1996

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.






REGULATIONS CONCERNING FOREIGN JOURNALISTS AND PERMANENT OFFICES OF FOREIGN NEWS AGENCIES

Regulations Concerning Foreign Journalists and Permanent Offices of Foreign News Agencies

     (Effective Date 1990.01.19–Ineffective Date )

   Article 1. These Regulations are formulated for the purpose of promoting international exchanges and the dissemination of information, regulating
the activities of foreign journalists and permanent offices of foreign news agencies within the territory of China and facilitating
their journalistic work.

   Article 2. The present Regulations shall apply to resident foreign correspondents, foreign reporters for short-term news coverage (hereinafter
both referred to as foreign journalists) and permanent offices of foreign news agencies.

Resident foreign correspondents refer to the professional journalists dispatched by foreign news agencies, in accordance with these
Regulations, to be stationed in China for a period of more than 6 months for news coverage and reporting.

Foreign reporters for short-term news coverage refer to the professional journalists who come to China and stay for a period not exceeding
6 months for news coverage and reporting in accordance with these Regulations.

Permanent offices of foreign news agencies refer to branch offices composed of one or more staff members and established within the
territory of China by foreign news agencies for news coverage and reporting in accordance with these Regulations.

   Article 3. The Government of the People’s Republic of China shall protect according to law the legitimate rights and interests of foreign journalists
and of the permanent offices of foreign news agencies and provide them with facilities for their normal journalistic activities.

Foreign journalists and permanent offices of foreign news agencies must abide by the laws and regulations of the People’s Republic
of china.

   Article 4. The Ministry of Foreign Affairs of the People’s Republic of China (hereinafter referred to as the Foreign Ministry) is the competent
authority in charge of the affairs concerning foreign journalists and the permanent offices of foreign news agencies in China.

   Article 5. A foreign news agency wishing to send a resident correspondent to China shall file an application with the Information Department
of the Foreign Ministry (hereinafter referred to as the Information Department). The application must be signed by the head of its
headquarters and contain the following particulars, with necessary papers attached thereto:

(1) Basic facts about the news agency;

(2) The name, sex, age, nationality, position, curriculum vitae and the place of intended residence of the correspondent to be sent;
and

(3) The professional correspondent certificate of the correspondent.

If one resident correspondent is to be sent by two or more foreign news agencies, these agencies shall submit separate applications
according to the procedures as stipulated in the preceding paragraph and indicate in their respective applications the posts held
concurrently by the said correspondent.

   Article 6. Upon approval the application, the resident foreign correspondent to be sent shall, within 7 days of his/her arrival in China, register
with the Information Department on presentation of an appointment letter signed by the head of the headquarters of the relevant news
agency and his/her passport, and obtain the Foreign Journalist Identity Card.

A resident foreign correspondent to reside in a place other than Beijing shall, within 7 days of his/her arrival in China, go through
the procedures as stipulated in the preceding paragraph at the relevant foreign affairs office of the local people’s government entrusted
by the Information Department (hereinafter referred to as the authorities entrusted by the Information Department).

   Article 7. A foreign news agency shall apply to the Information Department if it wishes to set up a permanent office in China. The application
shall be signed by its legal representative and shall contain the following particulars, with necessary papers attached thereto:

(1) Basic facts about the news agency;

(2) The name of the office to be set up in China, the place of intended residence, business scope, number of staff as well as the
name, sex, age, nationality, position and curriculum vitae of the head of the office and those of other members; and

(3) A copy of the registration certificate of the news agency issued by its home country.

   Article 8. Upon approval of the application, the head of the permanent office to be set up shall, within 7 days of his/her arrival in China,
register with the Information Department on presentation of an appointment letter signed by the legal representative of the foreign
news agency concerned and his/her passport and the passports of other members, and obtain the Certificate for Permanent Office of
Foreign News Agency in China.

The head of a permanent office of a foreign news agency in a place other than Beijing shall, within 7 days of his/her arrival in China,
go through the procedures as stipulated in the preceding paragraph at the authorities entrusted by the Information Department.

   Article 9. If a foreign news agency wishes to send an acting correspondent in the absence of its resident correspondent in china for a period
of no less than one month and no more than 6 months, the head of the agency’s headquarters shall submit in advance to the Information
Department or the authorities entrusted by it a written application which shall contain the name, sex, age, nationality, position,
curriculum vitae of the acting correspondent, with his/her professional correspondent certificate attached thereto. The acting correspondent
may not engage in journalistic activities unless he/she obtains approval and due certification.

   Article 10. A resident foreign correspondent shall apply to the Information Department or the authorities entrusted by it for examination and
renewal of his/her Foreign Journalist Identity Card once every full year. Whoever fails to go through such procedure within 30 days
after the period due without justification will automatically forfeit his/her status of resident foreign correspondent.

Whenever a permanent office of a foreign news agency needs a change of its head, a change in the size of its staff and other important
changes, it shall submit an application to the Information Department, obtain the latter’s approval and go through the necessary
registration procedures for the change.

