1996

PROCEDURE OF THE CONCLUSION OF TREATIES

Law of the People’s Republic of China on the Procedure of the Conclusion of Treaties

     Important Notice:

This English document is coming from “LAWS AND REGULATIONS OF THEPEOPLE’S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED
MATTERS” (1991.7)which is compiled by the Brueau of Legislative Affairs of the StateCouncil of the People’s Republic of
China, and is published by the ChinaLegal System Publishing House.In case of discrepancy, the original version in Chinese shall prevail.

Whole Document LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PROCEDURE OF THECONCLUSION OF TREATIES(Adopted at the 17th
Meeting of the Standing Committee of theSeventh National People’s Congress on December 28, 1990, promulgated byOrder No.
37 of the President of the People’s Republic of China onDecember 28, 1990, and effective as of the same date)Article 1The
present Law is enacted in accordance with the Constitution of thePeople’s Republic of China.Article 2This Law shall be applicable
to bilateral or multilateral treaties andagreements and other instruments of the nature of a treaty or agreementconcluded
between the People’s Republic of China and foreign states.Article 3The State Council, that is, the Central People’s Government,
of thePeople’s Republic of China shall conclude treaties and agreements withforeign states.The Standing Committee of the National
People’s Congress of the People’sRepublic of China shall decide on the ratification and abrogation oftreaties and important
agreements concluded with foreign states.The President of the People’s Republic of China shall, in accordance withdecisions of the
Standing Committee of the National People’s Congress,ratify and abrogate treaties and important agreements concluded withforeign
states.The Ministry of Foreign Affairs of the People’s Republic of China shall,under the leadership of the State Council, administer
the specific affairsconcerning the conclusion of treaties and agreements with foreign states.Article 4The People’s Republic of China
shall conclude treaties and agreements withother states in the name of:(1) the People’s Republic of China;(2) the Government of the
People’s Republic of China;(3) the governmental departments of the People’s Republic of China.Article 5The decision to negotiate
and sign treaties and agreements shall be madeaccording to the following procedures:(1) in the case of a treaty or agreement to
be negotiated and signed inthe name of the People’s Republic of China, the Ministry of ForeignAffairs or the department
concerned under the State Council in conjunctionwith the Ministry of Foreign Affairs shall make a recommendation and drawup a draft
treaty or agreement of the Chinese side and submit it to theState Council for examination and decision;(2) in the case of a treaty
or agreement to be negotiated and signed inthe name of the Government of the People’s Republic of China, the Ministryof Foreign
Affairs or the department concerned under the State Councilshall make a recommendation and draw up a draft treaty or agreement
of theChinese side and, after consultation with the Ministry of Foreign Affairs,submit it to the State Council for examination and
decision. In the caseof an agreement concerning a specific line of business, its Chinese draftshall, with the consent of the State
Council, be examined and decided uponby the department concerned under the State Council or when necessary inconsultation with
the Ministry of Foreign Affairs;(3) agreements to be negotiated and signed in the name of a governmentaldepartment of the People’s
Republic of China concerning matters within thescope of functions and powers of the department concerned shall be decidedupon by
the department itself or after consultation with the Ministry ofForeign Affairs. In the case of an agreement relating to matters
of majorimportance or matters falling within the functions and powers of otherdepartments under the State Council, the department
concerned shall submitit by itself or after consultation with the other departments concernedunder the State Council, to the State
Council for decision. The draftagreement of the Chinese side shall be examined and decided upon by thedepartment concerned
or when necessary in consultation with the Ministryof Foreign Affairs.When major modification in the Chinese draft of a treaty
or agreementalready examined and decided upon by the State Council are necessary as aresult of negotiation, the revised draft
shall be submitted to the StateCouncil for examination and decision.Article 6Representatives for negotiating and signing treaties
or agreements shallbe appointed according to the following procedures:(1) In the case of a treaty or agreement to be concluded
in the name ofthe People’s Republic of China or the Government of the People’s Republicof China, the Ministry of Foreign Affairs
or the department concernedunder the State Council shall submit a report to the State Council for theappointment of a representative.
The full powers of the representativeshall be signed by the Premier of the State Council, but may also besigned by the
Minister of Foreign Affairs.(2) In the case of an agreement to be concluded in the name of agovernmental department of
the People’s Republic of China, arepresentative shall be appointed by the head of the department concerned.The letter
of authorization for the representative shall be signed by thehead of the department. Where the head of a department signs an agreementconcluded
in the name of the governmental department, and where thecontracting parties agree that it is necessary for the head
of thedepartment to produce full powers, the full powers shall be signed by thePremier of the State Council, but may also be signed
by the Minister ofForeign Affairs.The following persons shall dispense with full powers for negotiating andsigning treaties and
agreements:(1) the Premier of the State Council, the Minister of Foreign Affairs;(2) the head of a diplomatic mission of the People’s
Republic of China whonegotiates and signs treaties and agreements concluded between China andthe state to which he is accredited,
unless it is otherwise agreed by thecontracting parties;(3) the head of a governmental department of the People’s Republic
ofChina who negotiates and signs the agreements concluded in the name of hisdepartment, unless it is otherwise agreed by the contracting
parties;(4) the person, dispatched to an international conference or accredited toan international organization by the People’s Republic
of China, who is atthe same time the representative for negotiating treaties or agreements inthat conference or organization, unless
it is otherwise agreed by theconference or otherwise provided for in the constitution of theorganization.Article
7The ratification of treaties and important agreements shall be decidedupon by the Standing Committee of the National People’s
Congress.The treaties and important agreements referred to in the precedingparagraph are as follows:(1) treaties of friendship
and cooperation, treaties of peace and similartreaties of a political nature;(2) treaties and agreements relating to territory
and delimitation ofboundary lines;(3) treaties and agreements relating to judicial assistance andextradition;(4) treaties
and agreements which contain stipulations inconsistent withthe laws of the People’s Republic of China;(5) treaties and agreements
which are subject to ratification as agreed bythe contracting parties; and(6) other treaties and agreements subject to ratification.After
the signing of a treaty or an important agreement, the Ministry ofForeign Affairs or the department concerned under the State
Council inconjunction with the Ministry of Foreign Affairs shall submit it to theState Council for examination and verification;
the State Council shallthen refer it to the Standing Committee of the National People’s Congressfor decision on ratification;
the President of the People’s Republic ofChina shall ratify it in accordance with the decision of the StandingCommittee of
the National People’s Congress.After the ratification of a bilateral treaty or an important bilateralagreement, the Ministry
of Foreign Affairs shall execute the formalitiesfor the exchange of the instruments of ratification with the othercontracting
party. After the ratification of a multilateral treaty or animportant multilateral agreement, the Ministry of Foreign Affairs
shallexecute the formalities for the deposit of the instrument of ratificationwith the depositary state or international organization.
The instrument ofratification shall be signed by the President of the People’s Republic ofChina and countersigned by the Minister
of Foreign Affairs.Article 8After the signing of the agreements and other instruments of the nature ofa treaty which do not fall
under paragraph 2, Article 7 of this Law andwhich are subject to approval as prescribed by the State Council or asagreed by
the contracting parties, the Ministry of Foreign Affairs or thedepartments concerned under the State Council in conjunction
with theMinistry of Foreign Affairs shall submit them to the State Council forapproval. After the approval of agreements and
other instruments of thenature of a treaty, in the case of a bilateral one, the Ministry ofForeign Affairs shall execute
the formalities for the exchange of theinstruments of approval with the other contracting party or for mutualnotification
of the approval by diplomatic notes. In the case of amultilateral one, the Ministry of Foreign Affairs shall execute
theformalities for the deposit of the instrument of approval with thedepositary state or international organization concerned.
The instrumentof approval shall be signed by the Premier of the State Council, but mayalso be signed by the Minister of Foreign
Affairs.Article 9After the signing of the agreements which need no decision on ratificationby the Standing Committee of the National
People’s Congress or approval bythe State Council, the agreements shall be submitted by the departmentsconcerned under the State
Council to the State Council for the record,except those agreements concluded in the name of the governmentaldepartments
of the People’s Republic of China which are to be submitted bythese departments to the Ministry of Foreign Affairs for registration.Article
10If the two contracting parties need to go through different domestic legalprocedures for the entry into force of the same treaty
or agreement, thesaid treaty or agreement shall enter into force after the accomplishmentby the two parties of their respective
legal procedures and the mutualnotification by diplomatic notes.After the signing of the treaties and agreements listed in the
precedingparagraph, the formalities of ratification, approval, entry on the recordor registration shall be executed as the case
requires in accordance withArticles 7, 8 or 9 of this Law. The formalities of notification by noteshall be completed by the Ministry
of Foreign Affairs.Article 11The decision to accede to multilateral treaties or agreements shall bemade by the Standing Committee
of the National People’s Congress or theState Council as the case requires. The procedures for acceding tomultilateral
treaties and agreements shall be as follows:(1) to accede to a multilateral treaty or an important multilateralagreement listed
in Paragraph 2, Article 7 of this Law, the Ministry ofForeign Affairs or the department concerned under the State Council
inconjunction with the Ministry of Foreign Affairs shall make arecommendation after examination and submit it to the
State Council forexamination and verification; the State Council shall then refer it to theStanding Committee of the National
People’s Congress for decision onaccession. The instrument of accession shall be signed by the Minister ofForeign Affairs,
and the specific formalities executed by the Ministry ofForeign Affairs;(2) to accede to a multilateral treaty or agreement
other than thoselisted in Paragraph 2, Article 7 of this Law, the Ministry of ForeignAffairs or the department concerned under
the State Council in conjunctionwith the Ministry of Foreign Affairs shall make a recommendation afterexamination and submit
it to the State Council for decision on accession.The instrument of accession shall be signed by the Minister of ForeignAffairs,
and the specific formalities executed by the Ministry of ForeignAffairs.Article 12The decision to accept a multilateral treaty or
an agreement shall be madeby the State Council.In the case of a multilateral treaty or agreement containing clauses ofacceptance
which is signed by the Chinese representative or does notrequire any signature, the Ministry of Foreign Affairs or the departmentconcerned
under the State Council in conjunction with the Ministry ofForeign Affairs shall make a recommendation after examination and
submitit to the State Council for decision on acceptance. The instrument ofacceptance shall be signed by the Minister of Foreign
Affairs, and thespecific formalities executed by the Ministry of Foreign Affairs.Article 13A bilateral treaty or agreement concluded
by the People’s Republic ofChina with a foreign state shall be done in the Chinese language and theofficial language of the
other contracting party, both texts being equallyauthentic. When necessary, a text in the language of a third state agreedupon by
the two contracting parties may be executed in addition as athird, equally authentic, official text or an unofficial
text forreference. It may be stipulated by agreement of the two contractingparties that the third text shall prevail
in case of divergence ofinterpretation of the treaty or agreement.For agreements on specific lines of business and treaties
and agreementsconcluded with international organizations, a single language fairlycommonly used internationally may also
be used by agreement of the twocontracting parties or in accordance with the provisions of theconstitutions of the
international organizations concerned.Article 14Signed originals of bilateral treaties and agreements concluded in thename of
the People’s Republic of China or the Government of the People’sRepublic of China and copies of multilateral treaties and
agreementscertified as true by the depositary states or international organizationsconcerned shall be deposited with the Ministry
of Foreign Affairs. Signedoriginals of bilateral agreements concluded in the name of thegovernmental departments of
the People’s Republic of China shall bedeposited with these departments.Article 15A treaty or an important agreement of which
the Standing Committee of theNational People’s Congress has decided on ratification or accession shallbe published in the bulletin
of the Standing Committee of the NationalPeople’s Congress. The measures for publishing other treaties andagreements
shall be made by the State Council.Article 16Treaties and agreements concluded by the People’s Republic of China shallbe compiled
by the Ministry of Foreign Affairs into a collection of theTreaties of the People’s Republic of China.Article 17Treaties and agreements
concluded by the People’s Republic of China shallbe registered with the Secretariat of the United Nations by the Ministryof Foreign
Affairs in accordance with the relevant provisions of theUnited Nations Charter. Treaties and agreements concluded by the
People’sRepublic of China that require registration with other internationalorganizations shall be registered by the Ministry
of Foreign Affairs orthe departments concerned under the State Council in accordance with therespective constitutions of the
international organizations.Article 18The procedures for the conclusion of a treaty or an agreement with aninternational organization
by the People’s Republic of China shall followthis Law and the constitution of the relevant international organization.Article 19The
procedures for amendment to, abrogation of and withdrawal fromtreaties and agreements concluded by the People’s Republic
of China shallfollow mutatis mutandis the procedures for the conclusion of the treatiesand agreements in question.Article 20The
State Council may make regulations in accordance with this Law for itsimplementation.Article 21This Law shall enter into force as
of the date of promulgation.

    






INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE ASSIGNMENT AND TRANSFER OF THE USE RIGHT OF THE STATE-OWNED LAND IN CITIES AND TOWNS

State Council

Interim Regulations of the People’s Republic of China concerning the Assignment and Transfer of the Use Right of the State-owned Land
in Cities and Towns

No.55 Order of the State Council

May 19,1990

Chapter I General Provisions

Article 1 .

These Regulations are formulated in order to reform the system of using the State-owned land in the cities and towns, rationally
develop, utilize and manage the land, strengthen the land administration and promote the urban construction and economic development.

Article 2 .

The State, in accordance with the principle of separating the ownership right and the use right, , implements the system of assignment
and transfer the use right of the State-owned land in the cities and towns,, but the underground resources, the objects buried underground,
and the municipal public facilities shall be excluded .

