1996

DECISION OF THE NATIONAL PEOPLE’S CONGRESS ON THE ESTABLISHMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-04-04 Effective Date  1990-04-04  


Decision of the National People’s Congress on the Establishment of the Hong Kong Special Administrative Region

(Adopted at the Third Session of the Seventh National People’s Congress

on April 4, 1990)

    In accordance with the provisions of Article 31 and subparagraph 13 of
Article 62 of the Constitution of the People’s Republic of China, the Third
Session of the Seventh National People’s Congress decides:

    1. that the Hong Kong Special Administrative Region is to be established
as of July 1, 1997; and

    2. that the area of the Hong Kong Special Administrative Region covers the
Hong Kong Island, the Kowloon Peninsula, and the islands and adjacent waters
under its jurisdiction. The map of the administrative division of the Hong
Kong Special Administrative Region will be published by the State Council
separately.






PROVISIONS OF THE LIANYUNGANG ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE ON THE ADMINISTRATION OF COMPENSATORY TRANSFER AND SUBSEQUENT TRANSFER OF THE LAND USE RIGHT

Provisions of the Lianyungang Economic and Technological Development Zone on the Administration of Compensatory Transfer and Subsequent
Transfer of the Land Use Right

     (Effective Date:1990.03.15–Ineffective Date:)

CHAPTER ONE GENERAL PROVISIONS CHAPTER TWO TRANSFER OF LAND USE RIGHT CHAPTER THREE SUBSEQUENT TRANSFER AND MORTGAGE OF LAND USE RIGHT
CHAPTER FOUR REGAINING OF LAND USE RIGHT CHAPTER FIVE SUPPLEMENTARY ARTICLES

   Article 1 These Provisions are formulated in accordance with the relevant provisions in the Law of the People’s Republic of China on Land Administration,
the Implementing Regulations of Jiangsu Province of the Law on Land Administration, the Regulations of Jiangsu Province on the Administration
of Economic and Technological Development Zone and the actual conditions in the city for the purpose of intensifying land administration
in the Lianyungang Economic and Technological Development Zone and promoting the opening to the outside world and economic construction.

   Article 2 The land within the Lianyungang Economic and Technological Development Zone (hereinafter referred to as the Development Zone) may
be transferred against payment. The Transferred land may be subsequently transferred, mortgaged and leased. Only the land use right
is subject to transfer and subsequent transfer. The ownership of the land, the underground resources and the hidden objects thereof
belong to the State and shall not be subject to transfer and subsequent transfer.

   Article 3 All kinds of enterprises, other economic organizations or individuals both at home and abroad may be the transferee and subsequent
transferee of the land use right in the Development Zone.

The legitimate rights and interests shall be protected by law.

   Article 4 The Administrative Committee of the Lianyungang Economic and Technological Development Zone(hereinafter referred to as the Administrative
Committee of the Development Zone) shall, on behalf of the Municipal People’s Government of Lianyungang, take charge of the compensatory
transfer and subsequent transfer of the land use right within the planning scope of the Development Zone, the formalities for obtaining
and issuing the State-owned Land Use License, and administering and supervising the development, utilization and management of the
land.

   Article 5 The compensatory transfer of land use right shall be examined and approved by the People’s Government at or above the level of municipality
within the limit of authority of approving the right to use the land under local administration.

   Article 6 The transferee shall abide by the laws and regulations of the People’s Republic of China and the relevant provisions of Jiangsu Province
and Lianyungang City in establishing various kinds of enterprises or undertaking various construction projects on the land vested
with land use right.

CHAPTER TWO TRANSFER OF LAND USE RIGHT

   Article 7 The compensatory transfer of land use right refers to the economic activity of the Municipal People’s Government of Lianyungang transferring,
according to law, the right to use the land in the Development Zone against payment to the transferee for development, utilization
and management of the land.

   Article 8 The land use right may be transferred against payment in the following forms:

(1) Agreement. The Administrative Committee shall negotiate with the land use demadant and, after reaching a consensus, sign a contract
of land use right transfer.

(2) Bidding. The Administrative Committee shall send invitation for bid to creditable enterprises, other economic organizations and
individuals both at home and abroad and choose the better as the one winning the bid according to the bidding procedure.

(3) Auction. The Administrative Committee shall fix the land area to be transferred, organize the land use demandants to bid publicly
against each other and determine the land user according to the principle of “the highest bidder would be the winner”.

   Article 9 The land use right shall be transferred within the ceiling period of 50 years. In case of particular necessity, the ceiling period
may be appropriately extended upon the approval of the Municipal People’s Government of Lianyungang.

   Article 10 The written contract of transfer shall be signed for transferring the land use right. The Contract of transfer shall be notarized
by the notarization agency.

After signing the contract of transfer, the transferee shall, within the time-limit as prescribed in the contract, pay the transfer
fee to the Administrative Committee of the Development Zone, and go through the registration formalities, obtain the land use license
and pay the land use fee.

   Article 11 The transferee shall, after acquiring the land use right, strictly fulfil the contractual obligations. Any transferee failing to
fulfil the contractual obligations according to law may be fined by the Administrative Committee or even the land use right may be
taken back without compensation.

   Article 12 In setting up buildings and other installations on the land vested with land use right, the transferee shall strictly abide by the
regulations of the Development Zone on land use and the relevant provisions on construction planning and real estate administration.

CHAPTER THREE SUBSEQUENT TRANSFER AND MORTGAGE OF LAND USE RIGHT

   Article 13 The subsequent transfer of land use right refers to the economic activity of the transferee, after acquiring the land use right,
subsequently transferring the land use right to a new transferee within the period of land use right transfer. The subsequent transfer
of land use right covers such forms as sale, exchange, grant and inheritance, etc..

The mortgage of land use right refers to the economic activity of the transferee, after acquiring the land use right, mortgaging the
land use right for loan or other debt within the period of land use right transfer.

   Article 14 After the subsequent transfer or mortgage of the land use right, the new transferee and mortgagee shall fulfil the obligations as
prescribed in the original contract of land use right transfer.

While subsequently transferring and mortgaging the land use right, the ground construction and the other attached objects shall be
subsequently transferred and mortgaged concurrently. While the transferee subsequently transferring and mortgaging the ground construction
and the other attached objects, the land use right thereof shall be subsequently transferred and mortgaged concurrently.

If the subsequent transferee is an individual, the land use right may be inherited by rightful heir.

   Article 15 Land by which transfer fee is not totally paid according to the contract of transfer or land on which the investment has not reached
to the floor amount as prescribed in the contract shall not be subject to subsequent transfer and mortgage.

   Article 16 A written contract shall be signed by the two parties concerned for subsequent transfer and mortgage of land use right. The contract
of subsequent transfer and mortgage shall be approved by the Administrative Committee of the Development Zone.

   Article 17 Upon the approval of the contract of land use right subsequent transfer, the subsequent transferor shall pay the land value added
fee and the two parties concerned shall go through the related formalities for subsequent transfer registration, obtain the land
use license and pay the land administration fee. Upon the approval of the contract of land use right mortgage, the two parties concerned
shall go through the registration formalities and pay the land administration fee. Meanwhile, the new transferee and mortgagee shall,
holding the subsequent transfer contract or the mortgage contract, go through formalities for change of ownership and tax payment
with the real estate and taxation agencies of the Development Zone.

The land value added fee shall also be charged for voluntary subsequent transfer of land use right.

   Article 18 If the planned usage as prescribed in the original transfer contract needs to be modified in subsequent transfer of the land use
right, the original transferee shall, in advance, file an application with the Administrative Committee of the Zone and shall, upon
the approval thereof, re-sign modify or supplement the transfer contract and going through the formalities for subsequent transfer
registration.

   Article 19 Once the mortgage contract is canceled due to the liquidation of debt or the other causes in the case of mortgage of land use right,
the parties concerned shall cancel the mortgage registration at the Administrative Committee of the Development Zone. If the mortgagor
fails to liquidate the debt before the contract expires, the mortgagee shall have the right to dispose of land use right according
to the mortgage contract and these Provisions.

   Article 20 Any transfer and subsequent transfer of land use right in violation of these Provisions shall be invalid. The Administrative Committee
shall confiscate the illegal income, order to dismantle the illegal ground construction or other installations within a set time;
inflict administrative punishment on the responsible person(s) and the person(s) illegally subsequently transferring the land use
right and impose a fine of RMB 100-500 yuan concurrently.

CHAPTER FOUR REGAINING OF LAND USE RIGHT

   Article 21 Upon the expiration of the transfer contract of land use right, the Administrative Committee shall regain the land use right and
cancel the land use license. The basic installations and the ground construction and the attached objects shall be dealt with according
to the relevant terms of contract, if any; or shall be dealt with according to the relevant provisions of the State in absence of
such contract terms.

   Article 22 If the land user needs to continue to use the land when the contract expires, he may, six months prior to the expiration of the contract,
file an application with the Administrative Committee and, after the approval thereof, re-sign a contract of land use right transfer,
go through the related registration formalities and obtain the land use license in accordance with the stipulations in Chapter TWO
of these Provisions.

   Article 23 The land user shall timely dismantle and clear the ground buildings, facilities and installations or pay the dismantlement and clearance
fee as prescribed in the transfer contract or the subsequent transfer contract.

   Article 24 If the land use right needs to be taken back under special circumstances before the transfer contract expires, the Administrative
Committee shall inform the land user six months in advance and the two parties concerned shall negotiate about reasonable reimbursement
according to the actual conditions.

CHAPTER FIVE SUPPLEMENTARY ARTICLES

   Article 25 Before using land as investment form or cooperative condition to establish a joint venture or contractual enterprise with foreign
investor(s), the Chinese co-operator(s) shall obtain the land use right by means of transfer or subsequent transfer of the right.

