and service fee pricing, determine and adjust commodity prices and service fee rates
which are subject to a division of control and, in the case of determining or adjusting key commodity prices or service fee rates,
discuss details with relevant State Council departments in charge and subsequently submit the proposal to the State Council for approval;

(v) guide and supervise the relevant State Council departments and provincial, autonomous region and directly administered municipal
people’s governments in respect of price matters and investigate and deal with acts violating price laws, regulations and policies
(hereinafter referred to as illegal pricing acts);

(vi) mediate and settle price disputes between the relevant State Council departments, between provincial, autonomous region or directly
administered municipal people’s governments and between the relevant State Council departments and provincial, autonomous region
or directly administered municipal people’s governments;

(vii) establish a national price information network and develop price information services;

(viii) perform other duties designated by the State Council.

Article 14 The relevant State Council departments shall perform the following duties in areas of price control:

(i) organize and supervise the implementation of State price guidelines, policies, laws and regulations within the system and industries
concerned;

(ii) outline the guidelines and methods of commodity and service fee pricing in accordance with their jurisdiction on price control,
and determine and adjust commodity prices and service fee rates which are subject to division of control;

(iii) organize and supervise the implementation of stipulated commodity prices and service fee rates within the system and industries
concerned;

(iv) guide its respective system and industries in price matters, mediate and settle price disputes which occur therein, and assist
the commodity price surveillance organs to investigate and deal with illegal pricing acts;

(v) provide information and price adjustment proposals relevant to commodity prices and service fee rates for items which are subject
to control by the State commodity price department;

(vi) establish a price information network within its respective system and industries and develop price information services.

Article 15 The commodity price department of a provincial, autonomous region or directly administered municipal people’s government shall perform
the following duties in areas of price control:

(i) implement State price guidelines policies, laws and regulations;

(ii) organize and supervise the units concerned to implement commodity prices and service fee rates as stipulated by the State commodity
price department and the relevant State Council departments;

(iii) be responsible for the control and overall balancing of prices for the local region and consult with the relevant departments
concerning the drafting of a price plan for the local region and organize its implementation, subject to its approval;

(iv) outline the guidelines and methods of commodity and service fee pricing in accordance with its area of jurisdiction on price
control, determine and adjust commodity prices and service fee rates which are subject to division of control and, in the case of
key commodity prices or service fee rates, submit details to a provincial, autonomous region or directly administered municipal people’s
government for approval and filing with the State commodity price department and the relevant State Council departments;

(v) guide and supervise the relevant departments at the same level, the lower level people’s governments and local enterprises and
public institutions and investigate and deal with illegal pricing acts;

(vi) mediate and settle price disputes within the local region;

(vii) establish a local price information network and develop price information services;

(viii) perform other duties designated by provincial, autonomous region or directly administered municipal people’s governments.

Article 16 Regulations on price control duties for the relevant departments of provincial, autonomous region and directly administered municipal
people’s governments, commodity price departments and the relevant departments of county people’s governments shall be formulated
by provincial, autonomous region and directly administered municipal people’s governments with reference to the relevant provisions
of this Chapter.

CHAPTER IV ENTERPRISE RIGHTS AND OBLIGATIONS

Article 17 An enterprise shall have the right to:

(i) set commodity prices and service fee rates for commodities and service items which are subject to State guided prices, in accordance
with the relevant regulations;

(ii) set and implement market adjusted commodity prices and service fee rates;

(iii) following confirmation by the relevant department and approval by the commodity price department, set commodity prices in accordance
with the stipulated range of price increases and determine within its jurisdiction, discount prices for damaged and substandard products;

(iv) determine the price of products on trial sale within its area of jurisdiction as stipulated by the State;

(v) provide advice on determining and adjusting commodity prices and service fee rates for items which are subject to State stipulated
pricing or State guided pricing.

Article 18 An enterprise shall be obliged to:

(i) observe State price guidelines, policies, laws and regulations when implementing State stipulated prices and State guided prices;

(ii) provide factual information on the pricing of commodities and service fee items which are subject to the implementation of State
stipulated prices or State guided prices;

(iii) comply with price control measures implemented by the commodity price departments, accept price surveillance and make available
relevant factual information, such as costs and account books, if required for price surveillance investigations;

(iv) implement an application and record filing system for commodity prices and service fee rates, as stipulated by the commodity
price departments;

(v) use price labels in accordance with regulations in areas such as commercial retail sectors, catering industries and service industries.

Article 19 The rights and obligations of a public institution or an individual industrial or commercial household operation in the area of prices
shall be implemented with reference to the provisions of Articles 17 and 18 of these Regulations.

Article 20 Price surveillance organs of the commodity price department at the various levels shall have the authority to perform, in accordance
with the law, price supervision and investigation and to handle illegal pricing acts, and shall supervise and examine the relevant
departments of the people’s governments at an equivalent level, lower level people’s governments and enterprises, public institutions
and individual industrial and commercial household operations within the local region with regard to the implementation of price
laws, regulations and policies.

Article 21 A commodity price surveillance organ shall be guided in its operations by a higher level commodity price surveillance organ. The
appointment or replacement of key officials of local commodity price surveillance organs at the various levels shall be subject to
the consent of the higher level commodity price department.

Article 22 Commodity price surveillance organs shall rely on and mobilize the public into carrying out price surveillance and examinations,
organize trade unions and neighbourhood organizations to establish employee price surveillance offices and consumer price surveillance
offices, and organize public participation in price surveillance activities.

Commodity price departments shall encourage consumer associations to play an active role in price surveillance and shall investigate
and deal with illegal pricing acts reported by consumer associations, in accordance with the law.

Article 23 Public price surveillance shall focus on the prices of consumer goods and service fee rates which are closely linked with the everyday
life of the people.

A public price surveillance officer shall wear a badge and show a price surveillance certificate when carrying out price surveillance
activities.

Article 24 Local governments at the various levels shall strengthen control of price surveillance and organize the relevant departments and
relevant parties from the public to carry out both regular and irregular supervision and examination of the implementation of price
laws, regulations and policies.

Article 25 The departments of industrial and commercial administration, auditing, finance, taxation, public security, standardization and weights
and measures, as well as banks and other departments shall actively co-operate with the commodity price surveillance organs in order
to carry out price surveillance and deal with illegal pricing acts effectively.

Article 26 Any unit or individual shall be enpost_titled to reveal illegal pricing acts. Commodity price surveillance organs shall maintain the
confidentiality of a party which reveals an illegal pricing act and shall, in accordance with regulations, issue an award to this
party or to a party which contributes to the investigation of an illegal pricing act.

An award shall also be issued, in accordance with regulations, to any party which makes an outstanding contribution in the area of
organizing public participation in price surveillance work.

Article 27 A party which attacks or carries out revenge on a party which has revealed an illegal pricing act shall be pursued for any legal
liability in accordance with the law.

Article 28 A commodity price surveillance officer shall perform his duties in accordance with the law. Disciplinary action shall be taken, in
accordance with relevant State regulations, against an officer who abuses office powers, commits bribery and corruption, gives special
favours to relatives and friends or neglects his duty and, in a serious case which constitutes a crime, criminal liability shall
be pursued by the judicial organs in accordance with the law.

