DECISIONS ON PERSONNEL MANAGEMENT OF FOREIGN INVESTMENT ENTERPRISES

AUDIT REGULATIONS

Audit Regulations of the People’s Republic of China

(Promulgated 21 October 1988 by the State Council)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II AUDIT OFFICES AND AUDITORS

CHAPTER III PRINCIPAL TASKS OF AN AUDIT OFFICE

CHAPTER IV PRINCIPAL POWERS AND FUNCTIONS OF AN AUDIT OFFICE

CHAPTER V AUDIT WORK PROCEDURE

CHAPTER VI INTERNAL AUDITING

CHAPTER VII SOCIAL AUDITING

CHAPTER VIII LEGAL LIABILITY

CHAPTER IX SUPPLEMENTARY PRINCIPLES

CHAPTER I GENERAL PRINCIPLES

Article 1. These Regulations are formulated to improve the audit supervision of financial income and expenditure and
related economic activities, to enforce financial and economic law and discipline, to increase economic
performance, to strengthen overall control and administration and to ensure the smooth implementation of the socialist
modernisation programme.

Article 2. The State shall establish audit offices to implement an audit supervisory system.

An audit office shall undertake audit supervision of the various people’s government departments at an equivalent level
to itself, lower level people’s government authorities, State finance organs, State-owned enterprises and
institutional units and other State-funded units to ascertain the authenticity, legality and performance of their
financial income and expenditure.

Article 3. An audit office shall undertake audit supervision in accordance with the provisions of State laws, statutory
regulations and policies.

An audit office shall exercise independent supervisory rights in accordance with the law and no other administrative
organ, social group or individual shall be permitted to interfere.

The audit conclusions and decisions of an audit office must be implemented by the units under audit and the relevant
personnel. If an audit conclusion or decision involves another related unit, this unit shall assist in the implementation
process.

Article 4. An audit office shall operate under a dual leadership system. It shall be responsible to and shall submit work
reports to its equivalent level people’s government authority and superior level audit office. Priority shall be given
to audit work assigned by the leaders of its superior level audit office.

Article 5. An area under State audit jurisdiction where an audit office has yet to establish an agency may, in accordance with
requirements, establish an internal audit body or provide auditors to implement an internal audit system.

Article 6. Social audit organisations established in accordance with the law may accept commissions to develop account auditing
and to provide consultancy services.

CHAPTER II AUDIT OFFICES AND AUDITORS

Article 7. The State Council shall establish an Audit Administration. The Audit Administration shall be the State’s supreme
audit office and, under the leadership of the Premier of the State Council, shall organise the leadership of the
entire State’s audit work and shall be responsible for audit mattes which come within its audit scope.

Article 8. The various levels of people’s governments at county level and above shall establish audit offices. Under the
leadership of the provincial head, autonomous region chairman, mayor, prefecture head, county head or district head respectively,
and its superior level audit office, a local audit office at any of the various levels shall organise the leadership
of its own administrative district’s audit work and shall be responsible for all audit matters which come within
the audit scope of its own audit office level.

Article 9. An audit office may, in line with work requirements, establish an agency in a key district or department to
undertake audit supervision.

Article 10. The leaders of audit offices at the various levels shall be appointed or dismissed in accordance with the provisions governing
cadre administrative jurisdiction. The appointment or dismissal of persons in charge of local audit offices at the
various levels (including the leader and deputy leader) shall be subject to prior approval by their superior level audit
office.

Article 11. Auditors shall conduct their auditing work in accordance with the law and shall be dedicated to their work, adhere to
principles, be objective and impartial, honest when performing their official duty and maintain confidentiality.

Auditors shall exercise their functions and powers in accordance with the law and shall receive the protection of the
law. Retaliation by any person is not allowed.

CHAPTER III PRINCIPAL TASKS OF AN AUDIT OFFICE

Article 12. An audit office shall conduct audit supervision of the financial income and expenditure of the following units:

(1) the various people’s government departments at its equivalent level and lower level people’s government authorities;

(2) State financial institutions;

(3) State-owned enterprises, institutional units and capital construction units;

(4) other units which receive State fund allocations or allowances;

(5) Sino-foreign joint equity enterprises, Sino-foreign cooperative enterprises, domestic affiliated enterprises
and other enterprises with State assets;

(6) other units which the provisions of State laws and statutory regulations stipulate as requiring audit supervision.

Article 13. An audit office shall conduct audit supervision of the aforesaid units in the following areas:

(1) financial budget implementation and final financial accounts;

(2) credit plan implementation and the results;

(3) financial plan implementation and final accounts;

(4) financial income and expenditure relating to capital construction and transformation projects;

(5) administration of State assets;

(6) non-budgetary fund income and expenditure;

(7) financial income and expenditure relating to projects which are funded through foreign capital loans or which are the
recipients of international assistance;

(8) various economic activities and other areas of economic performance which are income and expenditure related;

(9) acts which seriously infringe upon State assets or which, through serious damage, waste, etc., adversely harm
the economic interests of the State;

(10) auditing matters relating to the contract liabilities of State-owned enterprises;

(11) other matters which require auditing in accordance with the provisions of State laws and statutory regulations.

Article 14. Audit scope shall be determined by audit offices at the various levels in accordance with the State’s financial system
and the jurisdictional framework pertaining to the financial affairs of the units under audit.

A superior level audit office may empower a matter which comes within its audit scope to a lower level audit
office and may directly undertake the auditing of a matter of major importance which comes within the audit scope of a lower
level audit office.

An audit office may commission an internal audit body or social audit organisation to audit matters which come
within the audit scope of the office.

CHAPTER IV PRINCIPAL POWERS AND FUNCTIONS OF AN AUDIT OFFICE

Article 15. During the audit process an audit office shall have the following supervisory and investigative powers:

(1) power to request a unit under audit to submit its financial budget, finance plans, final accounts, accounting
statements and other relevant information;

(2) power to inspect the relevant accounts and assets of a unit under audit, to consult relevant documents and information
and to attend any relevant meeting held by the unit under audit;

(3) power to investigate the relevant organs, groups, enterprises, institutional units or personnel involved
with matters relating to an audit, with the aforesaid units or personnel being required to provide the audit office with
all relevant information and testimonial material;

(4) power to request the relevant department in charge to enact an interim stay ruling in a case where an act that
is seriously damaging State interests or violating financial or economic legislation is currently occurring
and, if the stay proves ineffectual, power to notify the relevant financial department or bank to temporarily suspend
access to the relevant funds.

(5) power to adopt interim measures, such as sealing up or confiscation accounts, assets, etc., should the
unit under audit obstruct or disrupt auditing work.

Article 16. An audit office may handle a violation of financial or economic legislation by a unit under audit in accordance with
the following provisions:

(1) issue a warning or circulate a notice of criticism;

(2) order any income or expenditure related matters involved with a violation of State regulations to be rectified;

(3) order the return or confiscation of any illegal earnings;

(4) recover misappropriated State assets;

(5) issue a direction to temporarily suspend access to funds or suspend bank loans in a case where the unit
under audit violates regulations through the use of funds or a bank loan, resulting in serious damage to State interests;

(6) issue a fine in accordance with the provisions of the relevant statutory regulations.

If a unit under audit refuses to return illegal funds or to pay fines, etc., the audit office may notify the bank
to withhold the relevant amount of money.

Article 17. If, in the case of a unit under audit which has violated the law as described in the previous Article, the audit office
thinks that the persons directly responsible or the persons in charge of the unit should be issued
with an administrative penalty, it may hand over the matter for investigation or to the relevant departments
for handling. If the circumstances are serious enough to constitute a crime, a judicial organ may be requested to
pursue criminal liability in accordance with the law.

CHAPTER V AUDIT WORK PROCEDURE

Article 18. Audit offices at the various levels shall determine the focal point of their audit work and shall formulate audit
project plans, in accordance with State policies and the requirements of their superior level audit offices and equivalent
level government authorities.

Article 19. After an audit office has clarified an audit matter, it shall notify the unit under audit.

A unit under audit shall co-operate with the work of the audit office and shall provide the necessary conveniences
to facilitate the work of the audit office.

Article 20. An auditor shall conduct an audit based on such means as inspection of credentials and accounts, consultation of documents
and information, examination of cash and material goods and investigation of the relevant units and personnel and shall
acquire testimonial material.

Testimonial material shall bear the signature or seal of the person providing it.

Article 21. After an auditor has conducted an audit, an auditor’s report shall be presented to affiliated audit offices.

The opinion of the unit under audit shall be sought regarding an auditor’s report. The unit under audit shall submit a
written response within 10 days of receipt of the report.

Article 22. After an audit office has examined and approved an auditor’s report and made audit conclusions and decisions,
it shall notify the unit under audit and any other relevant units to implement its rulings.

An audit office shall seek the opinion of the relevant departments when making audit conclusions and decisions
on an important matter.

The finance department or another relevant competent department shall ratify final accounts or handle them in the
following year, based on the audit conclusions and decisions given on these final accounts.

Article 23. If a audit under audit disagrees with the audit office’s audit conclusions or decisions, it may, within 15 days of receipt
of notice of the said conclusions and decisions, apply to the superior level audit office for a review of the
case. The superior level audit office shall issue a reassessed audit conclusion and decision within 30 days of receipt of
the review application. In special circumstances the time limit for reviewing audit conclusions and decisions may
be extended appropriately.

The original audit conclusions and decisions shall be implemented as usual during an audit review.

Article 24. The reassessed audit conclusions and decisions of a superior level audit office or the audit conclusions and decisions
of the Arbitration Administration shall be regarded as final judgements.

If an audited unit disagrees with a final audit conclusion or decision, it may submit a complaint to the audit office
which made the final judgement or to its superior level audit office.

Article 25. Audit offices shall investigate the implementation of audit conclusions and decisions.

Article 26. Audit offices at the various levels shall establish audit records of all audit items they handle and shall carry out
administration in accordance with regulations.

CHAPTER VI INTERNAL AUDITING

Article 27. State financial institutions, large and medium scale State-owned enterprises, construction units which undertake large
scale capital construction projects and State institutional units which handle relatively large amounts of
income and expenditure, as well as government departments, etc., within which audit offices have yet to establish
agencies, may establish internal audit bodies or provide auditors.

Article 28. Internal audit bodies and auditors shall, under the leadership of their own unit leaders, conduct internal audit
supervision of the financial income and expenditure and economic performance of their own unit and subordinate
units, in accordance with the provisions of State laws, statutory regulations and policies.

Internal audit bodies and auditors shall accept professional guidance from audit offices.

Article 29. An internal audit body or auditor shall carry out internal audit supervision within its own unit and subordinate units
on the following matters:

(1) implementation of and final accounts relating to financial plans or a unit’s budget;

(2) economic activities relating to financial income and expenditure and related economic performance;

(3) administration of the assets of the State and units;

(4) acts in violation of State financial and economic legislation.

(5) other audit matters which its unit leader has assigned for handling.

Internal audit bodies and auditors shall be responsible for directing the internal audit work of subordinate units.

CHAPTER VII SOCIAL AUDITING

Article 30. Social audit organisations shall be institutional units which independently undertake audit investigations and
consultancy pursuant to the law, receive payment for their services, are themselves responsible for their own income
and expenditure, conduct independent accounting and pay tax in accordance with the law.

Article 31. The establishment of a social audit organisation shall be subject to approval by the Audit Administration or an audit
office at provincial, autonomous region or directly administered municipality level.

A social audit organisation which has had its establishment approved shall begin operation only after registering
with the local administration for industry and commerce and obtaining a business licence.

Article 32. A social audit organisation may accept commissions from State organs, enterprises, institutional units or individuals
to undertake the following types of work:

(1) financial income and expenditure related audit investigations;

(2) authentication of economic cases;

(3) verification and annual examinations of registered funds;

(4) establishment of accounts and financial accounting system and providing consultancy in such areas as finance,
accounting, tax and economic management;

(5) training of audit, finance and accounting personnel.

If a social audit organisation accepts a commission from a foreign investment enterprise to undertake investigative
services, the matter shall be handled in accordance with the provisions of the Regulations of the People’s Republic
of China on Certified Public Accountants.

A social audit organisation shall maintain strict confidentiality in respect of information and knowledge
acquired in the process of its professional work.

Article 33. A social audit organisation shall accept administrative and professional guidance form audit office.

An audit report produced by a social audit organisation as the result of audit work commissioned by an audit
office shall be submitted to the audit office for examination and approval.

CHAPTER VIII LEGAL LIABILITY

Article 34. An audit office may issue a warning, circulate a notice of criticism and, depending on the circumstances, may also impose
a fine on a unit or persons directly responsible, the persons in charge of a unit or other related persons
if these Regulations are violated in any of the following ways:

(1) refusing to provide the relevant documents, books of account, certificates, accounting statements,
information or testimonial material;

(2) obstructing an auditor from performing his duty or resisting or disrupting supervisory or investigative work;

(3) practising fraud or concealing the truth;

(4) refusing to implement audit conclusions or decisions;

(5) retaliating against audit or inspection personnel.