   Article 26 If the land use right was acquired prior to the implementation of these Provisions, the original land use contract shall continue
to be effective. If need be, the rights and obligations may be re-determined in accordance with these Provisions.

   Article 27 The matters not regulated by these Provisions shall be dealt with according to the relevant provisions of the State and the Province.

   Article 28 The Administrative Committee of the Development Zone may formulate detailed implementing regulations in accordance with these Provisions.

   Article 29 These Provisions shall enter into force on the date of promulgation.

    






COPYRIGHT LAW

Category  INTELLECTUAL PROPERTY RIGHT Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-09-07 Effective Date  1991-06-01  


Copyright Law of the People’s Republic of China(note (1))

Contents
Chapter I  General Provisions
Chapter II  Copyright
Chapter III  Copyright Licensing Contracts
Chapter IV  Publication, Performance, Sound Recording, Video Recording and
Chapter V  Legal Liability
Chapter VI  Supplementary Provisions
Note:

(Adopted at the 15th Meeting of the Standing Committee of the Seventh

National People’s Congress on September 7, 1990, promulgated by Order No. 31
of the President of the People’s Republic of China on September 7, 1990, and
effective as of June 1, 1991)
Contents

    Chapter I    General Provisions

    Chapter II   Copyright

      Section 1  Copyright Owners and Their Rights

      Section 2  Ownership of Copyright

      Section 3  Term of Protection of Rights

      Section 4  Limitations on Rights

    Chapter III  Copyright Licensing Contracts

    Chapter IV   Publication, Performance, Sound Recording, Video Recording
and Broadcasting

      Section 1  Publication of Books, Newspapers and Periodicals

      Section 2  Performance

      Section 3  Sound Recording and Video Recording

      Section 4  Broadcasting by Radio Station or Television Station

    Chapter V    Legal Liability

    Chapter VI   Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted, in accordance with the Constitution for
the purposes of protecting the copyright of authors in their literary,
artistic and scientific works and rights and interests related to copyright,
of encouraging the creation and dissemination of works which would contribute
to the building of an advanced socialist culture and ideology and to socialist
material development, and of promoting the development and flourishing of
socialist culture and sciences.

    Article 2  Works of Chinese citizens, legal persons or entities without
legal personality, whether published or not, shall enjoy copyright in
accordance with this law.

    Works of foreigners first published in the territory of the People’s
Republic of China shall enjoy copyright in accordance with this Law.

    Any work of a foreigner published outside the territory of the People’s
Republic of China which is eligible to enjoy copyright under an agreement
concluded between the country to which the foreigner belongs and China, or
under an international treaty to which both countries are parties, shall be
protected in accordance with this Law.

    Article 3  For the purpose of this Law, the term “works” includes works of
literature, art, natural science, social science, engineering technology and
the like which are created in the following forms:

    (1) written works;

    (2) oral works;

    (3) musical, dramatic, quyi and choreographic works;

    (4) works of fine art and photographic works;

    (5) cinematographic, television and video-graphic works;

    (6) drawings of engineering designs and product designs, and descriptions
thereof;

    (7) maps, sketches and other graphic works;

    (8) computer software;

    (9) other works as provided for in law and administrative rules and
regulations.

    Article 4  Works the publication or distribution of which is prohibited by
law shall not be protected by this law.

    Copyright owners, in exercising their copyright, shall not violate the
Constitution or laws or prejudice the public interests.

    Article 5  This law shall not be applicable to:

    (1) laws; regulations; resolutions, decisions and orders of state organs;
other documents of legislative, administrative and judicial nature; and their
official translations;

    (2) news on current affairs; and

    (3) calendars, numerical tables, forms of general use and formulas.

    Article 6  Measures for the protection of copyright in works of folk
literature and art shall be established separately by the State Council.

    Article 7  Where any scientific or technological work is protected under
the Patent Law, the Law on Technology Contracts or similar laws, the
provisions of those laws shall apply.

    Article 8  The copyright administration department under the State Council
shall be responsible for the nationwide administration of copyright. The
copyright administration department under the people’s governement of each
province, autonomous region and municipality directly under the Central
Government shall be responsible for the administration of copyright in its
respective administrative area.
Chapter II  Copyright

    Section 1  Copyright Owners and Their Rights

    Article 9  The term “copyright owners” shall include:

    (1) authors; and

    (2) other citizens, legal persons and entities without legal personality
enjoying copyright in accordance with this Law.

    Article 10  The term “copyright” shall include the following personal
rights and property rights:

    (1) the right of publication, that is, the right to decide whether to make
a work available to the public;

    (2) the right of authorship, that is, the right to claim authorship and to
have the author’s name indicated on his works;

    (3) the right of alternation, that is, the right to alter or authorize
others to alter one’s work;

    (4) the right of integrity, that is, the right to protect one’s work
against distortion and multilation;

    (5) the right of exploitation and the right to remuneration, that is, the
right of exploiting one’s work by means of reproduction, performance,
broadcasting, exhibition, distribution, making cinematographic, television or
video production, adaptation, translation, annotation, compilation and the
like, and the right of authorizing others to exploit one’s work by the
above-mentioned means, and of receiving remuneration therefor.

    Section 2  Ownership of Copyright

    Article 11  Except where otherwise provided in this Law, the copyright in
a work shall belong to its author.

    The author of a work is the citizen who has created the work.

    Where a work is created according to the will and under the sponsorship
and the responsibility of a legal person or entity without legal personality,
such legal person or entity without legal personality shall be deemed to be
the author of the work.

    The citizen, legal person or entity without legal personality whose name
is indicated on a work shall, in the absence of proof to the contrary, be
deemed to be the author of the work.

    Article 12  Where a work is created by adaptation, translation, annotation
or arrangement of a preexisting work, the copyright in the work thus created
shall be enjoyed by the adaptor, translator or arranger, provided that the
exercise of such copyright shall not prejudice the copyright in the original
work.

    Article 13  Where a work is created jointly by two or more co-authors, the
copyright in the work shall be enjoyed jointly by those co-authors. Any person
who has not participated in the creation of the work may not claim the
co-authorship.

    If a work of joint authorship can be separated into independent parts and
exploited separately, each co-author may be enpost_titled to independent copyright
in the parts that he has created, provided that the exercise of such copyright
shall not prejudice the copyright in the joint work as a whole.

    Article 14  The copyright in a work created by compilation shall be
enjoyed by the compiler, provided that the exercise of such copyright shall
not prejudice the copyright in the preexisting works included in the
compilation.

    The authors of such works included in a compilation as can be exploited
separately shall be enpost_titled to exercise their copyright in their works
independently.

    Article 15  The director, screenwriter, lyricist, composer, cameraman and
other authors of a cinematographic, television or video-graphic work shall
enjoy the right of authorship in the work, while the other rights included in
the copyright shall be enjoyed by the producer of the work.

    The authors of screenplay, musical works and other works that are included
in a cinematographic, television or video-graphic work and can be exploited
separately shall be enpost_titled to exercise their copyright independently.

    Article 16  A work created by a citizen in the fulfilment of tasks
assigned to him by a legal person or entity without legal personality shall be
deemed to be a work created in the course of employment. The copyright in such
a work shall, subject to the provisions of the second paragraph of this
Article, be enjoyed by the author, provided that the legal person or entity
without legal personality shall have a right of priority to exploit the work
within the scope of its professional activities. During the two years after
the completion of the work, the author may not, without the consent of the
legal person or entity without legal personality, authorize a third party to
exploit the work in the same way as the legal person or entity without legal
personality does.

    The author of a work created in the course of employment in one of the
following circumstances shall enjoy the right of authorship, while the legal
person or entity without legal personality shall enjoy the other rights
included in the copyright and may reward the author:

    (1) drawings of engineering designs and product designs and descriptions
thereof; computer software; maps and other works created in the course of
employment mainly with the material and technical resources of the legal
person or entity without legal personality and under its responsibility;

    (2) works created in the course of employment where the copyright is, in
accordance with laws, administrative rules and regulations or contracts
concerned, enjoyed by the legal person or entity without legal personality.

    Article 17  The ownership of copyright in a commissioned work shall be
agreed upon in a contract between the commissioning and the commissioned
parties. In the absence of a contract or of an explicit agreement in the
contract, the copyright in such a work shall belong to the commissioned party.

    Article 18  The transfer of ownership of the original copy of a work of
fine art, or other works, shall not be deemed to include the transfer of the
copyright in such work, provided that the right to exhibit the original copy
of a work of fine art shall be enjoyed by the owner of such original copy.

    Article 19  Where the copyright in a work belongs to a citizen, the right
of exploitation and the right to remuneration in respect of the work shall,
after his death, during the term of protection provided for in this Law, be
transferred in accordance with the provisions of the Law of Succession.

    Where the copyright in a work belongs to a legal person or entity without
legal personality, the right of exploitation and the right to remuneration
shall, after the change or the termination of the legal person or entity
without legal personality, during the term of protection provided for in this
Law, be enjoyed by the succeeding legal person or entity without legal
personality which has taken over the former’s rights and obligations, or, in
the absence of such a successor entity, by the state.

    Section 3  Term of Protection of Rights

    Article 20  The term of protection of the rights of authorship,
alteration, and integrity of an author shall be unlimited.

    Article 21  The term of protection of the right of publication, the right
of exploitation and the right to remuneration in respect of a work of a
citizen shall be the life time of the author and fifty years after his death,
expiring on December 31 of the fiftieth year after his death. In the case of a
work of joint authorship, such term shall expire on December 31 of the
fiftieth year after the death of the last surviving author.