   Article 11. For foreign journalists wishing to come to China to cover a visit by the head of state or government or the foreign minister of a
country, the application for approval shall be made collectively through the Ministry of Foreign Affairs of that country in advance
to the Chinese Foreign Ministry.

   Article 12. A foreign reporter or journalist group wishing to come to China for news coverage on a short-term basis shall file an application
with a Chinese embassy or consulate abroad or a department concerned in China. Upon approval, the said reporter or group shall go
through the procedures for visas at a chinese embassy or consulate abroad or a visa-issuing organ authorized by the Foreign Ministry.

A foreign reporter or journalist group that is to visit China at the invitation of a chinese organization for short-term news coverage
shall apply for visas at a Chinese embassy or consulate abroad or a visa-issuing organ authorized by the Foreign Ministry on presentation
of the invitation letter or cable.

   Article 13. The Chinese host organization shall be responsible for arranging the short-term news coverage activities of a foreign journalist
within the territory of China and render him/her assistance in this regard.

A foreign reporter for short-term news coverage shall obtain the consent of the host organization for an extended news coverage in
China with justified reasons and shall go through formalities for extension of the visa in accordance with the relevant regulations.

   Article 14. A foreign journalist or permanent office of a foreign news agency shall conduct journalistic activities within the scope of business
as registered or within that of the mutually agreed plan for news coverage.

Foreign journalists and permanent offices of foreign news agencies must observe journalistic ethics and may not distort facts, fabricate
rumours or carry out news coverage by foul means.

Foreign journalists and permanent offices of foreign news agencies may not engage in any activities incompatible with their status
or the nature of their profession, or detrimental to China’s national security, unity or social and public interest.

   Article 15. A foreign journalist shall apply for approval through the Information Department for interviewing a top leader of China, and shall
apply to the relevant foreign affairs departments for approval for gathering news form China’s government departments or other institutions.

Foreign journalists shall obtain in advance permission from the relevant foreign affairs office of the people’s government of a province,
autonomous region or municipality directly under the Central Government for news coverage in an open area in China. They shall submit
a written application to the Information Department for approval, if they intend to covernews in a nonopen area in China. Upon approval,
they shall go through formalities for travel certificates at the relevant public security organ.

   Article 16. Resident foreign correspondents and permanent offices of foreign news agencies shall rent houses and set up office in accordance
with the relevant Chinese regulations.

Resident foreign correspondents and permanent offices of foreign news agencies may employ Chinese citizens as staff members or service
personnel through local foreign affairs service departments, whereas the employment of citizens of theirs respective home countries
or of a third country as staff members or service personnel requires the consent of the Information Department.

   Article 17. Foreign journalists and permanent offices of foreign news agencies may not install transceivers or statellite communications facilities
within the territory of China. They shall apply to the competent telecommunications department of the Chinese Government for approval
if they are to use walkie-talkies or similar telecommunication facilities within the territory of China.

Foreign reporters for short-term news coverage in China shall apply to the Foreign Ministry for approval if they are to carry with
them or install satellite communications facilities for special reasons.

   Article 18. Resident foreign correspondent shall notify in writing the Information Department of their departure 30 days before they leave their
posts and return their Foreign Journalist Identity Cards to the Information Department or the authorities entrusted by it for cancellation
before their departure from China. A permanent office of a foreign news agency in China shall notify the Information Department
of its closure 30 days beforehand and, after closure, it shall return its Certificate for Permanent Office of Foreign News Agency
to the Information Department or the authorities entrusted by it for cancellation.

   Article 19. In case of violation of the present Regulations by foreign journalists or permanent offices of foreign news agencies in China, the
Information Department may, on the merits of each case, give them a warning, suspend or stop their journalistic activities in China,
or revoke their Foreign Journalist Identity Cards or Certificates for Permanent Office of Foreign News Agency.

Cases involving violations of the Law of the People’s Republic of China on Control of the Entry and Exit of Aliens or other laws and
regulations shall be dealt with by the competent Chinese authorities according to law.

   Article 20. Foreigners and foreign agencies other than the foreign journalists and permanent offices of foreign news agencies as specified in
the present Regulations may not engage in journalistic activities in China. Due penalty shall be meted out by the relevant Chinese
public security organ to any violator depending on the seriousness of the case.

   Article 21. The Ministry of Foreign Affairs shall be responsible for the interpretation of these Regulations.

    

MOFTEC P.R.C.

EDITOR:Victor






REGULATIONS OF PRC ON THE INVESTIGATION AND HANDLING OF MARITIME TRAFFIC ACCIDENTS

Regulations of PRC on the Investigation and Handling of Maritime Traffic Accidents

     (Effective Date:1990.03.03–Ineffective Date:)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II REPORT

CHAPTER III INVESTIGATION

CHAPTER IV HANDLING OF ACCIDENTS

CHAPTER V MEDIATION

CHAPTER VI PENALTIES

CHAPTER VII SPECIAL PROVISIONS

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   Article 1. These Regulations are formulated according to the relevant provisions of the Maritime Traffic Safety Law of the People’s Republic
of China in order to strengthen the control of maritime traffic safety and promptly investigate and handle maritime traffic accidents.