Article 35. An audit office may impose fines at its discretion and, in accordance with provisions on cadre administrative jurisdiction,
may also issue an administrative penalty or recommend that an administrative penalty be imposed, if an auditor violates
these Regulations in any of the following ways:

(1) using his powers of office to seek personal gain;

(2) practising fraud, favouritism or other irregularities;

(3) neglecting his duties, thereby causing the State or the unit under audit to incur significant losses;

(4) revealing State secrets;

Article 36. If a unit or individual who has been penalised under the provisions of Article 34 or 35 disagrees with the penalty decision,
it may appeal to the body above the decision issuing organ.

Article 37. If any act as outlined in Article 34 or 35 is serious enough to constitute a crime, the audit office shall request
that the judicial organ pursue the criminal liability of the persons directly responsible, the people in charge of
the unit, the auditor or other related people in accordance with the law.

CHAPTER IX SUPPLEMENTARY PRINCIPLES

Article 38. Detailed provisions for audit work relating to the Chinese People’s Liberation Army shall be formulated elsewhere by the
Military Commission of the Central Committee of the Communist Party of China.

Article 39. The Audit Administration shall be responsible for interpreting these Regulations and shall formulate detailed
implementing rules.

Article 40. These Regulations shall take effect from 1 January 1989. The Provisional Regulations of the State Council on Auditing,
promulgated 29 August 1985, shall be annulled simultaneously.

Source:Ministry of Foreign Trade and Economic Cooperation

CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES

Law of the PRC on Chinese-Foreign Contractual Joint Ventures

(Adopted at the First Session of the Seventh National People’s Congress and promulgated by Order No. 4 of the
President of the People’s Republic of China on April 13, 1988, and effective as of the date of promulgation)

Article 1. This Law is formulated to expand economic cooperation and technological exchange with foreign countries and to
promote the joint establishment, on the principle of equality and mutual benefit, by foreign enterprises and other
economic organizations or individuals (hereinafter referred to as the foreign party) and Chinese enterprises or other
economic organizations (hereinafter referred to as the Chinese party) of Chinese-foreign contractual
joint ventures (hereinafter referred to as contractual joint ventures) within the territory of the People’s Republic
of China.

Article 2. In establishing a contractual joint venture, the Chinese and foreign parties shall, in accordance with the provisions
of this Law, prescribe in their contractual joint venture contract such matters as the investment or conditions
for cooperation, the distribution of earnings or products, the sharing of risks and losses, the manners of operation
and management and the ownership of the property at the time of the termination of the contractual joint venture.

A contractual joint venture which meets the conditions for being considered a legal person under Chinese law, shall
acquire the status of a Chinese legal person in accordance with law.

Article 3. The state shall, according to law, protect the lawful rights and interests of the contractual joint ventures and of the
Chinese and foreign parties.

A contractual joint venture must abide by Chinese laws and regulations and must not injure the public interests of
China.

The relevant state authorities shall exercise supervision over the contractual joint ventures according to law.

Article 4. The state shall encourage the establishment of productive contractual joint ventures that are export-oriented or technologically
advanced.

Article 5. For the purpose of applying for the establishment of a contractual joint venture, such documents as the agreement,
the contract and the articles of association signed by the Chinese and foreign parties shall be submitted for examination
and approval to the department in charge of foreign economic relations and trade under the State Council or to the
department or local government authorized by the State Council (hereinafter referred to as the examination and approval authority).
The examination and approval authority shall, within 45 days of receiving the application, decide whether or not to
grant approval.

Article 6. When the application for the establishment of a contractual joint venture is approved, the parties shall, within 30 days
of receiving the certificate of approval, apply to the administrative authorities for industry and commerce
for registration and obtain a business license. The date of issuance of the business license of a contractual joint
venture shall be the date of its establishment.

A contractual joint venture shall, within 30 days of its establishment, carry out tax registration with the tax authorities.

Article 7. If the Chinese and foreign parties, during the period of operation of their contractual joint venture, agree through consultation
to make major modifications to the contractual joint venture contract, they shall report to the examination and approval
authority for approval, if the modifications include items involving statutory industry and commerce registration or
tax registration, they shall register the modifications with the administrative authorities for industry and commerce
and with the tax authorities.

Article 8. The investment or conditions for cooperation contributed by the Chinese and foreign parties may be provided in cash
or in kind, or may include the right to the use of land, industrial property rights, non-patent technology or other
property rights.

Article 9. The Chinese and foreign parties shall, in accordance with the provisions of the laws and regulations and the
agreements in the contractual joint venture contract, duly fulfil their obligations of contributing full investment
and providing the conditions for cooperation. In case of failure to do so within the prescribed time, the administrative
authorities for industry and commerce shall set another time limit for the fulfilment of such obligations; if such obligations
are still not fulfilled by the new time limit, the matter shall be handled by the examination and approval authority and
the administrative authorities for industry and commerce according to relevant state provisions.

The investments or conditions for cooperation provided by the Chinese and foreign parties shall be verified
by an accountant registered in China or the relevant authorities, who shall provide a certificate after verification.

Article 10. If a Chinese or foreign party wishes to make an assignment of all or part of its rights and obligations prescribed in the
contractual joint venture contract, it must obtain the consent of the other party or parties and report to the examination
and approval authority for approval.

Article 11. A contractual joint venture shall conduct its operational and managerial activities in accordance with the approved
contract and articles of association for the contractual joint venture. The right of a contractual joint venture
to make its own operational and managerial decisions shall not be interfered with.

Article 12. A contractual joint venture shall establish a board of directors or a joint managerial institution which shall, according
to the contract or the articles of association for the contractual joint venture, decide on the major issues concerning
the venture. If the Chinese or foreign party assumes the chairmanship of the board of directors or the directorship
of the joint managerial institution, the other party shall assume the vice-chairmanship of the board or the deputy
directorship of the joint managerial institution. The board of directors or the joint managerial institution may
decide on the appointment or employment of a general manager, who shall take charge of the daily operation
and management of the contractual joint venture. The general manager shall be accountable to the board of directors
or the joint managerial institution.

If a contractual joint venture, after its establishment, chooses to entrust a third party with its operation and
management, it must obtain the unanimous consent of the board of directors or the joint managerial institution,
report to the examination and approval authority for approval, and register the change with the administrative authorities
for industry and commerce.

Article 13. The employment, dismissal, remuneration, welfare, labour protection and labour insurance, etc. of the staff members and workers
of a contractual joint venture shall be specified in contracts concluded in accordance with law.

Article 14. The staff and workers of a contractual joint venture shall, in accordance with law, establish their trade union organization
to carry out trade union activities and protect their lawful rights and interests.

A contractual joint venture shall provide the necessary conditions for the venture’s trade union to carry out its activities.

Article 15. A contractual joint venture must establish its account books within the territory of China, file its accounting
statements according to relevant provisions and accept supervision by the financial and tax authorities.

If a contractual joint venture, in violation of the provisions prescribed in the preceding paragraph, does not establish
its account books within the territory of China, the financial and tax authorities may impose a fine on it,
and the administrative authorities for industry and commerce may order it to suspend its business operations or may
revoke its business license.

Article 16. A contractual joint venture shall, by presenting its business license, open a foreign exchange account with a bank
or any other financial institution which is permitted by the exchange control authorities of the state to
conduct transactions in foreign exchange.

A contractual joint venture shall handle its foreign exchange transactions in accordance with the provisions of the
state on foreign exchange control.

Article 17. A contractual joint venture may obtain loans from financial institutions within the territory of China and may also
obtain loans outside the territory of China.

Loans to be used by the Chinese and foreign parties as investment or conditions for cooperation, and their guarantees,
shall be provided by each party on its own.

Article 18. The various kinds of insurance coverage of a contractual joint venture shall be furnished by insurance institutions
within the territory of China.

Article 19. A contractual joint venture may, within its approved scope of operation, import materials it needs and export products it
produces. A contractual joint venture may purchase, on both the domestic market and the world market, the raw
and processed materials, fuels, etc. within its approved scope of operation.

Article 20. A contractual joint venture shall achieve on its own the balance of its foreign exchange receipts and expenditures. If a
contractual joint venture is unable to achieve the balance of its foreign exchange receipts and expenditures on its
own, it may, in accordance with state provisions, apply to the relevant authorities for assistance.

Article 21. A contractual joint venture shall, in accordance with state provisions on tax, pay taxes and may enjoy the preferential
treatment of tax reduction or exemption.

Article 22. The Chinese and foreign parties shall share earnings or products, undertake risks and losses in accordance with
the agreements prescribed in the contractual joint venture contract.

If, upon the expiration of the period of a venture’s operation, all the fixed assets of the contractual joint
venture, as agreed upon by the Chinese and foreign parties in the contractual joint venture contract, are to belong
to the Chinese party, the Chinese and foreign parties may prescribe in the contractual joint venture contract
the ways for the foreign party to recover its investment ahead of time during the period of the venture’s operation.
If the foreign party, as agreed upon in the contractual joint venture contract, is to recover its investment
prior to the payment of income tax, it must apply to the financial and tax authorities, which shall examine
and approve the application in accordance with state provisions concerning taxes.

If, according to the provisions of the preceding paragraph, the foreign party is to recover its investment ahead of
time during the period of the venture’s operation, the Chinese and foreign parties shall, as stipulated by the relevant
laws and agreed in the contractual joint venture contract, be liable for the debts of the venture.

Article 23. After the foreign party has fulfilled its obligations under the law and the contractual joint venture contract, the profits
it receives as its share, its other legitimate income and the funds it receives as its share upon the termination of the
venture, may be remitted abroad according to law.

The wages, salaries or other legitimate income earned by the foreign staff and workers of contractual joint ventures,
after the payment of the individual income tax according to law, may be remitted abroad.

Article 24. Upon the expiration or termination in advance of the term of a contractual joint venture, its assets, claims and debts
shall be liquidated according to legal procedures. The Chinese and foreign parties shall, in accordance with the agreement
specified in the contractual joint venture contract, determine the ownership of the venture’s property.

A contractual joint venture shall, upon the expiration or termination in advance of its term, cancel its registration
with the administrative authorities for industry and commerce and the tax authorities.

Article 25. The period of operation of a contractual joint venture shall be determined through consultation by the Chinese and foreign
parties and shall be clearly specified in the contractual joint venture contract. If the Chinese and foreign parties
agree to extend the period of operation, they shall apply to the examination and approval authority 180 days prior to
the expiration of the venture’s term. The examination and approval authority shall decide whether or not to grant
approval within 30 days of receiving the application.

Article 26. Any dispute between the Chinese and foreign parties arising from the execution of the contract or the articles of association
for a contractual joint venture shall be settled through consultation or mediation. In case of a dispute which
the Chinese or the foreign party is unwilling to settle through consultation or mediation, or of a dispute which
they have failed to settle through consultation or mediation, the Chinese and foreign parties may submit it to a Chinese
arbitration agency or any other arbitration agency for arbitration in accordance with the arbitration clause
in the contractual joint venture contract or a written agreement on arbitration concluded afterwards.

The Chinese or foreign party may bring a suit in a Chinese court, if no arbitration clause is provided in the contractual
joint venture contract and if no written agreement is concluded afterwards.

Article 27. The detailed rules for the implementation of this Law shall be formulated by the department in charge of foreign economic
relations and trade under the State Council and reported to the State Council for approval before implementation.

Article 28. This Law shall come into force as of the date of its promulgation.

WATER LAW

Water Law of the People’s Republic of China

(Adopted at the 24th Meeting of the Standing Committee of the Sixth National People’s Congress and promulgated by Order No. 61 of
the President of the People’s Republic of China on January 21, 1988, and effective as of July 1, 1988)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II DEVELOPMENT AND UTILIZATION

CHAPTER III PROTECTION OF WATER, WATER AREAS AND WATER PROJECTS

CHAPTER IV MANAGEMENT OF THE USE OF WATER

CHAPTER V FLOOD PREVENTION AND FLOOD FIGHTING

CHAPTER VI LEGAL LIABILITY

CHAPTER VII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. This Law is formulated for the rational development and utilization of water resources and the protection of such resources, for
the prevention and control of water disasters, and for the full derivation of comprehensive benefits from water resources in order
to meet the needs in national economic development and in the livelihood of the people.

Article 2. The ” water resources ” referred to in this Law includes surface water and groundwater. This Law must be observed in the development,
utilization, protection and management of water resources and in the prevention and control of water disasters within the territory
of the People’s Republic of China.

Provisions for the development, utilization, protection and management of sea water shall be stipulated separately.

Article 3. Water resources shall be owned by the state, that is, by the whole people.

The waters of ponds and reservoirs belonging to agricultural collective economic organizations shall be owned by the collectives.

The state shall protect the lawful rights and interests of units and individuals engaged in the development and utilization of water
resources in accordance with law.

Article 4. The state shall encourage and support various undertakings for the development and utilization of water resources and for the prevention
and control of water disasters.

The development and utilization of water resources and the prevention and control of water disasters shall be carried out by comprehensive
planning with all factors taken into consideration, and with emphasis on multipurpose use and on achieving maximum benefits so as
to give full play to the multiple functions of water resources.