Article 29 The following acts shall be considered to be acts of illegal pricing:

(i) failing to implement State stipulated prices when purchasing or selling commodities or charging a service fee;

(ii) violating price guidelines for State guided prices when determining or adjusting commodity prices or service fee rates;

(iii) forcing grades or prices up or down;

(iv) violating regulations by selling production materials which are within the plan at a higher price which applies only to items
outside the plan;

(v) selling at a negotiable price rationed commodities which are supplied to urban and township residents;

(vi) violating regulations by selling commodities at an excessive price made up through various distributors;

(vii) imposing indiscriminate charges for unauthorized items;

(viii) increasing commodity prices and service fee rates indirectly by means of substituting quality commodities with substandard
commodities, giving short measures, lowering quality standards and other unacceptable means;

(ix) creating monopoly pricing by reaching an agreement between enterprises or industries;

(x) failing to abide by the application system which governs price increases;

(xi) failing to use price labels in accordance with the regulations;

(xii) disclosing State price secrets;

(xiii) performing any other act which violates price laws, regulations or policies.

Article 30 Where any of the acts stated in the previous Article occur, the price surveillance organ shall, depending on the circumstances, impose
the following penalties:

(i) issue a notice of criticism;

(ii) order the violator to return the illicit gains to the buyer or user;

(iii) confiscate any illicit gains that cannot be returned;

(iv) issue a fine;

(v) request the administration of industry and commerce to suspend the business license of the offender;

(vi) issue a fine to the person held directly responsible and the person in charge if the offender is an enterprise or a public institution,
and recommend to the relevant department that certain administrative action is taken.

These penalties may be imposed simultaneously.

Article 31 If an offender refuses to return the illicit gains or pay the fine, a commodity price surveillance organ may, in accordance with
the relevant regulations, notify the bank of the offending party to transfer the amount due from the account. If the offender does
not have a bank account or does not have the funds, the commodity price surveillance organ shall be enpost_titled to sell commodities
of the offender to pay the amount due.

The illicit gains of a penalized unit or individual which are returned or confiscated shall be deducted from the annual sales income
or operating revenue for the year in which the case is settled. An enterprise or public institution shall pay its fines from its
own funds, all-in budget expenses or funds that are not included in the budget.

Article 32 A penalized unit or individual which does not agree with the penalty decision may, within 15 days of receiving notice of the penalty,
apply to a higher level commodity price surveillance organ for reconsideration. The higher level commodity price surveillance organ
shall issue a decision on the review within 30 days of receiving the review application. The original penalty decision shall be implemented
as usual during the period of reconsideration. If the penalized party disagrees with the review decision, it may lodge an appeal
with the People’s Court within 15 days of receiving notice of the decision.

Article 33 If a mistake is found to have occurred, the State commodity price department shall have the power over the various level commodity
price surveillance organs to reverse a decision already in force, or to issue an order for a review and a higher level commodity
price surveillance organ shall have the same right over a lower level commodity price surveillance organ.

Article 34 In case of refusal to comply with or the hindering of a commodity price surveillance officer performing his lawful duty, a penalty
shall be imposed by the public security organ, in accordance with the provisions of the Regulations of the People’s Republic of China
on Public Security Control and, in serious cases which constitute a crime, criminal liability shall be pursued by the judicial organs
in accordance with the law.

Article 35 If the commodity price departments, the relevant departments of people’s governments at the various levels or their employees exceed
the extent of their authority and the procedures on price control when determining or adjusting commodity prices or service fee rates,
the matter shall be corrected by a higher level commodity price department or a commodity price department at an equivalent level
and the liability of the party concerned shall be pursued in accordance with the administrative jurisdiction governing cadres.

If State price secrets are disclosed, liability shall be pursued in accordance with the law.

CHAPTER VII SUPPLEMENTARY PRINCIPLES

Article 36 The commodity price departments shall, in accordance with State price guidelines and policies, implement control and supervision
of administrative and public service charges and shall consult with the relevant departments to determine the standards for charges.

Article 37 Price control for foreign investment enterprises established within Chinese territory shall be carried out in accordance with the
relevant State regulations.

Article 38 The State Administration of Commodity Prices shall be responsible for the interpretation of these Regulations and shall formulate
detailed implementing rules.

Article 39 These Regulations shall take effect from the date of promulgation and the Provisional Regulations on Commodity Price Control, issued
7 July 1982 by the State Council, shall be nullified simultaneously.

Source:MOFTEC

FRONTIER HEALTH AND QUARANTINE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

RULES FOR THE ADMINISTRATION OF EMPLOYMENT OF FOREIGNERS IN CHINA

Rules for the Administration of Employment of Foreigners in China

(Promulgated jointly by the Ministry of Labour, Ministry of Public Security, Ministry of Foreign Affairs and the Ministry of Foreign
Trade and Economic Cooperation of the People’s Republic of China on 22 January, 1996)

Chapter I General Provisions

Article 1 These Rules are formulated in accordance with the provisions of the relevant laws and decrees for the purpose of strengthening the
administration of employment of foreigners in China.

Article 2 The term “foreigners” in these Rules refers to the persons, who under the Nationality Law of the People’s Republic of China, do not
have Chinese nationality.

The term “employment of foreigners in China” in these Rules refers to acts of foreigners without permanent residence status to engage
in remunerative work within Chinese territory in accordance with it laws.

Article 3 These Rules shall apply to employed foreigners within Chinese territory and their employers.

These Rules shall not apply to foreigner who enjoy diplomatic privileges and immunities employed by foreign embassies or consulates,
or the offices of the United Nations and other international organizations in China.

Article 4 The labour administrative authorities of the people’s government of the provinces, autonomous regions and municipalities directly
under the Central Government and those at the prefecture and city level with their authorization are responsible for the administration
of employment of foreigners in China.

Chapter II Employment License

Article 5 The employer shall apply for the employment permission if it intends to employ foreigners and may do so after obtaining approval
and the People’s Republic of China Employment License for Foreigners (hereinafter referred to as the “Employment License”)

Article 6 The post to be filled by the foreigner recruited by the employer shall be the post of special need, a post that cannot be filled
by any domestic candidates for the time being but violates no government regulations.

No employer shall employ foreigners to engage in commercialized entertaining performance, except for the persons qualified under Article
9 (3) of these Rules.

Article 7 Any foreigner seeking employment in China shall meet the following conditions:

(1) 18 years of age or older and in good health;

(2) with professional skills and job experience required for the work of intended employment;

(3) with no criminal record;

(4) a clearly-defined employer;

(5) with valid passport or other international travel document in lieu of the passport (hereinafter referred to as the “Travel Document”)

Article 8 Foreigner seeking employment in China shall hold the Employment Visas for their entry (In case of agreement for mutual exemption
of visas, the agreement shall prevail.), and may work within Chinese territory only after they obtain the Employment Permit for Foreigner
(hereinafter referred to as the “Employment Permit”) and the foreigner residence certificate.

Foreigners who have not been issued residence certificate (i.e. holders of F, L, C or G type visas), and those who are under study
or interim programs in China and the families of holders of Employment Visas shall not work in China. In special cases, employment
may be allowed when the foreigner changes his status at the public security organs with the Employment License secured by his employer
in accordance with the clearance procedures, under these Rules foreigners changes his status at the public security organs with the
Employment License and receives his Employment Permit and residence certificate.

The employment in China of the spouses of the personnel of foreign embassies, consulates, representative offices of the United Nations
System and other international organization in China shall follow the Provisions of Ministry of Foreign Affairs of the People’s Republic
of China Concerning the Employment of the Spouses of the Personnel of Foreign Embassies, Consulates and the Representative Offices
of the United Nations System in China and be handled in accordance with the clearance procedures provided for in the second paragraph
of this article.

The Employment License and the Employment Permit shall be designed and prepared exclusively by the Ministry of Labour.