The term “State-owned land in the cities and towns as used in preceding paragraph refers to the land owned by the whole people (hereinafter
referred to as the land) within the boundaries of cities, county towns, towns/bases operated under an organizational system and industrial
and mining districts .

Article 3 .

Any company, enterprise, other organization and individual of the People’s Republic of China within or outside the territory may,
unless otherwise provided by law, obtain the land use right and engage in land development, utilization and management in accordance
with the provisions of these Regulations.

Article 4 .

Users of the land who have obtained the land use right in accordance with these Regulations may, within the term of land use, transfer,
lease, or mortgage the land use right or use it for other economic activities, and their lawful rights and interests shall be protected
by the laws of the State.

Article 5 .

Users of the land shall, in their activities to develop, utilize and manage the land, abide by the laws and regulations of the state
and may not jeopardize the interests of the society and the public.

Article 6 .

The land administrative departments under the people’s governments at or above the county level shall conduct supervision and inspection,
according to law, over the assignment, transfer, lease, mortgage and termination of the land use right.

Article 7 .

The registration of the assignment, transfer, lease, mortgage and termination of the use right and the registration of the relevant
above-ground buildings and other attached objects shall be handled by the land administration department and house property administration
departments of the government in accordance with the law and pertinent regulations of the State Council.

THE registration documents shall be made available for public reference.

Chapter II The Assignment of the Land Use Right

Article 8 .

The assignment of the land use right refers to the action that the State as the owner of the land , within the term of a certain
number of years, assigns the land use right to the land users, and the land user pay the assignment fees for the land use right
to the State.

An assignment contract shall be signed for assigning the land use right.

Article 9 .

People’s governments at the municipal and county levels shall be in charge of assignment for the land use right , which shall be effected
in a planned, step-by-step way.

Article 10 .

The land administration departments under the people’s governments at the municipal and county levels shall, in conjunction with the
administrative departments for urban planning and construction and the housing property administration departments, draw up a plan
concerning the size and location, the purposes, the term, and other conditions with respect to the assigning the land use right .
After the plan is approved in accordance with the limits of approval authority stipulated by the State Council the land administration
departments shall be responsible for the implementation. .

Article 11 .

The contract for assigning the land use right shall be signed between the land administration departments under the people’s governments
at the municipal and county levels (hereinafter referred to as “the assigning party~) and the land users in accordance with the principle
of equality, voluntariness and compensation for use.

Article 12 .

The maximum term with respect to the assigned land use right shall be determined respectively in the light of the purposes listed
below:

(1)

70 years for residential purposes;

(2)

50 years for industrial purposes;

(3)

50 years for the purposes of education, science, culture, public health and physical education;

(4)

40 years for commercial, tourist and recreational purposes; and

(5)

50 years for comprehensive utilization or other purposes.

Article 13 .

The assignment of the land use right may be carried out by the following means:

(1)

by reaching an agreement through consultations;

(2)

by invitation to bid; or

(3)

by auction.

(4)

The specific procedures and steps for assigning the land use right by the means stipulated in preceding paragraphs shall be formulated
by the people’s government of relevant province, autonomous region, or municipality directly under the Central Government.

Article 14 .

The land user shall, within 60 days after signing the contract for the assignment of the land use right , pay the total amount of
the assignment fee thereof, failing to pay the total amount exceed the time limit, the assigning party shall have the right to terminate
the contract and may claim compensation for breach of contract.

Article 15 .

The assigning party shall, in compliance with the stipulations of the contract, provide the assigned land use right , failing to provide
the land use right according to contract , the land user shall have the right to terminate the contract and may claim compensation
for breach of contract.

Article 16 .

After paying the total amount of the assignment fee for the land use right , the land user shall, in accordance with the relevant
provisions, go through the registration thereof, obtain the certificate for land use and accordingly get the land use right .

Article 17 .

The land user shall, in conformity with the stipulations of the contract for the assignment of the land use right and the requirements
of city planning, develop, utilize and manage the land.

Should any land user fail to develop and utilize the land in accordance with the period of time specified in the contract and the
conditions therein, the land administration departments under the people’s governments at the municipal and county levels shall make
corrections and, in light of the seriousness of the case, give such penalties as a warning, a fine or, in an extreme case, with drawing
the land use right without compensation.

Article 18 .

If the land user needs to alter the use purposes of the land as stipulated in the contract for assigning the land use right , he
shall obtain the consent of the assigning party and the approval of the land administration department and the urban planning department
and shall, in accordance with the relevant provisions in this Chapter, sign a new contract for assigning the land use right , readjust
amount of the assignment fee thereof, and undertake registration anew.

Chapter III The Transfer of the Land Use Right

Article 19 .

The transfer of the land use right refers to the land user’s action of re-assigning the land use rights , including the sale, exchange,
and donation thereof.

If the land has not been developed and utilized in accordance with the period of time specified in the assignment contract and the
conditions therein, the land use right thereof may not be transferred.

Article 20 .

A transfer contract shall be sighed for the transfer of the land use right .

Article 21 .

With the transfer of the land use right , the rights and obligations specified in the contract for assigning the land use right and
in the registration documents shall be transferred accordingly.

Article 22 .

The land user who has acquired the land use right by means of the transfer thereof shall have a term of use which is the remainder
of the term specified in the contract for assigning the land use right minus the number of the years in which the original land
user has used the land.

Article 23 .

With the transfer of the land use right , the ownership of the above-ground buildings and other attached objects shall be transferred
accordingly.

Article 24 .

The owners or joint owners of the above-ground buildings and other attached objects shall have the land use right within use scope
of the said buildings and objects.

With the transfer of the ownership of the above-ground buildings and other attached objects by the land users, the land use right
within use scope of the said buildings and objects shall be transferred accordingly, but except the transfer of the above-ground
buildings and other attached objects as the chattel. .

Article 25 .

With respect to the transfer of the land use right and the ownership of the above-ground buildings and other attached objects, registration
for the transfer shall be undertaken in accordance with the relevant provisions.

Divided transfer of the land use right and the ownership of the above-ground buildings and other attached objects shall be subject
to the approval of the land administration department and the housing property administration departments under the people’s governments
at the municipal and country levels, and registration for the divided transfer shall be undertaken in accordance with the relevant
provisions.

Article 26 .

When the price for transfer of the land use right is obviously lower than the prevailing market price, the people’s governments
at the municipal and county levels shall have the priority of the purchase right thereof.

When the market price for the transfer of the land use right rises to an unreasonable extent, the people’s governments at the municipal
and county levels may take necessary measures to cope with it.

Article 27 .

If, after the transfer of the land use right , necessity arises for altering the use purposes of the land as stipulated in the contract
for assigning the land use right , it shall be handled in accordance with the provisions in Article 18 of these Regulations.

Chapter IV The Lease of the Land Use Right

Article 28 .

The lease of the land use right refers to the action of the land user as the lessor to lease the land use right together with the
above-ground buildings and other attached objects to the lessee for use who shall in turn pay lease rentals to the lessor.

If the land has not been developed and utilized in accordance with the period of time specified in the assignment contract and the
conditions therein, the land use right may not be leased.

Article 29 .

A lease contract shall be signed for leasing the land use right between the lessor and the lessee.

The lease contract shall not run counter to the laws and regulations of the State and the stipulations of the contract for assigning
the land use right .

Article 30 .

After leasing the land use right , the lessor must continue to perform the contract for assigning the land use right .

Article 31 .

With respect to the lease of the land use right together with the above-ground buildings and other attached objects, the lessor shall
undertake registration in accordance with the relevant provisions.

Chapter V The Mortgage of the Land Use Right

Article 32 .

The land use right may be mortgaged.

Article 33 .

With the mortgage of the land use right , the above-ground buildings and other attached objects thereon shall be mortgaged accordingly.

With the mortgage of above-ground buildings and other attached objects, the land use right within the use scope s shall be mortgaged
accordingly.

Article 34 .

A mortgage contract shall be signed for mortgaging the land use right between the mortgagor and the mortgagee.

The mortgage contract shall not run counter to the laws and regulations of the State and the stipulations of the contract for assigning
the land use right .

Article 35 .

With respect to the mortgage of the land use right together with the above-ground buildings and other attached objects, registration
for the mortgage shall be undertaken in accordance with the relevant provisions.

Article 36 .

If the mortgagor fails to fulfil the liabilities within the prescribed period of time or declares dissolution or bankruptcy within
the term of the mortgage contract, the mortgagee shall have the right to dispose the mortgaged property in accordance with the laws
and regulations of the State and the stipulations of the mortgage contract.

With respect to the land use right and the ownership of the above-ground buildings and other attached objects acquired as a result
of the dispose the mortgaged property, the transfer registration shall be undertaken in accordance with the relevant provisions.

Article 37 .

The mortgagee shall have the priority right of compensation with respect to the receipts resulting from the disposal of the mortgaged
property.

Article 38 .

If the mortgage right is eliminated as a result of the liquidation of liabilities or for other reasons, the procedures shall be undertaken
to cancel the mortgage registration.

Chapter VI The Termination of the Land Use Right

Article 39 .

The land use right shall be terminated for such reasons as the expiration of the term of the land use right as stipulated in the
contract for assigning the land use right , the withdrawal of the right before the expiration, or the loss of the land.

Article 40 .

Upon expiration of the term of the land use right, the land use right and the ownership of the above-ground buildings and other attached
objects thereon shall be acquired by the State without compensation. The land user shall surrender the certificate for land use and
undertake procedures to nullify the registration.

Article 41 .

Upon expiration of the term of the land use right, the land user may apply for its renewal of term. Where such a renewal is necessary,
a new contract shall be signed in accordance with the provisions in Chapter II of these Regulations and the land user shall pay the
assignment fee for the land use right and undertake the formalities of registration.

Article 42 .

The State shall not, before the expiration of the term, withdraw the land use right which the land user acquired in accordance with
the law. Under special circumstances, the State may, based on the requirements of social public interests, withdraw the land use
right before the expiration of the term according to the relevant legal procedures and shall based on the number of years in which
the land user has used the land and the actual state of affairs with respect to the development and utilization of the land, offer
corresponding compensation.

Chapter VII The Allocated Land Use Right

Article 43 .

The allocated land use right refers to the land use right which the land user acquires in accordance with the law, by various means,
and without compensation.

The land user referred to in the preceding paragraph shall pay the land use tax in accordance with the provisions of the Interim
Regulations of the People’s Republic of China Concerning the Land Use Tax in the Cities and Towns.

Article 44 .

The allocated land use right may not be transferred, leased, or mortgaged, with the exception of cases as specified in Article 45
of these Regulations.

Article 45 .

On condition that the following requirements are satisfied, the allocated land use right and the ownership of the above-ground buildings
and other attached objects may, subject to the approval of the land administration departments and the housing property administration
departments under the people’s governments at the municipal and county levels, be transferred, leased or mortgaged:

(1)

The land users are companies, enterprises, or other economic organizations, or individuals;

(2)

A certificate for the use of state-owned land had been obtained;

(3)

Possessing legitimate certificates of property rights to the above-ground buildings and other attached objects; and

(4)

A contract for assigning the land use right is signed in accordance with the provisions in Chapter II of these Regulations and the
land user makes up for the payment of the assignment fee to the local municipal or county people’s government or uses the proceeds
resulting from the transfer, lease or mortgage to pay the assignment fee.

The transfer, lease or mortgage of the allocated land use right referred to in preceding paragraphs shall be handled respectively
in accordance with the provisions in Chapters III, IV and V of these Regulations.

Article 46 .

Any units or individuals that transfer, lease or mortgage the allocated land use right without authorization shall have their illegal
incomes thus secured confiscated by the land administration departments under the people’s governments at the municipal and county
levels and shall be fined in accordance with the seriousness of the case.

Article 47 .

If the land user who has acquired the allocated land use right without compensation stops the use thereof as a result of moving to
another site, dissolution, disbandment, or bankruptcy or for other reasons, the municipal or county people’s government shall withdraw
the allocated land use right without compensation and may assign it in accordance with the relevant provisions of these Regulations.

The municipal or county people’s government may, based on the needs of urban construction and development and the requirements of
urban planning, withdraw the allocated land use right without compensation and may assign it in accordance with the relevant provisions
of these Regulations.

When the allocated land use right is withdrawn without compensation, the municipal or county people’s government shall, in the light
of the actual state of affairs, give proper compensation for the above-ground buildings and other attached objects thereon.

Chapter VIII Supplementary Provisions

Article 48 .

The land use right may be inherited if it is acquired by individuals in accordance with the provisions of these Regulations.

Article 49 .

The land user shall pay tax in accordance with the provisions of the taxation laws and regulations of the State.

Article 50 .

Fees collected by assigning the land use right in accordance with these Regulations shall be included in the fiscal budget and managed
as a special fund, which shall be used mainly for urban construction and land development. The specific measures for the use and
management of the fund shall be separately prescribed by the Ministry of Finance.

Article 51 .

The people’s governments of various provinces, autonomous regions and municipalities directly under the Central Government shall,
in accordance with the Provisions of these Regulations and with the actual state of affairs in their respective localities, select
some cities or towns where the conditions are relatively ripe as their pilot testing grounds.

Article 52 .

With respect to foreign investors engaging in developing and managing tracts of land, the administration of the land use right shall
be effected in accordance with the relevant provisions of the State Council.

Article 53 .

The State Administration for Land Uses shall be responsible for the interpretation of these Regulations; the measures for the implementation
thereof shall be formulated by the people’s governments of the provinces, autonomous regions and municipalities directly under the
Central Government.

Article 54 .

These Regulations shall be implemented as of the date of promulgation.