Article 5. The state shall protect water resources and adopt effective measures to preserve natural flora, plant trees and grow grass, conserve
water sources, prevent and control soil erosion and improve the ecological environment.

Article 6. All units shall strengthen the prevention and control of water pollution so as to protect and improve water quality. People’s governments
at various levels shall, in accordance with the provisions of the Law on the Prevention and Control of Water Pollution, strengthen
supervision over, and management of, the prevention and control of water pollution.

Article 7. The state shall carry out planning and require strict economy in the use of water.

People’s governments at various levels shall strengthen the management of the economical use of water. All units shall adopt advanced
technology for the economical use of water, reduce water consumption and raise the frequency of the reuse of water.

Article 8. Units and individuals that have made outstanding achievements in the development, utilization, protection and management of water
resources, in the prevention and control of water disasters, in the economical use of water and in related scientific and technological
research shall be awarded by the people’s governments at the corresponding level.

Article 9. The state shall, with respect to water resources, adopt a system which combines unified administration with administration at various
levels and by various departments.

The department of water administration under the State Council shall be in charge of the unified administration of water resources
throughout the country.

Other relevant departments under the State Council shall, in accordance with the duties assigned to them by the State Council, be
in charge of the administration of water resources related to them in coordination with the department of water administration under
the State Council.

The departments of water administration and other relevant departments of the local people’s governments at or above the county level
shall be in charge of the administration of water resources related to them in accordance with the duties assigned to them by the
people’s governments at the corresponding level.

CHAPTER II DEVELOPMENT AND UTILIZATION

Article 10. In order to develop and utilize water resources, a comprehensive scientific survey and an investigation and assessment must be undertaken.
The comprehensive scientific survey and the investigation and assessment of water resources throughout the country shall be carried
out by the department of water administration under the State Council jointly with other departments concerned.

Article 11. The development and utilization of water resources as well as the prevention and control of water disasters shall be planned in
a unified way on the basis of river basins or regions. The plans are divided into comprehensive plans and special plans.

Comprehensive plans for major river basins designated by the state shall be formulated by the department of water administration under
the State Council jointly with the relevant departments and with the people’s governments of the relevant provinces, autonomous regions
or municipalities directly under the Central Government, and shall be submitted to the State Council for approval. Comprehensive
plans for other river basins or regions shall be formulated by the departments of water administration of local people’s governments
at or above the county level jointly with the relevant departments and local authorities, and shall be submitted to the people’s
governments at the corresponding level for approval and to the departments of water administration at the next higher level for the
record. Comprehensive plans shall be coordinated with the National Land Plan and take into consideration the needs in various regions
and trades.

Special plans for the prevention of floods, the control of water-logging, irrigation, navigation, urban and industrial water supply,
hydro-electric power generation, bamboo or log rafting, fishery, water quality protection, hydrologic surveys, the general prospecting
and dynamic monitoring of groundwater, etc., shall be formulated respectively by the competent departments of the people’s governments
at or above the county level and shall be submitted to the people’s governments at the corresponding level for approval.

The approved plans shall serve as the bases for the development and utilization of water resources as well as the prevention and control
of water disasters. Any amendment to an approved plan must be examined and approved by the organ that originally approved the plan.

Article 12. No unit or individual shall, while channeling, storing or discharging water, infringe upon public interests or the lawful rights
and interests of other people.

Article 13. The development and utilization of water resources shall conform to the overall arrangement for the prevention of floods, follow
the principle of promoting benefits while eliminating disasters, and take into consideration the interests of upstream and downstream
areas, of the left and right banks and of all regions concerned, so as to give full play to the comprehensive benefits of water resources.

Article 14. The development and utilization of water resources shall first satisfy the need of the urban and rural inhabitants in their domestic
use of water and give overall consideration to the agricultural and industrial need for water as well as to the need of navigation.
In areas where the water sources are insufficient, the scale of the urban area and the development of industrial and agricultural
undertakings which use a large amount of water shall be restricted.

Article 15. All areas shall, according to their respective water and soil resources, develop irrigation, drainage and water and soil conservation
to bring in stable and high agricultural yields.

In areas where the water sources are insufficient, any irrigation method which makes for an economical use of water shall be adopted.

In areas which are prone to salinization-alkalization and water-logging, measures shall be taken to control and lower the groundwater
level.

Article 16. The state shall encourage the development and utilization of hydraulic power potentials. On rivers rich with hydraulic power potentials,
multipurpose cascade development shall be effected in a planned way.

In the development of hydropower stations, the ecological environment shall be protected, and the needs for flood control, water supply,
irrigation, navigation, bamboo and log rafting, fishery, etc. shall be taken into account.

Article 17. The state shall protect and encourage the development of water transport resources. When permanent dams and sluice-gates are built
on rivers which are navigable or suitable for bamboo and log rafting, the construction unit must at the same time build facilities
for the passage of ships and for bamboo and log rafting or, after approval by a department authorized by the State Council, take
other remedial measures. The construction unit must also make adequate arrangements for navigation and bamboo and log rafting during
the construction period and the initial water-filling period, and bear the expenses incurred thereby.

Where a non-navigable river or man-made waterway becomes navigable after a dam or sluice-gate is built, the construction unit shall
at the same time build facilities for the passage of ships or reserve sites for such facilities. The expenses needed for such facilities
shall, except as otherwise provided for by the state, be borne by the transport department concerned.

Where any existing dam or sluice gate hinders navigation, the people’s government at or above the county level shall order the original
construction unit to take remedial measures within a prescribed time limit.

Article 18. Where the building of a dam or sluice gate on the migration route of fish, shrimp or crabs has a serious impact on fishery resources,
the construction unit shall build facilities for their passage or adopt other remedial measures.

Article 19. The building of any dam and sluice gate, bridge, wharf or any structure which blocks, crosses or borders a river channel, and the
laying of a pipeline or a cable which crosses a river, must be in conformity with the standards for the prevention of floods and
navigation and other related technical requirements set by the state.

Where the building of any of the structures or facilities referred to in the preceding paragraph requires the extension, modification,
removal or destruction of the original structures or facilities, the unit constructing the new project shall bear the expenses for
extension or modification and the expenses for the compensation of losses, unless the original structures or facilities were built
in violation of the relevant regulations.

Article 20. Where the building of any water project or any other construction project has an adverse effect on the current use of water for
irrigation, the existing source of water supply or the present flow of the navigation channel, the unit constructing the project
shall adopt remedial measures or otherwise make compensation.

Article 21. Where an interbasin diversion project is to be built, an overall plan and a scientific justification must be provided, and consideration
given to the demand for water in the basin which supplies the water and in the basin which receives it, while adverse effects on
the ecological environment shall be avoided.

Article 22. The building of any water project must conform with the capital construction procedures and the other relevant provisions stipulated
by the state. Where a project involves the interests of other regions and trades, the construction unit must first solicit opinions
from the regions and departments concerned and, in accordance with the relevant provisions, report the project to the people’s government
at the higher level or the competent department concerned for approval.

Article 23. Where a water project to be built by the state requires the resettlement of inhabitants, the local people’s government shall be
responsible for making proper arrangements for the livelihood and production of the inhabitants to be resettled. The funds needed
for the resettlement of inhabitants shall be included in the investment plan for the project, and the resettlement shall be completed
within the construction stage on schedule.

CHAPTER III PROTECTION OF WATER, WATER AREAS AND WATER PROJECTS

Article 24. In any river, lake, reservoir or canal, no person may abandon or pile objects which block navigation or the passage of flood water,
or plant trees or grow crops of a long-stalk variety which block the passage of flood water.

In any navigable channel, no person may abandon any sunken boat, lay any fishing gear which blocks navigation, or grow aquatic plants.

No person may erect any building in a riverbed or in flood land without the approval of the competent department concerned.

Anyone who wishes to mine for sand and gravel or placer gold within the extent of a river course through which flood water passes
or into which water from water-logged areas is drained, or within the extent of a navigable river, must apply to the department of
river administration for approval, and must conduct his mining within the approved confines and in conformity with the approved operation
procedures. Where the mining relates to a navigable river, it shall be subject to approval by the department of river administration
and the department of navigation.

Article 25. The drawing of groundwater must be carried out by a unified plan based on the findings of a survey and assessment of water resources,
and the supervision and management of the drawing must be strengthened. In areas where too much groundwater has been drawn, a strict
control shall be imposed on the drawing and effective measures taken to protect the groundwater resources and to prevent the subsidence
of the ground.

Article 26. Where mining or the construction of underground projects, because of water drainage, results in a lowering of the groundwater level,
the depletion of groundwater or the subsidence of the ground and causes losses to the livelihood and production of units or individuals,
the mining unit or the construction unit shall take remedial measures and compensate for the losses.

Article 27. Reclaiming parts of a lake for use as farmland shall be prohibied. Reclaiming parts of a river for use as farmland shall also be
prohibited. Where reclamation is necessary, a scientific justification must be provided and approval obtained from a people’s government
at or above the provincial level.

Article 28. The state shall protect water projects and related facilities such as dikes and bank revetments, and shall protect flood prevention
facilities, hydrologic monitoring facilities, hydrogeologic monitoring facilities, and navigation facilities and aids. No unit or
individual may seize or destroy these facilities.

Article 29. Any state-owned water project shall have a zone for its management and protection, to be delimited by a people’s government at or
above the county level in accordance with the approved design and state provisions.

Any collectively-owned water project shall have a zone for its protection, to be delimited in accordance with stipulations made by
the people’s government of the relevant province, autonomous region or municipality directly under the Central Government.

Within the protection zone for a water project, any act of blasting, sinking a well, quarrying rock, and collecting earth, which endangers
the safety of the water project, shall be prohibited.

CHAPTER IV MANAGEMENT OF THE USE OF WATER

Article 30. The long-term plan for the demand for and supply of water of the entire country and those of regions covering different provinces,
autonomous regions and municipalities directly under the Central Government shall be formulated by the department of water administration
jointly with the other relevant departments under the State Council and submitted to the planning department under the State Council
for approval. A local long-term plan for the demand for and supply of water shall, on the basis of the long-term plan for the demand
for and supply of water made by the department of water administration of the people’s government at the next higher level and the
actual local conditions, be formulated by the department of water administration jointly with the other relevant departments of a
local people’s government at or above the county level, and shall be submitted to the planning department of the people’s government
at the corresponding level for approval.

Article 31. The regulation and storage of the run-off and the allocation of water shall take into account the demand for water in upstream and
downstream areas and on both banks of a river and also the need for navigation, bamboo and log rafting and fishery and for the protection
of the ecological environment.

A plan for the allocation of water covering different administrative divisions shall be formulated by the department of water administration
of the people’s government at the next higher level after soliciting the opinions of the local people’s governments concerned, and
shall be executed after approval by the people’s government at the corresponding level.

Article 32. The state shall put into practice a license system for drawing water directly from subterranean streams, rivers or lakes. However,
it shall not be necessary to apply for a license if water is drawn for household use or for livestock and poultry to drink, or if
a small amount of water is drawn for other purposes.

The steps, the scope and the measures for implementing a system of water-drawing licenses shall be stipulated by the State Council.

Article 33. Where it is necessary to apply for a water-drawing license for a new construction project, an extension project or a reconstruction
project, the construction unit shall, while submitting the design for the project, enclose written comments from the organ in charge
of examining applications for the drawing of water.

Article 34. Anyone who uses water provided by a water-supply project shall pay a water fee to the supplying unit in accordance with the relevant
provisions.

Any unit which directly draws groundwater in an urban area shall be charged a water resources fee. The collection of such fees from
other units or individuals drawing water directly from subterranean streams, rivers or lakes shall be decided by the people’s governments
of provinces, autonomous regions or municipalities directly under the Central Government.

Measures for the collection of water fees and water resources fees shall be stipulated by the State Council.

Article 35. Any dispute concerning water between different districts shall be handled through consultation in the spirit of mutual understanding
and mutual accommodation as well as the spirit of solidarity and cooperation. Where consultations are unsuccessful, the dispute
shall be handled by the people’s government at the next higher level. Pending a settlement of the dispute, no party may build any
project to drain, block, divert or store water within a certain area on either side of the common boundary defined by the state,
and no party may unilaterally alter the existing water regime, unless an agreement is reached between the parties concerned or an
approval is granted by the people’s government at the next higher level.

Article 36. Any dispute concerning water between units, between individuals or between units and individuals shall be resolved through consultation
or mediation. Where a party is unwilling to have the dispute resolved through consultation or mediation, or the consultation or
mediation is unsuccessful, he may request the people’s government at or above the county level or the competent department authorized
by such a government to handle the dispute, or may directly institute legal proceedings in the people’s court. Where a party is
dissatisfied with the decision made by the people’s government concerned or the competent department authorized by such a government,
he may institute legal proceedings in the people’s court within fifteen days of receiving the notification on the decision. Pending
a settlement of the dispute, no party may unilaterally alter the existing water regime.

Article 37. When handling any dispute concerning water, the people’s government at or above the county level, or the competent department authorized
by such a government, shall have the power to take temporary measures with which the parties must comply.