   Article 2. The harbour superintendency establishments of the People’s Republic of China shall be responsible for implementing these Regulations.

   Article 3. These Regulations shall apply to the maritime traffic accidents happening to the vessels and installations in the coastal waters
of the People’s Republic of China.

If there exist special provisions in state laws and administrative regulations for the investigation and handling of the maritime
traffic accidents happening in the fishing port waters or of the maritime traffic accidents happening between fishing vessels or
between military vessels in the coastal waters, these special provisions shall prevail.

   Article 4. The maritime traffic accidents referred to in these Regulations mean the following accidents happening to vessels and installations:

(1) Collision, strike or damage by waves;

(2) Hitting hidden rocks or running aground;

(3) Fire or explosion;

(4) Sinking;

(5) Damage or loss of machinery parts or important tools during a voyage which affects the vessel’s seaworthiness;

(6) Other maritime traffic accidents which cause losses in property and human lives.

CHAPTER II REPORT

   Article 5. The persons in charge of the vessels and installations which are involved in maritime traffic accidents must report immediately to
the harbour superintendency administration at the nearest harbour by a high-frequency telephone, radiotelegram or other effective
means. The content of the reports shall include: name of the vessel or installation, call sign, nationality, port of departure and
port of arrival, owners or managers of the vessel or installation,when and where the accident happened and the attending circumstances
on the sea, the extent of damage of the vessel or installation, request for salvage, etc.

   Article 6. The persons in charge of the vessels and installations which are involved in maritime traffic accidents must, in addition to making
brief reports immediately in accordance with the provisions in Article 5, submit the Report Concerning Maritime Traffic Accidents
and other necessary documents and material according to the following stipulations to the harbour superintendency administration;

(1) If maritime traffic accidents happen to vessels or installations within the waters of the harbour areas, it is necessary to submit
a report and other material to the local harbour superintendency administration within 24 hours after the accidents.

(2) If maritime traffic accidents happen to vessels or installations in the coastal waters beyond the waters of harbour areas, it
is necessary to submit a report and other material within 48 hours after the vessels arrive at the first harbour in the People’s
Republic of China of the harbour superintendency administration; in the case of installations, it is necessary to report by telegram,
the content of which shall cover all the items required in the Report Concerning Maritime Traffic Accidents to the harbour superintendent
at the nearest harbour within 48 hours after the accidents.

(3) If a maritime traffic accident happens in the course of pilotage, the pilot shall submit the Report Concerning Maritime Traffic
Accidents to the local harbour superintendency administration within 24 hours after his return to the harbour.

If, because of special circumstances, the Report Concerning Maritime Traffic Accidents cannot be submitted within the time limit set
in paragraphs (1) and (2) of this Article, the time limit may be appropriately extended after permission is obtained from the harbour
superintendency administration.

   Article 7. The following information shall be truthfully provided in the Report Concerning Maritime Traffic Accidents:

(1) Basic conditions of the vessel or installation and the data concerning its main functions;

(2) Name and address of the owner or manager of the vessel or installation;

(3) When and where the accident happened;

(4) The climatic conditions and the conditions on the sea when the accident happened;

(5) A detailed description of the course of the accident (for a collision, a sketch map illustration the face-to-face movements shall
be attached);

(6) Degree of the damage (A sketch showing the damaged parts of the vessel or installation shall be attached. If it is difficult to
make a thorough investigation within the set time limit, a report shall be submitted at a later date after the examination.)

(7) Estimated location of sinking in case where the vessel or installation sank;

(8) Other information related to the accident.

   Article 8. A report concerning maritime traffic accidents must be truthful and there must not be any concealment or falcification.

   Article 9. If a vessel or an installation is damaged due to a maritime traffic accident, the captain in of the vessel or the person in charge
of the installation shall apply to China’s local inspection department or the inspection department at the vessel’s first port of
arrival in China for inspection or appraisement and send a copy of the inspection report to the harbour superintendency administration
for the record.

The harbour superintendency administration may entrust the inspection and appraisement mentioned in the preceding paragraph to relevant
unite or department and the expenses shall be borne by the owner or manager of the vessel or installation.

If the accident happening to a vessel or installation involved fire or explosion, the captain or the person in charge of installation
must apply to a fire fighting brigade in the public security organ for an appraisement and send a copy of the appraisement report
to the harbour superintendency administration for the record.

CHAPTER III INVESTIGATION

   Article 10. Harbour superintendency administration shall be responsible for the investigation of the maritime traffic accidents which happen
in the waters of their respective harhour areas.

The maritime traffic accidents which happen outside the waters of harbour areas shall be investigated by the harbour superintendency
administration of the nearest harbour or that of the vessel’s first port of arrival in the People’s Republic of China. The Harbour
Superintendency Administration Bureau of the People’s Republic of China may designate a harbour superintendency administration to
carry out the investigation, if the Bureau deems it necessary.

When the harbour superintendency administration concerned deems it necessary, he may request relevant departments and social organizations
to take part in the investigation of the accidents.