    The term of protection of the right of publication, the right of
exploitation and the right to remuneration in respect of a work where the
copyright belongs to a legal person or entity without legal personality, or in
respect of a work created in the course of employment where the legal person
or entity without legal personality enjoys the copyright (except the right of
authorship), shall be fifty years, expiring on December 31 of the fiftieth
year after the first publication of such work, provided that any such work
that has not been published within fifty years after the completion of its
creation shall no longer be protected under this Law.

    The term of protection of the right of publication, the right of
exploitation and the right to remuneration in respect of a cinematographic,
television, video-graphic or photographic work shall be fifty years, expiring
on December 31 of the fiftieth year after the first publication of such work,
provided that any such work that has not been published within fifty years
after the completion of its creation shall no longer be protected under this
Law.

    Section 4  Limitations on Rights

    Article 22  In the following cases, a work may be used without permission
from, and without payment of remuneration to, the copyright owner, provided
that the name of the author and the post_title of the work shall be indicated and
the other rights enjoyed by the copyright owner by virtue of this Law shall
not be prejudiced:

    (1) use of a published work of others for the user’s own private study,
research or self entertainment;

    (2) appropriate quotation from a published work of others in one’s work
for the purposes of introduction to, or comment on, a work, or demonstration
of a point;

    (3) use of a published work in newspapers, periodicals, radio programmes,
television programmes or newsreels for the purpose of reporting current
affairs;

    (4) reprinting by newspapers or periodicals, or rebroadcasting by radio
stations or television stations, of editorials or commentator’s articles
published by other newspapers, periodicals, radio stations or television
stations;

    (5) publication in newspapers or periodicals, or broadcasting by radio
stations or television stations, of a speech delivered at a public gathering,
except where the author has declared that the publication or broadcasting is
not permitted;

    (6) translation or reproduction in a small quantity of copies, of a
published work for use by teachers or scientific researchers, in classroom
teaching or scientific research, provided that the translation or reproduction
shall not be published or distributed;

    (7) use of a published work by a state organ for the purpose of performing
its official duties;

    (8) reproduction of a work in its collections by a library, an archives
certre, a memorial hall, a museum, an art gallery or a similar institution,
for the purposes of display, or preservation of a copy, of the work;

    (9) free performance of a published work;

    (10) copying, drawing, photographing, or video recording of an artistic
work located or on display in an outdoor public place;

    (11) translation of a published work from the language of the Han
nationality into minority nationality languages for publication and
distribution in the country;

    (12) transliteration of a published work into Braille and publication of
the work so transliterated.

    The above limitations on rights shall be applicable also to the rights of
publishers, performers, producers of sound recordings and video recordings,
radio stations and television stations.
Chapter III  Copyright Licensing Contracts

    Article 23  Anyone who exploits a work created by others shall, except
where no permission is required in accordance with the provisions of this Law,
conclude a contract with, or otherwise obtain permission from, the copyright
owner.

    Article 24  A contract shall include the following basic clauses:

    (1) the manner of exploitation of the work covered by the license;

    (2) the exclusive or non-exclusive nature of the right to exploit the work
covered by the license;

    (3) the scope and term of the license;

    (4) the amount of remuneration and the method of its payment;

    (5) the liability for breach of contract; and

    (6) any other matter which the contracting parties consider necessary.

    Article 25  Without permission from the copyright owner, the other party
to the contract shall not exercise the right which the copyright owner has not
explicitly licensed in the contract.

    Article 26  The term of validity of a contract shall not exceed ten years.
The contract may be renewed on expiration of that term.

    Article 27  The tariffs of remuneration for the exploitation of works
shall be established by the copyright administration department under the
State Council jointly with other departments concerned.

    Where otherwise agreed to in a contract, remuneration may be paid in
accordance with the terms of the said contract.

    Article 28  Publishers, performers, producers of sound recordings and
video recordings, radio stations, television stations and other entities who
or which have, pursuant to this Law, obtained the right of exploitation
included in the copyright of others, shall not prejudice such authors’ rights
of authorship, alteration, integrity and their right to remuneration.
Chapter IV  Publication, Performance, Sound Recording, Video Recording and
Broadcasting

    Section 1  Publication of Books, Newspapers and Periodicals

    Article 29  A book publisher who publishes a book shall conclude a
publishing contract with, and pay remuneration to, the copyright owner.

    Article 30  A book publisher shall, during the term of the contract, have
an exclusive right to publish the work delivered to him for publication by the
copyright owner. The term of the exclusive right to publish the work, enjoyed
by the book publisher as specified in the contract, shall not exceed ten
years. The contract may be renewed on expiration of that term.

    The exclusive right to publish a work enjoyed by the book publisher shall,
during the term specified in the contract, be protected by law, and the work
may not be published by others.

    Article 31  The copyright owner shall deliver the work to the publisher
within the time limit specified in the contract. The book publisher shall
publish the work according to the quality requirements and within the time
limit speclfied in the contract.

    The book publisher shall bear the civil liability in accordance with the
provisions of Article 47 of this Law if he fails to publish the work within
the time limit specified in the contract.

    The book publisher shall notify, and pay remuneration to, the copyright
owner when the work is to be reprinted or republished. If the book publisher
refuses to reprint or republish the work when the stocks of the book are
exhausted, the copyright owner shall have the right to terminate the contract.

    Article 32  Where a copyright owner has submitted the manuscript of his
work to a newspaper or a periodical publisher for publication and has not
received any notification of the said publisher’s decision to publish the
work, within fifteen days from the newspaper publisher or within thirty days
from the periodical publisher from the date of submission of the manuscript,
the copyright owner may submit the manuscript of the same work to another
newspaper or periodical publisher for publication unless the two parties have
agreed otherwise.

    After a work is published in a newspaper or a periodical, other newspaper
or periodical publisher may, except where the copyright owner has declared
that reprinting or excerpting is not perimitted, reprint the work or print an
abstract of it or print it as reference material, but such other publishers
shall pay remuneration to the copyright owner as prescribed in regulations.

    Article 33  A book publisher may alter or abridge a work with the
permission of the copyright owner.

    A newspaper publisher or periodical publisher may make editorial
modifications and abridgements in a work, but shall not make any modifications
in the content of the work unless permission has been obtained from the author.

    Article 34  When publishing a work created by adaptation, translation,
annotation, arrangement or compilation of a pre-existing work, the publisher
shall pay remuneration both to the owner of the copyright in the work created
by adaptation, translation, annotation, arrangement or compilation, and to the
owner of the copyright in the orginal work.

    Section 2  Performance

    Article 35  A performer (an individual performer or a performing troupe)
who for a performance exploits an unpublished work created by others shall
obtain permission from, and pay remuneration to, the copyright owner.

    A performer who for a commercial performance exploits a published work
created by others does not need permission from, but shall, as prescribed by
regulations, pay remuneration to the copyright owner; such work shall not be
exploited where the copyright owner has declared that such exploitation is not
permitted.

    A performer who for a commercial performance exploits a work created by
adaptation, translation, annotation or arrangement of a pre-existing work
shall pay remuneration both to the owner of the copyright in the work created
by adaptation, translation, annotation or arrangement and to the owner of the
copyright in the original work.

    Where a performer performs a work created by others for the purpose of
producing a sound recording, video recording, radio programme or television
programme, the provisions of Articles 37 and 40 of this Law shall apply.

    Article 36  A performer shall, in relation to his performance, enjoy the
right

    (1) to claim performership;

    (2) to protect the image inherent in his performance from distortion;

    (3) to authorize others to make live broadcasts; and

    (4) to authorize others to make sound recordings and video recordings for
commercial purposes, and to receive remuneration therefor.

    Section 3  Sound Recording and Video Recording

    Article 37  A producer of sound recordings who, for the production of a
sound recording, exploits an unpublished work created by others shall obtain
permission from, and pay remuneration to, the copyright owner. A producer of
sound recordings who, for the production of a sound recording, exploits a
published work created by others, does not need permission from, but shall, as
prescribed by regulations, pay remuneration to, the copyright owner; such work
shall not be exploited where the copyright owner has declared that such
exploitation is not permitted.

    A producer of video recordings who, for the production of a video
recording, exploits a work created by others shall obtain permission from, and
pay remuneration to, the copyright owner.

    A producer of sound recordings or video recordings who exploits a work
created by adaptation, translahon, annotation or arrangement of a pre-existing
work shall pay remuneration both to the owner of the copyright in the work
created by adaptation, translation, annotation or arrangement, and to the
owner of the copyright in the original work.

    Article 38  When producing a sound recording or video recording, the
producer shall conclude a contract with, and pay remuneration to, the
performer.

    Article 39  A producer of sound recordings or video recordings shall have
the right to authorize others to reproduce and distribute his sound recordings
or video recordings and the right to receive remuneration therefor. The term
of protection of such rights shall be fifty years, expiring on December 31 of
the fiftieth year after the first publication of the recordings.

    A producer of sound recordings or video recordings who is authorized to
reproduce and distribute a sound recording or video recording created by
others shall also pay remuneration to the copyright owner and to the performer
as prescribed by regulations.

    Section 4  Broadcasting by Radio Station or Television Station

    Article 40  A radio station or television station which exploits, for the
production of a radio or television programme, an unpublished work created by
others, shall obtain permission from, and pay remuneration to, the copyright
owner.

    A radio station or television station which exploits, for the production
of a radio or television programme, a published work created by others does
not need permission from the copyright owner, but such a work shall not be
exploited where the copyright owner has declared that such exploitation is not
permitted. In addition, remuneration shall be paid as prescribed by
regulations unless this Law provides that no remuneration needs to be paid.