Article 9 Foreigners may be exempted from the Employment License and Employment Permit when they meet any of the following conditions:

(1) foreign professional technical and managerial personnel employed directly by the Chinese government or those with senior technical
post_titles or credentials of special skills recognized by their home or international technical authorities or professional associations
to be employed by Chinese government organs and institutions and foreigners holding Foreign Expert Certificate issued by China’s
Bureau of Foreign Expert Affairs;

(2) foreign workers with special skills who work in offshore petroleum operations without the need to go ashore for employment and
hold “Work Permit for Foreign Personnel Engaged in the Offshore Petroleum Operations in the People’s Republic of China”;

(3) foreigner who conduct commercialized entertaining performance with the approval of the Ministry of Culture and hold “Permit for
Temporary Commercialized Performance”.

Article 10 Foreigners may be exempted from the Employment License and may apply directly for the Employment Permit by presenting their Employment
Visas and relevant papers after their entry when they meet any of the following conditions:

(1) foreigners employed in China under agreements or accords entered into by the Chinese government with foreign governments or international
organizations for the implementation of Sino-foreign projects of cooperation and exchange;

(2) chief representatives and representative of the permanent offices of foreign enterprises in China.

Chapter III Application and Approval

Article 11 The employer when intending to employ a foreigner, stall fill out the Application Form for the Employment for Foreigners (hereinafter
referred to as the “Application Form”) and submit it to its competent trade authorities at the same level as the labour administrative
authorities together with the following documentation:

(1) the curriculum vitae of the foreigner to be employed;

(2) the letter of intention for employment;

(3) the report of reasons for employment;

(4) the credentials of the foreigner required for the performance of the job;

(5) the health certificate of the foreigner to be employed;

(6) other documents required by regulations.

The competent trade authorities shall examine and approve the application in accordance with Articles 6 and 7 of these Rules and relevant
laws and decrees.

Article 12 After the approval by the competent trade authorities, the employer shall take the Application Form to the labour administrative
authorities of the province, autonomous region or municipality directly under the Central Government or the labour administrative
authorities at the prefecture and city level where the said employer is located for examination and clearance. The labour administration
authorities described above shall designate a special body (hereinafter referred to as the “Certificate Office”) to take up the responsibility
of issuing the Employment License. The Certificate Office should take into consideration of the opinions of the competent trade authorities
and the demand and supply of labour market, and issue the Employment License to the employer after examination and clearance.

Article 13 Employers at the central level or those without the competent trade authorities may submit their application directly to the Certificate
Office of the labour administrative authorities for the Employment Permit.

The examination and approval by the competent trade authorities is not required for foreign-funded enterprises to employ foreigners,
and such enterprise may submit their applications directly to the Certificate Office of the labour administrative authorities for
the Employment License, bringing with them the contract, articles of association, certificate of approval, business license and the
documentation referred to in Article 11 of these Rules.

Article 14 Employers with permission to employ foreigners shall not send the Employment License nor the letter of visa notification directly
to the foreigners to be employed, and they must be sent by the authorized unit.

Article 15 Foreigner with permission to work in China should apply for Employment Visas at the Chinese embassies, consulates and visa offices,
bringing with them the Employment License issued by the Ministry of Labor, the letter or telex of visa notification sent by the authorized
unit and the valid passport or Travel Document.

Personnel referred to in Article 9 (1) of these Rules should apply for the Employment Visas by presenting their letter or telex of
visa notification by authorized unit; personnel referred to in Article 9 (2) should apply for the Employment Visas by presenting
their letter or telex of visa notification issued by the China National Offshore Oil Corporation; personnel referred to in Article
9 (3) should apply for the Employment Visas by presenting their letter or telex of visa notification issued by the foreign affairs
office under the people’s government of provinces, autonomous regions or municipalities directly under the Central Government and
the relevant documents of approval of the Ministry of Culture (addressed to the Chinese embassies, consulates or visa offices).

Personnel referred to in Article 10 (1) of these Rules should apply for the Employment Visas by presenting their letter or telex of
visa notification by authorized unit and the documentation on projects of cooperation and exchange; personnel refereed to in Article
10 (2) should apply for the Employment Visas by presenting their letter or telex of visa notification by the authorized unit and
the registration certification issued by the administrative authorities of industry and commerce.

Article 16 The employer should,. within fifteen days after the entry of the employed foreigner, take to the original Certificate Office the
Employment License, the labour contract with the said foreigner and his passport or Travel Document to receive his Employment Permit
while filling out the Foreigner Employment Registration Form.

The Employment Permit shall be effective only within the area specified by the Certificate Office.

Article 17 Foreigners who received their Employment Permit should, within thirty days after their entry, apply for the residence certificate
with the public security organs bringing with them their Employment Permit. The term of validity of the residence certificate may
be determined in accordance with the term of validity of the Employment Permit.

Chapter IV Labour administration

Article 18 The employer and its foreign employee should, in accordance with law, conclude a labour contract, the term of which shall not exceed
five years. Such contract may be renewed upon expiration after the completion of clearance process in accordance with Article 19
of these Rules.

Article 19 The Employment Permit of the employed foreigner shall cease to be effective upon the expiration of the term of the labour contract
between the foreigner and his employer. If renewal is required, the employer should , within thirty days priors to the expiration
of the contract, submit an application to the labour administrative authorities for the extension of term of employment, and after
approval is obtained, proceed to go through formalities for the extension of the Employment Permit.

Article 20 The foreign employee should, within ten days after obtaining the approval for extension of his term of employment in China or the
change of his employment location or his employer, go through formalities for the extension or change of his residence certificate
at the local public security organs.

Article 21 After the termination of the labour contract between the foreign employee and his employer, the employer should promptly report it
to the labour and public security authorities, return the Employment Permit and the residence certificate of the said foreigner,
and go through formalities for his exit from China.

Article 22 The wage paid to the foreign employee by the employer shall not be lower than the minimum wage in the locality.

Article 23 The working hours, rest and vacation, work safety and hygiene as well as the social security of the foreign employees in China shall
follow the relevant provisions of the state.

Article 24 The employer of the foreign employee in China shall be the same as specified in his Employment License.

When the foreigner switches employers within the area designated by the Certificate Office but stays in a job of the same nature,
the change must be approved by the original Certificate Office and recorded in his Employment Permit.

If the foreigner is to be employed outside the area designated by the Certificate Office or switch employer within original designated
area while taking up jobs of a different nature, he must go through formalities for a new Employment License.

Article 25 For foreigner whose residence status is revoked by public security organs due to his violation of Chinese law, his labour contract
should be terminated by his employer and his Employment Permit be withdrawn by the labour administrative authorities.

Article 26 Should the labour disputes arise between the employer and its foreign employee, they should be handle in accordance with the Labour
Law of the People’s Republic of China and the Regulations of the People’s Republic of China on Settlement of Labour Disputes in Enterprises.

Article 27 The labour administrative authorities shall conduct an annual inspection of the Employment Permit. Within thirty days prior to the
end of every year of employment of the foreigner, the employer should go through formalities of the annual inspection at the Certificate
Office of the labour administrative authorities. The Employment Permit shall automatically cease to be effective when the deadline
is passed.

In case of loss or damage of the Employment Permit during the term of his employment in China, the foreigner should promptly report
it to the original Certificate Office and go through formalities for the issuance of the Employment Permit.

Chapter V Penalty Provisions

Article 28 Violation of theses Rules, i.e. foreigners who work without the Employment Permit or employers which hire foreigner without the Employment
License, shall be handled by the public security organs in accordance with Article 44 of the Rules Governing the Implementation of
the Law of the People’s Republic of China on the Entry and Exit of Aliens.

Article 29 For Foreigner who refuse to have their Employment Permit inspected by the labour administrative authorities, change their employers
and professions at will or extend their term of employment without permission, the labour administrative authorities shall withdraw
their Employment Permit and recommend that their residence status be canceled by the public security organs. In case of deportation,
the costs and expenses shall be borne by the said foreigners or their employers.