CHAPTER V FLOOD PREVENTION AND FLOOD FIGHTING

Article 38. The people’s governments at all levels shall strengthen their leadership and take effective measures to prevent and fight floods.
It is the duty of every unit and individual to participate in the prevention of and the fight against floods.

Article 39. The flood prevention headquarters under the people’s governments at or above the county level shall exercise unified command over
the work of preventing and fighting floods.

In case of a flood emergency, the flood prevention headquarters shall have the power to requisition materials and equipment and employ
personnel within their jurisdiction, which shall be returned or adequately compensated for without delay after the flood subsides.

Article 40. The people’s governments at or above the county level shall, on the basis of river basin plans and in accordance with the principle
of ensuring defence at the major points and giving consideration to ordinary ones, formulate schemes for the prevention of floods,
in which the standards and measures for the prevention of floods shall be specified. The schemes for the prevention of floods along
major rivers throughout the country shall be formulated by the Central Flood Prevention Headquarters and submitted to the State Council
for approval.

After a scheme for the prevention of floods is approved or formulated, the people’s governments concerned must execute it.

Article 41. Along floodways and in flood detention basins and flood storage basins, the utilization of land and the various construction projects
must meet the requirements for the prevention of floods.

Article 42. People in a downstream area may not hinder by blocking the flow of the flood water or excess water discharged according to the natural
flow trend or the design standards of flood prevention or flood drainage projects, or an approved flood fighting plan, or reduce
the carrying capacity of the river, while people in an upstream area may not increase without authorization the flow discharged downstream.

Article 43. In case of a flood emergency, flood prevention headquarters at different levels may, within their jurisdiction, take measures to
divert or detain the flood pursuant to the approved plans. Where these measures are detrimental to the adjoining districts, the
adoption of such measures must be reported to the flood prevention headquarters at the next higher level for approval, and the districts
concerned shall be notified in advance.

The State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government
shall separately formulate special administrative measures for the safety, evacuation, livelihood, production, rehabilitation, compensation
for losses, etc. for the inhabitants in the flood detention basins and the flood storage basins within their respective jurisdiction.

CHAPTER VI LEGAL LIABILITY

Article 44. Whoever, in violation of this Law, draws, intercepts, blocks or discharges water and thereby causes obstruction or losses to others
shall stop his acts of infringement, remove the obstruction and compensate for the losses.

Article 45. Whoever, in violation of this Law, commits any of the following acts shall be ordered, by the department of water administration
or another competent department concerned of the relevant local people’s government at or above the county level, to stop his illegal
act and clear away the obstacles or take other remedial measures within the specified time limit, and may be concurrently fined;
the person who is responsible may be given administrative sanctions by the unit to which he belongs or by the competent authority
at a higher level:

(1) abandoning or piling objects which obstruct navigation or the passage of flood, or planting trees and growing crops of a long-stalk
variety which obstruct the passage of flood in any river, lake, reservoir or canal, or abandoning sunken vessels, laying fishing
gear which obstructs navigation, or growing aquatic plants in any navigable river;

(2) erecting buildings in any riverbed or flood land without approval;

(3) mining for sand and gravel or placer gold in any river course or navigable river without approval or not in conformity with the
approved scope and operation procedures; or

(4) reclaiming parts of any lake or river for use as farmland in violation of the provisions of Article 27 of this Law.

Article 46. Whoever, in violation of this Law, commits any of the following acts shall be ordered, by the department of water administration
or another competent department concerned of the relevant local people’s government at or above the county level, to stop his illegal
act and take remedial measures and may be concurrently fined; the person who is responsible may be given administrative sanctions
by the unit to which he belongs or by the competent authority at a higher level and, where a crime is constituted, he shall be prosecuted
for criminal responsibility in accordance with the Criminal Law:

(1) constructing any water project or realigning any river or course of navigation without authorization; or

(2) in violation of the provisions of Article 42 of this Law, increasing the discharge of flood or drainage of excess water downstream
or hindering the discharge of flood or drainage of excess water from upstream without authorization.

Article 47. Whoever, in violation of this Law, commits any of the following acts shall be ordered, by the department of water administration
or another competent department concerned of the relevant local people’s government at or above the county level, to stop his illegal
act, compensate for the losses caused and take remedial measures, and may be concurrently fined; where a penalty for violation of
public security should be given, the person shall be given a penalty in accordance with the Regulations on Administrative Penalties
for Public Security; where a crime is constituted, the person shall be prosecuted for criminal responsibility in accordance with
the Criminal Law:

(1) damaging any water project or related facilities such as dikes and bank revetments, damaging any flood prevention facilities,
hydrologic monitoring facilities, hydrogeologic monitoring facilities, or navigation facilities or aids; or

(2) carrying out, within the protection zone for a water project, any act of blasting, sinking a well, quarrying rock, or collecting
earth, etc., which endangers the safety of the project.

Article 48. If any party is not satisfied with the decision on an administrative penalty, he may, within fifteen days of receiving the notification
on the penalty, file an application for reconsideration with the department at the level next higher to the department that made
the decision on the penalty. If the party is not satisfied with the decision made after such reconsideration, he may institute legal
proceedings in the people’s court within fifteen days of receiving the decision on the reconsideration. The party may also directly
institute legal proceedings in the people’s court within fifteen days of receiving the notification on the penalty. If the said
party neither applies for reconsideration nor institutes legal proceedings in the people’s court within the time limit nor complies
with the decision on the penalty, the department that made the decision on the penalty shall apply to the people’s court for compulsory
execution.

If any party is not satisfied with a penalty for violation of public security, the case shall be handled according to the Regulations
on Administrative Penalties for Public Security.

Article 49. Whoever steals or forcibly seizes the supplies for the prevention of floods or materials and equipment for the building of water
projects, or whoever embezzles or misappropriates state funds and materials for the relief of disasters, for use in flood emergencies,
for the prevention of floods or for the resettlement of inhabitants, shall be prosecuted for criminal responsibility in accordance
with the Criminal Law.

Article 50. Any functionary of a department of water administration, of another competent department or of a unit managing a water project,
who neglects his duty, abuses his power, engages in malpractices for personal gains or commits fraudulent acts, shall be given administrative
sanctions by the unit to which he belongs or by the competent department at a higher level; whoever causes heavy losses to public
property or to the interests of the state and the people shall be prosecuted for criminal responsibility in accordance with the Criminal
Law.

CHAPTER VII SUPPLEMENTARY PROVISIONS

Article 51. Where any international treaty or agreement relating to international or border rivers or lakes, concluded or acceded to by the
People ‘s Republic of China, contains provisions differing from those in the laws of the People’s Republic of China, the provisions
of the international treaty or agreement shall apply, unless the provisions are ones on which the People’s Republic of China has
made reservations.

Article 52. The State Council may, in accordance with this Law, formulate rules for its implementation.

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

Article 53.

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF A REPORT SUBMITTED BY THE NATIONAL TOURISM ADMINISTRATION CONCERNING THE STRENGTHENING OF TOURIST WORK

Category	TOURISM	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1988-12-21	Effective Date	1988-12-21

Circular of the General Office of the State Council on the Approval and Transmission of a Report Submitted by the National Tourism Administration Concerning the Strengthening of Tourist Work

The Circular
SUGGESTIONS CONCERNING THE STRENGTHENING OF TOURIST WORK

(December 21, 1988)

The Circular

The Report, “Suggestions Concerning the Strengthening of Tourist Work”,
submitted by the National Tourism Administration, has been approved by the
State Council and is hereby transmitted to you for implementation in the light
of the actual conditions of the respective localities and departments.

The tourist industry is a comprehensive undertaking which involves
departments such as aviation, communications, culture, construction, light
industry, textile industry, and commerce. All the departments concerned shall
coordinate and support each other and make joint efforts to promote the sound
and coordinated development of tourism in our country.
SUGGESTIONS CONCERNING THE STRENGTHENING OF TOURIST WORK

Since the conclusion of the Third Plenary Session of the Eleventh Central
Committee of the Communist Party of China, under the guidance of the policy of
reform and opening to the outside world, tourism has been developing very
rapidly in our country; and it has played an active part in increasing our
country’s non-trade foreign exchange earnings, in boosting international trade
and cultural exchange, and in promoting the mutual understanding and
friendship between peoples throughout the world. At present, our country
possesses a fairly good foundation for the development of tourism and the
necessary conditions for speeding up such development. The general trend of
continuous and steady development of the international tourism is also
favourable to us for promoting our tourist industry. In order to further
strengthen the coordinated administration of tourist work and strive for a
greater development of our tourist industry, we hereby advance the following
suggestions:

1. Strengthening the administration of the tourist industry and doing a
good job in the reform of tourism administration organs at various levels. The
people’s governments of various provinces, autonomous regions, and
municipalities directly under the Central Government, as well as tourist
cities, especially those favourite haunts with relatively rich tourist
resources, shall, in accordance with the principles of “separating Party
organs from government organs”, “separating government organs from
enterprises”, and “simplified and unified administration”, and in the light of
local conditions and needs of the development of international and domestic
tourism, set up and improve the tourism administration organs by combining
them with the reform of local setups and making overall arrangements. The
tourism administration departments at various levels shall make timely and
specific adjustments to their responsibilities, clearly define their scope of
duties, and rationally deploy their organizations. In order to effect the
separation of government organs from enterprises, it is imperative to lay
stress on the following measures: (1) The persons in charge of the tourism
administration departments shall not assume concurrently posts of manager of
local tourist companies, tourist agencies, or hotels; (2) The tourism bureaus
shall be completely separated from the enterprises directly under them in the
administration of such aspects as personnel, finance, and materials, so that
the tourist enterprises shall carry on their business operations
independently, and assume sole responsibility for their profits and losses;
(3) The expenses for the tourism administration departments at various levels
to conduct tourist business operations shall be appropriated by the finance
departments at various levels. In order to strengthen the connections between
tourism administration departments and tourist operating units, the National
Tourism Administration shall, in accordance with the requirements of work,
make necessary adjustments with regard to the “China Association of Tourism”
and the “China Association of Tourist Hotels”, and establish thereby the
“China Association of Domestic Tourism”, which shall assist the competent
authorities for tourism in coordinating relations with other departments
concerned and in studying and providing guidance to the development of
domestic tourism.

2. Further clarifying the scope of responsibility and the limits of powers
of the tourist administration bureaus, and establishing a system of graded
administration. The subordinative relationship of all the tourist enterprises
and tourist institutions throughout the country – including institutes and
schools of tourism, research institutes of tourism, tourist agencies that are
engaged in the international and domestic tourist industries; various
categories of tourist hotels, guest houses, restaurants, and tourist
automobile and vessels companies for the reception of foreign tourists; key
tourist scenic spots, tourist attractions, and shops selling tourist goods
that are open to foreigners; tourist representative offices abroad, as well as
the tourist representative offices established in China by foreign tourist
agencies – to the competent administrative authorities directly over them
shall remain unchanged; but the tourist bureau shall, in accordance with the
provisions of the State, implement the system of trade administration,
inspection, and supervision. The tourism administration departments at various
levels shall treat tourist enterprises of various categories equally without
discrimination. The National Tourism Administration shall, in accordance with
the aforesaid principle, and working in coordination with other departments
concerned, make a study of, and work out , ways to implement the system of
graded administration and effect a stricter procedure in examining and
approving the establishment of tourist enterprises. All the tourist
enterprises and tourist institutions shall, without exception, subject
themselves to trade administration and supervision.

3. Deepening the reform in a comprehensive way and implementing the
responsibility system of contracted business operations. The tourism
administration departments at various levels and the departments that run
tourist enterprises shall, taking into consideration the actual conditions of
the local areas and of their own departments, and in accordance with the
pertinent provisions of the State, make a study of, and submit a report on,
a specific plan and practicable procedures for the implementation of the
responsibility system of contracted business operations in state-run and
collectively-run tourist enterprises and, at the same time, formulate other
provisions to perfect such a system. In the course of implementing the
aforesaid responsibility system of contracted business operations, different
forms of contracted business operations may be adopted, in accordance with the
differences in the nature of business operations (tourists agencies, tourist
hotels specialized in receiving foreign guests, fleets of tourist automobiles
and vessels) and business operations of different conditions (enterprises with
profits, enterprises that have to repay loans, enterprises suffering losses
and with a deficit). All those enterprises that have foreign exchange earnings
shall carry out a contracted target for earning foreign exchange, and work out
a corresponding method for the administration of the settlement of the
exchange. Enterprises, which possess the necessary conditions, may gradually
set up risk funds for themselves. The contractor shall be finally determined,
through various kinds of competition, such as by inviting tenders, or by
advertising for employment. The contract period shall, in principle, be no
shorter than 3 years. Once a contract is confirmed and signed, the two
parties, the contractor and the party awarding the contract, shall execute the
contract strictly, and under no circumstances shall it be violated. The
implementation of the responsibility system of contracted business operations
calls for a close integration of the improvement of enterprise management and
the promotion of reform in the internal administration system of enterprises,
and for further efforts in reforming and improving the labour wage system and
the policy of reward and punishment, in accordance with the principle of
combining responsibility, power, and profit.