 
State Council
1990-05-19

 







PROTECTION OF MILITARY INSTALLATIONS

Law of the People’s Republic of China on the Protection of Military Installations

    

CHAPTER I GENERAL PROVISIONS

CHAPTER II DESIGNATION OF THE MILITARY RESTRICTED ZONES AND THE MILITARY ADMINISTRATIVE ZONES

CHAPTER III PROTECTION OF THE MILITARY RESTRICTED ZONES

CHAPTER IV PROTECTION OF THE MILITARY ADMINISTRATIVE ZONES

CHAPTER V PROTECTION OF MILITARY INSTALLATIONS NOT INCLUDED IN THE MILITARY RESTRICTED ZONES AND THE MILITARY ADMINISTRATIVE ZONES

CHAPTER VI ADMINISTRATIVE DUTY

CHAPTER VII LEGAL RESPONSIBILITY CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 1 This Law is formulated in accordance with the Constitution of the People’s Republic of China for the purpose of protecting the safety
of military installations, ensuring the effective utilization of military installations and normal performance of military activities,
promoting modernization of national defence, strengthening national defence and resisting aggression.

   Article 2 The term “military installations” referred to in this Law denotes the following buildings, sites and equipment used by the State
directly for military purposes:

(1) Command organs, ground and underground command structures and operations structures;

(2) Military airfields, harbours and docks;

(3) Barracks, training grounds and testing grounds;

(4) Military cave storehouses and warehouses;

(5) Military communication stations, reconnaissance stations, navigation stations, observation posts, survey markers, navigation markers
and navigation aid markers;

(6) Special military highways and railways, military communication lines and transmission lines, military oil and water pipelines;
and

(7) Other military installations as prescribed by the State Council and the Central Military Commission.

   Article 3 People’s governments and military organs at all levels shall, in the interests of national security, jointly protect military installations
and safeguard the interests of national defence.

The Headquarters of the General Staff of the People’s Liberation Army shall, under the leadership of the State Council and the Central
Military Commission, be in charge of the protection of military installations throughout the country. The headquarters of military
area commands shall be responsible for the work of protecting the army, navy and air force military installations in their respective
areas.

In places where there are military installations, the military organs concerned and the people’s governments at or above the county
level shall cooperate with each other in coordinating, supervising and inspecting the work of protecting military installations.

   Article 4 All organizations and citizens of the People’s Republic of China shall have the duty to protect military installations.

The damaging or endangering of military installations by any organization or individual shall be prohibited.

Any organization or individual shall have the right to report on, and make charges against, any act that damages or endangers military
installations.

   Article 5 The State shall implement a policy of giving protection to military installations according to their categories and with emphasis
on key projects.

   Article 6 Where military installations are to be converted to civilian use, or where military airfields, harbours and docks are to be jointly
used for military and civilian purposes, any such change shall be subject to the approval of the State Council and the Central Military
Commission.

CHAPTER II DESIGNATION OF THE MILITARY RESTRICTED ZONES AND THE MILITARY

   Article 7 The State shall designate military restricted zones and military administrative zones respectively in accordance with the nature,
the function, the security requirements and the requirements for effective utilization of military installations. Measures shall
also be taken for the protection of the military installations not included in the military restricted zones and the military administrative
zones.

   Article 8 The military restricted zones and the military administrative zones shall be determined by the State Council and the Central Military
Commission, or by military area commands in accordance with the stipulations of the State Council and the Central Military Commission.

   Article 9 The limits of the land and water military restricted zones and military administrative zones shall be jointly designated by military
area commands and people’s governments of provinces, autonomous regions and municipalities directly under the Central Government,
or by military area commands and people’s governments of provinces, autonomous regions, municipalities directly under the Central
Government and the relevant departments of the State Council. The limits of the military restricted airspace and the land and water
military restricted zones of utmost importance shall be designated by the State Council and the Central Military Commission.

The military restricted zones and the military administrative zones jointly designated by the armed forces and local people’s governments
prior to the implementation of this Law need not be redesignated if they are in conformity with the relevant stipulations of the
State Council and the Central Military Commission.

   Article 10 Any cancellation or change of the military restricted zones and the military administrative zones shall be handled according to the
procedures prescribed in Article 8 of this Law.

Any adjustment of the limits of the military restricted zones and the military administrative zones shall be handled according to
the procedures prescribed in paragraph 1, Article 9 of this Law.

   Article 11 The designation and adjustment of the limits of the military restricted zones and the military administrative zones shall, on the
premise of ensuring the security and effective utilization of military installations, take account of economic construction, protection
of natural environment and the production and livelihood of the local population.

   Article 12 Where it is necessary to requisition land, woodland, grassland, water surface and beaches for the designation or expansion of the
limits of the military restricted zones and the military administrative zones, it shall be handled in accordance with the provisions
of relevant laws and regulations.

   Article 13 When drawing up programmes for economic and social development, the local people’s governments at or above the county level shall
take into account the requirements for the protection of military installations and solicit opinions from the military organs concerned.
When planning construction projects or developing new tourist attractions, the same shall see that they are not located in the vicinity
of military installations. If it is not possible to do so and it is necessary to dismantle military installations or to convert them
to civilian use, the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government
shall consult with military authorities at the military area command level and submit a report to the State Council and the Central
Military Commission for approval.

CHAPTER III PROTECTION OF THE MILITARY RESTRICTED ZONES

   Article 14 The units in charge of the military restricted zones shall, on the basis of specific conditions and in accordance with the designated
limits of the zones, put up enclosing walls and barbed wire fences for the land military restricted zones and set up barriers or
boundary markers for the military restricted waters.

   Article 15 Entry into the land and water military restricted zones by personnel, vehicles and vessels other than those belonging to the units
in charge of the zones shall be prohibited. No photographing, video- taping, recording, reconnoitering, surveying, drawing or describing
of the restricted zones shall be allowed, except with the approval of the military organs at or above the military area command level.

Entry into the military restricted airspace by airborne devices shall be prohibitied, except as otherwise authorized by relevant state
provisions.

Use of materials from photographing, video-taping, recording, reconnoitering, surveying, drawing and describing of the military restricted
zones shall be subject to examination and approval by the military authorities at or above the military area command level.

   Article 16 In accordance with the requirements for protecting military installations in a restricted zone, a security control area, when necessary,
may be jointly designated in a specific area surrounding the restricted zone at the time of the joint designation of the zone itself
by military area commands and people’s governments of provinces, autonomous regions and municipalities directly under the Central
Government, or by military area commands and people’s governments of provinces, autonomous regions, municipalities directly under
the Central Government and the relevant departments of the State Council, and security warning markers may be set up at the perimeter
of the security control area. The sites for setting up security warning markers shall be determined by the unit in charge of the
military restricted zone and the local people’s government at or above the county level.

   Article 17 In the security control areas surrounding the military restricted zones, the local people may carry on their normal life and productive
activities, but may not engage in demolishing, shooting and other activities that endanger the safety and effective utilization of
military installations.

CHAPTER IV PROTECTION OF THE MILITARY ADMINISTRATIVE ZONES

   Article 18 The units in charge of the military administrative zones shall, in accordance with the designated limits of the zones, put up enclosing
walls, barbed wire fences or boundary markers for the military administrative zones.

   Article 19 No personnel, vehicles and vessels other than those belonging to the unit in charge of the military administrative zone may enter
the military administrative zone without permission of the unit in charge.

   Article 20 Measures for the administration of the airfields, harbours and docks that are designated as military administrative zones and jointly
used for military and civilian purposes shall be formulated by the State Council and the Central Military Commission.

CHAPTER V PROTECTION OF MILITARY INSTALLATIONS NOT INCLUDED IN THE MILITARY RESTRICTED ZONES AND THE MILITARY ADMINISTRATIVE ZONES

   Article 21 The units in charge of military installations shall adopt measures for the protection of the military installations not included
in the military restricted zones and the military administrative zones. The administrative units of the armed forces at or above
the regimental level may entrust local people’s governments with the protection of the military installations.

   Article 22 Stone-quarrying, earth-gathering and demolishing carried out within a certain distance of the military installations not included
in the military restricted zones and the military administrative zones may not endanger the safety and effective utilization of the
military installations.

   Article 23 The units in charge of military installations and the local people’s governments at or above the county level shall formulate specific
measures for the protection of the military installations in the military restricted zones and the military administrative zones
as well as the installations not included in the military restricted zones and the military administrative zones. Such specific measures
may be publicly announced for enforcement.

   Article 24 Military organs at all levels shall strictly perform their functions and duties to protect military installations, educate the armymen
to take good care of military installations, guard secrets about military installations, formulate rules and regulations for the
protection of military installations, supervise and inspect the protection work of military installations and settle any problems
arising therefrom.

   Article 25 The authorities in charge of military installations shall strictly implement the relevant rules and regulations for the protection
of military installations, set up files on military installations and carry out inspections and ensure the maintenance of military
installations.

   Article 26 The units in charge of the military restricted zones and the military administrative zones shall, in accordance with the provisions
of relevant laws and regulations, protect the natural resources and cultural relics in the military restricted zones and the military
administrative zones.

   Article 27 The units in charge of military installations shall, when necessary, provide the local people’s governments at or above the county
level with the data on the location of the military underground and underwater cables and pipelines. The local people’s governments
shall protect the military underground and underwater cables and pipelines when undertaking construction.

   Article 28 People’s governments at all levels shall strengthen education in national defence among the citizens, heighten their sense of national
defence and educate them to protect military installations, guard secrets about military installations and stop any acts that damage
or endanger military installations.

   Article 29 Where it is necessary for the public security organs to assist in the maintenance of security and administrative order in the military
restricted zones and the military administrative zones, public security organizations may be set up by the decision of the State
Council and the Central Military Commission or with approval by the public security departments of provinces, autonomous regions
and municipalities directly under the Central Government following application submitted by the relevant military organs.

   Article 30 The personnel on duty of the unit in charge of military installations shall stop any person who commits any of the following acts
in violation of the provisions of this Law:

(1) Illegally entering the military restricted zone;

(2) Illegally photographing, video-taping, recording, reconnoitering, surveying, drawing or describing within the military restricted
zone or the security control area surrounding the restricted zone;

(3) Engaging in activities that damage or endanger military installations.

For persons who commit any act listed in the preceding paragraph and refuse to be stopped, the personnel on duty of the unit in charge
of military installations may, in accordance with relevant regulations of the State, use necessary compulsory means to stop them,
or, in emergency cases where the security of military installations or the lives of the personnel on duty are endangered, resort
to arms.

   Article 31 Any person who commits any of the following acts shall be investigated for criminal responsibility in accordance with the relevant
provisions of the Criminal Law:

(1) Damaging military installations;

(2) Stealing, seizing or robbing equipment, goods or materials of military installations;

(3) Divulging the secrets of military installations, or stealing, spying on, buying or illegally providing secrets on military installations
for agencies, organizations or individuals abroad.

   Article 32 Any person who commits any of the following acts shall be punished in the light of the stipulations of Article 19 of the Regulations
on Administrative Penalties for Public Security:

(1) Illegally entering the military restricted zone and refusing to be stopped;

(2) Engaging in activities that endanger the security and effective utilization of military installations in the security control
area surrounding the military restricted zone or within a certain distance of the military installations not included in the military
restricted zone or the military administrative zone, and refusing to be stopped;

(3) Destroying the enclosing walls, barbed wire fences or boundary markers of the military restricted zone or the military administrative
zone.

   Article 33 In case of disturbance of the administrative order in the military restricted zones and the military administrative zones, the principal
culprits and persons held directly responsible shall, when the case is serious, be investigated for criminal responsibility in the
light of the stipulations of Article 158 of the Criminal Law, or when the case is not so serious as to be considered as a penal offence,
be punished in the light of the stipulations of Article 19 of the Regulations on Administrative Penalties for Public Security.

   Article 34 Persons who engage in illegal photographing, video-taping, recording, reconnoitering, surveying, drawing or describing in the military
restricted zones and refuse to be stopped shall either be punished in the light of the stipulations of Article 19 of the Regulations
on Administrative Penalties for Public Security or have their equipment and instrument confiscated. When the case is serious, they
shall be investigated for criminal responsibility in the light of the stipulations of Article 158 of the Criminal Law.

   Article 35 Servicemen and permanent workers and staff of the armed forces who commit any of the following acts shall be investigated for criminal
responsibility in accordance with the relevant stipulations of the Interim Regulations on Punishment for Offences in Violation of
Duties by Military Personnel; if the case is not so serious as to be considered a penal offence, they shall be subjected to military
disciplinary sanctions:

(1) Damaging military installations;

(2) Stealing the equipment, goods and materials of military installations;

(3) Divulging the secrets of military installations;

(4) Leaving post without permission or committing dereliction that causes damage to military installations or other consequences.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 36 Measures for implementation shall be formulated in accordance with this Law by the State Council and the Central Military Commission.

   Article 37 This law shall go into effect on August 1, 1990.

    






CITY PLANNING LAW

City Planning Law of the People’s Republic of China

    

(Adopted at the 11th Meeting of the Standing Committee of the Seventh National People’s Congress on December 26, 1989, promulgated
by order No.23 of the President of the People’s Republic of China on December 26, 1989, and effective as of April 1, 1990)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II FORMULATION OF THE PLAN FOR A CITY

CHAPTER III DEVELOPMENT OF NEW URBAN AREAS AND REDEVELOPMENT OF EXISTING URBAN AREAS

CHAPTER IV IMPLEMENTATION OF CITY PLANNING

CHAPTER V LEGAL LIABILITY

CHAPTER VI SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   Article 1. This Law is formulated to determine the size of a city, define the orientation of its development, realize the goals of its economic
and social development, and map out its plan and carry out its construction on a rational basis in order to meet the needs in socialist
modernization.