Article 30 For foreigners and employers who forge, alter, falsely use, transfer, buy and sell the Employment Permit and the Employment License,
the labour administrative authorities shall take over the Employment Permit and the Employment License in question, confiscate the
illegal proceeds and impose a fine between ten thousand and one hundred thousand RMB yuan. In serious cases which constitute a crime,
their criminal responsibility of the perpetrators shall be looked into by the judicial authorities.

Article 31 In case of abuse of power, illegal collection of fees, and fraudulent practices on the part of official personnel of the Certificate
Office or other departments, they shall be investigated in accordance with the law for their criminal responsibility if crimes are
committed, or they shall be subject to administrative disciplinary measures if the cases do not constitute a crime.

Chapter VI Supplementary Provisions

Article 32 The employment in the mainland of the residents of Taiwan, Hong Kong and Macao region of China shall follow the Rules for the Administration
of the Employment in the Mainland of the Residents of Taiwan, Hong Kong and Macao.

Article 33 These Rules do not apply to the employment of foreigners in China’s Taiwan, Hong Kong and Macao region.

Article 34 Individual economic organizations and private citizens are prohibited from employing foreigners.

Article 35 The labour administrative authorities of the provinces, autonomous regions and municipalities directly under the Central Government
may formulate their own rules for implementation of these Rules in conjunction with the public security and relevant authorities
in the locality, and report it to the Ministry of Labour, Ministry of Public Security, Ministry of Foreign Affairs and the Ministry
of Foreign Trade and Economic Cooperation for putting on record.

Article 36 The Ministry of Labors shall be responsible for the interpretation of these Rules.

Article 37 These Rules shall enter into force as of 1 May 1996. The Provisions Concerning the Employment in China of the Foreigners Who Have
Not Yet Obtained Residence Certificate and Foreigners Who Study in China jointly promulgated by the former Ministry of Labour and
Personnel and the Ministry of Public Security on 5 October 1987 shall be annulled simultaneously.

(English Translation is for reference only. )

CIRCULAR OF THE STATE COUNCIL CONCERNING THE REVISION OF THE THIRD PARAGRAPH OF ARTICLE 86 IN REGULATIONS FOR IMPLEMENTATION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

Category	FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-12-21	Effective Date	1987-12-21

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

REGULATIONS FOR THE IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF
Chapter I  General Provisions
Chapter II  Establishment and Registration
Chapter III  Form of Organization and Registered Capital
Chapter IV  Ways of Contributing Investment
Chapter V  Board of Directors and Management Structure
Chapter VI  Introduction of Technology
Chapter VII  Right to the Use of Site and Fees
Chapter VIII  Planning, Purchasing and Selling
Chapter IX  Taxes
Chapter X  Foreign Exchange Control
Chapter XI  Financial Affairs and Accounting
Chapter XII  Staff and Workers
Chapter XIII  Trade Union
Chapter XIV  Duration, Dissolution and Liquidation
Chapter XV  Settlement of Disputes
Chapter XVI  Supplementary Provisions
Note: New provisions have been added to this Article. Therefore, the

(December 21, 1987)

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 by the State Council on September 20, 1983, provides:
“Losses or gains in remittances resulting from differences in exchange rates
shall be recorded as current gains or losses for the year in which they occur.
No adjustments shall be made to a balance in a foreign currency account as the
result of a recorded fluctuation in the exchange rate for such a currency.”
This paragraph has been revised and now it reads: “The differences, converted
into the standard accounting currency and resulting from the fluctuations in
foreign exchange rates, shall be recorded as current gains or losses in
remittances for the year in which they occur. The surplus appearing in foreign
currency accounts as the result of a recorded fluctuation in the exchange rates
shall be handled, while settling accounts at the end of the year, by
accountants in accordance with the provisions of pertinent Chinese laws and
financial and accounting system.”

The said Circular shall go into effect as of the date of promulgation.?
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, amended according to the Decision Concerning
the Revision of Article 100 in 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 January 15, 1986, and the 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, issued by the State Council on
December 21, 1987)
Chapter I General Provisions

Article 1 These Regulations are formulated with a view to facilitating the
smooth implementation of the Law of the People’s Republic of China on
Chinese-Foreign Equity Joint Ventures (hereinafter referred to as the Law on
Chinese-Foreign Equity Joint Ventures).

Article 2 Chinese-foreign equity joint ventures (hereinafter referred to
as joint ventures) established within China’s territory in accordance with the
Law on Chinese-foreign Equity Joint Ventures are legal persons in China and are
subject to the jurisdiction of Chinese laws and enjoy protection thereof.

Article 3 Joint ventures established within China’s territory shall be
able to promote the development of China’s economy and the raising of
scientific and technological levels for the benefit of socialist modernization.
Joint ventures permitted to be established are mainly in the following
industries:

(1) energy development, the building material, chemical and metallurgical
industries;

(2) machine manufacturing, instrument and meter industries and offshore oil
exploitation equipment manufacturing;

(3) electronics and computer industries, and communication equipment
manufacturing;

(4) light, textile, foodstuffs, medicine, medical apparatus and packaging
industries;

(5) agriculture, animal husbandry and aquiculture;

(6) tourism and service trades.

Article 4 Joint ventures to be applied for their establishment shall lay
stress on economic results and shall comply with one or several of the
following requirements:

(1) they shall adopt advanced technical equipment and scientific managerial
methods which help increase the variety, improve the quality and raise the
output of products and save energy and materials;

(2) they shall prove to be conducive to technical renovation of enterprises
and be able to bring about quicker returns and bigger profits with less
investment;

(3) they shall help expand exports and thereby increase foreign currency
receipts;

(4) they shall help train technical and managerial personnel.

Article 5 Application for establishing joint ventures shall not be
approved if they involve any of the following circumstances:

(1) detriment to China’s sovereignty;

(2) violation of Chinese Law;

(3) nonconformity with the requirements of the development of China’s
national economy;

(4) environmental pollution;

(5) obvious inequity in the agreements, contracts and articles of
association signed, impairing the rights and interests of one of the parties.

Article 6 Unless otherwise stipulated, the government department in charge
of the Chinese joint venturer in a joint venture shall be the department in
charge of the joint venture (hereinafter referred to as the department in
charge). If a joint venture has two or more Chinese joint venturers which are
under different departments or from different regions, the departments and
regions concerned shall, through consultation, designate a department in
charge.

Departments in charge are responsible for providing guidance and assistance
and exercising supervision over the joint ventures.

Article 7 A joint venture has the right to independently conduct business
operations and management within the scope as prescribed by Chinese laws and
regulations, and by the agreement, contract and articles of association of the
joint venture. The departments concerned shall provide support and assistance.
Chapter II Establishment and Registration

Article 8 The establishment of a joint venture in China is subject to
examination and approval by the Ministry of Foreign Economic Relations and
Trade of the People’s Republic of China (hereinafter referred to as the
MOFERT). Upon approval, an Approval Certificate shall be issued by the MOFERT.

The MOFERT may entrust the people’s governments in the related provinces,
autonomous regions, and municipalities directly under the Central Government or
relevant ministries or bureaus under the State Council (hereinafter referred
to as the entrusted office) with the power to examine and approve the
establishment of joint ventures that comply with the following conditions:

(1) the total amount of investment is within the limit set by the State
Council and the source of capital of the Chinese venturers has been
ascertained;

(2) no additional allocation of raw materials by the State is required and
the national balance as to fuel, power, transportation and foreign trade
export quotas is not affected.

The entrusted office, after approving the establishment of a joint venture,
shall report the same to the MOFERT for the record. An Approval Certificate
shall be issued by the MOFERT.

(The MOFERT and the entrusted office will hereinafter be generally referred
to as the examining and approving authorities.)