4. Reforming the administration system of tourist agencies. The three
backbone travel services – China International Travel Service, China Travel
Service, and China Youth Travel Service – shall be encouraged and supported to
develop towards the establishment of an integrated complex or enterprise
group. With respect to those tourist agencies of various categories that have
already been set up, the National Tourism Administration and local tourism
administration departments shall carry out assessment and rectification in
accordance with the provisions in Interim Regulations on the Administration of
Tourist Agencies and Rules of Implementation for Interim Regulations on the
Administration of Tourist Agencies. Tourist agencies of various categories
shall all carry out effectively the reform in the internal work of their
respective tourist agencies, further tap their potentials, so as to raise
standard of their operation and administration, and to improve the quality of
their services.

5. Strengthening overseas tourist publicity and the endeavouring for
soliciting tourists, and striving to expand the international market for
foreign tourists. The National Tourism Administration shall make further
efforts in investigating and analysing the market for international tourists,
work out specific plans for the expansion of the said international market,
and take measures to put it into practice. Our resident representative
tourist offices abroad shall try their best to investigate into the market for
international tourists and carry out publicity work for soliciting visiting
tourists, take the responsibility to supervise the publicity and soliciting
endeavour carried out abroad by units in charge of liaison work with foreign
countries, actively make contacts with the institutions concerned, tourist
agencies and tourist wholesalers in countries where our representative tourist
offices are resident, and pay attention to collecting and feeding back
relevant information. Various resident representative tourist offices abroad
may, within the scope of law of the respective countries where they are
resident, and at their discretion, undertake some paid services or other
business operational activities.

Various units in charge of liaison work with foreign countries, while
canvassing among foreigners for tourists itineraries, shall work in close
coordination and take the interests of the whole country into account. They
may not play down the others and compete against them by offering prices lower
than the protective price. Various units in charge of liaison work with
foreign countries shall be encouraged to collaborate on a voluntary basis to
canvass jointly among foreigners. With respect to those who have violated
external liaison disciplines, the National Tourism Administration and the
local tourism administration departments shall, depending on the seriousness
of the cases, impose disciplinary sanctions, or economic penalty, on the
violators. In order to meet the needs of the development of the tourist
industry in our country, the outlay for conducting tourist publicity and
canvassing abroad may be increased with each passing year. From now on,
various units in charge of liaison work with foreign countries, when
canvassing jointly among foreigners may collect service charges; all units
that take part in the canvassing activities and derive benefits there from
shall pay the charges.

6. Strengthening the macro-administration of those newly-built tourist
hotels that specialize in receiving foreign guests and promoting the reform of
hotel administration system. The tourism administration departments at various
levels shall conscientiously implement Interim Regulations on the Construction
and Administration of Storied Buildings, Halls, Hotels and Guest Houses,
promulgated by the State Council on September 22, 1988, and, working in
coordination with the local planning departments, carry out a checking-up on
the projects of local tourist hotels that specialize in receiving foreign
guests. From now on, in principle, no more high-grade tourist hotels that
specialize in receiving foreign guests shall be built in any place. In areas
less frequented than favourite tourist haunts, medium- and low-grade
hotels may be built, in accordance with the tourist market’s demand, and
depending on the actual circumstances, (a number of high-grade rooms may be
provided in a medium-grade hotel, if necessary). In such highly frequented
tourist cities as Beijing, Shanghai, Guangzhou, Guilin, Xi’an, and Hangzhou,
no new hotel construction projects with Chinese-foreign joint investment or
by Chinese-foreign cooperation shall, in principle, be approved. In accordance
with the guideline of Document No. 17 (1988) issued by the General Office of
the State Council, it shall be imperative to speed up the establishment of the
hotel administration company of our own country. In cases where necessity
arises for the building of new hotels in form of Chinese-foreign joint
venture or Chinese-foreign contractual joint venture, the cases shall be
handled in accordance with the provisions in Document No. 101 (1986) and
Document No. 32 (1988), issued by the General Office of the State Council.
As regards the tourist scenic spots and tourist attraction, built and
faciliated with, or partly with the investment of the National Tourism
Administration, the local tourism administration departments shall take part
in the leadership and administration of the aforesaid tourist places.

Promoting the reform in the hotel administration system. There are now
specific standards for the “star-rating” of the country’s tourist hotels that
specialize in receiving foreign guests; the rating process shall be speeded up
and strive to complete the task by the end of next year. The system for
issuing and revoking business licence for tourist hotels that specialize in
receiving foreign guests (including various categories of tourist agencies and
tourist automobiles and vessels companies) shall be gradually set up. With
respect to those tourist enterprises that have committed serious illegal acts,
the competent authorities for tourism may suggest to the relevant
administrative departments for industry and commerce that the business
licences of the aforesaid enterprises be revoked.

7. Carrying out, with caution, the reform in tourist prices, and
strengthening the administration of the receipts and expenditures in foreign
exchange as well as the settlement of exchange relating to tourist
enterprises. The problem of tourist prices has a direct bearing on the
interests and reputation of the State; therefore it is imperative to conduct
careful investigation and studies before taking cautious steps in the reform,
and submit the reform plan to higher authorities for approval. It is necessary
to reform the price structure so as to fix the tourist prices more
scientifically and reasonably by taking into full consideration the necessity
to meet the challenge of international competition, and in accordance with the
special features of different tourist itineraries and different seasons (from
now on, the National Tourism Administration and the State Administration for
Commodity Prices shall chiefly fix the ceiling price and the floor price – the
protective price). Once the price principles are determined, the tourist
enterprises at various levels and of various categories shall execute them
strictly. Those who have violated the price discipline shall be dealt with
seriously.

The National Tourism Administration shall, working in coordination with
such departments as the State Statistical Bureau, the State Administration of
Foreign Exchange Control, the Ministry of Finance, and the Bank of China,
strengthen the statistical work on the tourist enterprises’ receipts and
expenditures, and tighten the control of the foreign exchange receipts and
expenditures of the tourist enterprises, establish the system for the
settlement of tourist foreign exchange, and bring this work into line with the
State plan. It is imperative to formulate, through studies, the Measures for
Foreign Exchange Control in Tourism and the Measures for the Financial
Administration of Foreign Exchange in Tourism, and submit these two documents
to the State Council for approval before implementation so as to reverse as
early as possible the present situation of serious drain on foreign exchange
earnings from tourism.

8. Developing vigorously the manufacture and marketing of tourist goods
and tourist souvenirs, increasing the volume of the foreign exchange earning
from tourism in our country and improving its economic results. The
manufacture and marketing of tourist goods and tourist souvenirs constitute an
important component part of the tourist industry, and is also an important
channel for earning foreign exchange for the State. It is imperative to
establish gradually a nationwide network for the production and marketing of
tourist goods and tourist souvenirs. For the aforesaid purpose, the “China
Tourist Services Company” under the National Tourism Administration, the
“China Tourist Products Production and Supply Company” under the Ministry of
Light Industry, and the “China Friendship Services Company” under the Ministry
of Commerce shall be taken as the foundation; their leading role shall be
brought into full play, and their businesses shall be further expanded so that
they shall grow into complexes of enterprises specialized in different lines
of business, handling different assortments of tourist goods and tourist
souvenirs. These complexes of enterprises may establish, in a planned way, a
number of production bases for the production of tourist souvenirs, and a
number of research institutes for carrying on studies in the marketing
quotations of international tourist goods and tourist souvenirs and for
developing new products, so that scientific research and product development
will be combined in the integrated process of production-supply-marketing. It
is necessary to encourage various places, especially the key tourist areas, to
vigorously develop the production of tourist goods and tourist souvenirs that
are of national style with various local colours, to increase designs and
varieties, to expand channels for sources of goods, to improve sales service,
and to strengthen market administration. It is imperative to implement
conscientiously the provisions approved long ago by the State Council: “the
foreign exchange earned through the sales of tourist goods shall be deemed as
the foreign exchange earned by foreign trade” and to formulate, through
studies, specific measures for carrying out the said provisions; with respect
to those export goods which do not come under the licence control, it is
important to expand their sales to foreign tourists; the selling prices of
tourist goods and tourist souvenirs shall be handled flexibly in accordance
with the different conditions of goods supply, the international market
quotations, and the specific marketing policy pursued by the economic and
trade departments. The special raw and processed materials which are needed
for the development of the production of tourist goods and tourist souvenirs
and are in short supply in the country, shall be brought into the goods supply
channels handled by the departments of goods and materials at various levels;
those raw and processed materials that are imported solely by the State shall
be brought into the plan for importation executed by the State; the special
imported raw and processed materials needed shall be handled in accordance
with the pertinent provisions in Document No. 16 (1987) issued by the General
Office of the State Council. As Beijing, Shanghai, and Guangzhou are the three
main ports of entry and exit for overseas tourists, they shall be turned into
cities with sizable tourist shopping centres and good reputation in Asia.

At present, some tourist hotels that specialize in receiving foreign
guests spend a large amount of foreign exchange in importing fitting-up
materials, sanitary utensils, machinery and electrical equipment, and spare
and component parts. In order to change this situation without delay, from now
on, all similar products which can already be manufactured in our country and
reasonably priced and whose quality and delivery time can be guaranteed shall
cease to be imported. We suggest that a catalogue of products to be restricted
in importation be put forward by the departments concerned and the importation
of the aforesaid products shall be examined and approved by the administrative
departments of the trades concerned.

9. Strengthening the building of a contingent of tourist personnel and
paying close attention to the education in professional ethics and
professional discipline. It is imperative to improve the educational work in
schools and institutes of tourism and the professional training of tourist
personnel, especially, the training of qualified specialized personnel at
various levels and of different categories. It is also imperative to intensify
the education in professional ethics and professional discipline, so as to
improve the political and professional quality of tourist personnel, to foster
a sense of honour and responsibility, to oppose all kinds of unhealthy
tendencies, to improve the quality of tourist services and offer high-quality
services, thus enabling our tourist industry to establish good international
reputation and image.

10. Strengthening the coordination between different departments
concerned. The tourist industry is a comprehensive undertaking, the
development of which relies not only on its own work, but also on the close
coordination with such organizations as the departments of aviation,
communications, city construction, gardens and parks, historical relics,
culture, light industry, textile industry, commerce, and religious affairs.
The tourist industry is also a trans-regional trade, and a large amount of
organizational work shall be done by the local departments; a harmonious
coordination is thus indispensable. Tourist departments at various levels
shall strengthen their coordination with other departments concerned and make
joint efforts in promoting a sound and co-ordinated development of the tourist
industry in our country.

STATE COUNCIL’S OFFICIAL REPLY CONCERNING THE RENAMING OF THE MARITIME ARBITRATION COMMISSION AS THE CHINA MARITIME ARBITRATION COMMISSION AND THE AMENDMENT OF ITS ARBITRATION RULES

Category	ARBITRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1988-06-21	Effective Date	1989-01-01

THE State Council’s Official Reply Concerning the Renaming of the Maritime Arbitration Commission As the China Maritime Arbitration Commission and the Amendment of Its Arbitration Rules

The Official Reply
CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES (Adopted on
Chapter I  General Provisions
Chapter II  Arbitration Proceedings
CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES
Chapter I  General Provisions
Chapter II  Arbitration Proceedings
Chapter III  Summary Proceedings
Chapter IV  Supplementary Provisions

(June 21, 1988)

The Official Reply

China Council for the Promotion of International Trade:

The State Council approves the renaming of the Maritime Arbitration
Commission of your Council as the China Maritime Arbitration Commission. The
existing relationship of its subordination remains unchanged.

The Arbitration Rules of the China Maritime Arbitration Commission shall
be amended by your Council in accordance with China’s laws and the
international treaties concluded or acceded to by China and with reference to
international practice, and then promulgated for implementation after adoption
by your Council. Hereafter, any amendments to the Arbitration Rules shall be
made by your Council’s own decision.

CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES (Adopted on
September 12, 1988 at the Third Session of the First National Congress of the
China Council for the Promotion of International Trade (China Chamber of
International Commerce))
Chapter I General Provisions

Section 1 Jurisdiction

Article 1 The China Maritime Arbitration Commission (hereinafter referred
to as the Arbitration Commission) independently and impartially settles
maritime disputes by means of arbitration so as to protect the justified
rights and interests of the parties and promote shipping industry and foreign
economic and trade development.

Article 2 Upon receiving written application of one of the disputing
parties and in accordance with written agreement concluded between the
parties, prior or subsequent to the occurrence of dispute, to refer their
dispute to the Arbitration Commission for arbitration, the Arbitration
Commission takes cognizance of:

(1) disputes regarding remuneration for salvage services rendered by
sea-going vessels to each other or by a sea-going vessel to a river craft and
vice versa;

(2) disputes arising from collisions between sea-going vessels or between
sea-going vessels and river craft or from damages caused by sea-going vessels
to harbour structures or installations;

(3) disputes arising from chartering, agency, towage, raising, sale,
repairing and building of or in respect of sea-going vessel, carriage by sea
in virtue of contracts of affreightment, bills of lading or other shipping
documents, and marine insurance;

(4) disputes regarding pollution damages to marine environmcnt;

(5) other maritime disputes submitted for arbitration by agreement between
the parties.