   Article 2. This Law shall be observed when the plan for a city is being formulated or implemented, or when construction is being carried out
within a planned urban area.

   Article 3. The term ” city ” used in this Law applies to a municipality directly under the Central Government, a city or a town established
as one of the administrative divisions of the state.

The term ” a planned urban area ” used in this Law applies to an urban district, an inner suburban district or an area needed for
urban development and construction as one of the administrative divisions of a city. The scope of a planned urban area shall be
determined by the people’s government of a city, while compiling a comprehensive plan for the city.

   Article 4. The state shall guide itself by the principle of strictly controlling the size of large cities and developing medium-sized and small
cities to an appropriate extent in the interest of a rational distribution of productive forces and of the population.

A ” large city ” means one which has a non-agricultural population of 500, 000 or more in its urban and inner suburban districts.

A ” medium-sized city ” means one which has a non-agricultural population of over 200,000 but less than 500,000 in its urban and inner
suburban districts.

A ” small city ” means one which has a non-agricultural population of less than 200,000 in its urban and inner suburban districts.

   Article 5. City planning must suit the specific conditions of our country and embody a correct handling of the relationship between short-term
and long-term development.

The principle of usefulness and economy and of building the country through thrift and hard work must be adhered to in construction
in a planned urban area.

   Article 6. The compilation of the plan for a city shall be based on the plan for national economic and social development as well as the natural
environment, resources, historical conditions and present characteristics of the city. The plan shall be a comprehensive one which
gives balanced consideration to all factors.

The construction of items of urban infrastructure as defined in the plan for a city shall be incorporated into the plan for national
economic and social development in accordance with the specified procedure for national capital construction, and shall be carried
out step by step in a planned way.

   Article 7. The comprehensive plan for a city shall be coordinated with territorial planning, regional planning, water space planning and comprehensive
planning for the use of land.

   Article 8. The state shall encourage scientific and technical research in city planning and shall popularize advanced technology in order to
raise the scientific and technical level of city planning.

   Article 9. The competent department of city planning administration under the State Council shall be responsible for city planning throughout
the country.

The competent departments of city planning administration of the people’s governments at or above the county level shall be responsible
for city planning in the administrative areas under their jurisdiction.

   Article 10. All units and individuals shall have the obligation to abide by the plan for a city and shall have the right to report and bring
charges against any action that runs counter to such a plan.

CHAPTER II FORMULATION OF THE PLAN FOR A CITY

   Article 11. The competent department of city planning administration under the State Council and the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government shall organize the compilation of hierachical urban plan for the
whole nation and for the provinces, the autonomous regions and the municipalities directly under the Central Government respectively
in order to provide guidance for the compilation of the plans for the cities.

   Article 12. The people’s government of a city shall be responsible for seeing to the compilation of the plan for the same city. The compilation
of the plan for a town which is the seat of the people’s government of a county shall be taken care of by the same people’s government.

   Article 13. In the compilation of the plan for a city, it shall be necessary to proceed from actual conditions and make a scientific forecast
of the needs arising from its long-term development. The size of the city, the standards, norms and criteria for the various items
of development, and the development procedure shall conform with the national and local levels of economic and technological development.

   Article 14. In the compilation of the plan for a city, attention shall be paid to the protection and improvement of the city’s ecological environment,
the prevention of pollution and other public hazards, the development of greenery and afforestation, the improvement of the appearance
and environmental sanitation of urban areas, the preservation of historic and cultural sites, the traditional cityscape, the local
characteristics and the natural landscape.

In the compilation of the plan for a city in a national autonomous area, attention shall be paid to the preservation of ethnic traditions
and local characteristics.

   Article 15. In the compilation of the plan for a city, the principle of facilitating production, benefiting the people’s everyday life, promoting
commodity circulation, enriching the economy and promoting advances in science, technology, culture and education shall be adhered
to.

City planning shall conform with the city’s needs for fire-fighting, the prevention of explosions, the mitigation of earthquakes,
the prevention of floods and of mud-rock flows, public security, traffic control and civil air defence construction. In areas where
strong earthquakes and serious floods are likely to occur, measures for earthquake mitigation and flood prevention must be specified
in the plan for a city.

   Article 16. In the compilation of the plan for a city, the principle of optimal utilization and conservation of land shall be observed.

   Article 17. For the compilation of the plan for a city, data on exploration and surveying and other necessary basic information shall be made
available.

   Article 18. The plan for a city shall, as a rule, be worked out in two stages, i.e. comprehensive planning and detailed planning. For large
and medium-sized cities, district planning may be conducted on the basis of comprehensive planning in order to further control and
define the use of land and determine the scope and capacity of each plot and to coordinate the construction of various items of infrastructure
and public facilities.

   Article 19. The comprehensive plan for a city shall cover the designated function of the city, the goals of its development and its projected
size, the standards, norms and criteria for its main building structures, the distribution of land used for various construction
purposes, the functions of different zones, the overall arrangement for construction, the comprehensive urban transportation system,
the system of water spaces and green spaces, the plan for specialized sectors and the plan for immediate construction.

The comprehensive plan for a city with a municipal government or for a town serving as the seat of a county government shall include
a hierachical urban plan for the administrative divisions of the city or county.

   Article 20. The detailed plan for a city shall, on the basis of the comprehensive plan for the city or the plan for its different zones, include
a concrete plan for the various construction projects to be undertaken in the immediate development area of the city.

The detailed plan for a city shall define the scope for the use of land for each construction project within the planned plot and
provide the control indexes for building density and building height, the general layout, the comprehensive plan for utilities engineering
and the plan for site engineering.

   Article 21. Plans for cities shall be examined and approved at different levels.

The comprehensive plan for a municipality directly under the Central Government shall be submitted by the people’s government of the
municipality to the State Council for examination and approval.

The comprehensive plan for a city which is the seat of the people’s government of a province or of an autonomous region, or for a
city which has a population of 1,000,000 or more, or for a city otherwise designated by the State Council shall first be examined
and approved by the people’s government of the province or the autonomous region and then submitted to the State Council for examination
and approval.

The comprehensive plan for a city with a municipal government or for a town serving as the seat of a county government other than
those defined in Paragraphs 2 and 3 of this Article shall be submitted to the people’s government of the province, the autonomous
region or the municipality directly under the Central Government for examination and approval. The comprehensive plan for a town
which is the seat of the people’s government of a county administered by a municipality shall be submitted to the relevant municipal
people’s government for examination and approval.

The comprehensive plan for a town with an administrative status other than that defined in the preceding paragraph shall be submitted
to the people’s government of the relevant county for examination and approval.

The people’s government of a city or of a county must submit the comprehensive plan for a city to the people’s congress at the corresponding
level or its standing committee for examination and approval before submitting it to the people’s government at a higher level for
examination and approval.

The plan for a district of a city shall be examined and approved by the people’s government of the city.

The detailed plan for a city shall be examined and approved by the people ‘s government of the city. The detailed plan for a city
which has a district plan shall be submitted to the competent department of city planning administration of the people’s government
of the city for examination and approval, with the exception of important detailed plans which shall be submitted to the people’s
government of the city for examination and approval.

   Article 22. The people’s government of a city may make partial readjustments in the comprehensive plan for the city according to needs arising
from the city’s economic and social development, and the comprehensive plan thus readjusted shall be submitted to the standing committee
of the people’s congress at the corresponding level and to the authority which originally approved the plan for the record. Major
readjustments which involve the designated function of the city, its size, the orientation of its development or its overall layout
shall be examined and approved by the people’s congress at the corresponding level or its standing committee before they are submitted
to the authority which originally approved the plan for examination and approval.

CHAPTER III DEVELOPMENT OF NEW URBAN AREAS AND REDEVELOPMENT OF EXISTING URBAN AREAS

   Article 23. In the development of new urban areas and the redevelopment of existing urban areas, the principles of unified planning, a rational
layout, consideration of local conditions, comprehensive development and the coordinated construction of support facilities must
be adhered to. The selection and determination of sites for construction projects may not hinder the development of a city, endanger
its safety, cause pollution or a deterioration of its environment or affect the coordination of its various functions.

   Article 24. The marshalling yards for newly built railways, trunk lines for freight trains, transit highways, airports and important military
establishments shall be built away from the urban districts.

In the construction of harbours, consideration shall be given to the rational allocation and utilization of a city’s water front,
and the availability of a section of the water front for activities other than production shall be guaranteed.

   Article 25. The development of new urban areas shall be carried out in localities where there are conditions for construction like ample water
and energy resources, transportation facilities and means of preventing disasters. Mineral reserves and underground cultural relics
and historical sites shall be avoided.

   Article 26. In the development of new urban areas, rational use shall be made of the existing facilities of a city.

   Article 27. In the redevelopment of existing urban areas, the principles of good maintenance, rational utilization, readjustment of the layout
and gradual improvement shall be adhered to. Redevelopment shall be carried out by stages on a unified plan. The residential and
transportation conditions in the existing urban areas shall be improved step by step, and special attention shall be given to the
construction of the infrastructure and public facilities so as to enhance the multiple functions of the city.

CHAPTER IV IMPLEMENTATION OF CITY PLANNING

   Article 28. The plan for a city shall be announced by the people’s government of the city after it is approved.

   Article 29. The use of land and all development projects within a planned urban area must conform to the plan for a city and must be subjected
to planning administration.

   Article 30. The location and layout of construction projects within a planned urban area must conform to the plan for a city. The design programme
submitted for approval must be accompanied by the statement of opinion on the location issued by the competent department of city
planning administration.

   Article 31. When applying for the use of land for a construction project in a planned urban area, the unit or individual undertaking construction
must produce documents stating the approval of the project by the relevant government authorities and apply to the competent department
of city planning administration for the determination of a location for the construction project. The competent department of city
planning administration shall determine the site and its boundary, provide the facilities for planning and designing, and issue a
permit for the planned use of land for construction. Only after acquiring the permit for the planned use of land for construction,
may the unit or individual undertaking construction apply for the use of land to the land administration department of the local
people’s government at or above the county level. After the application is examined and approved by the people’s government at or
above the county level, land shall be allocated by the department of land administration.

   Article 32. For the construction of a new building, structure, road, pipeline and cable or any other engineering works, its extension or its
alteration within a planned urban area, application shall be submitted to the competent department of the city planning administration
together with the related documents of approval. The competent department of city planning administration shall issue a permit for
a planned construction project according to the planning and design requirements defined in the plan for the city. The unit or individual
undertaking construction may not apply for the performance of the procedure for the beginning of construction until after acquiring
the permit for a planned construction project.

   Article 33. A temporary structure erected within a planned urban area must be demolished within the approved period of time for its use. Measures
for the planning and administration of temporary structures and land for temporary use shall be formulated by the people’s governments
of the provinces, autonomous regions and municipalities directly under the Central Government.

The construction of permanent buildings, structures and other installations shall be banned on land granted for temporary use.

   Article 34. All units and individuals must obey the decisions on readjustments in the use of land made by the people’s government of a city
according to the plan for the city.

   Article 35. No unit or individual may undertake construction on a road or a public square, in a green space, in a high-voltage power supply
corridor, or by cutting into the space for underground pipelines and cables.

   Article 36. The excavation of sand and gravel and of earth within a planned urban area shall be approved by the competent administrative authorities.
No such activity may cause damage to the urban environment or produce a negative effect on city planning.

   Article 37. The competent department of city planning administration shall be empowered to inspect the construction projects in a planned urban
area to see if they conform to the requirements of the plan for a city. The party subject to inspection shall state the actual situation
and provide the necessary data. The party conducting inspection shall be obliged to keep technical and business secrets for the
party subject to inspection.

   Article 38. The competent department of city planning administration may participate in the checking and acceptance of important development
projects within a planned urban area. The construction unit shall submit to the competent department of city planning administration
documents related to the completion of a development project within a planned urban area within six months of the checking and acceptance
of the project.

CHAPTER V LEGAL LIABILITY

   Article 39. If, within a planned urban area, land is occupied and used after the acquisition of documents of approval for the use of land for
construction but without the acquisition of a permit for the planned use of land for construction, such documents of approval shall
be declared invalid, and the land occupied shall be returned by order of a people’s government at or above the county level.

   Article 40. Construction which is undertaken within a planned urban area without a permit for a planned construction project or not in line
with the requirements stated in the permit and which seriously affects city planning shall, by order of the competent department
of city planning administration of the local people’s government at or above the county level, be suspended, removed within a prescribed
period of time or be punishable by the confiscation of illegal buildings, structures or facilities; construction which affects city
planning but can still be remedied shall, by order of the competent department of city planning administration of the local people’s
government at or above the county level, be corrected within a prescribed period of time and be concurrently punishable by a fine.

   Article 41. A person responsible for constructing a project without a permit for a planned construction project or not in line with the requirements
in the permit may be given administrative sanction by the organization where he works or by the competent authority at a higher level.

   Article 42. A party refusing to accept the decision on administrative sanction may, within 15 days of receiving the notification on such a decision,
apply for reconsideration to the department next higher to the authorities that decided on the sanction; if the party refuses to
accept the decision of reconsideration, it may, within 15 days of receiving the reconsideration decision, bring a suit before a people’s
court. A party may also bring a suit directly before a people’s court within 15 days of receiving the notification on the sanction.
If, upon the expiration of this period, the party has not applied for reconsideration or has neither brought a suit before a people’s
court nor complied with the sanction, the authorities that decided on the sanction may apply to the people’s court for compulsory
enforcement.

   Article 43. Any member of a competent department of city planning administration who neglects his duty, abuses his power or engages in malpractices
for personal gains shall be given administrative sanction by the unit to which he belongs or by the competent higher authorities;
if his act constitutes a crime, he shall be investigated for criminal responsibility according to law.