    A radio station or television station which exploits, for the production
of a radio or television programme, a work created by adaptation, translation,
annotation, or arrangement of a pre-existing work, shall pay remuneration both
to the owner of the copyright in the work created by adaptation, translation,
annotation or arrangement and to the owner of the copyright in the original
work.

    Article 41  When producing a radio or television programme, the radio
station or television station shall conclude a contract with, and pay
remuneration to, the performer.

    Article 42  A radio station or television station shall, in respect of a
programme produced by it, enjoy the right

    (1) to broadcast the programme;

    (2) to authorize others to broadcast the programme, and to receive
remuneration therefor; and

    (3) to authorize others to reproduce and distribute the radio or
television programme, and to receive remuneration therefor.

    The term of protection of the rights specified in the preceding paragraph
shall be fifty years, expiring on December 31 of the fiftieth year after the
first broadcasting of the programme.

    A producer of sound recordings or video recordings who is authorized to
reproduce and distribute a radio or television programme shall also pay
remune

PROVISIONAL REGULATIONS GOVERNING REMUNERATION FOR BOOK MANUSCRIPTS

Provisional Regulations Governing Remuneration For Book Manuscripts

     Article 1 These Regulations are formulated to safeguard the legitimate rights and interests of writers and translators, promote creativity
and academic research, give encouragement to writers and translators and improve the standard of published works.

   Article 2 When the work of a writer or translator is published or issued, appropriate remuneration shall be given in accordance with the quality
of the manuscript and the degree of difficulty in writing or translating the work. For the first edition of a book, the writer or
translator shall be paid a base fee calculated in accordance with the number of words in the manuscript, as well as a print run fee
calculated in accordance with the number of copies printed. For subsequent reprints, the writer or translator shall not be paid a
base fee, but shall only receive a print run fee.

   Article 3 Base fee standards:

(1) Original manuscripts: between 10 yuan and 30 yuan per 1,000 words. For scientific writings of truly significant academic worth,
including treatises on areas of the natural sciences, social sciences or the theory of literature or art, the payment standard may
be increased appropriately in accordance with the degree of excellence of the work, but shall not exceed 40 yuan per 1,000 words.

(2) Translated manuscripts: between 8 yuan and 24 yuan per 1,000 words. For an excellent translation of a work considered to be particularly
difficult to translate, the payment standard may be increased appropriately, but shall not exceed 35 yuan per 1,000 words.

When a foreign language manuscript is translated into Chinese, no payment shall be made to the author of the original work, while
the translator shall be paid in accordance with the aforesaid standards.

When a Chinese language manuscript is translated into a foreign language, the translator shall be paid in accordance with the standards
prescribed in item (1) of these Regulations. The author of the original work shall receive between 20% and 40% of the amount paid
to the translator.

When a minority nationality language manuscript is translated into Chinese, the author of the original work shall be paid 60% of the
amount payable in accordance with the standards prescribed in item (1) of these Regulations.

Payment made to the translator of a minority nationality language manuscript shall be calculated in accordance with the standard prescribed
for the translation of a foreign language into Chinese, plus an additional 25% to 30%.

When a Chinese language manuscript is translated into a minority nationality language, the author of the original shall not receive
any remuneration.

(3) Ancient manuscripts:

Payment for the collection and collation of ancient manuscripts or their modern translation or the addition of commentaries, explanatory
notes or interpretations shall be between 9 yuan and 18 yuan per 1,000 words. For high quality work achieved in spite of the task
being particularly difficult, payment may be increased appropriately, but shall not exceed 30 yuan per 1,000 words.

Payment for the recording and compilation of ancient material shall be between 5 yuan and 12 yuan per 1,000 words. (No print run fee
shall be paid.)

Payment for adding punctuation to unpunctuated ancient manuscripts or proofreading and correcting errors shall be between 4 yuan and
8 yuan per 1,000 words. (No print run fee shall be paid.)

Payment for punctuation, together with a normal amount of collation, shall be between 5 yuan and 10 yuan per 1,000 words. In a case
of difficult punctuation, together with a large amount of collation work, payment may be increased appropriately, but shall not exceed
15 yuan per 1,000 words. (In all such cases no print run fee shall be paid.)

(4) Dictionary manuscripts:

Payment for dictionary items shall be made pursuant to the standards prescribed in item (1) of these Regulations with calculations
based on the number of words per complete page, plus an additional base fee of between 15% and 25%. No print run fee shall be paid.

Payment for selection and editing work for encyclopedias shall be between 24 yuan and 30 yuan per 1,000 words, plus an additional
base fee of between 20% and 30%. No print run fee shall be paid.

(5) For the adaption or abridgment of the work of another writer, the adaptor shall be paid between 40% and 60% of the amount payable
pursuant to the standards prescribed by item (1) of these Regulations. In addition, the original author shall be paid between 20%
and 40% of the amount paid to the adaptor and the original publisher shall be paid between 10% and 20% of the amount paid to the
adaptor.

(6) Payment for proofreading a translated work against the original shall be between 4 yuan and 10 yuan per 1,000 words. No print
run fee shall be paid. If a translator commissions another party to proofread a manuscript, payment shall be met by the translator
himself. If a publisher commissions another party to proofread a manuscript, payment shall be met by the publisher.

(7) Payment for indexing and compiling information on books and reference materials shall be between 3 yuan and 7 yuan per 1,000 words.
No print run fee shall be paid.

(8) When books are produced as the result of a publisher commissioning persons from outside the publishing house to select and edit
works, a compilation fee of between 20 yuan and 30 yuan per 10,000 words shall be paid. No print run fee shall be paid.

When a publisher commissions persons from outside the publishing house to edit manuscripts, an editing fee of between 20 yuan and
30 yuan per 10,000 words shall be paid. No print run fee shall be paid.

(9) When a publisher commissions persons from outside the publishing house to go over manuscripts, an examination fee shall be paid.
In ordinary circumstances the examination fee shall be between 10 yuan and 20 yuan per 10,000 words. For a difficult treatise, payment
may be increased appropriately, but shall not exceed 40 yuan per 10,000 words. No print run fee shall be paid.

   Article 4 Print run fees:

1 Print run fees paid on ordinary manuscripts shall be calculated as a percentage of the total base fee:

(1) For a print run of up to 10,000 copies, payment shall be calculated at 8% of the base fee.

(2) For a print run in excess of 10,000 copies, payment calculations for copies in excess of 10,000 shall be based on a 1,000 copies
unit (amounts less than 1,000 copies shall be calculated as for 1,000 copies), with 0.8% of the base fee paid for every 1,000 copies.

2 In the case of a treatise of truly significant scientific theoretic or research value with only a relatively small print run, a
print run of less than 10,000 copies shall be calculated as for 10,000 copies at 30% of the base fee. For a print run in excess of
10,000 copies, payment shall be made pursuant to the provisions of item (2) of 1, of this Article.

3 When calculating print run fees pursuant to items (1) and (2) of this Article, the cumulative total of copies printed shall be calculated
for each reprint. Regardless of whether it is a first edition or a reprint, the publisher shall record the print run accurately on
the publication data page.

4 In the case of books used for study purposed, temporary teaching materials or other original or translated works which, due to other
objective reasons, are printed and distributed in large quantities, if the print run for the two-year period after the initial publication
is less than 10,000, payment shall be made pursuant to the standards prescribed in item (1) of this Article. Payment on copies in
excess of 10,000 shall be between 30% and 50% of the amount payable pursuant to the standards prescribed in item (1) of this Article,
depending on the circumstances.

   Article 5 When writings previously reported in newspapers or periodicals are published as a personal collection, the writer shall receive both
a base fee and print run fee. If newspaper articles by different writers are selected for publication in a joint collection, the
writers shall only be paid a base fee. No print run fee shall be paid. If a publisher commissions a number of persons to write separate
articles on interrelated subjects, both a base fee and print run fee shall be paid. If a publisher commissions a number of persons
to write articles independently (with no interrelation) for a joint collection, only a base fee shall be paid. No print run fee shall
be paid.

If a periodical reprints an article previously published in another newspaper, the original author shall be paid between 20% and 40%
of the amount payable in accordance with the standards prescribed in item (1) of Article 3 and the newspaper which first published
the item shall be paid between 10% and 15% of the amount payable in accordance with the standards prescribed in item (1) of Article
3

   Article 6 When a manuscript accepted for publication by a publisher is unable to be published through no fault of the author, the publisher
shall pay the author a manuscript fee of between 30% and 50% of the base fee payable (with ownership of the manuscript to be retained
by the author). If an article commissioned by a publisher is unable to be published because it fails to meet the required standards,
the publisher may pay a small commission fee, depending on the circumstances.

   Article 7 For the reprinting or checking and reprinting of works published before liberation, a base fee shall be paid in part or in full (see
Article 8 for payment measures relating to the works of a deceased author). If works published (or reprinted) after liberation, for
which base fee have already been paid, are reprinted or compiled into a personal collection (including the complete works, selected
works or collected works of an individual writer) or a joint collection with other writers, a base fee shall not be paid again. Only
a print run fee shall be paid. If a work is reprinted after being revised, a revision fee shall be paid with the amount paid based
on the extent of the revision undertaken. A revision fee shall be paid in accordance with the actual amount of supplementary material.
If the quality of a work is markedly improved after undergoing revision, a part or the entire amount of the original base fee can
be paid anew, but the print run fee shall still be calculated on the accumulative total of previous print runs.

   Article 8 Inheritance of payments made to deceased writers shall be handled in accordance with the following provisions:

(1) In the case of a writer deceased for less than 30 years, if publishing posthumous works which have not been published before,
both a base fee and print run fee shall be paid. If reprinting such works, only a print run fee shall be paid. No base fee shall
be paid.