An arbitration agreement means the arbitration clause stipulated by the
parties in their contract, or agreements in writing concluded in other forms
to submit disputes for arbitration.

The Arbitration Commission has power to decide on the validity of
arbitration agreement and the jurisdiction over arbitration cases.

Section 2 Organization

Article 3 The Arbitration Commission is composed of Chairman,
Vice-Chairmen and Commission members.

The Chairman performs functions and duties given by these Rules and any
Vice-Chairman, if authorized by the Chairman, may perform the functions and
duties of the Chairman.

Under the Arbitration Commission, a Secretariat is established to handle
the day-to-day work of the Arbitration Commission.

Article 4 The Arbitration Commission maintains a panel of arbitrators.
The arbitrators are selected and appointed by the China Council for the
Promotion of International Trade (China Chamber of International Commerce)
from among Chinese and foreign persons with relevant expertise and practical
experience.

Article 5 The Arbitration Commission is located in Beijing. The
Arbitration Commission may, according to the requirement of development of
arbitration business, establish sub-commissions in other places within the
territory of China.
Chapter II Arbitration Proceedings

Section 1 Application for Arbitration, Defence and Counterclaims

Article 6 The Claimant must submit his Application for Arbitation to the
Arbitration Commission in accordance with the following requirements:

(1) an Application for Arbitration in writing must be submitted to the
Arbitration Commission. The following must be specified in the Application for
Arbitration:

(a) the name and address of the Claimant and those of the Respondent;

(b) the arbitration agreement relied upon by the Claimant;

The Application for Arbitration shall be signed by the Claimant and/or the
attorney authorized by the Claimant.

(2) when submitting an Application for Arbitration to the Arbitration
Commission, relevant documentary evidence on which the Claimant’s claim is
based shall accompany the Application for Arbitration.

(3) the Claimant shall appoint an arbitrator from among the Panel of
Arbitrators of the Arbitration Commission or authorize the Chairman of the
Arbitration Commission to make an appointment on his behalf.

(4) the Claimant shall pay an arbitration fee in advance to the
Arbitration Commission according to the Arbitration Fee Schedule attached to
these Rules.

Article 7 After receipt of the Application for Arbitration and its
attachments and when the Arbitration Commission, after examination, deems that
the Claimant has completed the formalities required for arbitration, the
Arbitration Commission shall immediately mail to the Respondent one copy each
of the Claimant’s Application for Arbitration and its attachments as well as
the Arbitration Rules and the Panel of Arbitrators of the Arbitration
Commission.

Article 8 The Respondent shall, within 20 days after receipt of the
Application for Arbitration, appoint an arbitrator from among the Panel of
Arbitrators of the Arbitration Commission, or authorize the Chairman of the
Arbitration Commission to make an appointment on his behalf and shall, within
45 days after receipt of the Application for Arbitration, submit his defence
and relevant documentary evidence to the Arbitration Commission.

Article 9 The Respondent shall file with the Arbitration Commission his
counter-claim, if any, in connection with the case taken cognizance of by the
Arbitration Commission, within the time limit as specified in Article 8 for
the submission of his defence. The Respondent must state, in his
counter-claim, his claim and the facts and evidence on which his claim is
based and attach relevant documentary evidence to his counter-claim.

When filing a counter-claim, the Respondent must pay an arbitration fee in
advance according to the Arbitration Fee Schedule attached to these
Arbitration Rules.

Article 10 The Arbitration Commission has discretion to ask the
Respondent to pay in advance a part of arbitration fees when it deems it
necessary.

Article 11 When submitting an Application for Arbitration, defence,
counter-claim, relevant documentary evidence and other documents to the
Arbitration Commission, the parties shall provide duplicate copies as many as
the number of the other party/parties and the arbitrators, of whom the
arbitration tribunal is composed.

Article 12 The parties may authorize attorneys to confer with the
Arbitration Commission on matters relating to arbitration. Such attorneys may
be citizens of China or foreign citizens. The authorized attorney must produce
a Power of Attorney to the Arbitration Commission.

Article 13 The Arbitration Commission may, pursuant to the request of the
parties and in accordance with the Chinese law, apply to the Chinese court in
the place where the property of the Respondent(s) is or in the place where the
arbitration institution is located for a decision in respect of taking
preservative measures.

Section 2 Composition of Arbitration Tribunal

Article 14 After each of the two parties has chosen one arbitrator from
among the Panel of Arbitrators of the Arbitration Commission or the Chairman
of the Arbitration Commission has made such an appointment under the
authorization by the party/parties, the Chairman of the Arbitration Commission
shall appoint a third arbitrator from among the Panel of Arbitrators of the
Arbitration Commission as the presiding arbitrator to form an arbitration
tribunal to hear the case.

Article 15 Both parties may jointly appoint or authorize the Chairman of
the Arbitration Commission to appoint one arbitrator from among the Panel of
Arbitrators of the Arbitration Commission as a sole arbitrator to form an
arbitration tribunal to hear the case alone.

If both parties have agreed on the appointment of a sole arbitrator to
hear their case alone but failed to agree on the choice of such a sole
arbitrator within 20 days as from the date on which the Respondent receives
the Application for Arbitration or as from the date on which both parties
reach an agreement to have their case heard by a sole arbitrator, the Chairman
of the Arbitration Commission shall appoint the sole arbitrator.

Article 16 If the Respondent fails to appoint and fails to authorize the
Chairman of the Arbitration Commission to appoint an arbitrator according to
Article 8 of these Rules, the Chairman of the Arbitration Commission has the
power to appoint an arbitrator for the Respondent.

Article 17 When there are two or more Claimants and/or Respondents in an
arbitration case, the Claimants’ side and/or the Respondents’ side shall each,
through consultation, appoint one arbitrator from among the Panel of
Arbitrators of the Arbitration Commission. If the Claimants’ side fails to
make such appointment at the time when the Claimants submit their Application
for Arbitration and/or Respondenls’ side is unable to appoint one arbitrator
within 20 days as from the date on which the last Respondent receives the
Application for Arbitration, the appointment shall be made by the Chairman of
the Arbitration Commission.

Article 18 Any appointed arbitrator having personal interest in the case
shall himself request the Arbitration Commission for withdrawal from his
office and the parties have the right to make a request in writing to the
Arbitration Commission for a withdrawal of the arbitrator from his office.

Article 19 A party who intends to challenge an arbitrator must put
forward his challenge before the first oral hearing of the case. If the
grounds for challenge come out or become aware of after the first oral
hearing, the challenge may be raised before the conclusion of the last hearing.

Article 20 The Chairman of the Arbitration Commission shall decide on the
challenge.

Article 21 If an arbitrator cannot perform his duty due to withdrawal or
other reasons, a substituted arbitrator shall be appointed in accordance with
the procedure pursuant to which the original arbitrator was appointed.

Section 3 Hearing

Article 22 The arbitration tribunal shall hold oral hearings to hear the
case. However, at the request of the parties or with their consent, oral
hearings may be omitted and the arbitration tribunal may examine the case and
make an award on the basis of documents only.

Article 23 The date of oral hearing shall be decided by the arbitration
tribunal in consultation with the Secretariat of the Arbitration Commission
and the notice of hearing shall be communicated to the parties 30 days before
the date of hearing. A party having justified reasons may request for
postponement of the date of hearing. But his request must be communicated to
the Secretariat of the Arbitration Commission 12 days before the date of
hearing unless unforeseeable special circumstances occur. The Seretariat shall
inform the arbitration tribunal of his request and the arbitration tribunal
shall decide thereon, in consultation with the Secretariat.

Article 24 The cases taken cognizance of by the Arbitration Commission
shall be heard in the place where the Arbitration Commission is located and
may, with the approval of the Chairman of the Commission, be heard in other
places.

Article 25 The arbitration tribunal shall not hear cases in open
sessions. If both parties request hearings in open sessions, the arbitration
tribunal shall decide thereon.

Article 26 The parties shall give evidence for the facts on which their
claim or defence is based. The arbitration tribunal may, if it deems it
necessary, make investigation and collect evidence on its own initiative.

Article 27 The evidence shall be examined and approved by the arbitration
tribunal.

Article 28 The arbitration tribunal may consult experts or appoint
appraisers for the clarification of special questions relating to the cases.
Such experts and appraisers may be Chinese or foreign organizations or
citizens.

Article 29 Should one of the parties or his attorney fail to appear at
the hearing, the arbitration tribunal may proceed with the hearing and make an
award by default.

Article 30 During hearings, the Secretariat of the Arbitration Commission
shall take records in writing and/or tape-recordings and the arbitration
tribunal may, if it deems it necessary, order the parties and/or their
attorneys, witnesses and/or other persons involved to sign the records taken.

Article 31 If both parties reach a settlement by themselves of a case
under the cognizance of the Arbitration Commission, the Claimant shall timely
request for withdrawal of the case. Dismissal of the case shall be decided by
the Chairman of the Arbitration Commission before an arbitration tribunal is
formed and by the arbitration tribunal after the arbitration tribunal is set
up.

If the party or the parties refer the dismissed case again to the
Arbitration Commission for arbitration, the Chairman of the Arbitration
Commission shall decide whether to accept the reference or not.

Section 4 Award

Article 32 The arbitration tribunal shall render an arbitral award within
45 days after the closing of examination and hearing.

Article 33 Where a case is heard by an arbitration tribunal composed of
three arbitrators, the arbitral award shall be decided by the majority of the
arbitrators and the minority opinion can be written down in the record and
docketed into the file.

Article 34 The arbitration tribunal shall state the reasons upon which
the arbitral award is based unless the award is made in accordance with the
Article 37. The arbitral award shall be signed by all or majority of the
arbitrators sitting in the arbitration tribunal and shall contain the date and
place on and in which the arbitral award is made.

Article 35 The arbitration tribunal may, if it deems it necessary or the
parties so request and it agrees, make an interim, interlocutary or partial
award on any issue of the case at any time in the process of arbitration.

Article 36 The arbitral award is final and neither party may bring a suit
before a law-court or make a request to another organization for revising the
arbitral award.

Article 37 The Arbitration Commission and the arbitration tribunal may
conciliate cases under their cognizance. In case a settlement agreement is
reached through conciliation, the arbitration tribunal shall make an award in
accordance with the contents of the settlement agreement reached by and
between both parties.

Article 38 The parties must automatically execute the arbitral award
within the time limit specified in the award. If no time limit is specified in
the award, the parties shall carry out the award immediately.

In case either party fails to execute the award, the other party may,
pursuant to the Chinese law, apply to the Chinese court for enforcement of the
award or, according to the 1958 Convention on the Recognition and Enforcement
of Foreign Arbitral Awards or other international treaties that China has
concluded or acceded to, apply to the foreign court which has jurisdiction for
enforcement of the award.

Chapter III Supplementary Provisions

Article 39 The Chinese language is the official language of the
Arbitration Commission. At the hearing, if the parties or their attorneys or
witnesses are not familiar with the Chinese language, the Secretariat of the
Arbitration Commission may provide them or the parties may bring with them
their interpreters.

The Secretariat of the Arbitration Commission may, if it deems it
necessary, ask the parties to hand in corresponding translation copies in
Chinese or other languages of the various documents and evidential materials
submitted by the parties.

Article 40 Any written communication from the Arbitration Commission to
the parties is deemed to have been received if it is delivered to the
addressee personally or if it is delivered at his place of business, habitual
residence or mailing address; or if none of these can be found after making a
reasonable inquiry, a written communication is deemed to have been received if
it is sent to the addressee’s last known place of business, habitual residence
or mailing address by registered letter or by any other means which provides
a record of the attempt to deliver it.

Article 41 Apart from charging arbitration fees from the parties
according to the Arbitration Fee Schedule attached to these Rules, the
Arbitration Commission may collect from the parties other actual expenses
including arbitrators’ remuneration and their travel and boarding expenses for
dealing with the case and the fees and expenses for expert, apraisers and
interpreters appointed by the arbitration tribunal, etc.

Certain fees and actual expenses incurred may be collected by the
Arbitration Commission if a case is withdrawn after the parties have reached
by themselves a settlement agreement.

Article 42 These Rules shall also apply to the cases of dispute taken
cognizance of by the Sub-Commissions of the Arbitration Commission. In the
arbitration proceedings conducted by the Sub-Commissions of the Arbitration
Commission, the functions and duties of the Chairman and the Secretariat of
the Arbitration Commission under these Rules shall be performed by the
Chairmen and the Secretariats of the Sub-Commissions.

Article 43 These Rules shall come into force as of January 1, 1989.

Arbitration Fee Schedule

Amount of Claim (RMB)
Amount of Fee (RMB)

100,000 Yuan or less 6%
of the amount of claim, minimum 2,000

Yuan

100,000 Yuan to 500,000 Yuan 6,000 Yuan plus 4% of the excess over

100,000 Yuan

500,000 Yuan to 1,000,000 Yuan 22,000 Yuan plus 3% of the excess over

500,000
Yuan

1,000,000 Yuan to 5,000,000 Yuan 37,000 Yuan plus 1.5% of the excess over

1,000,000
Yuan

5,000,000 Yuan or more 97,000 Yuan
plus 0.7% of the excess over

5,000,000
Yuan

If no amount of claim is stated when applying for arbitration, the amount
of arbitration fees shall be determined by the Secretariat of the Arbitration
Commission.