   Article 11. Upon receiving accident reports, the harbour superintendency administration shall promptly carry out investigation. Investigation
shall be carried out in an objective and all-round manner and must not be restricted by the information provided by the parties involved
in the accidents. If the investigation warrants it, the harbour superintendency administration has the right to:

(1) Question the persons concerned;

(2) Demand written material and testimonial from the persons under investigation;

(3) Demand the parties involved to provide logbooks, engine room logs, wheel-bell records, radio operation logs, course records, charts,
data of the vessel, functions of the navigation equipment and instruments and other necessary original papers and materials;

(4) Examine certificates of the vessels, installations and the relevant equipment and certificates of the personnel and verify seaworthiness
of the vessels and technical conditions of the installations before the accident;

(5) Examine the damage to the vessels, installations and goods and assertain casualties of personnel;

(6) Survey the scene of the accident and collect relevant material evidences.

During the investigation, the harbour superintendency administration may use recording, photographing and video equipment and may
resort to other means of investigation permitted by law.

   Article 12. The persons being investigated must subject themselves to the investigation, honestly state the relevant circumstances of the accident
and provide authentic papers and materials.

In conducting investigations, the personnel of harbour superintendency administration shall produce their certificates to the persons
being investigated.

   Article 13. If the investigation of a maritime traffic accident so requires, the harbour superintendency administration may order the vessel(s)
involved to sail to the spot for investigation. Except when its (their) own safety is in danger, the vessel(s) involved must not
leave the said spot without the permission of the harbour superintendency administration.

   Article 14. The organs respectively in charge of public security, state security, supervision, procuratorial work, and judicial work, as well
as maritime arbitration committees and other organs and personnel designated under the law may consult, make extracts of or duplicate
the findings concerning maritime traffic accidents prepared by the harbour superintendency administrations for the purpose of handling
cases. judicial organs may borrow these findings if they are really needed in the trials.

CHAPTER IV HANDLING OF ACCIDENTS

   Article 15. The harbour superintendency administrations shall, according to the investigations of maritime traffic accidents, work out the Report
on Findings Concerning Maritime Traffic Accidents, in which causes of the accident shall be ascertained and the responsibility of
the persons concerned be determined. A serious accident shall be reported to the local procuratorial organ.

   Article 16. The Report on Findings Concerning the Maritime Traffic Accident shall include the following items:

(1) Basic conditions of the vessels or installations and the main data;

(2) Names and addresses or the owners or managers of the vessels or installations;

(3) When and where the accident happened, the course of the accident, weather and sea conditions at the time, seriousness of the damage;

(4) Causes of the accident and evidences thereof;

(5) Liabilities of the parties involved and evidences thereof;

(6) Other relevant information.

   Article 17. The harbour superintendency administrations may, according to the nature and seriousness of their liabilities, mete out the following
penalties according to law to the persons who are held responsible for the maritime traffic accidents:

(1) Warnings, fines, suspension or revocation of their job certificates may be resorted to when the crew, pilots or personnel working
on the installations are of Chinese nationality;

(2) Warnings and fines may be imposed on the crew or the personnel working on the installations who are of foreign nationalities or
their faults may be reported to the competent organs of their respective countries.

   Article 18. If it is necessary to pursue the administrative responsibility of the persons involved, owners or managers of the vessels or installations
who are held responsible for the maritime traffic accidents, the harbour superintendency administrations shall submit the cases to
their competent organs or the organs in charge of administrative supervision, With respect to persons whose action constitutes a
crime, the judicial authorities shall, in accordance with the law, investigate their criminal responsibility.

   Article 19. The harbour superintendency administration may, in the light of the causes of the maritime traffic accidents, order the owners and
managers of the vessels involved or installtions involved to strengthen safety control over their vessels or installations within
a time limit. In case of refusal to strengthen safety administration or failure to meet the safety requirements within the said time
limit, the harbour superintendent has the right to order the vessels or installations to suspend navigation, change courses or suspend
operation and may adopt other necessary compulsory measures.

CHAPTER V MEDIATION

   Article 20. If a maritime traffic accident happening to vessels or installations gives rise to a civil dispute over tort liability, the parties
may apply to the harbour superintendency administration for mediation.

Mediations must be carried out on the principles of voluntariness and impartiality and no coercion shall be allowed.

   Article 21. If s suit has been brought before a maritime court or an application sent to a maritime arbitration organ, the parties to the civil
disputes mentioned in the preceding article shall not apply to the harbour superintendency administration for mediation.

   Article 22. Written applications for mediations shall be submitted, by the parties within 30 days after the accident happened, to the harbour
superintendency administration responsible for the investigation of the accident. If guarantees are demanded by the harbour superintendency
administration the parties shall provide papers of economic compensation guarantee.

   Article 23. If an agreement is reached after mediation, the harbour superintendency administration shall prepare a mediation document. The mediation
document shall include the following items: names and addresses of the parties, names and positions of the legal representatives,
main points of the disputes, liabilities of the parties, content of the agreement, payment of the mediation fees and the time limit
for the execution of the mediation agreement. The parties concerned shall jointly sign the mediation document and the superintendency
administration shall confirm it by affixing its seal thereon. One copy of the mediation document shall be held by each party concerned
and one copy kept by the harbour superintendency administration.