CHAPTER VI SUPPLEMENTARY PROVISIONS

   Article 44. This Law may be referred to for a residents’ community in an industrial or mining district without the administrative status of
a town.

   Article 45. Rules for the implementation of this Law shall be formulated, pursuant to this Law, by the competent department of city planning
administration under the State Council, and shall be implemented after they are submitted to and approved by the State Council.

Measures for the implementation of this Law may be formulated, pursuant to this Law, by the standing committees of the people’s congresses
of the provinces, autonomous regions and municipalities directly under the Central Government.

   Article 46. This Law shall enter into force as of April 1, 1990. The Regulations on City Planning promulgated by the State Council shall be
abrogated therefrom.

CITY PLANNING LAW OF THE PEOPLE’S REPUBLIC OF CHINA

(Adopted at the 11th Meeting of the Standing Committee of the Seventh National People’s Congress on December 26, 1989, promulgated
by order No.23 of the President of the People’s Republic of China on December 26, 1989, and effective as of April 1, 1990)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II FORMULATION OF THE PLAN FOR A CITY

CHAPTER III DEVELOPMENT OF NEW URBAN AREAS AND REDEVELOPMENT OF EXISTING URBAN AREAS

CHAPTER IV IMPLEMENTATION OF CITY PLANNING

CHAPTER V LEGAL LIABILITY

CHAPTER VI SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   Article 1. This Law is formulated to determine the size of a city, define the orientation of its development, realize the goals of its economic
and social development, and map out its plan and carry out its construction on a rational basis in order to meet the needs in socialist
modernization.

   Article 2. This Law shall be observed when the plan for a city is being formulated or implemented, or when construction is being carried out
within a planned urban area.

   Article 3. The term ” city ” used in this Law applies to a municipality directly under the Central Government, a city or a town established
as one of the administrative divisions of the state.

The term ” a planned urban area ” used in this Law applies to an urban district, an inner suburban district or an area needed for
urban development and construction as one of the administrative divisions of a city. The scope of a planned urban area shall be
determined by the people’s government of a city, while compiling a comprehensive plan for the city.

   Article 4. The state shall guide itself by the principle of strictly controlling the size of large cities and developing medium-sized and small
cities to an appropriate extent in the interest of a rational distribution of productive forces and of the population.

A ” large city ” means one which has a non-agricultural population of 500, 000 or more in its urban and inner suburban districts.

A ” medium-sized city ” means one which has a non-agricultural population of over 200,000 but less than 500,000 in its urban and inner
suburban districts.

A ” small city ” means one which has a non-agricultural population of less than 200,000 in its urban and inner suburban districts.

   Article 5. City planning must suit the specific conditions of our country and embody a correct handling of the relationship between short-term
and long-term development.

The principle of usefulness and economy and of building the country through thrift and hard work must be adhered to in construction
in a planned urban area.

   Article 6. The compilation of the plan for a city shall be based on the plan for national economic and social development as well as the natural
environment, resources, historical conditions and present characteristics of the city. The plan shall be a comprehensive one which
gives balanced consideration to all factors.

The construction of items of urban infrastructure as defined in the plan for a city shall be incorporated into the plan for national
economic and social development in accordance with the specified procedure for national capital construction, and shall be carried
out step by step in a planned way.

   Article 7. The comprehensive plan for a city shall be coordinated with territorial planning, regional planning, water space planning and comprehensive
planning for the use of land.

   Article 8. The state shall encourage scientific and technical research in city planning and shall popularize advanced technology in order to
raise the scientific and technical level of city planning.

   Article 9. The competent department of city planning administration under the State Council shall be responsible for city planning throughout
the country.

The competent departments of city planning administration of the people’s governments at or above the county level shall be responsible
for city planning in the administrative areas under their jurisdiction.

   Article 10. All units and individuals shall have the obligation to abide by the plan for a city and shall have the right to report and bring
charges against any action that runs counter to such a plan.

CHAPTER II FORMULATION OF THE PLAN FOR A CITY

   Article 11. The competent department of city planning administration under the State Council and the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government shall organize the compilation of hierachical urban plan for the
whole nation and for the provinces, the autonomous regions and the municipalities directly under the Central Government respectively
in order to provide guidance for the compilation of the plans for the cities.

   Article 12. The people’s government of a city shall be responsible for seeing to the compilation of the plan for the same city. The compilation
of the plan for a town which is the seat of the people’s government of a county shall be taken care of by the same people’s government.

   Article 13. In the compilation of the plan for a city, it shall be necessary to proceed from actual conditions and make a scientific forecast
of the needs arising from its long-term development. The size of the city, the standards, norms and criteria for the various items
of development, and the development procedure shall conform with the national and local levels of economic and technological development.

   Article 14. In the compilation of the plan for a city, attention shall be paid to the protection and improvement of the city’s ecological environment,
the prevention of pollution and other public hazards, the development of greenery and afforestation, the improvement of the appearance
and environmental sanitation of urban areas, the preservation of historic and cultural sites, the traditional cityscape, the local
characteristics and the natural landscape.

In the compilation of the plan for a city in a national autonomous area, attention shall be paid to the preservation of ethnic traditions
and local characteristics.

   Article 15. In the compilation of the plan for a city, the principle of facilitating production, benefiting the people’s everyday life, promoting
commodity circulation, enriching the economy and promoting advances in science, technology, culture and education shall be adhered
to.

City planning shall conform with the city’s needs for fire-fighting, the prevention of explosions, the mitigation of earthquakes,
the prevention of floods and of mud-rock flows, public security, traffic control and civil air defence construction. In areas where
strong earthquakes and serious floods are likely to occur, measures for earthquake mitigation and flood prevention must be specified
in the plan for a city.

   Article 16. In the compilation of the plan for a city, the principle of optimal utilization and conservation of land shall be observed.

   Article 17. For the compilation of the plan for a city, data on exploration and surveying and other necessary basic information shall be made
available.

   Article 18. The plan for a city shall, as a rule, be worked out in two stages, i.e. comprehensive planning and detailed planning. For large
and medium-sized cities, district planning may be conducted on the basis of comprehensive planning in order to further control and
define the use of land and determine the scope and capacity of each plot and to coordinate the construction of various items of infrastructure
and public facilities.

   Article 19. The comprehensive plan for a city shall cover the designated function of the city, the goals of its development and its projected
size, the standards, norms and criteria for its main building structures, the distribution of land used for various construction
purposes, the functions of different zones, the overall arrangement for construction, the comprehensive urban transportation system,
the system of water spaces and green spaces, the plan for specialized sectors and the plan for immediate construction.

The comprehensive plan for a city with a municipal government or for a town serving as the seat of a county government shall include
a hierachical urb

ORGANIC LAW OF THE URBAN RESIDENTS COMMITTEES

Organic Law of the Urban Residents Committees of the PRC

    

   Article 1. Pursuant to the Constitution, this Law is formulated with a view to improving the urban residents committees as an institution,
enabling urban residents to administer their own affairs in accordance with the law, promoting socialist democracy at the grassroots
level in the cities, and furthering socialist material development and the building of an advanced socialist culture and ideology
in urban areas.

   Article 2. An urban residents committee shall be a mass organization for self government at the grassroots level, in which the residents manage
their own affairs, educate themselves, and serve their own needs.

The people’s government of a city not divided into districts or of a municipal district or an agency of such a people’s government
shall provide guidance, support and help for the residents committees in their work. The residents committees shall, on their part,
assist the above people’s government or agency in its work.

   Article 3. The tasks of a residents committee shall include:

(1) publicizing the Constitution, the laws, the regulations and the state policies, safeguarding the lawful rights and interests of
the residents, educating the residents for the fulfilment of their statutory obligations and for the protection of public property,
and conducting various forms of activities for the development of an advanced socialist culture and ideology;

(2) handling the public affairs and public welfare services of the residents in the local residential area;

(3) mediating disputes among the residents;

(4) assisting in the maintenance of public security;

(5) assisting the local people’s government or its agency in its work related to the interests of the residents, such as public health,
family planning, special care for disabled servicemen and for family members of revolutionary martyrs and servicemen, social relief,
and juvenile education; and

(6) conveying the residents’ opinions and demands and making suggestions to the local people’s government or its agency.

   Article 4. A residents committee shall develop community service activities for the convenience and benefit of the residents and may also run
relevant services.

A residents committee shall manage its own property; no department or unit may infringe upon its right of ownership of property.

   Article 5. In an area where people from more than one nationality live, the residents committee shall educate the residents for mutual assistance
and mutual respect to enhance unity between different nationalities.

   Article 6. A residents committee shall generally be established for an area inhabited by 100-700 households on the basis of the distribution
of residents and on the principle of facilitating their self government.

The establishment or dissolution of a residents committee or a readjustment in the area covered by it shall be decided by the people’s
government of a city not divided into districts or of a municipal district.

   Article 7. A residents committee shall be composed of 5-9 members, including the chairman, the vice-chairman (vice-chairmen) and the members.
In an area where people from more than one nationality live, the residents committee shall include a member or members from the
nationality or nationalities with a smaller population.

   Article 8. The chairman, vice-chairman (vice-chairmen) and members of a residents committee shall be elected by all the residents of a residential
area who have the right to elect or by the representatives from all the households; on the basis of the opinions of the residents,
they may also be elected by the elected representatives of residents groups numbering 2-3 from each. The term of office of the residents
committee shall be three years, and its members may continue to hold office when reelected.

Any resident of an residential area who has reached the age of 18 shall have the right to elect and stand for election, regardless
of his ethnic status, race, sex, occupation, family background, religious belief, education, property status and length of residence,
with the exception of persons who have been deprived of political rights in accordance with the law.

   Article 9. The residents assembly shall be composed of residents at or above the age of 18.

The residents assembly may be attended by all the residents at or above the age of 18 or by a representative or representatives of
each household; it may also be attended by the elected representatives of residents groups numbering 2-3 from each.

The residents assembly shall be held only when it is attended by over half of the total number of the residents at or above the age
of 18, or of the representatives of the households, or of the representatives elected by the residents groups. Decisions of the
residents assembly shall be adopted by a simple majority of all the people present.

   Article 10. The residents committee shall be responsible to the residents assembly and report on its work to the latter.

The residents assembly shall be convened and presided over by the residents committee. It shall be convened when proposed by over
one-fifth of the residents at or above the age of 18, by over one-fifth of the number of households, or by over one-third of the
number of residents groups. When important matters involving the interests of all the residents arise, the residents committee must
refer them to the residents assembly for decision through discussion.

The residents assembly shall have the power to recall members of the residents committee and hold a by-election.

   Article 11. In making decisions, a residents committee shall apply the principle whereby the minority is subordinate to the majority.

In its work a residents committee shall adopt a democratic approach and shall not resort to coercion or commandism.

   Article 12. Members of a residents committee shall observe the Constitution, the laws, the regulations and the state policies, be fair in handling
matters and serve the residents warmheartedly.

   Article 13. A residents committee shall, when necessary, establish sub-committees for people’s mediation, public security, public health and
other matters. Members of the residents committee may concurrently be members of the sub-committees. A residents committee with
a smaller population in its area may dispense with the sub-committees; instead, members of the residents committee shall have a division
of responsibilities for various types of work.

   Article 14. The residents committee may set up residents groups, the heads of which shall be elected by these groups.

   Article 15. Joint pledges of the residents shall be drawn up by the residents assembly through discussion, reported to the people’s government
of a city not divided into districts or of a municipal district or to an agency of either of them for the record, and implemented
under the supervision of the residents committee. The residents shall observe the decisions of the residents assembly and the joint
pledges of the residents.

The joint pledges of the residents shall not contravene the Constitution, the laws, the regulations and the state policies.

   Article 16. The funds needed by a residents committee for managing public welfare services in the residential area, upon decision of the residents
assembly through discussion, may be raised from the residents on a voluntary basis, and may also be raised from beneficiary units
in the residential area, subject to approval by such units; the accounts of revenues and expenditures shall be made public without
delay for supervision by the residents.

   Article 17. The funds needed for the work of a residents committee and their sources, and the scope, standards and sources of the financial
subsidies for members of the residents committee shall be specified by the people’s government of a city not divided into districts
or of a municipal district, or by the people’s government at a higher level, and the money shall be provided by it. With the approval
of the residents assembly, appropriate subsidies may be granted by using some of the residents committee’s financial revenues.

The office premises for a residents committee shall be made available by the local people’s government through overall planning.

   Article 18. Persons who have been deprived of political rights in accordance with the law shall be included in residents groups. The residents
committee shall exercise supervision over them and give them ideological education.

   Article 19. State organs, public organizations, units of the armed forces, enterprises and institutions shall not join the organizations of
the residents committees in their localities, but they shall support the work of these residents committees. When the residents committees
in their localities discuss problems related to them and their presence becomes necessary, these units shall send representatives
to the meetings. In the meantime, these units shall abide by the relevant decisions of the residents committees and the joint pledges
of the residents.

The staff and workers of the units specified in the preceding paragraph and their family members, and servicemen and dependents living
with them shall join the residents committees in their residential areas; in areas where such families live in compact communities,
dependents committees may be established separately to assume the responsibilities of the residents committees and conduct their
work under the guidance of the people’s governments of cities not divided into districts or of municipal districts, their agencies
or the units they belong to. The funds needed for the work of the dependents committees, the financial subsidies for their members
and their office premises shall be provided by the units they belong to.

   Article 20. If a relevant department under the people’s government of a municipality or a municipal district, in its work, needs the cooperation
of a residents committee or one of its sub-committees, it shall seek the approval of the people’s government of the municipality
or of the municipal district or an agency of either of them, which shall make unified arrangements. The relevant departments under
the people’s government of a municipality or a municipal district may give professional guidance to the relevant sub-committees of
the residents committees.