(2) In the case of a writer deceased for more than 30 years, no base fee or print run fee need be paid if reprinting the works. If
publishing posthumous works for the first time, both a base fee and print run fee shall still be paid.

   Article 9 If the one manuscript is published in separate editions with different typeface, published with several different types of bindings
and layouts, republished under a different name, published after being assigned from one publisher to another or edited into another
book, a base fee shall only be paid once on the edition first published and not on subsequent editions. The print runs, however,
shall be calculated accumulatively for payment of the print run fee.

If a publisher has one book post_title printed in a number of localities or has works printed with equipment leased from local publishers,
these print runs shall be calculated accumulatively together with all other print runs. Print run fees shall be paid by the publisher
which supplied the equipment.

   Article 10 1,000 words shall be the unit of calculation for base fee payments, with less than 1,000 words being classed as 1,000 words. For
poetry, every 10 lines of verse shall be classed as 1,000 words (ballad singing, story telling, comic dialogue and other types of
folk art in verse form shall be calculated as for poetry). Payment for old-style poetry may be increased where deemed appropriate.
Methods of payment for musical compositions, song lyrics, drawings, maps, etc, shall be prescribed in separate legislation.

For payment purposes, calculation of the number of words shall be based on the main body of a work. Calculations shall be based on
the multiplication of the number of words in a line and the number of lines on a typeset page. If the words at the end of a paragraph
are insufficient to make a complete line, it shall be calculated as one line. A post_title or heading shall be counted as a full line.
If punctuation marks are typeset outside the lines, an additional 1/10 shall be added to the number of words.

No payment shall be made for introductory remarks, directions, explanatory notes, tables of contents, indexes and other appendiees
added by the editorial department of a publishing house, or words on book spines, remarks in top margins, page numbers of typeset
pages, reproductions in translated works of diagrams from the original works or reprints of documents and other material in the appendices.
If, however, translated text appears in appendices and diagrams in translated works, this translated text shall be included in payment
calculations.

   Article 11 Only a base fee shall be paid for book cover and diagram designs and the compilation of Chinese language/foreign language comparable
translation tables. No print run fee shall be paid. Payment standards shall be drawn up in separate legislation.

   Article 12 A publisher and a writer shall sign a commissioned work contract or a publishing contract. Contract provisions shall stipulate whether
or not advance payments are to be made. In all cases, however, total payments shall be settled within one month of a work’s publication.
For each reprint, print run fees shall be settled within one month of publication.

   Article 13 On the publication of a book, the publisher shall give the author a number of sample copies. In normal circumstances between 10 and
20 copies may be given, while in special circumstances the number may be increased or reduced as deemed appropriate. Special consideration
shall be given to an author wanting to purchase his own book. Purchases of up to 100 copies may be sold at the wholesale discount
rate. In special circumstances, the number of books for sale may be increased or reduced as deemed appropriate.

   Article 14 The works of compatriots from Taiwan, Hong Kong and Macao shall be paid for in renminbi in accordance with these regulations. In
the case of works of foreigners (including foreign nationals of Chinese descent) (yet to be published overseas), payment shall be
made with reference to these Regulations when the works are published within China for the first time (not including translations
or reprints).

   Article 15 Based on these Regulations, the various publishing houses may formulate their own payment implementing measures in accordance with
their actual circumstances and, subject to their higher level departments in charge approving such measures, shall report the details
to the relevant publishing administrative organs and the State Copyright Bureau for their records. All levels of the publishing administrative
organs and the authorities in charge of publishing houses shall improve their control and supervision of payments. A publishing house
shall not increase or reduce its payment standards at will. In the event of a violation, copyright administrative authorities shall
order the matter to be rectified. All publishing houses shall implement a three-tier system whereby payment amounts are examined
and verified by the responsible editor, the head of the editorial room and the editor-in- chief.

   Article 16 The payment standards stipulated in these Provisional Regulations can be referred to by the publishers of newspapers and periodicals,
but print run fees shall not be paid.

   Article 17 These Provisional Regulations shall take effect from 1 July 1990. The date of publication recorded within each edition of a book
shall be the date on which payment calculations are based. The base fee and print run fee for a first edition of a book shall be
paid in accordance with the standards stipulated in these Provisional Regulations. The print run fee for a reprint shall be paid
pursuant to the provisions of Article 4, based on the base fee amount calculated in accordance with these Provisional Regulations.

   Article 18 The State Copyright Bureau shall have the right to interpret these regulations.

    






CHINESE-FOREIGN EQUITY JOINT VENTURES

The Law of the PRC on Chinese-Foreign Equity Joint Ventures

     (Adopted on July 1, 1979 at the Second Session at the Fifth National People’s Congress, Amendment to the Law in accordance
with “The decision on Amendment to `The Law of the People’s Republic of China on Chinese-Foreign Equity Joint Venture'”
was adopted on April 4, 1990 at the Third Session at the Seventh National People’s Congress)

   Article 1. With a view to expanding international economic cooperation and technological exchange, the People’s Republic of China
permits foreign companies, enterprises, other economic entities or individuals (hereinafter referred to as foreign parties)
to incorporate themselves, within the territory of the People’s Republic of China, into equity joint ventures with
Chinese companies, enterprises or other economic entities (hereinafter referred to as Chinese parties) on the principle
of equality and mutual benefit and subject to authorization by the Chinese Government.

   Article 2. The Chinese Government protects, by the legislation in force, the investments of foreign parties, the profits due them
and and their other lawful rights and interests in equity joint ventures, pursuant to the agreements, contracts
and articles of association approved by the Chinese Government.

All the activities of an equity joint venture shall be governed by the laws, decrees and pertinent rules and regulations
of the People’s Republic of China.

The State will not nationalize or expropriate any equity joint venture. Under special circumstances, based on the
need of the social public interest, equity joint ventures may be expropriated under legal procedures and against appropriate
compensation.

   Article 3. All parties to an equity joint venture shall submit their agreements, contracts and articles of association to the
State’s Competent Department of Foreign Economic Relations and Trade (simplified as “the examination and approval
authority” hereinafter) for examination and approval. The examination and approval authority shall decide whether
to approve or disapprove them within three months. Once approved, the equity joint venture shall register with
the concerned department of the State Administration for Industries and Commerce, and start operation after receiving
its business licence.

   Article 4. An equity joint venture shall take the form of a limited liability company.

In the registered capital of an equity joint venture, the proportion of the investment contributed by the foreign parties(s)
shall in general not be less than 25 per cent.

The profits, risks and losses of an equity joint venture shall be shared by the parties to the venture in proportion
to their contributions to the registered capital.

The transfer of one party’s share in the registered capital shall be effected only with the consent of the other
parties to the venture.

   Article 5. Each party to an equity joint venture may contribute cash, capital goods, industrial property rights, etc. as its
investment in the venture.

The technology or equipment contributed by any foreign party as investment shall be truly advanced and appropriate
to China’s needs. In cases of losses caused by deception through the intentional provision of outdated equipment
or technology, compensation shall be paid for the losses.

The investment contributed by a Chinese party may include the right to the use of a site provided for the equity joint
venture during the period of its operation. In case such a contribution does not constitute a part of the investment
from the Chinese party, the venture shall pay the Chinese Government a fee for its use.

The various contributions referred to in the present Article shall be specified in the contracts concerning
the equity joint venture or in its articles of association, and the value of each contribution (excluding that of the
site) shall be ascertained by the parties to the venture through joint assessment.

   Article 6. An equity joint venture shall have a board of directors with a composition stipulated in the contract and the articles
of association after consultation between the parties to the venture; each director shall be appointed and replaced
by his own side. The chairman and the vice-chairmen shall be chosen through consultation by the parties to the
venture of elected by the board of directors. If the Chinese side or the foreign side assumes the office of
the chairman, the other side shall assume the office(s) of the vice-chairman or vice-chairmen. The board of directors
shall decide on important problems concerning the equity joint venture on the principle of equality and mutual benefit.

The board of directors is empowered to discuss and take action on, pursuant to the provisions of the articles of
association of the equity joint venture, all fundamental issues concerning the venture, namely, expansion projects,
production and business programmes, the budget, distribution of profits, plans concerning manpower and pay
scales, the termination of business, the appointment or hiring of the president, the vice-president(s), the chief
engineer, the treasurer and the auditors as well as their functions and powers and their remuneration etc..

The president and vice-president(s) (or the general manager and assistant general manager(s) in a factory) shall be
chosen from the various parties to the equity joint venture.

Procedures convering the employment and discharge of the workers and staff members of an equity joint venture shall
be stipulated according to law in the agreement or contract concluded between the parties to the venture.

   Article 7. The net profits of an equity joint venture shall be distributed among the parties to the venture in proportion
to their respective shares in the registered capital after the payment of an equity joint venture income tax
on its gross profit pursuant to the tax laws of the People’s Republic of China and after the deductions therefrom
as stipulated in the articles of association of the venture for the reserve funds, the bonus and welfare funds for
the workers and staff members and the expansion funds of the venture.

An equity joint venture may, in accordance with provisions of the relevant laws and administrative rules and regulations
of the State on taxation, enjoy preferential treatment for reduction of, or exemption from taxes.

A foreign party who re-invests any part of his share of the net profit within Chinese territory may apply for the
restitution of a part of the income taxes paid.

   Article 8. An equity joint venture shall, on the strength of its business licence, open a foreign exchange account with a bank
or any other financial institution which is permitted by the State agency for foreign exchange control to handle
foreign exchange transactions.