   Article 24. All the parties concerned shall execute the agreement of mediation of their own accord. If the parties renegue or fail to execute
the agreements within the time limit after the agreement is reached, the mediation shall be regarded as failing.

   Article 25. If a party to a civil dispute who has applied to the harbour superintendency administration for mediation wants to withdraw from
it, the party shall send a written application to the harbour superintendency administration for mediation cancellation and notify
the other party to the dispute at the same time.

   Article 26. If the harbour superintendency administration fails to make the parties reach an agreement of mediation within 3 months as of the
date of receipt of the application for mediation, the mediation may be announced as failing.

   Article 27. If the parties do not want mediation or the mediation has failed, they may bring a suit in a maritime court or apply to a maritime
arbitration organ for arbitration.

   Article 28. Anyone who has applied to the harbour superintendency administration for mediation shall pay mediation fees. Standards for mediation
charges shall be worked out by the Ministry of Communications in conjunction with the State Administration for Commodity Prices and
the Ministry of Finance.

If an agreement is reached through mediation, the mediation charge shall be shared according to the seriousness of the parties’ faults
or the agreed proportions. If mediation has failed, the expenses shall be shared out equally among the parties.

CHAPTER VI PENALTIES

   Article 29. The harbour superintendency administration may, depending on the circumstances, warn or impose a fine of not more than 200 yuan on
the persons concerned (natural person), or impose a warning or a fine of not more than 5,000 yuan on the owners or managers of the
vessels, if they violate these Regulations in one of the following manners:

(1) Failing to report the accident to the harbour superintendency administration or submit the Report Concerning Maritime Traffic
Accident or duplicate copies of the documents of court verdict, arbitration award or mediation document as stipulated in Article
32 of these Regulations within the time limit;

(2) Failing to sail to the spot designated by the harbour superintendency administration or leaving the designated spot without the
permission of the harbour superintendency administration when nothing is endangering the vessel (s);

(3) Affecting the progress of the investigations or causing losses to the departments concerned because the content of the accident
report or the Report Concerning Maritime Traffic Accident does not meet the stipulated requirement or it is not truthful;

(4) Affecting the investigation of the accident by violating the provisions of Article 9;

(5) Refusing to be investigated or unjustifiably obstructing and interfering with the investigation by the harbour superintendency
administration;

(6) Intertionally concealing facts or providing false testimonial during investigation.

With respect to persons whose acts have constituted a crime as specified in paragraphs (5) and (6) of this Article, the judicial organs
shall investigate their criminal responsibility according to law.

   Article 30. Administrative sanctions shall be given by administrative supervision organs or relevant units to those persons working in harbour
superintendency administrations who violate the provisions of these Regulation, neglect their duties, abuse their powers, engage
in malpractices for selfish ends and ask for and accept bribes. If their acts constitue crimes, their criminal responsibilities shall
be investigated by judicial organs according to law.

   Article 31. If the parties concerned do not agree with the penalties imposed on them by the harbour superintendency administration according
to the provisions of these Regulations, they may bring a suit in a people’s court according to law.

CHAPTER VII SPECIAL PROVISIONS

   Article 32. If maritime traffic accidents happen to vessels of Chinese nationality outside the coastal waters of the People’s Republic of China,
their owners or managers shall report to the harbour superintendency administration where the vessels have registered and shall submit
the Report Concerning Maritime Traffic Accident within 60 days after the accidents happened. If lawsuits, arbitrations of mediations
concerning the accidents take place abroad, the owners or managers shall submit copies or photocopies of the court verdicts, awards
or mediation documents to the harbour superintendent of the harbour where the vessels have registered for the record within 60 days
after the termination of the lawsuits, arbitration or mediation.

   Article 33. If crew members of Chinese nationality holding job qualification certificates of the People’s Republic of China are held responsible
for maritime traffic accidents while they are working on board foreign vessels, their respective units in China shall submit the
Report Concerning Maritime Traffic Accidents to the harbour superintendency administration issuing the job qualification certificates
within 60 days after the accidents happened.

The maritime traffic accidents mentioned in the first paragraph of this Article and in Article 32 shall be investigated and dealt
with in accordance with the relevant provisions of these Regulations.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 34. With respect to those operations which have violated the regulations concerning maritime traffic safety and have constituted latent
threats of potential major accidents although direct traffic accidents have not been caused, the harbour superintendency administration
may carry out investigation and mete out penalties according to the provisions of these Regulations.

   Article 35. The maritime traffic accidents which have caused marine environmental pollution shall be dealt with in accordance with the relevant
laws and regulations of China concerning marine environmental protection.

   Article 36. These Regulations shall be interpreted by the Ministry of Communications.