   Article 21. This Law shall apply to the residents committees established in the localities under the people’s governments of townships, nationality
townships or towns.

   Article 22. Measures for the implementation of this Law shall be formulated, in accordance with this Law, by the standing committees of the
people’s congresses of provinces, autonomous regions and municipalities directly under the Central Government.

   Article 23. This Law shall enter into force on January 1, 1990. The Organic Regulations of the Urban Residents Committees, adopted by the Standing
Committee of the National People’s Congress on December 31, 1954, shall be abrogated as of the same date.

    






PROVISIONS ON THE ADMINISTRATION OF MARITIME INTERNATIONAL CONTAINER TRANSPORT

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1990-12-05 Effective Date  1990-12-05  


Provisions of the People’s Republic of China on the Administration of Maritime International Container Transport

Chapter I  General Provisions
Chapter II  Procedures for the Examination and Approval of Applications
Chapter III  Management of Freight Transportation
Chapter IV  Hand-Over Procedures and Responsibilities
Chapter V  Provisions on Penalties
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 68 of the State Council of the People’s

Republic of China on December 5, 1990, and effective as of the date of
promulgation)(Editor’s Note: For the revised text, see the Decision of the
State Council Regarding Amending the Provisions of the People’s Republic of
China on the Administration of Maritime International Container Transport
promulgated on April 18, 1998)
Chapter I  General Provisions

    Article 1  These Provisions are formulated in order to strengthen the
administration of maritime international container transport, to clearly
define the responsibilities of the various parties concerned, and to meet
the State’s needs in handling foreign trade.

    Article 2  These Provisions shall apply to those enterprises that are
established within the territory of the People’s Republic of China for the
handling of maritime international container transport, and also to units
and individuals that are involved in the operations of maritime international
container transport.

    Article 3  The Ministry of Communications of the People’s Republic of
China shall be responsible for the administration of the operations of
maritime international container transport throughout the country.

    Article 4  In conducting maritime international container transport, the
principles of safety, accuracy, speed, economy, and civilized services must
be followed and door-to-door transportation shall be actively developed.
Chapter II  Procedures for the Examination and Approval of Applications
for the Establishment of Enterprises That Handle Maritime International
Container Transport

    Article 5  “Enterprises for the operations of maritime international
container transport” refers to those shipping enterprises that are engaged in
maritime international container transport, and also to those enterprises
that are engaged in port handling, with their inland transshipment stations
and freight stations that undertake maritime international container
transport.

    Article 6  The applications for the establishment of enterprises that
are engaged in the operations of maritime international container transport
shall be submitted to the competent departments for communications of the
provinces, autonomous regions, or municipalities directly under the Central
Government for examination and verification, and then to the Ministry of
Communications for examination and approval.

    Article 7  The applications for the establishment of enterprises that
are engaged in port handling of international containers shall be submitted
to the competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval, and then to the Ministry of Communications for the
record.

    After the promulgation of these Provisions, the applications for the
establishment of new inland transshipment stations and freight stations that
undertake the transport of maritime international containers shall be
submitted first to the competent department that has established the said
enterprise for examination, verification, and consent; and then to the
competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval; and finally to the Ministry of Communications for
the record.

    The procedures for the examination and approval of the applications for
the establishment of new transshipment stations and freight stations that
undertake the transport of maritime international containers shall be
formulated separately by the Ministry of Communications in conjunction with
the Ministry of Foreign Economic Relations and Trade.

    Article 8  The applications for the establishment of Chinese-foreign
equity joint ventures and Chinese-foreign contractual joint ventures that
handle maritime international container transport shall be submitted to the
Ministry of Communications for examination, verification, and consent; and
shall then, in accordance with the provisions of the pertinent laws and
regulations, be submitted to the Ministry of Foreign Economic Relations and
Trade for examination and approval.

    Article 9  The establishment of enterprises that are engaged in the
operations of maritime international container transport must satisfy the
following conditions;

    (1) to have transport vessels, transport motor vehicles, transport
equipment and other relevant facilities that correspond to theft scope of
business and to the needs of their customers;

    (2) to have the necessary organizational structure, site for setting up
their business office, and specialized administrative personnel;

    (3) to have the registered capital and their own working capital that
meets the requirements of their business operations;

    (4) to meet other conditions as stipulated by State laws, decrees and
regulations governing the establishment of enterprises.

    Article 10  The competent department for communications shall examine,
verify and approve the scope of business operations of the enterprises that
have applied for the permission to handle maritime international container
transport in light of their sources of funds, the conditions of equipment and
facilities, the standard of administration, and the sources of cargoes.

    Article 11  The competent department of communications shall issue the
approving documents to those enterprises, which have obtained the approval to
handle maritime international container transport. The units that have
received the approving documents shall apply and go through the registration
procedures by presenting the aforesaid approving documents to the
administrative department for industry and commerce, which shall issue the
business licences after checking and approving the enterprises’ application;
and only then shall the enterprises be permitted to start business operations.

    Cases concerning the establishment of inland transshipment stations and
freight stations that undertake the transport of maritime international
containers shall also be submitted to the Customs for the completion of the
registration procedures.
Chapter III  Management of Freight Transportation

    Article 12  The containers used in maritime international container
transport shall conform to the provisions and technical standards of the
international organization for the standardization of containers, and also
to the provisions of the pertinent international containers convention.

    The owners and operators of containers shall do a good job in the
management and maintenance of containers and carry out regular inspections, in
order to guarantee the provision of containers that are suitable for the
transportation of cargoes.

    In case that the provisions in the second paragraph of this Article have
been violated, and, as a result, goods are damaged or short in number or
quantity, the person(s) who is (are) held responsible for this shall bear the
liability, for compensation in accordance with the pertinent provisions.

    Article 13  Shippers and enterprises that are engaged in port handling,
shall guarantee that the vessels, motor vehicles, handling machinery and
tools are kept in a good technical condition, thereby ensuring the
transportation and safety of containers.

    In case that shippers and enterprises that are engaged in port handling
have violated the provisions in the first paragraph of this Article, and, as
a result, goods are damaged or short in number or quantity, they shall bear
the liability for compensation in accordance with the pertinent provisions.

    Article 14  Shippers and enterprises that are engaged in port handling
shall use the container shipping documents.

    Article 15  Shippers may directly organize the contracting of the
transportation of container goods, and consignors may directly hold business
talks with shippers or commission shipping agents for the consignment of
import and export container goods.

    Article 16  Consignors shall submit an accurate report on the names of
goods, and their property, quantity, weight, and specifications. The goods
shipped by consignment in containers must conform to the requirements of
container transport, and marks on the goods should be obvious and clear.

    Article 17  Consignors or shippers shall, before vanning, carry out a
careful inspection of containers, and containers that might cause an adverse
effect on to the transportion and vanning of goods may not be used.

    Article 18  Containers which are used for shipping such perishables as
grains, edible oils, and frozen food, shall be inspected by the department for
commodity inspection and found to be up to the standard before they are used
for shipping.

    Article 19  As soon as container goods have reached their destination,
the shipper shall promptly send a cargo delivery notice to the consignee; and
the consignee shall, upon receiving the notice, take delivery of goods on the
strength of the bill of lading.

    In case that the consignee fails to clear the goods when the prescribed
time limit is overdue, or that the consignee fails to return the containers
according to the prescribed time limit, the said consignee shall be required
to pay in accordance with the pertinent stipulations or with the agreement
set forth in the contract, the demurrage charge for the extended use of
containers.

    Article 20  The freight charges for maritime international container
transport and other expenses shall be calculated and collected in accordance
with the State provisions concerning shipping charges and charge rates. In the
absence of State provisions, the freight charges shall be calculated and
collected in accordance with the prices agreed upon by both parties. No units
shall be permitted to collect charges at random.

    Article 21  Shippers and enterprises that are engaged in port handling,
shall submit periodical statistical statements on transportion to the
competent department for communications.

    Article 22  Various parties that are involved in maritime international
container transport shall, in good time, provide each other with information
concerning container transport.
Chapter IV  Hand-Over Procedures and Responsibilities

    Article 23  Shippers and consignors or consignees shall, in accordance
with the hand-over method stipulated, in the bill of lading, handle the
hand-over operations of containers and container goods at marshalling yards,
freight stations, or other places agreed upon by the two parties concerned.

    Article 24  Shippers and enterprises that are engaged in port handling,
which take part in maritime international container transport, shall handle
the hand-over operations in accordance with the following provisions:

    (1) maritime shippers shall handle the hand-over operations alongside
vessel through the tally companies and enterprises that are engaged in port
handling;

    (2) with respect to containers transported by waterways through nodal
points, the enterprises that engaged in port handling and waterway carriers
shall handle the hand-over operations alongside vessel;

    (3) with respect to containers transported by highways through nodal
points, the enterprises that engaged in port handling and highway carriers
shall handle the hand-over operations at the gate of the container terminal;

    (4) with respect to containers transported by railway through nodal
points, the enterprise that engaged in port handling or highway carriers and
railway carriers shall handle the hand-over operations at the site of handing.

    Article 25  While handling the hand-over operations of containers, the
two handling parties shall check the container numbers, the bodies of
containers and the containers’ marking seals. The loaded containers shall be
handed over by their marking seals and by the condition of container body; and
the empty containers shall be handed over by condition of container body.

    After checking the container numbers, the bodies of containers and the
marking the two handling parties shall make a record and confirm it by
appending their signatures to the record.

    Article 26  With respect to the liabilities of shippers and enterprises
that are engaged in port handling for the damage and loss of containers and
container goods, before the hand-over operations, the liabilities shall be
taken up by the handing-over party; after the hand-over operations, the
liabilities shall be taken up by the receiving party. However, if, within 180
days immediately after the hand-over operations, the receiving party is able
to produce evidence to testify to the fact that the damage of the containers,
or the damage and loss of container goods, were caused by the handing-over
party, then the handing-over party shall take up the liabilities for
compensation, unless otherwise provided by law.

    Article 27  Unless otherwise provided by law, shippers and consignors
shall, in accordance with the following provisions, take up the liabilities
for the damage or loss of container goods:

    (1) With respect to those goods, the vanning of which is done by the
shippers, if the goods in the containers are damaged or are short in number
or quantity during the period of time from the day the shippers receive the
goods to the day when the goods reach their destination but before they are
handed over to the consignees, the shippers shall take up the liabilities for
the damage or shortage.

    (2) With respect to those goods, the vanning of which is done by the
consignors, if the container bodies and the marking seals have remained intact
but the goods (in the containers) have been damaged or are short in number or
quantity during the period of time from the completion or the vanning and the
completion of the procedures for consignment to the day before the containers
are handed over to the consignees, the consignors shall take up the liabilities
for the damage or shortage; if the container bodies are damaged or the marking
seals broken, and the goods in the containers are also damaged or are short
in number or quantity, the shippers shall take up the liabilities for the
damage or shortage.

    The time limits for shippers and consigness or consignees to raise
claims of compensation shall be limited to no more than 180 days, beginning
from the day when container goods are handed over, unless otherwise provided
by law.

    Article 28  In case that the consignors’ inaccurate or false declaration
on container goods has resulted in injuries and death of personnel, or in the
loss of means of transport of the goods proper and the containers, or of other
goods, the consignors shall bear the liabilities for the consequences
arising therefrom.

    Article 29  In case that the fault of the person in charge of the vanning
has resulted in injuries and death of personnel, or in the loss of means of
transport, of other goods, or containers, the aforesaid person shall bear the
liabilities for the consequences arising therefrom.

    Article 30  In case that the damage or shortage in number or quantity
of container goods involves a claim for compensation from a foreign unit,
which necessitates an appraisal and the issue of the relevant certificate by
the administrative department for commodity inspection, the case shall be
handled in accordance with the provisions in the Law of the People’s Republic
of China on the Inspection of Import and Export Commodities. In case that the
shortage in number or quantity of containers or container goods involves a
claim for compensation from a foreign unit, which necessitates the issue of
the relevant certificate by the tally department, the case shall be handled in
accordance with the pertinent provisions.
Chapter V  Provisions on Penalties

    Article 31  With respect to those who are engaged in container transport
business without a business licence for handling transport business, the
competent department for communications shall order them to cease business
operations, and penalties shall be imposed on them by the administrative
department for industry and commerce.

    Article 32  With respect to those who have received shipping charges in
violation of these Provisions and the relevant laws and regulations of the
State on commodity prices, they shall be penalized by the department for the
control of commodity prides.

    Article 33  With respect to those who have violated the administration
of transport documents, they shall be given an administrative warning or a
pecuniary penalty by the competent department for communications in light of
the seriousness of the cases.

    Article 34  With respect to those who have disturbed the normal order of
transportation or have expanded their scope of business without authorization,
they shall be ordered by the competent department for communications to carry
out rectification of their business, and shall be penalized by the
administrative department for industry and commerce.

    Article 35  In the event that the person concerned does not accept the
decision on penalties, he/she may, within 15 days as of the first day after
the receipt of the notice of the decision on penalties, appeal to the
competent department immediately above the punishing department for
reconsideration of the aforesaid decision on penalties. The competent
department that has received the appeal for reconsideration shall, within
30 days (after receiving the appeal), make the decision on reconsideration.
If the person concerned still does not accept the decision of the
reconsideration, he/she may within 15 days immediately after receiving the
decision on reconsideration, bring a suit before a people’s court. If the
person concerned neither appeal for reconsideration, nor bring a suit before
the people’s court, nor execute the decision on penalties or the decision of
the reconsideration within the prescribed period of time, the department that
has made the decision on penalties may apply to the people’s court for
enforcement.
Chapter VI  Supplementary Provisions

    Article 36  The right to interpret these Provisions resides in the
Ministry of Communications.