An equity joint venture shall conduct its foreign exchange transactions in accordance with the Foreign Exchange
Regulations of the People’s Republic of China.

An equity joint venture may, in its business operations, obtain funds from foreign banks directly.

The insurances appropriate to an joint venture shall be furnished by Chinese insurance companies.

   Article 9. The production and business programmes of an equity joint venture shall be filed with the authorities concerned and
shall be implemented through business contracts.

In its purchase of required raw and semi-processed materials, fuels, auxiliary equipment, etc., an equity joint
venture shall give first priority to Chinese sources, but may also acquire them directly from the international market
with its own foreign exchange funds.

An equity joint venture is encouraged to market its products outside China. It may distribute its export products on
foreign markets through direct channels or its associated agencies or China’s foreign trade establishments.
Its products may also be distributed on the Chinese market.

Whenever necessary, an equity joint venture may set up affiliated agencies outside China.

   Article 10. The net profit which a foreign party receives as his share after performing his obligations under the pertinent laws and
agreements and contracts, the funds he receives at the time when the equity joint venture terminates or winds up its
operations and his other funds may be remitted abroad in accordance with the foreign exchange regulations and in the currency
or currencies specified in the contracts concerning the ventures.

A foreign party is encouraged to deposit in the Bank of China and part of foreign exchange which he is enpost_titled to remit abroad.

   Article 11. The wages, salaries or other legitimate income of the foreign employees of an equity joint venture, after payment of the
personal income tax under the tax laws of the People’s Republic of China, may be remitted abroad in accordance
with the foreign exchange regulations.

   Article 12. The operation periods of equity joint ventures may be handled differently according to their particular line of business
and circumstances. Equity joint ventures engaged in a certain line of business shall specify in the contracts
their operation periods, while equity joint ventures engaged in another line of business may choose whether or not to
specify their operation periods. In the case of an equity joint venture with its operation period specified, if the
parties to the venture agree to extend the operation period, the venture may send an application to the examining
and approving authority six months before the expiration of the operation period. The examining and approving authority
shall, within one month of receipt of the application, decide whether to approve or disapprove it.

   Article 13. If there occur heavy losses, the failure of a party to perform its obligations under the contract and the articles of
association or force majeure, etc…, the equity joint venture may terminate the contract through consultation
and agreement by the parties, and subject to approval by the examination and approval authority and to registration with
the State’s Competent Department of Industry and Commerce Administration. In cases of losses caused by a
breach of contract, the financial responsibility shall be borne by the party that has breached the contract.

   Article 14. Disputes arising between the parties to an equity joint venture which the board of directors fails to settle through
consultation may be settled through conciliation or arbitration by an arbitral body of China or through arbitration by
an arbitral body agreed upon by the parties.

   Article 15. The present law comes into force on the date of its promulgation. The right to amendment is vested in the National
People’s Congress.

    






PROTECTION OF THE RIGHTS AND INTERESTS OF RETURNED OVERSEAS CHINESE AND THE FAMILY MEMBERS OF OVERSEAS CHINESE

Category  LAWS AND REGULATIONS ON AFFAIRS CONCERNING OVERSEAS CHINESE AND HONG KONG, MACAO AND TAIWAN Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-09-07 Effective Date  1991-01-01  


Law of the People’s Republic of China on the Protection of the Rights and Interests of Returned Overseas Chinese and the Family Members
of Overseas Chinese



(Adopted at the 15th Meeting of the Standing Committee of the Seventh

National People’s Congress on September 7, 1990, promulgated by Order No. 33
of the President of the People’s Republic of China on September 7, 1990, and
effective as of January 1, 1991)

    Article 1  This Law is enacted in accordance with the Constitution with a
view to protecting the lawful rights and interests of returned overseas
Chinese and the family members of overseas Chinese.

    Article 2  “Returned overseas Chinese” denote overseas Chinese who have
returned to the country and taken it as their place of permanent residence.
“Overseas Chinese” denote Chinese citizens who have settled down abroad.

    “Family members of overseas of Chinese” denote the family members,
residing in the country, of overseas Chinese and returned overseas Chinese.

    “The family members of overseas Chinese” referred to in this Law include
overseas Chinese’s and returned overseas Chinese’s spouses, parents, children
and their spouses, brothers and sisters, paternal grand-parents, maternal
grand-parents, grand-children and other relations who have long supported or
been supported by overseas Chinese or returned overseas Chinese.

    Article 3  Returned overseas Chinese and the family members of overseas
Chinese shall be enpost_titled to the citizen’s rights prescribed by the
Constitution and the law and at the same time shall perform the citizen’s
duties prescribed by the Constitution and the law. No organization or
individual may discriminate against them.

    The state shall, in accordance with the actual conditions and the
characteristics of returned overseas Chinese and the family members of
overseas Chinese, give them appropriate preferential treatment, and the
specific measures thereof shall be formulated by the State Council or the
relevant competent departments under the State Council.

    Article 4  The state shall make arrangements for overseas Chinese who have
returned to the country and taken it as their place of permanent residence.

    Article 5  Returned overseas Chinese shall be enpost_titled to appropriate
representation on the National People’s Congress and local people’s congresses
in places where there are relatively large numbers of returned overseas
Chinese.

    Article 6  Returned overseas Chinese and the family members of overseas
Chinese shall have the right to establish public organizations in conformity
with the law, to safeguard the lawful rights and interests of returned
overseas Chinese and the family members of overseas Chinese and to conduct
legitimate social activities suitable to their needs.

    The property of the public organizations established according to law by
returned overseas Chinese and the family members of overseas Chinese shall be
protected by law, and shall not be infringed upon by any organizations or
individuals.

    Article 7  The state shall give support to enterprises such as
agricultural or forest farms which have provided placement for returned
overseas Chinese. No organization or individual may appropriate the land
lawfully used by such enterprises or infringe upon their lawful rights and
interests.

    Enterprises such as agricultural or forest farms which have provided
placement for returned overseas Chinese may, in accordance with their needs,
set up schools and medical care and health institutions in a rational way, to
which the state shall give support and aid with respect to personnel,
facilities and funds.

    Article 8  Local people’s governments at various levels shall support
returned overseas Chinese and the family members of overseas Chinese to invest
in the establishment of industrial and commercial enterprises, in the
development of barren hills, waste lands and beaches, or to engage in the
agricultural, forestry, animal husbandry, sideline and fishery production.
Their lawful rights and interests shall be protected by law.

    Article 9  People’s governments at various levels shall support returned
overseas Chinese and the family members of overseas Chinese to set up public
welfare establishments in the country. Their lawful rights and interests shall
be protected by law.

    Returned overseas Chinese and the family members of overseas Chinese who
receive materials from donations voluntarily made by their relatives and
friends outside the country and will use them in public welfare undertakings
shall, in accordance with relevant state regulations, deal with the acceptance
and enjoy preferential treatment of duty reduction or exemption.

    Article 10  The state shall, in accordance with the law, protect the
ownership of private houses, in the country, of returned overseas Chinese and
the family members of overseas Chinese. Construction units shall, in
accordance with the relevant state regulations, make due compensation and
appropriate arrangements for those returned overseas Chinese and the family
members of overseas Chinese whose private houses are requisitioned, dismantled
or removed according to law for state construction.

    Article 11  Students who are returned overseas Chinese, children of
returned overseas Chinese and children, residing in the country, of overseas
Chinese, shall, in accordance with relevant state regulations, be given
special considerations in respect of school admission and employment.

    Article 12  The state shall protect the income of returned overseas
Chinese and the family members of overseas Chinese from remittance sent by
overseas Chinese.

    Article 13  Returned overseas Chinese and the family members of overseas
Chinese shall have the right to inherit or accept the estate, legacy or
donation from their relatives or friends outside the country.

    Returned overseas Chinese and the family members of overseas Chinese shall
have the right to dispose of their property outside the country.

    Article 14  Contacts and communications between returned overseas Chinese
and the family members of overseas Chinese and their relatives and friends
outside the country shall be protected by law.

    Article 15  Applications for exit from the country by returned overseas
Chinese and the family members of overseas Chinese shall be examined for
approval by the competent authorities concerned within the prescribed time
limit.

    For returned overseas Chinese and the family members of overseas Chinese
who desire to leave the country urgently because of special circumstances such
as critical illness(es) or death(s) of their direct lineal relatives or the
need for disposition of property outside the country within a prescribed time
limit, the competent authorities concerned shall give examination for approval
without delay on the basis of valid certificates provided by the applicants.

    Article 16  The state shall safeguard the right of returned overseas
Chinese and the family members of overseas Chinese to leave the country for
the purpose of visiting their relatives.

    Returned overseas Chinese and the family members of overseas Chinese who
work in state organs or state-owned enterprises and institutions shall enjoy
the treatment as provided in the relevant state regulations in respect of
leaving the country for the purpose of visiting their relatives.

    Article 17  Returned overseas Chinese and the family members of overseas
Chinese shall have the right to leave the country and settle down abroad.

    Returned overseas Chinese and the family members of overseas Chinese who
left their posts as veteran cadres, retired or quitted their posts for
justified reasons shall continue to receive their pensions after leaving the
country for settling down abroad.

    Article 18  Returned overseas Chinese and the family members of overseas
Chinese who apply to go abroad for the purpose of study at their own expense
shall be given preferential treatment in accordance with the relevant state
regulations.

    Article 19  The state shall protect the legitimate rights and interests,
outside the country, of returned overseas Chinese and the family members of
overseas Chinese in accordance with the international treaties to which the
People’s Republic of China is a party or has acceded or with international
practice.