Article 9 The following procedures shall be followed in the establishment
of a joint venture:

(1) it is the Chinese joint venturer in a joint venture that shall submit
to its department in charge a project proposal and a preliminary feasibility
study report of the joint venture to be established with foreign joint
venturer. The proposal and the preliminary feasibility study report. upon
examination and approval by the department in charge, shall be submitted to the
examining and approving authorities for final approval. The parties to the
venture shall then conduct work centering around the feasibility study, and
then proceed on this basis, to negotiate and sign joint venture agreement,
contract and articles of association;

(2) when applying for the establishment of a joint venture, the Chinese
joint venturer is responsible for the submission of the following documents to
the examining and approving authorities:

(a) a wtitten application for the establishment of the joint venture;

(b) the feasibility study report jointly prepared by the parties to the
venture;

(c) joint venture agreement, contract and articles of association signed by
representatives authorized by the parties to the venture;

(d) list of candidates for chairman and vice-chairman of board of directors
and directors nominated by the parties to the venture;

(e) written opinions concerning the establishment of the said venture of
the department in charge and the people’s government of the province,
autonomous region or municipality directly under the Central Government where
the joint venture is located.

The aforesaid documents shall be written in Chinese. Documents (b), (c) and
(d) may be written simultaneously in a foreign language agreed upon by the
parties to the joint venture. Both versions are equally authentic.

Article 10 Upon receipt of the documents stipulated in Article 9 (2). the
examining and approving authorities shall, within 3 months, decide whether to
approve or disapprove them. Should anything inappropriate be found in any of
the aforementioned documents, the examining and approving authorities shall
demand an amendment within a limited time. Otherwise, no approval shall be
granted.

Article 11 The applicant shall, within one month as of the receipt of the
Approval Certificate, register with the administrative department for industry
and commerce of the province, autonomous region or municipality directly under
the Central Government in accordance with the provisions of the Measures of the
People’s Republic of China for the Administration of the Registration of
Chinese-Foreign Equity Joint Ventures (hereinafter referred to as registration
administration office). The date of the issuance of its business licence is the
date of the formal establishment of the joint venture.

Article 12 Any foreign investor who intends to establish a joint venture
in China but is unable to find a specific co-operator in China may submit a
preliminary plan for the joint venture project and entrust the China
International Trust and Investment Corporation (CITIC) or a trust and
investment corporation of a province, autonomous region or municipality
directly under the Central Government, or a relevant government department or
a non-governmental organization, to recommend Chinese co-operators.

Article 13 The “joint venture agreement” mentioned in this Chapter refers
to the document agreed upon by the parties to the joint venture on some major
points and principles governing the establishment of the joint venture.

“Joint venture contract” refers to the document agreed upon and concluded
by the parties to the joint venture on their mutual rights and obligations.

“Articles of association” refers to the document agreed upon by the parties
to the joint venture specifying the purpose, organizational principles and
method of management of the joint venture in compliance with the principles of
the joint venture contract.

Where the joint venture agreement comes into conflict with the contract,
the latter shall prevail.

The parties to the joint venture may agree to sign the contract and
articles of association only, without signing an agreement.

Article 14 A joint venture contract shall include the following main
items:

(1) the names, the countries of registration, the legal addresses of
parties to the joint venture, and the names, positions and nationalities of the
legal representatives thereof;

(2) name of the joint venture, its legal address, purpose and the scope and
scale of business;

(3) total amount of investment and registered capital of the joint venture,
amount, proportion and forms of investment to be contributed by each party to
the joint venture, the time limit for contributing investment, stipulations
concerning incomplete contributions, and assignments of investments;

(4) the proportion of profit to be shared and losses to be borne by each
party;

(5) the composition of the board of directors, the distribution of the
number of directors, and the responsibilities, powers and means of employment
of the general manager, deputy general manager and high-ranking managerial
personnel;

(6) the main production equipment and technology to be adopted and their
source of supply;

(7) the ways and means of purchasing raw materials and selling finished
products, and the ratio of products sold within Chinese territory to those sold
abroad;

(8) arrangements for receipts and expenditures in foreign currency;

(9) principles governing the handling of finance, accounting and auditing;

(10) stipulations concerning labour management, wages, welfare, and labour
insurance;

(11) the duration of the joint venture, its dissolution and the procedures
for liquidation;

(12) the liabilities for breach of contract;

(13) ways and procedures for settling disputes between the parties to the
joint venture;

(14) the language(s) used for the contract and the conditions for putting
the contract into force.

The annex to the contract of a joint venture shall be equally authentic as
the contract itself.

Article 15 Chinese laws shall apply to the conclusion, validity,
interpretation and execution of a joint venture contract, as well as to the
settlement of disputes.

Article 16 The Articles of association of a joint venture shall include
the following main items:

(1) the name of the joint venture and its legal address;

(2) the purpose, business scope and duration of the joint venture;

(3) the names, countries of registration and legal addresses of parties to
the joint venture, and the names, positions and nationalities of the legal
representatives thereof;

(4) the total amount of investment, registered capital of the joint
venture, each party’s investment proportion, stipulations concerning the
assignment of investment, the proportions of profit distribution and losses to
be borne by parties to the joint venture;

(5) the composition of the board of directors, its responsibilities, powers
and rules of procedure, the term of office of the directors, and the
responsibilities of its chairman and vice-chairman;

(6) the setting up of management organizations, rules for handling routine
affairs, the responsibilities of the general manager, deputy general manager
and other high-ranking managerial personnel, and the method of their
appointment and dismissal;

(7) principles governing financial, accounting and auditing systems;

(8) dissolution and liquidation;

(9) procedures for amendment of the articles of association.

Article 17 The agreement, contract and articles of association shall come
into force upon approval by the examining and approving authorities. The same
applies to amendments thereof.

Article 18 The examining and approval authorities and the registration
administration office are responsible for supervising and checking on the
execution of the joint venture contracts and articles of association.
Chapter III Form of Organization and Registered Capital

Article 19 A joint venture is a limited liability company.

Each party to the joint venture is liable to the joint venture within the
limit of the capital subscribed by it.

Article 20 The total amount of investment (including loans) of a joint
venture refers to the sum of capital construction funds and the circulating
funds needed for the joint venture’s production scale as stipulated in the
contract and the articles of association of the joint venture.

Article 21 The registered capital of a joint venture refers to the total
amount of investment registered at the registration administration office for
the establishment of the joint venture. It shall be the total amount of
investment subscribed by parties to the joint venture.

The registered capital shall generally be represented in Renminbi, or may
be in a foreign currency agreed upon by the parties to the joint venture.

Article 22 A joint venture shall not reduce its registered capital during
the term of the joint venture.

Article 23 If one party to the joint venture intends to assign all or part
of its investment subscribed to a third party, consent shall be obtained from
the other party to the joint venture, and approval from the examining and
approving authorities is required.

When one party assigns all or part of its investment to a third party, the
other party has pre-emptive right.

When one party assigns its investment subscribed to a third party, the
terms of assignment shall not be more favourable than those to the other party
to the joint venture.

No assignment shall be effective should there be any violation of the above
stipulations.

Article 24 Any increase, assignment or other disposal of the registered
capital of a joint venture shall be approved at a meeting of the board of
directors and submitted to the original examining and approving authorities for
approval. Registration procedures for changes shall be handled at the original
registration administration office.
Chapter IV Ways of Contributing Investment

Article 25 Each joint venturer may invest in cash or may contribute
buildings, factory premises, equipment or other materials, industrial property,
proprietary technology, or right to the use of a site, appraised at
appropriate prices, as investment. If the investment is in the form of
buildings, premises, equipment or other materials, industrial property or
proprietary technology, the prices shall be determined through consultation by
the parties to the joint venture on the basis of fairness and reasonableness,
or they shall be evaluated by a third party accepted and invited by the parties
to the joint venture.