If the arbitration fee is charged in foreign currency, an amount of
foreign currency equivalent to the corresponding RMB value specified in this
Schedule shall be paid.

CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES
(Revised and adopted by China Council for the Promotion of International Trade
on September 4, 1995)

Chapter I General Provisions

Section 1 Jurisdiction

Article 1 These Rules are formulated in accordance with the Arbitration
Law of the People’s Republic of China, the provisions of relevant laws, and
the Decision, Circular and Official Reply of the State Council.

Article 2 The China Maritime Arbitration Commission (formerly known as
Maritime Arbitration Commission of China Council for the Promotion of
International Trade, hereinafter referred to as the Arbitration Commission),
by means of arbitration, independently and impartially settles maritime
disputes arising from transportation, production and navigation conducted in
oceans, coastal waters and water areas adjacent to sea, either contractual or
non-contractual, so as to protect the justified rights and interests of the
parties and promote shipping industry at home and abroad and foreign economic
and trade development.

The Arbitration Commission takes cognizance of the following cases of
maritime disputes:

(1) disputes arising from salvage of vessels and general average;

(2) disputes arising from collisions of vessels or from damages caused by
vessels to structures or installations at sea, in water areas adjacent to sea
or in harbours, or to sea-bed or underwater installations;

(3) disputes arising from management, operation, chartering, mortgage,
agency, towage, raising, sale, repairing, building and dismantling of or in
respect of sea-going vessel/vessel on water, carriage by sea/water in virtue
of contracts of affreightment, bills of lading or other documents, and
marine/water insurance;

(4) disputes regarding exploitation and utilization of marine resources
and pollution damages to marine environment;

(5) disputes arising from agency contracts for carriage of goods,
contracts for the supply of vessel materials, contracts of employment of
foreign crew or contracts of fishing production or fishery;

(6) other maritime disputes submitted for arbitration by agreement between
the parties.

Article 3 The Arbitration Commission takes cognizance of cases upon
receiving written application of one of the disputing parties and in
accordance with written agreement concluded between the parties, prior or
subsequent to the occurrence of dispute, to refer their dispute to the
Arbitration Commission for arbitration.

An arbitration agreement means the arbitration clause stipulated by the
parties in their contract, or an agreement in writing concluded in other forms
to submit disputes for arbitration.

Article 4 The Arbitration Commission has power to decide on the existence
and validity of arbitration agreement and the jurisdiction over arbitration
cases. If the parties dispute over the validity of the arbitration agreement,
the people’s court shall decide on the validity when one of the parties applies
to the Arbitration Commission for decision on the validity and another party
applies to the people’s court for decision.

Article 5 An arbitration clause in a contract should be deemed as a
clause separate and independent from other clauses of the contract, and an
arbitration agreement attached to a contract also be deemed as one part
separate and independent from other clauses of the contract. The
modification, rescission, termination, annulment or invalidity, existence or
not of such a contract cannot prejudice the effect of the arbitration clause
or arbitration agreement.

Article 6 Defence to the arbitration agreement and/or the jurisdiction
over an arbitration case shall be submitted prior to the first hearing of the
arbitration tribunal; defence to the jurisdiction over a case examined on the
basis of documents only shall be submitted prior to the first substantial
defence.

Article 7 If any party agrees to refer his dispute to the Arbitration
Commission, he is deemed to accept the arbitration under these Rules.

Section 2 Organization

Article 8 The Arbitration Commission has one Honorary Chairman and
Consultants.

Article 9 The Arbitration Commission is composed of Chairman,
Vice-Chairmen and Commission members. The Chairman performs functions and
duties given by these Rules and any Vice-Chairman, if authorized by the
Chairman, may perform the functions and duties of the Chairman.

Under the Arbitration Commission, a Secretariat is established to handle
the day-to-day work of the Arbitration Commission under the leadership of the
Secretary of the Arbitration Commission.

Article 10 The Arbitration Commission maintains a panel of arbitrators.
The arbitrators are selected and appointed by the Arbitration Commission from
among Chinese and foreign persons with expertise and practical experience in
navigation, carriage by sea, foreign trade, insurance, law and other fields.

Article 11 The Arbitration Commission is located in Beijing. The
Arbitration Commission may, according to the requirement of development of
arbitration business, establish sub-commissions in other places within the
territory of China.
Chapter II Arbitration Proceedings

Section 1 Application for Arbitration, Defence and Counterclaim

Article 12 The arbitration proceedings commence from the date on which
the Arbitration Commission issues the Arbitration Notice.

&nbsp

CIRCULAR OF THE STATE COUNCIL CONCERNING THE EXTENSION OF THE LIMITS OF POWER VESTED WITH THE INLAND PROVINCES, AUTONOMOUS REGIONS, MUNICIPALITIES SEPARATELY LISTED IN THE STATE PLAN AND THE DEPARTMENTS CONCERNED UNDER THE STATE COUNCIL IN EXAMINING AND APPROVING FOREIGN INVESTMENT ABSORPTION

Category	FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1988-07-03	Effective Date	1988-07-03

Circular of the State Council Concerning the Extension of the Limits of Power Vested With the Inland Provinces, Autonomous Regions, Municipalities Separately Listed in the State Plan and the Departments Concerned under the State Council in Examining and Approving Foreign Investment Absorption

(July 3, 1988)

With a view to further implementing the policy of opening to the outside
world and to promoting the all-round development of the national economy, the
State Council has decided to appropriately extend the limits of power vested
with the inland provinces, autonomous regions, and municipalities separately
listed in the state plan, the relevant ministries and commissions under the
State Council, and the State Bureau of Building Materials Industry, the State
Administration for Medicine, the State Bureau of Technology Supervision, the
State Administration for Environmental Protection, the Civil Aviation
Administration of China, the National Tourism Administration, the National
Bureau of Oceanography, the National Meteorological Bureau, the State
Seismological Bureau, and the Chinese Academy of Sciences in examining and
approving foreign investment. With respect to productive projects developed
by absorbing foreign investments, provided these projects are in conformity
with the investment orientation stipulated by the state, their conditions of
construction and productive operations as well as their foreign exchange
income and expenditure do not require comprehensive balance to be conducted
by the state, and the export of their products does not involve export quota
or administration of export licences, the present limits of authority vested
with the aforesaid localities and departments in examining and approving
projects with a total amount of investment of five million U.S. dollars or
below each shall be extended to ten million U.S. dollars or below each. After
approval, the projects shall be reported to the State Planning Commission for
the record.

Where enterprises with foreign investments are set up by people’s
organizations, their applications shall be examined and approved by the
province, autonomous region, municipality directly under the Central
Government, or municipality separately listed on the state plan, where the
said enterprises are located.

This Circular shall become effective as of the date of promulgation.?

DETAILED IMPLEMENTING RULES GOVERNING THE REGULATIONS FOR THE CONTROL OF ADVERTISING

Detailed Implementing Rules Governing the Regulations for the Control of Advertising

(Effective Date:1988.01.09–Ineffective Date:)

(Promulgated 9 January 1988 by the State Administration for Industry and Commerce)

Article 1. These Detailed Implementing Rules are formulated in accordance with the provisions of Article 21 of the Regulations for the Control
of Advertising (hereinafter referred to as the Regulations).

Article 2. The administrative scope as prescribed by Article 2 of the Regulations shall include:

(1) advertisements printed in newspapers, periodicals, books, name registries, etc.;

(2) advertisements broadcast on radio or television or through films, videos, slide shows, etc.;

(3) advertisements on buildings in streets, public squares, airports, railway stations, wharves, etc., or on billboards in vacant
spaces, or using neon lights, electronic display boards, display windows, lanterns, walls, etc.;

(4) advertisements displayed or posted inside or outside such places as theatres, stadiums, cultural centres, exhibition halls, guest
houses, restaurants, sightseeing and amusement centres, markets, etc.;

(5) advertisements displayed, drawn or posted on vehicles, vessels, aeroplanes or other means of transport;

(6) publicity material on various types of products which is sent through the mail;

(7) advertising publicity gained through the presentation of samples of products;

(8) advertising using other forms of media or other means to publish, broadcast, display or post advertisements.

Article 3. An enterprise applying for approval to engage in advertising operations, in addition to meeting enterprise registration requirements,
etc., shall also be required to meet the following conditions;

(1) establish an organisation responsible for conduction market surveys and provide the relevant specialised personnel;

(2) provide administrative personnel familiar with advertising control legislation and personnel able to undertake the design, production
and editing of advertisements;

(3) provide full-time accounting personnel;

(4) have the ability to provide the relevant services if applying to undertake contract work for or to act as agent for foreign businessmen
who come to China to advertise.

Article 4. A public institution applying to engage in advertising operations part-time shall meet the following conditions:

(1) have the means to directly issue advertisements and the technology and equipment required for the design and production of advertisements;

(2) provide administrative personnel and editorial personnel familiar with advertising control legislation;

(3) establish an independent accounting system, to be staffed by full-time or part-time accounting personnel.

Article 5. If a Sino-foreign joint equity enterprise or a Sino-foreign co-operative enterprise applies to engage in advertising operations,
the matter shall be handled in accordance with the Regulations, these Detailed Implementing Rules and other relevant regulations.

Article 6. If an individual industrial or commercial household operation applies to engage in advertising operations, in addition to meeting
the requirements prescribed in the Provisional Regulations governing the Administration of Individual Industrial and Commercial Household
Operations in Towns and Villages, the individual shall also be required to be skilled in the specialised field of advertising, to
be familiar with advertising control legislation and to qualify through an examination.

Article 7. In accordance with be provisions of Article 6 of the Regulations, the examination, approval and registration of an advertising operator
shall be conducted as follows:

(1) A national advertising enterprise or a Sino-foreign joint equity enterprise or Sino-foreign co-operative enterprise wanting to
engage in advertising operations shall apply to the State Administration for Industry and Commerce and, subject to verification and
approval of its application, shall be issued with a business licence of the People’s Republic of China.

A regional advertising enterprise shall apply to its local municipal or county administration for industry and commerce and shall
be issued with a corporate business licence by the said administration, subject to verification and approval of the application by
the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality or
an authorised municipal administrative body under provincial jurisdiction.

(2) A public institution wanting to engage part-time in advertising activities shall apply to its local municipal or county administration
for industry and commerce and shall be issued with an advertising permit by the said administration, subject to verification and
approval of the application by the administration for industry and commerce of the relevant province, autonomous region or directly
administered municipality or an authorised municipal administrative body under provincial jurisdiction.

A public institution engaged part-time in advertising activities, which wishes to undertake direct advertising work for foreign businessmen
who come to China to advertise, shall apply to the administration for industry and commerce of the relevant province, autonomous
region or directly administered municipality and shall be issued with an advertising licence of the People’s Republic of China by
the said administration, subject to its inspection of the application and subsequent examination and approval of the application
by the State Administration for Industry and Commerce.

(3) An independent industrial or commercial household operation wanting to engage in advertising activities shall apply to its local
municipal or county administration for industry and commerce and shall be issued with a business licence by the said administration,
subject to verification and approval of the application by the administration for industry and commerce of the relevant province,
autonomous region or directly administered municipality or an authorised municipal administrative body under provincial jurisdiction.

(4) A unit wanting to engage in advertising operations within a local area for a short period shall apply to the administration for
industry and commerce of the relevant province, autonomous region or directly administered municipality or an authorised municipal
administrative body under provincial jurisdiction and shall be issued with a temporary advertising licence, subject to its examination
and approval of the application. A unit wanting to engage in advertising operations nationally for a short period shall apply to
the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality and
shall be issued with a temporary advertising licence by the said administration, subject to approval of the application by the State
Administration for Industry and Commerce.

Article 8. A public institution engaging in part-time advertising activities may, subject to examination and approval, act as agent for other
advertising operations which use similar mediums.

Article 9. If an advertising client applies to use a medium other than radio, television or the print media to advertise cigarettes, prior approval
must be obtained from the administration for industry and commerce of the relevant province, autonomous region, directly administered
municipality or authorised municipal administrative body under provincial jurisdiction.

If an advertising client applies to advertise any of the high quality spirits which have received any of the various national, department
or provincial level awards, prior approval must be obtained from the administration for industry and commerce of the relevant province,
autonomous region, directly administered municipality or authorised municipal administrative body under provincial jurisdiction.
When using the print or broadcast media to advertise alcoholic beverages of up to 39 per cent (including 39 per cent) alcohol, the
specific amount must be clearly stated.

Article 10. In accordance with the provisions of Article 7 of the Regulations, a client applying for the issue of an advertisement shall present
the appropriate certificate as follows:

(1) An industrial or commercial enterprise or an independent industrial or commercial household operation shall present for inspection
a copy of its corporate business licence or business licence respectively.

(2) An administrative organ, social group or public institution shall present the certificate of its respective unit.