    Article 20  Returned overseas Chinese and the family members of overseas
Chinese shall, where their lawful rights and interests are violated, have the
right to request the relevant competent departments to handle the matter in
accordance with the law, or, bring a suit in a people’s court according to law.

    Article 21  The State Council shall, on the basis of this Law, formulate
measures for its implementation.

    The standing committees of the people’s congresses of the provinces,
autonomous regions and municipalities directly under the Central Government
may, pursuant to this Law and the State Council’s measures for implementation,
formulate measures for implementation respectively.

    Article 22  This Law shall enter into force as of January 1, 1991.






PROVISIONS OF THE STATE COUNCIL CONCERNING THE ENCOURAGEMENT OF INVESTMENTS BY OVERSEAS CHINESE AND COMPATRIOTS FROM HONG KONG AND MACAO

Category  LAWS AND REGULATIONS ON AFFAIRS CONCERNING OVERSEAS CHINESE AND HONG KONG, MACAO AND TAIWAN Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-08-19 Effective Date  1990-08-19  


Provisions of the State Council Concerning the Encouragement of Investments by Overseas Chinese and Compatriots From Hong Kong and
Macao



(Promulgated by Decree No. 64 of the State Council of the People’s

Republic of China on August 19, 1990, and effective as of the date of
promulgation)

    Article 1  These Provisions are formulated with a view to promoting the
economic development of our country and to encouraging overseas Chinese and
compatriots from Hong Kong and Macao (hereinafter referred to as “overseas
Chinese investors and those from Hong Kong and Macao”) to make investments in
China’s inland areas.

    Article 2  Overseas Chinese investors and those from Hong Kong and Macao
can make investments in the various provinces, autonomous regions,
municipalities directly under the Central Government, and special economic
zones in China’s inland areas.

    Overseas Chinese investors and those from Hong Kong and Macao are
encouraged to engage themselves in business operations of land development in
accordance with the pertinent regulations of the state.

    Article 3  The investments made by the overseas Chinese investors and
those from Hong Kong and Macao may take the following forms:

    (1) to establish enterprises with the capital wholly owned by the overseas
Chinese investors and those from Hong Kong and Macao;

    (2) to establish equity joint ventures and contractual joint ventures;

    (3) to carry out compensation trade, to process supplied materials, to
assemble supplied parts, and to carry out contractual production;

    (4) to purchase shares and various bonds and debentures of existing
enterprises;

    (5) to purchase real estate;

    (6) to obtain land use right according to law and to engage in land
development operation;

    (7) to use other forms of investment permitted under the laws and
regulations.

    Article 4  Overseas Chinese investors and those from Hong Kong and Macao
can make investments in various trades in China’s inland areas: in industries,
in agriculture, in service trades, and in other trades that are in conformity
with the orientation of social and economic development. Overseas Chinese
investors and those from Hong Kong and Macao may select their investment
projects from the lists of projects made public by the departments concerned
under various local people’s governments; they may also put forward, of their
own accord, proposals as to their investment intent and file their
applications to the departments of foreign economic relations and trade or to
the examining and approving organs designated by various local people’s
governments located in areas where they intend to make their investments.

    The State encourages overseas Chinese investors and those from Hong Kong
and Macao to make investments in the establishment of export oriented
enterprises and of technologically advanced enterprises, and gives
corresponding preferential treatment to such enterprises.

    Article 5  With respect to the various types of enterprises established
with investments by overseas Chinese investors and those from Hong Kong and
Macao – enterprises with the capital wholly owned by such investors, equity
joint ventures, and contractual joint ventures (hereinafter referred to as
“enterprises with investments by overseas Chinese and compatriots from Hong
Kong and Macao”), they shall all be operated in accordance with these
Provisions; in addition, they may also enjoy the corresponding preferential
treatment as enjoyed by enterprises with foreign investments, in the light of
the relevant provisions in the state laws, decrees and regulations on external
economic relations. Cases concerning other forms of investment made by such
investors in China’s inland areas, and concerning their dividends, interest,
rental, royalties and other incomes that come from China’s inland areas
without establishing business offices here, shall be handled in accordance
with these Provisions, and, if need be, with reference to foreign-related
economic laws, decrees and regulations of the State.

    Article 6  Overseas Chinese investors and those from Hong Kong and Macao
may make their investments by using convertible currencies, machinery and
equipment or other physical goods, industrial property rights, and proprietary
technology.

    Article 7  The investment made in China’s inland areas by overseas Chinese
investors and those from Hong Kong and Macao, the assets they have purchased,
their industrial property rights, the profits from their investments, and
other lawful rights and interests shall be protected by State laws, and may be
transferred or inherited according to law.

    Overseas Chinese investors and those from Hong Kong and Macao shall abide
by State laws and regulations in their activities in inland areas.

    Article 8  The State shall not nationalize the investment made by overseas
Chinese investors and compatriots from Hong Kong and Macao or other assets
belonging to them.

    Article 9  Where the state, in accordance with the needs of social and
public interest, has to requisition the enterprises with investments by
overseas Chinese investors and those from Hong Kong and Macao, the state shall
handle the case according to the legal procedures and the investors concerned
shall be duly compensated.

    Article 10  The lawful profits gained by overseas Chinese investors and
those from Hong Kong and Macao from their investments, their other lawful
incomes and the funds after liquidation may be remitted out of China’s inland
areas according to law.

    Article 11  Machinery and equipment imported to meet the needs of
enterprises with investments by overseas Chinese and compatriots from Hong
Kong and Macao and, included in the total amount of investment, motor vehicles
for use in production, office equipment, as well as articles and means of
communications for personal use and within reasonable quantities, imported by
overseas Chinese and compatriots from Hong Kong and Macao during the period
when they work in the aforesaid enterprises shall be exempted from Customs
duties and consolidated industrial and commercial tax, and also from the
application for import licences.

    The raw and processed materials, fuels, bulk parts, spare and component
parts, primary parts, and fittings, which are imported by enterprises with
investments by overseas Chinese and compatriots from Hong Kong and Macao for
the production of export commodities, shall all be exempt from Customs duties
and consolidated industrial and commercial tax and also from the application
for import licences and placed under the supervision of the Customs. In case
that the aforesaid imported materials and parts are used for the production
of commodities to be sold on China’s inland markets, it is imperative to make
up the procedures for importation and to pay taxes and duties according to the
regulations.

    The export commodities produced by the enterprises with investments by
overseas Chinese and compatriots from Hong Kong and Macao shall, with the
exception of those commodities the exportation of which is under restriction
by the State, be exempt from Customs duties on export goods and consolidated
industrial and commercial tax.

    Article 12  Enterprises with investments by overseas Chinese and
compatriots from Hong Kong and Macao may obtain loans from financial
institutions in China’s inland areas; they may also obtain loans from
financial institutions outside China’s inland areas, and may use their assets
as well as their rights and interests as mortgage or security.

    Article 13  With respect to enterprises with the capital wholly owned by
overseas Chinese investors and compatriots from Hong Kong and Macao, their
period of operation shall be determined by the investors themselves; as to
equity joint ventures and contractual joint ventures, their period of
operation shall be determined, through consultation, by the various parties to
the above-said joint ventures; they may also set no limit to the period of
operation.

    Article 14  The composition of the board of directors of equity joint
ventures and the appointment of the chairman of the board of directors, the
composition of the board of directors or of the joint management organs of
contractual joint ventures and the appointment of the chairman or the
appointment of the director of the joint management organs, shall be
determined, through consultation, by the various parties to the equity joint
ventures or to the contractual joint ventures in the light of the proportion
of investments or the terms of contract.

    Article 15  Enterprises with investments by overseas Chinese and
compatriots from Hong Kong and Macao shall conduct their operational and
management activities in accordance with the approved contract or articles of
association. The enterprises’ decision-making power for business operations
and management shall not be interfered with.

    Article 16  Overseas Chinese and compatriots from Hong Kong and Macao who
have made investments in China’s inland areas, and the technical and
managerial personel engaged from outside the boundaries of China’s inland
areas by enterprises with investments by overseas Chinese and compatriots from
Hong Kong and Macao, may apply for multi-journey travel documents.

    Article 17  Overseas Chinese investors and those from Hong Kong and Macao
who make investments in China’s inland areas may appoint their relatives or
friends residing in the inland areas as their agents. The agents should hold
legally effective letters of authority.

    Article 18  In areas where enterprises with investments by overseas
Chinese and compatriots from Hong Kong and Macao are concentrated, overseas
Chinese investors and those from Hong Kong and Macao may apply to the local
people’s government for the establishment of the association of overseas
Chinese investors and investors from Hong Kong and Macao.

    Article 19  With respect to equity joint ventures and contractual joint
ventures to be established in China’s inland areas, with the investments by
overseas Chinese investors and those from Hong Kong and Macao, the application
for the establishment of the aforesaid enterprises shall be filed by the
inland party; as to the enterprises to be established with capital wholly
owned by overseas Chinese investors and those from Hong Kong and Macao, the
application shall be filed directly by such investors themselves, or they may
entrust their relatives or friends residing in China’s inland areas, or
entrust the institution providing consultancy services, with the application.
Applications for the establishment of enterprises with investments by overseas
Chinese and compatriots from Hong Kong and Macao shall be accepted and handled
exclusively by the local department for foreign economic relations and trade,
or by the examining and approving organs designated by the local people’s
government.

    The examination and approval of the applications for the establishment of
enterprises with investments from overseas Chinese and compatriots from Hong
Kong and Macao shall be handled in accordance with the authorization by the
State Council. Departments for foreign economic relations and trade at the
various levels or the examining and approving organs designated by the local
people’s government shall, within forty-five days of receipt of complete
application documents, make the decision on whether the said application is
approved or disapproved.