Article 26 The foreign currency contributed by the foreign joint venturer
shall be converted into Renminbi according to the exchange rate quoted by the
State Administration of Foreign Exchange Control of the People’s Republic of
China (hereinafter referred to as the State Administration of Foreign Exchange
Control) on the day of its submission or be cross exchanged into the foreign
currency as agreed upon.

Should the cash Renminbi contributed by the Chinese joint venturer be
converted into foreign currency, it shall be converted according to the
exchange rate quoted by the State Administration of Foreign Exchange Control on
the day of its submission.

Article 27 The machinery, equipment and other materials contributed as
investment by the foreign joint venturer shall meet the following conditions:

(1) they are indispensable to the production of the joint venture;

(2) China is unable to manufacture them, or can manufacture them only at
too high a price, or their technical performance and time of availability
cannot meet the requirement;

(3) the price fixed shall not be higher than the current international
market price for similar equipment or materials.

Article 28 The industrial property or proprietary technology contributed
by the foreign joint venturer as investment shall meet one of the following
conditions:

(1) capable of manufacturing new products urgently needed in China or
products suitable for export;

(2) capable of markedly improving the performance, quality of existing
products and raising productivity;

(3) capable of notably saving raw materials, fuel or power.

Article 29 Foreign joint ventures who contribute industrial property or
proprietary technology as investment shall present relevant documentation on
the industrial property or proprietary technology, including protocopies of the
patent certificates or trademark registration certificates, statements of
validity, their technical characteristics, practical value, the basis for
calculating the price and the price agreement signed with the Chinese joint
ventures. All these shall serve as an annex to the contract.

Article 30 The machinery, equipment or other materials, industrial
property or proprietary technology contributed by foreign joint venturer as
investment shall be examined and approved by the department in charge of the
Chinese joint venturer and then submitted to the examining and approving
authorities for further approval.

Article 31 The parties to the joint venture shall pay in all the
investment subscribed according to the time limit stipulated in the contract.
Delay in payment or partial delay in payment shall be subject to a payment of
investment on arrears or a compensation for the loss as defined in the contract.

Article 32 After the investment is paid by the parties to the joint
venture, a Chinese registered accountant shall verify it and provide a
certificate of verification, in accordance with which the joint venture shall
issue to them investment certificates, which include the following items: name
of the joint venture; date, month and year of the establishment of the joint
venture; names of the joint venturers and the investment contributed; date,
month and year of the contribution of the investment; and date, month and year
of the issuance of investment certificates.
Chapter V Board of Directors and Management Structure

Article 33 The highest authority of the joint venture shall be its board
of directors, which shall decide all major issues concerning the joint venture.

Article 34 (Note 1) The board of directors shall consist of no less than
three members. The distribution of the number of directors shall be determined
through consultation by the parties to the joint venture with reference to the
proportions of investment contributed.

The directors shall be appointed by the parties to the joint venture. The
chairman of the board shall be appointed by the Chinese joint venturer and its
vice-chairman by the foreign joint venturer.

The term of office for the directors is four years. Their term of office
may be renewed with the re-appointment by the parties to the joint venture.

Article 35 The board of directors shall convene at least one meeting every
year. The meeting shall be called and presided over by the chairman of the
board. Should the chairman be unable to call the meeting, he shall authorize
the vice-chairman or a director to call and preside over the meeting. The
chairman may convene an interim meeting on the suggestion of more than
one-third of the directors.

A board meeting requires a quorum of over two-thirds of the directors.
Should a director be unable to attend, he may make a proxy authorizing someone
else to represent him and vote in his stead.

A board meeting shall usually be held at the location of the joint
venture’s legal address.

Article 36 Decisions on the following items shall be made only after being
unanimously agreed upon by the directors present at the board meeting:

(1) amendment to the articles of association of the joint venture;

(2) suspension or dissolution of the joint venture;

(3) increase in or assignment of the registered capital of the joint
venture;

(4) merger of the joint venture with other economic organization.

Decision on other matters may be made according to the rules of procedure
stipulated in the articles of association.

Article 37 The chairman of the board is the legal representative of the
joint venture. Should the chairman be unable to perform his duties, he shall
authorize the vice-chairman of the board or a director to represent the joint
venture.

Article 38 A joint venture shall establish a management office which shall
be responsible for the day-to-day management and operations. The management
office shall have a general manager and several deputy general managers who
assist the general manager in his work.

Article 39 The general manager shall carry out the decisions of the board
meeting and organize and conduct the day-to-day management and operations of
the joint venture. Within the scope of authorization by the board, the general
manager shall, externally, represent the joint venture, and internally, have
the right to appoint and dismiss his subordinates and exercise other powers as
authorized by the board.

Article 40 The general manager and deputy general managers shall be
engaged by the board of directors of the joint venture. These positions may be
held either by Chinese or foreign citizens.

At the instance of the board of directors, the chairman, vice-chairman or
other directors of the board may concurrently be the general manager, deputy
general managers or other high-ranking managerial personnel of the joint
venture.

In handling major issues, the general manager shall consult with the deputy
general managers.

The general manager or deputy general managers shall not hold posts
concurrently as general manager or deputy general managers of other economic
organizations. They shall not get involved in other economic organizations’
commercial competition against their own joint venture.

Article 41 In case of graft or serious dereliction of duty on the part of
the general manager, deputy general managers or other high-ranking managerial
personnel, they may be dismissed at any time by a decision of the board of
directors.

Article 42 Establishment of branch offices (including sales offices)
outside China or

MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CONTROL OF THE IMPORT AND EXPORT OF COMMODITIES INVOLVED IN THE PROCESSING OF MECHANICAL AND ELECTRICAL PRODUCTS

INTERIM PROVISIONS FOR STATISTICS AND SUPERVISION OF EXTERNAL DEBTS

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-08-27	Effective Date	1987-08-27

Interim Provisions for Statistics and Supervision of External Debts

(Approved by the State Council on June 17, 1987, promulgated by the

State Administration of Foreign Exchange Control on August 27, 1987)

Article 1 These Provisions are formulated to enable the precise and
complete collection of up-to-date information on the country’s external debt
so as to control the size of external borrowing effectively, raise the
efficacy of using foreign funds and promote national economic development.

Article 2 The State institutes the policy of managing external debts by
registration.

The State Administration of Foreign Exchange Control is in charge of
establishing and perfecting the system of statistics on and supervision over
the external debts of the country and publishing figures of the external
debts.

Article 3 External debts mentioned in these Provisions refer to all the
debts which are guaranteed by repayment contracts in foreign currency and are
borrowed from international financial institutions, foreign governments,
financial institutions, enterprises or other institutions located outside
the People’s Republic of China by enterprises, organizations, government
establishments, financial institutions or other institutions (hereinafter
referred to as borrowing units) in the People’s Republic of China. They
include the following:

(1) International financial institutions loans.

(2) Foreign government loans.

(3) Foreign bank and financial institutions loans.

(4) Buyer’s credits.

(5) Foreign enterprise loans.

(6) Securities issued in foreign currency.

(7) International financial leases.

(8) Deferred payments.

(9) Debts repaid directly in foreign cash in compensation trade.

(10) External debts in other forms.

Funds borrowed in foreign currency by borrowing units from banks with
foreign capital or Chinese and foreign joint banks which are registered in
China are regarded as external debts.

Funds borrowed in foreign currency from abroad by banks with foreign
capital or Chinese and foreign joint banks which are registered in China
are not regarded as external debts.

Article 4 The registration of external debts shall take two forms;
case-by-case registration and periodic registration.