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

    






CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF A REPORT SUBMITTED BY THE NATIONAL TOURISM ADMINISTRATION CONCERNING THE FURTHER CHECKING-UP AND RECTIFICATION OF TOURIST AGENCIES

Category  TOURISM Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-04-10 Effective Date  1990-04-10  


Circular of the General Office of the State Council on the Approval and Transmission of a Report Submitted by the National Tourism
Administration Concerning the Further Checking-up and Rectification of Tourist Agencies

The Circular
SUGGESTIONS CONCERNING FURTHER CHECKING-UP AND RECTIFICATION OF TOURIST

(April 10, 1990)

The Circular

    The report, “Suggestions Concerning Further Checking-up and Rectification
of Tourist Agencies”, submitted by the National Tourism Administration, has
been approved by the State Council; and now the report is hereby transmitted
to you for implementation.
SUGGESTIONS CONCERNING FURTHER CHECKING-UP AND RECTIFICATION OF TOURIST
AGENCIES

    In order to promote the sound development of tourist industry in our
country, and in accordance with the decision of the Central Committee of the
Communist Party of China and the State Council concerning the checking-up and
rectification of companies, our suggestions are hereby advanced on the further
checking-up and rectification of tourist agencies (including tourist companies
and other similar organizations; the same below):

    1. Various localities and departments shall carry out conscientiously the
checking-up and rectification on the tourist agencies that are under their
jurisdiction. The emphasis of the checking-up and rectification shall be
placed on the tourist agencies of Categories 1 and 2 that handle international
tourist business operations, and also on those tourist agencies that are
engaged, without permission, in soliciting tourists from abroad. Those tourist
agencies that do not possess the prerequisites as prescribed for tourist
business operations shall be abolished or merged, and the problems concerning
multilateral connections with overseas business parties, the reduction of
tourist prices for competition, and poor-quality tourist services shall be
earnestly dealt with.

    2. A tourist agency that comes under one of the following circumstances
shall be abolished or merged with other tourist agencies:

    (1) Tourist agencies which are in operation, but do not possess the
prerequisites of a certain category as prescribed in “Interim Regulations on
the Administration of Tourist Agencies” and “Rules for the lmplementation of
the Interim Regulations on the Administration of Tourist Agencies” in terms of
the actual registered capital, employed personnel, site for business
operations, and organizational setups.

    (2) Tourist agencies of Category 1 which, from the date “Rules for the
Implementation of the Interim Regulations on the Administration of Tourist
Agencies” are promulgated for implementation to the end of March, 1990, have
not reached the prescribed annual accumulative total of tourists received and
the amount of foreign exchange earned.

    (3) Tourist agencies which have been engaged in such serious illegal
business activities as reducing tourist prices for competition, evading
foreign exchange regulations and practising arbitrage, procuring foreign
exchange by illegal means, and reselling foreign exchange for a profit.

    (4) Tourist agencies with inefficient business operations, poor
management, unsound internal rules and regulations, and insufficient earnings
for repaying debts.

    (5) Tourist agencies whose services are so poor that they have incurred
frequent complaints from tourists; whose tourist guides and other employed
personnel have been presumptuous in seeking and accepting tips and commission,
or whose ill conduct has frequently brought damage to the reputation of our
country and has thus created very bad influence.

    (6) Tourist agencies which are unable to recover the travelling expenses
owed for a long period of time by foreign tourist agents, and have, since
1988, new debts added to old ones, thus suffering heavy economic losses.

    (7) The branch offices of a tourist agency, the head office of which has
been abolished or merged.

    (8) Tourist agencies set up and run by hotels (or guest houses).

    (9) Tourist agencies (including their business offices) that have been
established in foreign countries or in the regions of Hong Kong and Macao by
various localities or departments without the approval of the National Tourism
Administration.

    With respect to those tourist agencies which are to be abolished according
to the pertinent decisions, the competent authorities over them shall, in
accordance with the pertinent provisions, set up a liquidation organization to
check up and settle the creditors’ financial claims and to liquidate
liabilities, and to attend to the winding-up business.

    3. The task of the checking-up and rectification of the existing tourist
agencies shall be completed by the end of the third quarter of this year.
Various localities and departments shall have to submit their plans for the
abolition, merging, or retention of tourist agencies to the National Tourism
Administration for examination and approval, and also to the National Leading
Group of Checking-up and Rectifying Companies for the record. Those tourist
agencies that have been retained shall, by presenting the document of approval
issued by the National Tourism Administration, apply anew for their
re-establishment, and go through the registration procedures in accordance
with the law. In order to prevent the setting up of an excessive number of
tourist agencies of Categories 1 and 2, within 2 years beginning from 1990, no
applications for the establishment of new tourist agencies of Categories 1 and
2 shall be examined and approved. With respect to those tourist agencies the
applications for the establishment of which have already been approved by the
National Tourism Administration or by the tourism bureaus of the provinces,
autonomous regions, or municipalities directly under the Central Government
but which have not yet gone through the registration procedures with the
administrative departments for industry and commerce, the original document of
approval shall be declared invalid.

    4. In the course of the checking-up and rectification of tourist agencies,
it shall be imperative to implement the policy of deepening the reforms, and
further streamline the administration of tourist agencies. Tourist agencies
shall separate themselves in such respects as working personnel, financial
matters, and assets and materials from Party and government organs,
institutions, and public organizations, and establish themselves as economic
entities, which shall have independent business accounting, assume sole
responsibility for their profits and losses, and conduct their business
operations according to law. The business operations of tourist agencies shall
be placed under the administration of the administrative department for
tourism.