    The applicant shall, within thirty days of receipt of the written
approval, file an application to the department for the administration of
industry and commerce, and, in accordance with the relevant procedures for
registration and administration, go through the registration and obtain the
business licence.

    Article 20  With respect to overseas Chinese investors and those from
Hong Kong and Macao who have made investments in China’s inland areas, in case
that a dispute arises during the execution of or in relation to a contract,
the parties concerned shall try their best to settle the dispute through
consultation or mediation.

    In case that the parties concerned are unwilling to settle the dispute
through consultation or mediation, or the dispute cannot be settled through
consultation or mediation, the parties concerned may, in accordance with the
stipulations of the arbitration articles in the contract, or in accordance
with the written arbitration agreement reached by the parties concerned after
the dispute has arisen, submit their dispute to the arbitration authorities in
China’s inland areas or elsewhere for settlement.

    In the event that the parties concerned did not specify an arbitration
article in their contract, and no written arbitration agreement has been
reached after the dispute occurs, then the dispute may be brought before the
people’s court.

    Article 21  The right to interpret these Provisions rests with the
Ministry of Foreign Economic Relations and Trade.

    Article 22  These Provisions shall go into effect as of the date of
promulgation.






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE ENGLISH TEXT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION BASIC LAW

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-06-28 Effective Date  1990-06-28  


Decision of the Standing Committee of the National People’s Congress on the English Text of the Basic Law of the Hong Kong Special
Administrative Region of the People’s Republic of China

(Adopted at the 14th Meeting of the Standing Committee of the Seventh

National People’s Congress on June 28, 1990)

    The 14th Meeting of the Standing Committee of the Seventh National
People’s Congress has decided that the English translation of the Basic Law of
the Hong Kong Special Administrative Region of the People’s Republic of China,
examined and approved under the aegis of the Law Committee of the National
People’s Congress, shall be the official English text and shall be equally
authentic as the Chinese text. In case of any discrepency in the meaning of
wording between the English text and the Chinese text, the Chinese text shall
prevail.






PROCEDURE FOR DELIBERATION AND VOTING OF THE THIRD SESSION OF THE SEVENTH NATIONAL PEOPLE’S CONGRESS ON THE HONG KONG SPECIAL ADMINISTRATIVE REGION (DRAFT) BASIC LAW

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-03-29 Effective Date  1990-03-29  


THE Procedure for Deliberation and Voting of the Third Session of the Seventh National People’s Congress on “the Basic Law of the
Hong Kong Special Administrative Region of the People’s Republic of China (Draft)”

(Adopted at the Third Session of the Seventh National People’s Congress on

March 29, 1990)

    In accordance with the Constitution of the People’s Republic of China and
the provisions of the Rules of Procedure for the National People’s Congress of
the People’s Republic of China that the procedure for deliberation and voting
on the legislative bills prepared and submitted by a special law-drafting
committee established by decision of the National People’s Congress shall be
formulated separately, the Third Session of the Seventh National People’s
Congress decides:

    The Basic Law of the Hong Kong Special Administrative Region of the
People’s Republic of China (draft) shall be deliberated at this Session by
various delegations and the Law Committee shall, in the light of opinions
expressed during deliberations by the various delegations, conduct unified
deliberation on it and shall submit to the Presidium a report on the result of
deliberation. The Presidium shall, after deliberation and approval, print it
for distribution at the Session and also submit the draft to a plenary meeting
of the Session for the vote.

    The Basic Law of the Hong Kong Special administrative Region (draft) shall
be voted once as a whole and shall be adopted by a simple majority vote of all
the deputies. The vote shall be conducted by means of pressing the voting
machine. Should the voting machine suddenly break down in the course of
operation, the vote shall be conducted by secret ballot instead.






INTERIM PROVISIONS CONCERNING THE PAYMENT OF ROYALTIES FOR CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF PETROLEUM RESOURCES ON LAND

Category  FINANCE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-01-15 Effective Date  1990-01-01  


Interim Provisions Concerning the Payment of Royalties for Chinese-foreign Cooperative Exploitation of Petroleum Resources on Land



(Approved by the State Council on January 13, 1990, promulgated by Decree

No.3 of the Minister of Finance on January 15, 1990)

    Article 1  These Provisions are formulated in order to promote the
development of national economy, to expand international economic and
technological cooperation, and to encourage the exploitation of China’s
petroleum resources on land.

    Article 2  All Chinese and foreign enterprises, which are engaged in the
cooperative exploitation of petroleum resources on land within the territory
of the People’s Republic of China, shall pay royalties in accordance with
these Provisions.

    Article 3  Royalties shall be computed and imposed on the basis of the
gross output or crude oil or natural gas produced every calendar year from
each oil-and-gas field. The rates of the royalties are as follows:

    1. Crude oil

    the portion of annual gross output of crude oil not exceeding 50,000 tons,
shall not be subject to the payment of royalties;

    for the portion of annual gross output of crude oil from 50,000 to
100,000 tons, the rate shall be 1%;

    for the portion of annual gross output of crude oil from 100,000 to
150,000 tons, the rate shall be 2%;

    for the portion of annual gross output of crude oil from 150,000 to
200,000 tons, the rate shall be 3%;

    for the portion of annual gross output of crude oil from 200,000 to
300,000 tons, the rate shall be 4%;

    for the portion of annual gross output of crude oil from 300,000 to
500,000 tons, the rate shall be 6%;

    for the portion of annual gross output of crude oil from 500,000 to
750,000 tons, the rate shall be 8%;

    for the port~on of annual gross output of crude oil from 750,000 to 1
million tons, the rate shall be 10%;

    for the portion of annual gross output of crude oil exceeding 1 million
tons, the rate shall be 12.5%.

    2. Natural gas

    the portion of annual gross output of natural gas not exceeding 100
million standard cubic meters, shall not be subject to the payment of
royalties:

    for the portion of annual gross output of natural gas from 100 million
to 200 million standard cubic meters, the rate shall be 1%;

    for the portion of annual gross output of natural gas from 200 million
to 300 million standard cubic meters, the rate shall be 2%;

    for the portion of annual gross output of natural gas from 300 million
to 400 million standard cubic meters, the rate shall be 3%;

    for the portion of annual gross output of natural gas from 400 million
to 600 million standard cubic meters, the rate shall be 4%;

    for the portion of annual gross output of natural gas from 600 million
to 1 billion standard cubic meters, the rate shall be 6%;

    for the portion of annual gross output of natural gas from 1 billion to
1.5 billion standard cubic meters, the rate shall be 8%;

    for the portion of annual gross output of natural gas from 1.5 billion
to 2 billion standard cubic meters, the rate shall be 10%;

    for the portion of annual gross output of natural gas exceeding 2 billion
standard cubic meters, the rate shall be 12.5%.

    Article 4  The Royalties for crude oil and natural gas shall be paid
in kind.

    Article 5  The Royalties for crude oil and natural gas shall be levied
and administered by the tax authorities.

    With respect to Chinese-foreign cooperative oil or gas fields, the
operators shall act as agents for withholding the royalties, and shall
hand over the royalties withheld to China National Petroleum Expoitation
Corporation, which, in turn, shall act as an agent for making the payment
of the royalties.

    Article 6  The royalties shall be computed annually and paid in advance
in installments either based on times or on terms; and the final settlement
shall be made after the end of tax year. The time limits for advance payment
and final settlement shall be set by the tax authorities.

    Article 7  The oil or gas fields operators shall, within 10 days after
the end of each quarter, submit to the tax authorities a report on the
output of oil or gas fields and any other related materials required by the
tax authorities.

    Article 8  The withholding agents and paying agents with regard to the
royalties must, in accordance with the time limits set by the tax authorities,
pay the royalties. In case of failure to pay the royalties within the time
limits, the tax authorities shall impose a surcharge for overdue payment equal
to 1% of the overdue royalties for everyday in arrears, starting from the
first day the payment becomes overdue.

    Article 9  In the case that the oil or gas fields operators, in violation
of the provisions in Article 7, fail to submit on time to the tax authorities
the reports on output of oil or gas fields and other related materials
required by the tax authorities, the tax authorities may impose a fine, in
light of the circumstances, up to but not exceeding RMB 5,000 yuan; in dealing
with those who conceal the actual output, the tax authorities, in addition to
pursuing the royalties payment, may impose a fine, in light of the
circumstances, up to but not exceeding five times of the amount of royalties
that shall be made up.

    Article 10  The following terms, used in these Provisions, are defined
below:

    (1) Crude oil: refers to solid and liquid hydrocarbon in the natural
state as well as any liquid hydrocarbon extracted from natural gas, except
for methane (CH4).

    (2) Natural gas: refers to non-associated natural gas and associated
natural gas in the natural state.

    Non-associated natural gas: refers to all gaseous hydrocarbon extracted
from gas deposits, including wet gas, dry gas, and residual gas remaining
after the extraction of liquid hydrocarbon from wet gas.

    Associated natural gas: refers to all gaseous hydrocarbon extracted from
oil deposits simultaneously with crude oil, including residual gas remaining
after the extraction of liquid hydrocarbon.

    (3) Annual gross output of crude oil: refers to total amount of crude oil
produced by each oil or gas field in the same contracted area, in one
calendar year, less the quantity of oil used for petroleum operations and
that of wasted.

    (4) Annual gross output of natural gas: refers to total amount of natural
gas produced by each oil or gas field in the same contracted area, in one
calendar year, less the quantity of natural gas used for petroleum operations
and that of wasted.

    Article 11  The State Taxation Bureau shall be responsible for the
interpretation of those Provisions.

    Article 12  These Provisions shall become effective as of January 1, 1990.






CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...