The Registration Certificate for External Debts shall be prepared and
issued by the State Administration of Foreign Exchange Control.

Article 5 Chinese-foreign Equity joint ventures, Chinese-foreign
contractual joint ventures and foreign-capital enterprises are required,
while borrowing from abroad, to register at and obtain a case-by-case
Registration Certificate for External Debt from a local administrative department of foreign exchange control by submitting a duplicate
of the
loan contract to the department within 15 days after formally concluding the
contract.

With regard to international financial institution loans, foreign
government loans, external borrowing by the Bank of China or other authorized
banks and financial institutions, the borrowing units concerned are required
to register at and obtain a periodic Registration Certificate for External
Debt from a local administrative department of foreign exchange control.
Indirect lending shall not be included in the registration mentioned above
in this paragraph.

Apart from the borrowing units mentioned above in this Article, other
borrowing units are required to register at and obtain a case-by-case
Registration Certificate for External Debts from a local administrative
department of foreign exchange control by submitting an approval certificate
for external borrowing and a duplicate of the loan contract to the department
within 15 days after the formal conclusion of the contract.

Article 6 A borrowing unit is required, while transferring its external
loan from a foreign country, to open a special foreign exchange cash account
for external debt with the Bank of China or other banks authorized by the
State Administration of Foreign Exchange Control and (hereinafter referred
to as banks) against the Registration Certificate for External Debt.
Borrowing units with approval to keep their external loans abroad and others
whose loans do not have to be transferred into China are required to present
their Registration Certificate for External Debt while opening special
foreign exchange cash accounts for external debts to cover repayment and
servicing.

Banks shall not open special foreign exchange cash accounts for external
debts or special foreign exchange accounts for external debt repayment and
servicing for borrowing units that have not obtained Registration Certificates
for External Debt in accordance with the provisions, and the principals and
interests of these units are not allowed to be remitted abroad.

Article 7 When borrowing units making case-by-case registration repay
and service their external debts, banks shall, on the strength of the
Registration Certificate for External Debt and the approval certificate from
the relevant departments of foreign exchange control provided by the borrowing
units, conduct receipt and payment operations through the special foreign
exchange cash account for external debt or the special foreign exchange cash
account for external debt repayment and servicing. The borrowing units are
required to fill in, in accordance with the certificates of receipt and
payment issued by the banks, a Feedback Form on External Debt Changes with
items of receipt and payment and submit a duplicate of the Form to the
departments of foreign exchange control which issued the Registration
Certificate for External Debt.

The borrowing units making periodic registration are required to submit
monthly information concerning conclusion of contracts, withdrawal, usage
and repayment and servicing of external debts to the departments of foreign
exchange control which issued the Registration Certificates for External Debt.

Borrowing units with approval to keep their loans abroad are required
to submit periodically information covering changes in their deposits to the
departments of foreign exchange control that gave the approval.

Article 8 Once borrowing units fully clear their external debts as
recorded in the Registration Certificate for External Debt, the banks
concerned shall cancel the special foreign exchange cash accounts for external
debt or the special foreign exchange cash accounts for external debt
repayment and servicing of such borrowing units. The units, in turn, are required to submit to the local departments of foreign exchange
control the
Registration Certificates for External Debt for cancellation within 15 days.

Article 9 The local departments of foreign exchange control may impose,
according to the circumstances, a fine not exceeding 3 percent of the external
debt involved on a unit that violates these Provisions in any of the
following ways:

(1) purposely not registering or delaying registration for external debt;

(2) refusing to submit, concealing, fraudulently submitting or, without
special reasons, repeatedly delaying to submit the Feedback Form on External
Debt Changes to the department of foreign exchange control concerned;

(3) forging or altering the Registration Certificate for External Debt;

(4) opening or keeping special foreign exchange accounts for external
debt or special foreign exchange cash accounts for external debt repayment
and servicing without approval.

Where the party concerned disagrees with the penalty decision, it may
appeal to the department of foreign exchange control at the higher level.

Article 10 The authority to interpret these Provisions resides in the
State Administration of Foreign Exchange Control.

Article 11 These Provisions shall enter into force as of the date of
promulgation.

For those borrowing units which have uncleared external debts at the time
of the promulgation of these Provisions, they are required to register at
local departments of foreign exchange control within 30 days of the
promulgation of these Provisions.

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE TRANSMISSION OF THE RECOMMENDATIONS SUBMITTED BY THE STATE ECONOMIC COMMISSION, THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THE STATE BUREAU OF IMPORT AND EXPORT COMMODITIES INSPECTION CONCERNING THE STRENGTHENING OF QUALITY CONTROL

Category	INSPECTION OF IMPORT AND EXPORT COMMODITIES	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-04-29	Effective Date	1987-04-29

Circular of the General Office of the State Council on the Transmission of the Recommendations Submitted by the State Economic Commission, the Ministry of Foreign Economic Relations and Trade, and the State Bureau of Import and Export Commodities Inspection Concerning the Strengthening of Quality Control

Circular
RECOMMENDATIONS SUBMITTED BY THE STATE ECONOMIC COMMISSION, THE MINISTRY

of Export Commodities

(April 29, 1987)

Circular

The State Council has accepted The Recommendations Concerning the
Strengthening of Quality Control of Export Commodities, submitted by the State
Economic Commission, the Ministry of Foreign Economic Relations and Trade, and
the State Bureau of Import and Export Commodities Inspection. The
Recommendations are hereby transmitted to you, and you are requested to
implement them conscientiously in light of the actual conditions in your
spheres of activities.

The strengthening of quality control of export commodities is the key to
increasing economic returns as well as foreign exchange earnings. In recent
years, the quality of some of our country’s export commodities has shown a
decline, which has not only caused economic losses and affected foreign
exchange earnings by exports, but also marred the reputation of our country.
All the localities and departments concerned shall give the amplest attention
to this state of affairs, take effective measures to remedy it quickly so as
to upgrade the quality of our export commodities.
RECOMMENDATIONS SUBMITTED BY THE STATE ECONOMIC COMMISSION, THE MINISTRY
OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THE STATE BUREAU OF IMPORT AND
EXPORT COMMODITIES INSPECTION CONCERNING THE STRENGTHENING OF QUALITY CONTROL
OF EXPORT COMMODITIES (Extracts)

In recent years, the quality of some of our country’s export commodities
has shown a decline, which has not only caused economic losses and had an
unfavourable impact on the foreign exchange earnings by exports, but also
marred the reputation of our country. In order to rapidly remedy this
situation and to strengthen quality control of our export commodities, we
hereby submit, on the basis of the investigations and studies of the aforesaid
situation and the opinions solicited from all localities and departments
concerned, the following recommendations:

I Checking up and Rectifying Factories to be Designated as Export
Commodities Manufacturers

All the localities and departments concerned must carry out an all-round
checking-up on, and rectification of, all the enterprises that are
manufacturing export commodities and then designate from among them the most
outstanding ones as manufacturers of commodities for export. Those enterprises
found to be lacking the conditions for guaranteeing the quality of their
products shall not be permitted to manufacture commodities for export.

The State Economic Commission, the Ministry of Foreign Economic Relations
and Trade, and the State Bureau of Import and Export Commodities Inspection
shall jointly be responsible for the checking-up and rectification in
conjunction with other competent organs concerned. The checking-up and
rectification shall be focused on those industries whose quality control over
export commodities is comparatively poor, whose number of factories designated
for producing and processing export commodities is too large, and whose
quality problems are numerous.

II Strengthening the Quality Control and Inspection Work in Enterprises
Producing Export Commodities

(1) In production enterprises, the factory director (the manager) shall
take overall responsibility for quality of export commodities.