    5. The checking-up and rectification of tourist agencies shall be carried
out in close link with the establishment and improvement of the relevant rules
and regulations and administrative systems, so as to further strengthen the
administration of tourist agencies.

    (1) In order to protect the State interests and to check the competition
between various tourist agencies by reduction of tourist prices, all tourist
agencies must strictly implement the unified stipulation on price standard,
rules for the calculation of prices, and the measures for preferential
treatment, as formulated by the National Tourism Administration and the State
Administration for Commodity Prices.

    (2) In 1990, the State auditing organs shall carry out trade auditing on
the financial revenue and expenditure situation and the business activities of
tourist agencies of Categories 1 and 2. The National Tourism Administration
and the tourism bureaus of various provinces, autonomous regions, and
municipalities directly under the Central Government shall, working in
coordination with the commodity prices authorities at the same level, carry
out regular inspections of the situation concerning the business operations
and the prices for overseas sales relating to tourist agencies of Categories
1 and 2.

    (3) In accordance with the provisions of Interim Measures for the Control
of Foreign Exchange from Tourism, promulgated by the State Administration for
Control of Foreign Exchange and the National Tourism Administration, the
foreign exchange earnings, collected by those units and enterprises which,
without the approval of the competent authorities for tourism, presumptuously
conduct international tourist business operations, shall all be converted, and
no retention of foreign exchange shall be allowed.

    (4) The competent authorities for tourism that are vested with the right
to issue notice of visa must, strictly in accordance with the pertinent
provisions of the Ministry of Foreign Affairs and the National Tourism
Administration, check and issue notices of visa; they shall not be permitted
to issue notices of visa on behalf of other units or of those tourist agencies
which do not have the right to solicit tourists from abroad. Those who have
violated the aforesaid provisions shall have their right to issue visa notice
revoked.






REGULATION CONCERNING CONSULAR PRIVILEGES AND IMMUNITIES

Category  TERRITORY AND DIPLOMATIC RELATIONS Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-10-30 Effective Date  1990-10-30  


Regulation of the People’s Republic of China Concerning Consular Privileges and Immunities



(Adopted at the 16th Meeting of the Standing Committee of the Seventh

National People’s Congress on October 30, 1990, promulgated by Order No. 35 of
the President of the People’s Republic of China on October 30, 1990 and
effective as of the date of promulgation)

    Article 1  The present Regulations are formulated for the purpose of
defining the consular privileges and immunities of the foreign consular posts
in China and their members and facilitating the efficient performance of the
functions of such foreign consular posts in their consular districts as
representatives of the sending States.

    Article 2  Consular officers shall be of the nationality of the sending
State. They may, only with the consent of the competent Chinese authorities,
be appointed from among persons of Chinese or third-state nationality or
nationals of the sending State who are permanent residents of China. This
consent may be withdrawn at any time by the said Chinese authorities.

    Article 3  The consular post and its head shall have the right to use the
national flag and emblem of the sending State on the premises of the consular
post, on the residence of the head of the consular post and on his means of
transport when used on official business.

    Article 4  The premises of the consular post shall be inviolable. Chinese
government functionaries may enter them only with the consent of the head of
the consular post or the head of the diplomatic mission of the sending State
or another person authorized by either of them. The consent of the head of the
consular post may be assumed in case of fire or other disaster requiring
prompt protective action. The Chinese authorities concerned shall take
appropriate measures to protect the premises of the consular post against any
intrusion or damage.

    Article 5  The premises of the consular post and the residence of its head
shall be exempt from dues and taxes other than such as represent payment for
specific services rendered. The fees and charges levied by the consular post
in the course of its official duties shall be exempt from all dues and taxes.

    Article 6  The archives and documents of the consular post shall be
inviolable.

    Article 7  The members of the consular post shall enjoy freedom of
movement and travel within Chinese territory except for areas the entry into
which is prohibited or restricted by the regulations of the Chinese Government.

    Article 8  The consular post may for official purposes communicate freely
with the Government and the diplomatic mission and other consular posts of the
sending State. In so doing, it may employ all appropriate means. including
diplomatic couriers or consular couriers, diplomatic bag or consular bag, and
messages in code or cipher.

    Article 9  The consular post may install and use a wireless
transmitter-receiver only with the consent of the Chinese Government. The
import of the above-mentioned equipment shall be subject to the relevant
procedure prescribed by the Chinese Government.

    Article 10  The consular bag shall not be opened or detained.

    The consular bag may contain only official correspondence and documents or
articles intended for official use and must be sealed and bear visible
external marks of its character.

    If the Chinese authorities concerned have serious reason to believe that
the bag contains something other than the above-mentioned objects, they may
request that the bag be opened in the presence of personnel from the Chinese
authorities concerned by the consular officer or another person authorized by
him. If this request is refused by the consular officer, the bag shall be
returned to its place of origin.

    Article 11  The consular courier must be of the nationality of the sending
State and shall not be a permanent resident of China. The consular courier
must be provided with a courier certificate issued by the competent
authorities of the sending State. He shall enjoy personal inviolability and
shall not be liable to arrest or detention.