    The Ministry of Communications may formulate the rules for implementation
in accordance with these Provisions.

    Article 37  These Provisions shall go into effect as of the date of
promulgation.






NATIONAL FLAG LAW

Category  NATIONAL FLAG, NATIONAL EMBLEM, CAPITAL, NATIONAL ANTHEM AND NATIONAL DAY Organ of Promulgation  The Standing Commettee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-06-28 Effective Date  1990-10-01  


Law of the People’s Republic of China on the National Flag


Appendix: Directions for the Making of the National Flag

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

National People’s Congress on June 28, 1990, promulgated by Order No.28 of the
President of the People’s Republic of China on June 28, 1990, and effective
as of October 1, 1990)

    Article 1  This Law is enacted in accordance with the Constitution with a
view to defending the dignity of the National Flag, enhancing citizens’  
consciousness of the State and promoting the spirit of patriotism.

    Article 2  The National Flag of the People’s Republic of China shall be a
red flag with five stars.

    The National Flag of the People’s Republic of China shall be made
according to the Directions for the Making of the National Flag promulgated by
the Presidium of the First Plenary Session of the Chinese People’s Political
Consultative Conference.

    Article 3  The National Flag of the People’s Republic of China is the
symbol and hallmark of the People’s Republic of China.

    All citizens and organizations shall respect and care for the National
Flag.

    Article 4  The local people’s governments at various levels shall exercise
supervision over and administration of the display and use of the National
Flag within their respective administrative areas.

    The Ministry of Foreign Affairs, the competent department in charge of
communications under the State Council and the General Political Department of
the Chinese People’s Liberation Army shall exercise supervision over and
administration of the display and use of the National Flag within their
respective jurisdiction.

    The National Flag shall be made by enterprises designated by the people’s
governments of provinces, autonomous regions and municipalities directly under
the Central Government.

    Article 5  The National Flag shall be displayed daily in the following
places or premises of institutions:

    (1) Tiananmen Square and Xinhuamen in Beijing;

    (2) The Standing Committee of the National People’s Congress, the State
Council, the Central Military Commission, the Supreme People’s Court and the
Supreme People’s Procuratorate;

    The National Committee of the Chinese People’s Political Consultative
Conference;

    (3) The Ministry of Foreign Affairs;

    (4) Airports, harbours and railway stations of entry or exit and other
frontier ports, frontier stations and coastal defence stations.

    Article 6  Departments under the State Council, the standing committees of
the local people’s congresses, the people’s governments, the people’s courts,
the people’s procuratorates and the local committees of the Chinese People’s
Political Consultative Conference at various levels shall display the National
Flag during working days.

    Full-time schools shall display the National Flag daily, except during
winter vacations, summer vacations and Sundays.

    Article 7  State organs at all levels and mass organizations shall display
the National Flag on National Day, International Labour Day, New Year’s Day
and the Spring Festival; the National Flag may be displayed, when conditions
permit, in premises of enterprises, institutions, villagers’ committees and
residents’ committees, in urban residential compounds (buildings) and in
public places such as squares and parks.

    In minority nationality areas where the Spring Festival is not a
traditional festival, whether the National Flag is displayed during the Spring
Festival shall be prescribed by the authorities practising self-government in
the national autonomous areas.

    In a national autonomous area, the National Flag may be displayed on the
anniversary of the founding of the national autonomous area and during major
traditional festivals of the minority nationalities.

    Article 8  The National Flag may be displayed when important celebration  
and commemorative activities, large-scale cultural and sports activities and
major exhibitions are held.

    Article 9  Measures for the display and use of the National Flag in
diplomatic activities and by the Chinese embassies and consulates stationed in
foreign countries and other diplomatic representative agencies shall be
prescribed by the Ministry of Foreign Affairs.

    Article 10  The National Flag shall be displayed by military organs at
barracks and on military vessels in accordance with the relevant provisions of
the Central Military Commission.

    Article 11  Measures for the display of the National Flag by civilian
vessels or foreign vessels entering Chinese territorial waters shall be
prescribed by the competent department in charge of communications under the
State Council.

    Measures for the display of the National Flag by public security vessels  
on frontier defence, security or fire control duties shall be prescribed by
the departments in charge of public security under the State Council.

    Article 12  The National Flag, when displayed under Articles 5, 6 and 7 of
this Law, shall be hoisted in the morning and lowered in the eve- ning.

    Where the National Flag shall be displayed under this Law, when the
weather is inclement, it is permissible that the Flag not be displayed.

    Article 13  When the National Flag is displayed, a Flag-hoisting ceremony
may be held.

    When a Flag-hoisting ceremony is held, persons present shall face the Flag
and stand at attention to salute the Flag, and the National Anthem may be
played or sung while the National Flag is being hoisted.

    A full-time middle school or primary school shall hold a Flag-hoisting  
ceremony once a week, except during vacations.

    Article 14  The National Flag shall be lowered to the half staff as at
token of mourning when the following persons pass away:

    (1) President of the People’s Republic of China, Chairman of the Standing
Committee of the National People’s Congress, Premier of the State Council and
Chairman of the Central Military Commission;

    (2) Chairman of the National Committee of the Chinese People’s Political  
Consultative Conference;

    (3) Persons who have made outstanding contributions to the People’s
Republic of China;

    (4) Persons who have made outstanding contributions to world peace or the
cause of human progress.

    When unfortunate events causing especially serious casualties occur or
when serious natural calamities have caused heavy casualties, the National
Flag may be flown at half staff as a token of mourning.

    The half-staffing of the National Flag in accordance with the provisions  
of (3) and (4) in the first paragraph and of the second paragraph of this
Article shall be decided by the State Council.

    Dates and places for the half-staffing of the National Flag under this
Article shall be decided by the funeral organ established by the State, or
shall be decided by the State Council.

    Article 15  When the National Flag is displayed, it shall be placed in a
prominent position.

    The National Flag, when raised or carried in a procession with another  
flag or flags, shall be in front of the other flag or flags.

    The National Flag, when displayed with another flag or flags, shall be
either at the center, above the other flag or flags, or in a position of
prominence.

    When the National Flags of two or more nations are displayed in foreign  
affairs activities, relevant provisions of the Ministry of Foreign Affairs or
the international practice shall be followed.

    Article 16  The National Flag, when hoisted or lowered from a vertical  
staff, shall be hoisted or lowered slowly. When hoisted, the National Flag
must reach the peak of the staff; when lowered, it may not touch the ground.

    The National Flag, when flown at half staff, shall be first hoisted to the
peak of the staff and then lowered to a point where the distance between the
top of the Flag and the peak of the staff is one third of the length of the
staff; the Flag, when lowered, shall be again hoisted to the peak before it is
lowered.

    Article 17  No damaged, defiled, faded or substandard National Flag shall
be displayed.

    Article 18  The National Flag and the design thereof shall not be used as
a trade mark or for advertising purposes, and shall not be used in private
funeral activities.

    Article 19  Whoever desecrates the National Flag of the People’s Republic
of China by publicly and wilfully burning, mutilating, scrawling on, defiling
or trampling upon it shall be investigated for criminal responsibilities  
according to law; where the offence is relatively minor, he shall be detained
for not more than 15 days by the public security organ in reference to the
provisions of the Regulations on Administrative Penalties for Public Security.

    Article 20  This Law shall enter into force as of October 1, 1990.

Appendix: Directions for the Making of the National Flag
(Promulgated by the Presidium of the First Plenary Session of the Chinese
People’s Political Consultative Conference on September 28, 1949)

    The shape and colour of either side of the National Flag shall be
identical, whereas the five stars on both sides of the Flag shall be opposite
to each other. For convenience’s sake, these directions shall take the
circumstances where the staff is on the left as the basis for illustration.
Where the staff is on the right, the word “left” used in these directions
shall all be changed to “right”, while the word “right” referring to direction
shall all be changed to “left”.

    (1) The face of the Flag shall be red and rectangular; the proportion of
its length and height shall be 3 to 2. The upper left of the face of the Flag
shall be studded with five yellow five-pointed stars. One of the stars shall
be bigger than the others, with its circumcircle’s diameter being three-tenth
of the height of the Flag, and shall be placed in the left; the four other
stars shall be smaller, with their circumcircle’s diameter being one-tenth of
the height of the Flag, encircling the big star on its right in the shape of
an arch. The cover of the staff shall be white.

    (2) The five stars shall be positioned and drawn as follows:

    a. To determine the position of the five stars, the face of the Flag shall
be first folded both ways to form four equal rectangles; then the rectangle on
the upper left shall be vertically divided into ten equal sections and
horizontally divided into fifteen equal sections.

    b. The central point of the big five-pointed star shall be at a point in
the rectangle where the fifth line from above (or the fifth line from below),
and the fifth line from the left (or the tenth line from the right) meet. The
method of drawing shall be: taking this point as the centre and the length of
three such equals as the radius to make a circle. On the circumference of this
circle, five points with equal distances from each other shall be determined,  
one of the points must be in the right above position of the circle. Then
connect each of the five points with every other point to form a straight line
respectively. The outline formed by these five straight lines shall be the
required big five-pointed star. An angle of the five-pointed star shall point
in the right above direction.

    c. The centres of the four small five-pointed stars shall be as follows:
the first shall be at a point, in the rectangle, where the second line from
above (or the eighth line from below), and the tenth line from the left (or
the fifth line from the right) meet; the second shall be at a point where the
fourth line from above (or the sixth line from below), and the twelfth line
from the left (or the third line from the right) meet; the third shall be at a
point where the seventh line from above (or the third line from below), and
the twelfth line from the left (or the third line from the right) meet; the
fourth shall be at a point where the ninth line from above (or the first line
from below), and the tenth line from the left (or the fifth line from the
right) meet. The method for drawing shall be: taking each of the above four
points as the centre and the length of one such equal as the radius to make
four circles. On each circle, five points with equal distances from each other
shall be determined. One of such points must be on the line linking  the
centre of the circle with the centre of the big five-pointed star. Then the
same methods used in forming the big five-pointed star shall be used to form
the small five-pointed stars. The four small five-pointed stars shall
respectively have an angle pointing right at the centre of the big
five-pointed star.

    (3) The measurement in common use for the National Flag, from which people
from various circles may choose at their discretion shall be as follows:

    a. 288 cm. in length, 192 cm. in height;

    b. 240 cm. in length, 160 cm. in height;

    c. l92 cm. in length, 128 cm. in height;

    d. 144 cm. in length, 96 cm. in height;

    e. 96 cm. in length, 64 cm. in height.






DECISION OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION 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 Regarding the Revision of the Law of the People’s Republic of China on Chinese-foreign
Equity Joint Ventures



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

April 4, 1990, promulgated by Order No. 27 of the President of the People’s
Republic of China and effective as of the date of promulgation)

    The Third Session of the Seventh National People’s Congress, having
considered the proposal of the State Council regarding the Amendment to the Law
of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures
(Draft), decides to make the following revisions to the Law of the People’s
Republic of China on Chinese-Foreign Equity Joint Ventures:

    1. A new paragraph shall be added to Article 2 as paragraph 3: “The state
shall not nationalize or requisition any equity joint venture. Under special
circumstances, when public interest requires, equity joint ventures may be
requisitioned by following legal procedures and appropriate compensation shall
be made.”

    2. Article 3 shall be amended as: “The equity joint venture agreement,
contract and articles of association signed by the parties to the venture shall
be submitted to the state’s competent department in charge of foreign economic
relations and trade (hereinafter referred to as the examination and approval
authorities) for examination and approval. The examination and approval
authorities shall decide to approve or disapprove the venture within three
months. When approved, the equity joint venture shall register with the state’s
competent department in charge of industry and commerce administration,
acquire a business license and start operations”.

    3. Paragraph 1 of Article 6 shall be amended as: “An equity joint venture
shall have a board of directors; the number of the directors thereof from each
party and the composition of the board shall be stipulated in the contract and
articles of association after consultation among the parties to the venture;
such directors shall be appointed and replaced by the relevant parties. The
chairman and the vice-chairman (vice-chairmen) shall be determined through
consultation by the parties to the venture or 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
(vice-chairmen). The board of directors shall decide on important issues
concerning the joint venture on the principle of equlity and mutual benefit.”

    4.Paragraph 2 of Article 7 shall be amended as: “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.”

    5. Paragraph 1 of Article 8 shall be amended as: “An equity joint venture
shall, on the strength of its business license, 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.”

    Paragraph 1 of Article 10 shall be amended as: “The net profit which a
foreign joint venturer receives as its share after performing its obligations
under the laws, and the agreements or the contract, the funds it receives upon
the expiration of the venture’s term of operation or its early termination, and
its other funds may be remitted abroad in accordance with foreign exchange
control regulations and in the currency or currencies specified in the contract
concerning the equity joint venture.”

    Article 11 shall be amended as: “The wages, salaries or other legitimate
income earned by a foreign worker or staff member of an equity joint venture,
after payment of the individual income tax under the tax laws of the People’s
Republic of China, may be remitted abroad in accordance with foreign exchange
control regulations.”

    6. Article 12 shall be amended as: “Based on different lines of trade and
different circumstances, arrangements for the duration of equity joint ventures
may be made differently through agreement by the parties to the venture.
Equity joint ventures engaged in certain lines of trade shall specify their
duration in the contracts, while equity joint ventures engaged in certain other
lines of trade may choose to or not to specify their duration in the contract.
Where an equity joint venture has had its duration specified and the parties
to the venture agree to extend the duration, the venture shall file an
application for the purpose with the examination and approval authorities six
months before its expiration. The examination and approval authorities shall,
within one month after receipt of the application, decide on its approval or
disapproval.”