(2) In factories specially engaged in the production of export commodities,
the production bases of export commodities, and the enterprises producing
import and export commodities, the post of chief quality controller may be set
up. The chief quality controller shall assist the factory director in taking
the overall responsibility for inspecting and controlling the quality of
products, for implementing the Regulations on the Responsibility for Quality
Control of Industrial Products, for organizing the formulation and
implementation of the rules for reward and penalty relating to the quality
of products, and for making the decision, on behalf of the factory director,
to stop the production and delivery out of the factory of sub-standard export
commodities.

(3) In enterprises producing important export commodities, the system of
having a resident quality supervisor stationed in the enterprise and sent by
the State commodities inspection department (referred to, for short, as “the
resident supervisor system”) shall be implemented on a trial basis. The
resident supervisor shall, in the name of the State, exercise supervision over
the quality and inspection of the production enterprise’s export commodities,
and have the right to inspect, to spot check, or to re-inspect the finished
products, or the raw and processed materials, or spare parts and components,
used in manufacturing export commodities. In case where the resident supervisor
discovers that the export commodities are not up to the standard, he/she has
the right to stop the delivery out of the factory of the export commodities,
and may ask the foreign trade corporations not to purchase the said export
commodities. The production enterprise shall provide the resident supervisor
with working conditions, the data of quality, and relevant technical
documents for carrying out quality, inspection; and it shall also inspect,
spot check, or re-inspect its products, as required by the resident
supervisors .The resident supervisors shall be personnel of the State
commodities inspection departments, and their salaries, bonuses and welfare
benefits shall all be borne by the sending department so that no direct
economic connections shall exist between the resident supervisors and the
production enterprise.

(4) All the production enterprises manufacturing export commodities shall
implement an all-round quaLity control, strengthen and perfect the quality
responsibility system, strengthen inspection work, and work out strict
technological processes and labour discipline. The factory director shall
appoint a person who has technical know-how, experience and strong sense of
responsibility, as head of the inspection department, and this appointment
shall be reported to the authorities in charge of the enterprise for the
record. No department or individual within the enterprise shall be permitted
to interfere with the work conducted by the inspection department, and its
independence in preforming its functions shall be guaranteed. It is imperative
to establish and perfect, as soon as possible, the quality guarantee
system in enterprises producing export commodities.

III Strengthening the Supervision and Inspection of the Quality of Export
Commodities

All export commodities must undergo the process of inspection. Commodities
that are not up to the standard (including those whose packaging is not up to
the standard) shall not be permitted to leave the factory; the foreign trade
corporations shall not be permitted to purchase such commodities; and the
commodities inspection department shall not issue export licence and grant
clearance.

The working contingent of the commodities inspection department shall be
reinforced gradually, and the means of inspection of export commodities be
perfected.

The commodities inspection department shall, in conjunction with the
competent authorities concerned, speed up the work for issuing quality licenses
for important export commodities. With respect to those commodities to which
the system of quality licence for export commodities applies, the competent
authorities for foreign economic relations and trade shall not issue for them
export licences before they have obtained quality licenses for export
commodities.

The competent authorities for foreign economic relations and trade shall
strengthen their supervision over and inspection of foreign trade corporations,
and urge them to strengthen the work of quality control, to improve
examination-and-acceptance system, and reinforce the working personnel for the
system, to strive to do a good job in selecting outstanding factories to
manufacture commodities for export, to purchase commodities from the factories
that produce quality produce and to adhere to the principle of “placing
quality first, and winning over the customers by offering them quality
products”. The competent authorities for foreign economic relations and trade
shall have the right to disqualify those units which do not have the
qualifications for doing foreign trade business, and ask the administrative
department for industry and commerce to revoke their business licences. The
exportation of commodities through irregular channels or by using crooked
means by violation of the State provisions shall be strictly prohibited.

IV Taking the Improvement of the Quality of Export Commodities as the
Focus of the Work of Technical Advancement

All the localities and departments shall, in accordance with the
requirements of the strategy of export and foreign trade, make adjustment in
the structure and the orientation of investment for technical advancement, and
link up the various measures adopted for technical transformation, the tackling
of difficult problems (in science and technology), the importation of
technology, testing and inspection, the expansion of production, and the
reduction in consumption of raw materials and energy, at the key production
enterprises, specialized factories, and production bases for the manufacture of export commodities by taking the improvement of
the quality of products and
the increase in foreign exchange earnings as the focal point. Strenuous efforts
shall be devoted to the improvement of the warehousing and storage conditions
for export commodities, so as to reduce or eliminate the contamination of or
damages to export commodities.

V Clearly Defining the Responsibility for the Quality of Export
Commodities

In order to guarantee the quality of export commodities, all units and
departments concerned must have both a clear-out definition of the job
responsibility and rules. If the poor quality of some export commodities has
resulted in economic losses or made a negative reflection on China’s
reputation, it is imperative to check up on the responsibilities to be borne
by the production and processing enterprises, the foreign trade corporations,
the warehousing and storage units, the department for commodities inspection,
or other departments concerned. Cases of quality problem caused by dereliction
or neglect of one’s duty shall be looked into, and the person in charge as
well as the leading personnel involved shall be held responsible and be dealt
with in all scriousness.

VI Further Improving the Packing of Export Commodities

The China National Packing Import and Export Company shall, in cooperation
with the China National Packing Corporation, conduct further studies on, and
work out programs and measures for the improvement of the packing of export
commodities. Each year, efforts must be made to improve the packing of certain
categories of export commodities. At present, it is imperative to improve the
packing of foodstuffs, beverages, tobacco leaves, canned foods, hardware,
machinery, ceramics, textiles, garments, cotton, and dangerous articles. The
two companies shall coordinate the supply-and-demand relationship between
packing factories and packing material suppliers, perfect the packing
standards, and strengthen the work of quality control, inspection and
supervision.

VII Strengthening the Standardization of Export Commodities, and
Improving the Conditions for Conducting Measurement at Ports

(1) The authorities of standardization of commodities inspection, and
of foreign economic relations and trade shall, in cooperation with various
competent organs, speed up the formulation and revision of the standards for
export commodities and inspection criteria.

(2) The competent authorities of transportation shall, in cooperation with
the authorities of commodities inspection and metrological authorities, submit
a plan to improve metrological conditions at ports and incorporate it into
the program for technological transformation of the competent authorities of
transportation and the interested localities so as to improve basically the
metrological conditions at ports within 3 years.

VIII Strengthening the Administration of Trademarks of Export Commodities
and Patented Products

With respect to the use of trademarks for export commodities of famous
brands, the authorities of foreign economic relations and trade and the
administrative departments for industry and commerce shall jointly conduct a
checking-up and rectification campaign to strengthen the administration and
protect export commodities of famous brands. Without the approval of the
competent authorities at a higher level or without the consent of the patentee,
no production enterprises and foreign trade corporations may produce patented
products for export and engage in export of such products.

Cases occurring either at home or abroad of infringements or illegal acts
such as counterfeiting the trademarks of our export commodities, imitating the
patented commodities we export or forging our export commodities inspection
certificates shall be resolutely investigated and dealt with, and the
offenders shall even be prosecuted in time so as to safeguard the lawful
rights and interests of the enterprises as well as of the State.

If no inappropriateness is found in the recommendations submitted above,
we request that they be approved and transmitted to all the localities and
departments for implementation.

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MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CONTROL OF THE IMPORT AND EXPORT OF COMMODITIES INVOLVED IN THE PROCESSING OF MECHANICAL AND ELECTRICAL PRODUCTS

INTERIM PROVISIONS FOR STATISTICS AND SUPERVISION OF EXTERNAL DEBTS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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Category	PRICE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-09-11	Effective Date	1987-09-11