(3) An individual shall present a certificate issued by his/her local township, village, subdistrict office or unit.

(4) A national enterprise, Sino-foreign joint equity enterprise, Sino-foreign co-operative enterprise or sole foreign investment enterprise
shall present for inspection its business licence of People’s Republic of China, issued by the State Administration for Industry
and Commerce.

(5) A resident representative office of a foreign enterprise shall present for inspection its certificate of registration as the resident
representative office in china of a foreign enterprise.

Article 11. When applying to advertise a commodity, a quality certificate verifying that the commodity complies with State standards, department
standards (specialised standards) or enterprise standards shall be presented for inspection in accordance with the provisions of
item (1) of Article 11 of the Regulations.

Article 12. When applying to advertise a commodity as an award winner, a certificate attesting to the granting of the award and issued by a competent
administrative department at the level of province, autonomous region, directly administered municipality or above shall be presented
in accordance with the provisions of item (2) of Article 11 of the Regulations.

Article 13. In accordance with the provisions of item (7) of Article 11 of the Regulations, the relevant certificates shall be presented when
applying to release any of the following types of advertisements:

(1) If advertising the publication of a newspaper or periodical, a registration certificate verified by the news publishing organ
of the relevant provincial, autonomous region or directly administered municipality shall be presented.

(2) If advertising the publication of a book, a certificate issued by the relevant news publishing organ approving the establishment
of the publishing house shall be presented.

(3) If advertising any of the various types of artistic and cultural performances, a certificate authorising the performance, issued
by the department in charge of cultural affairs at local county level or above, shall be presented.

(4) If a university or college is advertising to recruit students, a certificate issued by the State Education Commission or the education
administrative department of the relevant province, autonomous region or directly administered municipality, authorising the release
of such advertisements through the press and broadcast media, shall be presented. In the case of polytechnic schools, a certificate
issued by the local district (municipal) education administrative department, authorising the release of such advertisements through
the print and broadcast media, shall be presented. If advertising to recruit foreigners to study in China, it shall be necessary
to present a certificate issued by the State Education Commission authorising such advertising through the press and broadcast media.

(5) If advertising any of the various after-school supplementary educational classes, recruiting students for specialised technical
training classes or advertising to recruit workers or to invite applications for employment positions, a certificate issued by an
education administrative department or labour and personnel department at county level or above, authorising the release of such
advertisements through the press and broadcast media, shall be presented.

(6) If advertising individual medical practices, a certificate approving the practitioner, issued by the relevant health administration
department at county level or above, and a certificate verifying and approving the content of the advertisement shall be presented.

(7) If advertising pharmaceuticals or related products, a pharmaceutical advertising examination and approval list verified by a health
administration department of the relevant local province, autonomous region or directly administered municipality shall be presented.

(8) If advertising veterinary medicines, a certificate of approval issued by an agriculture, animal husbandry and fisheries administrative
organ of the relevant province, autonomous region or directly administered municipality shall be presented.

(9) If advertising agricultural chemicals, an agricultural chemical advertising examination and approval list, examined and approved
by the Ministry of Agriculture, Animal Husbandry and Fisheries or the drug inspection or plant protection department of the agriculture,
animal husbandry and fisheries office (bureau) of the relevant province, autonomous region or directly administered municipality,
shall be presented.

Article 14. In accordance with the provisions of item (8) of Article 11 of these Regulations, the relevant certificates shall be presented when
applying to use the print or broadcast media to publicise advertisements of the following content:

(1) If advertising foodstuffs, a foodstuffs advertising examination and approval list approved by the foodstuffs hygiene supervisory
body at the local regional (municipal) level or above shall be presented.

(2) If advertising any of the various display and sales exhibitions, order placement meetings, trade fairs, etc., a certificate of
approval issued by the department in charge of the organising unit shall be presented.

(3) If advertising to encourage bank savings deposits, a certificate from a higher level authority of the People’s Bank shall be presented.

(4) If advertising notices or statements concerning individuals, a certificate issued by the person’s unit, township (village) people’s
government or subdistrict office shall be presented.

Article 15. When a client requests an advertisement for publishing, broadcasting, displaying or posting, it shall present the original of the
certificate required or a duplicate copy to which the original certificate issuing organ has fixed its signature or seal and which
has been notarised by a public notary office.

Article 16. In accordance with the provisions of Article 15 of the Regulations, agency fees for undertaking domestic advertising work shall be
10% of the advertising costs. Agency fees of 15% of the advertising costs shall be paid when undertaking advertising work for foreign
businessmen who come to China to advertise.

Article 17. If a foreign enterprise (organisation) or person of foreign nationality needs to hire a contractor to produce and release an advertisement,
it shall commission an advertising operator authorised to provide advertising services to foreign businessmen to undertake the work.

Article 18. In accordance with the provisions of Article 12 of the Regulations, when acting as an agent for or as the issuer of an advertisement,
the agent or issuer shall be responsible for inspecting the content of the advertisement and relevant certificates and shall have
the right to request the advertising client to provide any other necessary certificates and documents. An advertising agent or issuer
shall not be permitted to continue to handle work for an advertisement if the certificate is found to be illegal or incomplete or
if the content of the advertisement is found to be false.

An advertising operator shall establish a filing system to maintain records of advertising contract registrations, reviews and services
rendered. An advertising service file shall be kept for a minimum of one year.

Article 19. If an advertising client violates the provisions of Article 3 or item (5) of Article 8 of the Regulations by using an advertisement
to mislead or cheat users and consumers, the client shall be ordered to issue an amended advertisement within a corresponding area
and, depending on the seriousness of the case, shall be fined between two and five times the cost of the advertisement, as well as
held responsible for compensation users and consumers for any resultant losses.

If an advertising operator assists a client to practise fraud, a notice of criticism may be circulated, any illegal earnings confiscated
and a fine of between two and five times the cost of the advertisement may be imposed, depending on the seriousness of the case.
If such offences continue, the advertising operator may be ordered to suspend business operations while the matter is rectified and
may have its business licence or advertising permit revoked. Joint and several liability shall be borne by the operator for any resultant
losses incurred by users and consumers.

The cost of issuing an amended advertisement shall be borne jointly by the advertising client and advertising operator.

Article 20. If the provisions of Article 4 or item (6) of Article 8 of the Regulations are violated, a notice of criticism may be circulated,
any illegal earnings may be confiscated, a fine of up 5, 000 yuan may be imposed or an order given to suspend operations while rectification
is undertaken, depending on the seriousness of the case.

Article 21. If an advertising operator violates the provisions of Article 6 of the Regulations by engaging in advertising activities without
the necessary certification or by exceeding its approved scope of operations, its illegal activities shall be banned, any illegal
earnings shall be confiscated and a fine of up to 5,000 yuan shall be imposed.

Article 22. If an advertising client violates the provisions of Article 7 of the Regulations, a notice of criticism may be circulated and a fine
of up to 5,000 yuan may be imposed, depending on the seriousness of th case.

Article 23. If the provisions of items (1), (2), (3) or (4) of Article 8 of the Regulations are violated, a notice of criticism shall be circulated
regarding the advertising operator involved, any illegal earnings by the operator confiscated and a fine of up to 10,000 yuan imposed.
The advertising client may be sent a notice of criticism and fined up to twice the amount of the advertising costs, depending on
the seriousness of the case.

Article 24. If a news unit violates the provisions of Article 9 of the Regulations, a notice of criticism may be circulated, any illegal earnings
confiscated and a fine of up to 10,000 yuan imposed, depending on the seriousness of th case.

Article 25. If an advertising operator violates the provisions of Article 10 of the Regulations, a notice of criticism may be circulated, any
illegal earnings confiscated and a fine of up to 10,000 Yuan imposed depending on the seriousness of the case.

Article 26. If an advertising client violates the provisions of Article 11 of the Regulations by forging, altering, stealing and using or illegally
copying a certificate, a notice of criticism shall be criticism shall be circulated and a fine of up to 5,000 yuan imposed.

An advertising operator which violates the provisions of items (1) or (2) of Article 11 of the Regulations shall be subject to a fine
of up to 1,000 yuan.

If an advertising operator provides a client with illegal or false certificates, a notice of criticism shall be circulated, a fine
of up to 5, 000 yuan imposed and the operator shall bear joint and several liability.

Article 27. If an advertising operator violates the provisions of Article 12 of the Regulations, a notice of criticism may be circulated, any
illegal earnings confiscated and a fine of up to 3,000 yuan imposed, depending on the seriousness of the case. If false advertising
is the result, the operator shall be responsible for issuing an amended advertisement and shall bear joint and several liability
for the losses incurred by users and consumers.

Article 28. If the provisions of Article 13 of the Regulations are violated through the illegal display or posting of advertisements, any illegal
earnings shall be confiscated, a fine of up to 5,000 yuan shall be imposed and a time limit shall be specified for the dismantling
and removal of the offending advertisements. In the event of failure to dismantle and remove such an advertisement within the specified
time limit, the dismantling and removal of the advertisement shall be enforced, with the costs being borne by the party which displayed
or posted the advertisement.

Article 29. If the provisions of Articles 14 or 15 of the Regulations are violated, an order may be issued to rectify the situation within a
specified time limit, any illegal earnings confiscated and a fine of up to 5,000 yuan imposed, depending on the seriousness of the
case.

Article 30. If a foreign enterprise or the resident representative office of a foreign enterprise violates any of the provisions of the Regulations,
the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality shall,
with reference to the provisions of these Detailed Implementing Rules, suggest a means of dealing with the matter. Such a proposal
shall be implemented subject to its approval by the State Administration for Industry and Commerce.

Article 31. The State Administration for Industry and Commerce shall be responsible for interpreting these Detailed Implementing Rules.

Article 32. These Detailed Implementing Rules shall take effect from the date of promulgation.

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE PUNISHMENT OF THE CRIMES OF CATCHING OR KILLING PRECIOUS AND ENDANGERED SPECIES OF WILDLIFE UNDER SPECIAL STATE PROTECTION

Category	CRIMINAL LAW	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	Invalidated
Date of Promulgation	1988-11-08	Effective Date	1988-11-08	Date of Invalidation	1997-10-01

Supplementary Provisions of the Standing Committee of the National People’s Congress Concerning the Punishment of the Crimes of Catching or Killing Precious and Endangered Species of Wildlife under Special State Protection

(Adopted at the Fourth Meeting of the Standing Committee of the Seventh

National People’s Congress and promulgated for enforcement by Order No.10 of
the President of the People’s Republic of China on November 8, 1988)
(Editor’s Note: This Decision has been invalidated by the Criminal Law of the
People’s Republic of China revised at the Fifth Session of the Eighth National
People’s Congress on March 14, 1997, and effective on October 1, 1997)

For the purpose of strengthening the protection of precious and endangered
species of wildlife under special state protection, the Fourth Meeting of the
Standing Committee of the Seventh National People’s Congress has decided to
make supplementary provisions to the Criminal Law: Anyone who illegally
catches or kills precious and endangered species of wildlife under special
state protection shall be sentenced to fixed-term imprisonment of not more
than seven years or criminal detention, may concurrently or exclusively be
fined; anyone who sells or resells or smuggles precious and endangered species
of wildlife under special state protection shall be punished for crimes of
speculation or smuggling.

1...456 7 Page 5 of 7

1994

REGULATIONS GOVERNING MANAGEMENT OF HIGHWAYS IN THE PRC

REGULATIONS FOR THE MANAGEMENT OF FOUNDATIONS

REGULATIONS FOR CONTROLLING THE REGISTRATION OF ENTERPRISES AS LEGAL PERSONS

DECISIONS ON PERSONNEL MANAGEMENT OF FOREIGN INVESTMENT ENTERPRISES

AUDIT REGULATIONS

CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES

WATER LAW

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF A REPORT SUBMITTED BY THE NATIONAL TOURISM ADMINISTRATION CONCERNING THE STRENGTHENING OF TOURIST WORK

STATE COUNCIL’S OFFICIAL REPLY CONCERNING THE RENAMING OF THE MARITIME ARBITRATION COMMISSION AS THE CHINA MARITIME ARBITRATION COMMISSION AND THE AMENDMENT OF ITS ARBITRATION RULES

CIRCULAR OF THE STATE COUNCIL CONCERNING THE EXTENSION OF THE LIMITS OF POWER VESTED WITH THE INLAND PROVINCES, AUTONOMOUS REGIONS, MUNICIPALITIES SEPARATELY LISTED IN THE STATE PLAN AND THE DEPARTMENTS CONCERNED UNDER THE STATE COUNCIL IN EXAMINING AND APPROVING FOREIGN INVESTMENT ABSORPTION

DETAILED IMPLEMENTING RULES GOVERNING THE REGULATIONS FOR THE CONTROL OF ADVERTISING

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE PUNISHMENT OF THE CRIMES OF CATCHING OR KILLING PRECIOUS AND ENDANGERED SPECIES OF WILDLIFE UNDER SPECIAL STATE PROTECTION

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7

Category	ADMINISTRATION FOR INDUSTRY AND COMMERCE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1988-06-03	Effective Date	1988-07-01