    7. Article 13 shall be amended as: “In case of heavy losses, failure of a
party to perform its obligations under the contract and the articles of
association, or force majeure etc., the parties to the joint venture may
terminate the contract through their consultation and agreement, subject to
approval by the examination and approval authorities and to registration with
the state’s competent department in charge of industry and commerce
administration. In case of losses caused by a breach of contract, the financial
responsibility shall be borne by the party that has breached the contract.”

    This Decision shall enter into force as of the date of promulgation.

    The Law of the People’s Republic of China on Chinese-Foreign Equity Joint
Ventures shall be republished after being correspondingly amended according to
this Decision.?







PROVISIONS CONCERNING REDUCTION OF AND EXEMPTION FROM ENTERPRISE INCOME TAX AND CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX FOR THE ENCOURAGEMENT OF FOREIGN BUSINESSMEN TO INVEST IN THE SHANGHAI PUDONG NEW ZONE

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-09-11 Effective Date  1990-10-01  


Provisions Concerning Reduction of and Exemption From Enterprise Income Tax and Consolidated Industrial and Commercial Tax for the
Encouragement of Foreign Businessmen to Invest in the Shanghai Pudong New Zone



(Approved by the State Council on September 7, 1990 and promulgated by

the Ministry of Finance on September 11, 1990)

    Article 1  These Provisions are formulated in order to assist Shanghai
Pudong New Zone (hereinafter referred to as “Pudong New Zone”) in expanding
foreign economic cooperation and technological exchange, absorbing foreign
capital, introducing advanced technology, and speeding up development and
construction.

    Article 2  Production-oriented enterprises organized as Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint ventures and
foreign-capital enterprises established in Pudong New Zone shall be subject
to enterprise income tax at the reduced tax rate of 15% on income derived from
production and business operations and on other income. Upon the filing of an
application with and approval of the tax authorities, an exemption from income
tax in the first and second years, commencing the first profit-making year,
and a 50% reduction of income tax from the third through the fifth years shall
be granted to those enterprises scheduled to operate for a period of 10 years
or more.

    Article 3  After the period of enterprise income tax reduction and
exemption has expired in accordance with the provisions of the State,
export-oriented enterprises may, for any year in which the output value of the
export products of the enterprise amounts to 70% or more of the output value
of the products of the enterprise for that year, pay enterprise income tax at
a reduced tax rate of 10%. After the period of enterprise income tax reduction
and exemption has expired in accordance with the provisions of the State, the
payment of enterprise income tax at a rate reduced by one half may be extended
for a period of 3 years for advanced technology enterprises.

    Article 4  Enterprises with foreign investment that are engaged in the
operation of such energy resources and communications construction projects
as airport, harbour, railway, highway, and power station, shall be subject to
enterprise income tax at a reduced tax rate of 15%. Upon the filing of an
application with and approval of the tax authorities, an exemption from income
tax from the first through fifth years, commencing the first profit-making
year, and a 50% reduction of income tax from the sixth through the tenth years
shall be granted to those enterprises scheduled to operate for a period of 15
years or more.

    Article 5  Enterprises with foreign investment, that are engaged in
infrastructure construction connected with certain projects on tracts of land,
upon approval by the tax authorities of an application filed by the enterprise,
shall be given preferential treatment in taxation, in accordance with Article
2 of these Provisions concerning production-oriented enterprises.

    Article 6  With respect to foreign financial institutions such as foreign
capital banks, branch offices of foreign banks, banks with Chinese-foreign
joint capital, and finance companies that are scheduled to operate for a
period of 10 years or more, if the paid-in capital of foreign investors or the
capital granted by the head office to the branch office for business
operations exceeds 10 million U.S. dollars, upon approval by the tax
authorities of an application, the enterprise income tax shall be levied on
income derived from business operations at a reduced tax rate of 15%, and
shall subject to an exemption in the first year, commencing the first
profit-making year, and a 50% reduction in the second and third years.

    Article 7  Foreign financial institutions such as foreign capital banks,
branch offices of foreign banks, banks with Chinese-foreign joint capital,
and finance companies shall be subject to consolidated industrial and
commercial tax at a tax rate of 3% on their income derived from loan
transactions, and a tax rate of 5% on their income derived from other
financial transactions.

    Article 8  A foreign investor that reinvests its share of profit
obtained from an enterprise in the same enterprise or in other enterprises
with foreign investment, or uses the aforesaid share of profit for setting up
a new enterprise with foreign investment, where the period of operation is
not less than 5 years, shall be refunded 40% of the amount of income tax
paid on the reinvested portion; if the reinvested amount is used to set up
export-oriented enterprises or advanced technology enterprises, where the
period of operation is not less than 5 years, the entire amount of income
tax paid on the reinvested portion shall be refunded.

    Article 9  Where a foreign investor to a Chinese-foreign equity joint
venture remits its share of profit out of China, the amount remitted shall
be exempt from income tax.

    Article 10  Foreign investors having no establishments in China but
receiving dividends, interest, rentals, royalties, and other income from
sources in the Pudong New Zone shall be subject to income tax at a reduced
tax rate of 10%, with the exception of those that are exempt from income tax
in accordance with the law. Where investors which provide funds or equipment
on preferential terms, or transfer advanced technology, and need to be granted
more preferential treatment in the form of income tax reduction or exemption,
the case shall be decided by the Shanghai Municipal People’s Government.

    Article 11  Export products manufactured by enterprises with foreign
investment, with the exception of crude oil, refined oil and the products
otherwise specified by the State, shall be exempt from consolidated
industrial and commercial tax.

    Article 12  Building materials, production and management equipment and
spare parts, means of transport, office supplies required for own use, as
well as raw materials and auxiliary materials required for production,
imported by enterprises with foreign investment, shall be exempt from
consolidated industrial and commercial tax.

    Where enterprises with foreign investment use the tax-free imported raw
materials, spare parts, components and packaging materials for processing
products, which are then sold on the domestic market, consolidated industrial
and commercial tax shall be made up on the imported materials and components
used for processing of such products.

    Article 13  Reasonable quantities of settling-in articles and means of
transport personally brought in by foreign personnel who are working or
reside in enterprises located in Pudong New Zone, shall be exempt from
consolidated industrial and commercial tax.

    Article 14  The Shanghai Municipal People’s Government shall decide
whether or not the preferential treatment shall be granted to enterprises
with foreign investment in respect of local income tax imposed on them, or
in respect of real estate tax imposed on the new houses which have been
built or bought by them for their own use.

    Article 15  For enterprises established or projects launched with
investment by companies, enterprises and other economic organizations as
well as individuals from Hong Kong, Macao and Taiwan, matters shall be
handled by taking reference to these Provisions.

    Article 16  The State Taxation Bureau shall be responsible for
interpreting these Provisions.

    Article 17  These Provisions shall go into effect as of October 1, 1990.






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE PUNISHMENT OF CRIMINALS WHO SMUGGLE, PRODUCE, SELL OR DISSEMINATE PORNOGRAPHIC ARTICLES

Category  CRIMINAL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-12-28 Effective Date  1990-12-28  


Decision of the Standing Committee of the National People’s Congress on the Punishment of Criminals Who Smuggle, Produce, Sell or
Disseminate Pornographic Articles



(Adopted at the 17th Meeting of the Standing Committee of the Seventh

National People’s Congress on December 28, 1990, promulgated by Order No.39
of the President of the People’s Republic of China on December 28, 1990, and
effective as of December 28, 1990)(Editor’s Note: In accordance with the
provisions of Article 452 of the Criminal Law of the People’s Republic of China revised at the Fifth Session of the Eighth National
People’s Congress on
March 14, 1997, and effective on October 1, 1997, the provisions regarding
administrative penalties and administrative measures in this Decision shall
continue to be in force and the provisions regarding criminal liability have
been incorporated into the revised Criminal Law)

    With a view to punishing criminals who smuggle, produce, sell or
disseminate pornographic books and periodicals, movies, video- and
audio-tapes, pictures or other pornographic articles, and for the purpose of
maintaining social security and public order, strengthening the building of a
socialist society with advanced culture and ideology and stemming the
corrosive influence of the decadent bourgeois ideology, the following decision
is made:

    1. Whoever smuggles pornographic articles for the purpose of making
profits or disseminating them shall be punished in accordance with the
Supplementary Provisions Concerning the Punishment of the Crimes of Smuggling.
Whoever carries or mails any pornographic article of small quantity into or
out of the territory of China, not for the purpose of making  profits or
disseminating them, shall be punished in accordance with the relevant
provisions of the Customs Law.

    2. Whoever produces, duplicates, publishes, sells or disseminates
pornographic articles for the purpose of making profits shall be sentenced to
fixed-term imprisonment of not more than three years or criminal detention
and shall concurrently be sentenced to a fine; if the circumstances are
serious, the offender shall be sentenced to fixed-term imprisonment of not
less than three years but not more than ten years and shall concurrently be
sentenced to a fine; and if the circumstances are especially serious, the
offender shall be sentenced to fixed-term imprisonment of not less than ten
years or life imprisonment and shall concurrently be sentenced to a fine or
confiscation of property. If the circumstances are relatively  minor, the
offender shall be subjected to punishment by the public security organ in
accordance with the relevant provisions of the Regulations on Administrative
Penalties for Public Security.

    Whoever provides book numbers for others to publish pornographic books and
periodicals shall be sentenced to fixed-term imprisonment of not more than
three years or criminal detention and shall concurrently or simply be
sentenced to a fine. Whoever provides others with book numbers when he clearly
knows that these will be used in the publication of pornographic books and
periodicals shall be punished in accordance with the provisions of the
preceding paragraph.

    3. Whoever disseminates in society pornographic books and periodicals,
movies, video- and audio-tapes, pictures or any other pornographic articles,
where the circumstances are serious, shall be sentenced to fixed-term
imprisonment of not more than two years or criminal detention; where the
circumstances are relatively minor, the offender shall be subjected to
punishment by the public security organ in accordance with the relevant
provisions of the Regulations on Administrative Penalties for Public Security.

    Whoever organizes shows of pornographic movies or video-tapes or similar
audio- and video-products shall be sentenced to fixed-term imprisonment of
not more than three years or criminal detention and shall concurrently be
sentenced to a fine; where the circumstances are serious, the offender shall
be sentenced to fixed-term imprisonment of not less than three years but not
more than ten years and shall concurrently be sentenced to a fine. Where the
circumstances are relatively minor, the offender shall be subjected to
punishment by the public security organ in accordance with the relevant
provisions of the Regulations on Administrative Penalties for Public Security.

    Whoever produces or duplicates pornographic movies and video-tapes or
similar audio- and video-products and organizes shows of such products shall
be given a heavier punishment in accordance with the provisions of the
preceding paragraph.

    Whoever disseminates pornographic articles to minors under the age of
eighteen shall be given a heavier punishment.

    Parents and schools shall rigorously discipline and educate minors under
the age of sixteen who make private copies of, or pass around, pornographic
pictures, books and periodicals, or other pornographic articles.

    4. Whoever uses pornographic articles to engage in criminal hooligan
activities shall be punished in accordance with the provisions of Article 160
of the Criminal Law; ringleaders of criminal hooligan groups or those who
engage in criminal hooligan activities leading to especially serious
consequences, may, in accordance with the provisions of Article 1 of the
Decision Regarding the Severe Punishment of Criminals Who Seriously Endanger
Public Security, be given punishment above the maximum punishment stipulated
in the Criminal Law, up to and including the death sentences.

    Whoever uses pornographic articles to impart ways for committing crimes
shall be punished in accordance with the provisions of Article 2 of the
Decision Regarding the Severe Punishment of Criminals Who Seriously Endanger
Public Security; where the circumstances are especially serious, the offender
shall be sentenced to life imprisonment or death.

    5. If a unit commits any illicit or criminal act mentioned in Article 1, 2
or 3 of this Decision, the person(s) directly in charge and other person(s)
directly involved in it shall be punished respectively in accordance with the
provisions of the aforesaid Articles, the unit shall be subjected to a fine or
penalty, and the competent administrative department may order the unit to
suspend business for rectification or rescind its licence.

    6. Whoever is under any of the following circumstances shall be given a
heavier punishment in accordance with the relevant provisions of this
Decision:

    (1) ringleaders of a criminal group;

    (2) State functionaries who take advantage of their of their office to
smuggle, produce, duplicate, publish, sell or disseminate pornographic
articles;

    (3) persons in charge of facilities for video recording, photographing,
duplicating, etc. who, by taking advantage of these facilities, commit illicit
or criminal acts mentioned in Article 2, 3, or 4 of this Decision; or

    (4) adults who instigate any minor under the age of eighteen to smuggle,
produce, duplicate, sell or disseminate pornographic articles.

    7. Pornographic articles, illegal gains from smuggling, producing,
duplicating, publishing, selling or disseminating pornographic articles and
the offender’s own guilty tools shall be confiscated. The confiscated
pornographic articles shall be destroyed in accordance with relevant
regulations of the State. All gains from fines and penalties or confiscation
shall be turned over to the State Treasury.

    8. For the purpose of this Decision, pornographic articles refer to
obscene books, periodicals, movies, video- and audio-tapes, pictures, etc.
that explicitly portray sexual behavior or undisguisedly publicize
pornography.

    Scientific works on human physiology or medical knowledge are not
pornographic articles.

    Literary and art works of artistic value which contain obscene contents
shall not be regarded as pornographic articles.

    The categories and catalogues of pornographic articles shall be prescribed
by the relevant competent departments under the State Council.

    9. This Decision shall enter into force as of the date of promulgation.






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...