    Consular couriers ad hoc must be provided with certificates of courier ad
hoc issued by the competent authorities of the sending State, and shall enjoy
the same immunities as the consular courier while charged with the carrying of
the consular bag.

    A consular bag may be entrusted to the captain of a commercial aircraft or
a commercial ship. He must be provided with an official document issued by the
consigner State indicating the number of packages constituting the bag, but he
shall not be regarded as a consular courier. By arrangement with the competent
authorities of the appropriate Chinese local people’s government, the consular
post may send its members to receive the consular bag from the captain of the
aircraft or of the ship or deliver it to him.

    Article 12  The person of a consular officer shall be inviolable. The
Chinese authorities concerned shall take appropriate measures to prevent any
attack on his personal freedom and dignity.

    Consular officers shall not be liable to arrest or detention, except that
the arrest or detention is executed in the case of a grave crime and by
following legal procedures.

    Consular officers shall not be committed to prison save in execution of a
judicial decision of final effect.

    Article 13  The residence of a consular officer shall be inviolable.

    His papers and correspondence shall be inviolable.

    His property, except as provided in Article 14 of the present Regulations,
shall be inviolable.

    Article 14  Consular officers and members of the administrative and
technical staff of the consular post shall enjoy immunity from judicial and
administrative jurisdiction in respect of acts performed in the exercise of
their functions. Immunity from jurisdiction of consular officers in respect of
acts other than those performed in the exercise of their functions
shall be accorded in accordance with the bilateral treaties and agreements
between China and other countries concerned or on the principle of reciprocity.

    Immunity from judicial jurisdiction enjoyed by consular officers and
members of the administrative or technical staff of the consular post shall
not apply to any of the following civil actions:

    (1) an action arising out of a contract not concluded expressly as an
agent of the sending State;

    (2) an action relating to private immovable property situated in the
territory of China, unless they hold it as an agent of the sending State for
the purposes of the consular post.

    (3) an action relating to succession in which he is involved as a private
person; or

    (4) an action for damages arising from an accident in China caused by a
vehicle, vessel or aircraft.

    Article 15  Members of a consular post may be called upon to attend as
witnesses in the course of judicial or administrative proceedings, but shall
be under no obligation to give testimony concerning matters connected with the
exercise of their functions. They are enpost_titled to decline to give testimony as
expert witnesses with regard to the law of the sending State.

    If consular officers should decline to give testimony, no coercive measure
or penalty may be applied to them.

    Members of the administrative or technical staff of the consular post and
members of the service staff shall not decline to give testimony except in
cases concerning matters connected with the exercise of their functions.

    Article 16  The immunity from jurisdiction enjoyed by the persons
concerned specified in the present Regulations may be waived through explicit
expression by the Government of the sending State.

    The initiation of proceedings by a person enjoying immunity from
jurisdiction in accordance with the provisions of the present Regulations
shall preclude him from invoking immunity from jurisdiction in respect of any
counter-claim directly connected with the claim.

    Waiver of immunity from civil or administrative jurisdiction shall not
imply waiver of immunity in respect of the execution of the judgment, for
which a separate and explicit waiver by the Government of the sending State
shall be necessary.

    Article 17  Consular officers and members of the administrative or
technical staff of the consular post shall be exempt from all dues and taxes,
except:

    (1) dues and taxes of a kind which are normally incorporated in the price
of goods or services;

    (2) dues or taxes on private immovable property situated in the territory
of China, excepting that used as the consular premises;

    (3) estat, succession or inheritance duties, except that movable property
left in China by a deceased consular officer shall be exempt therefrom;

    (4) dues and taxes on private income having its source in China; or

    (5) charges levied for specific services rendered.

    Members of the service staff of the consular post shall be exempt from
dues and taxes on the wages which they receive for their service in the
consular post.

    Article 18  Members of the consular post shall be exempt from all personal
and public services as well as military obligations.

    Consular officers and members of the administrative or technical staff of
the consular post shall be exempt from all obligations under the laws and
regulations of China in regard to the registration of aliens and residence
permits.

    Article 19  Imported articles for the official use of the consular post,
those for the personal use of consular officers, and those for the personal
use of members of the administrative or technical staff of the consular post,
including articles intended for their establishment, imported within six
months of the time of installation shall, in accordance with the relevant
regulations of the Chinese Government, be exempt from customs duties and all
other related dues and taxes with the exception of charges for storage,
cartage and similar services.

    Imported articles for the personal use of the consular officers and the
members of the administrative or technical staff of the consular post referred
to in the preceding paragraph shall not exceed the quantities necessary for
their direct utilization.

    The personal baggage of a consular officer shall be exempt from
inspection, unless the competent Chinese authorities have serious reason to
believe that it contains articles not within the exemptions provided for in
the first paragraph of this Article, or articles the import or export of which
is prohibited or controlled by Chinese laws and government regulations. Such
inspection shall be conducted in the presence of the consular officer or of
his authorized representative.

    Article 20  The consular post and its members may carry firearms and
bullets into or out of China for their personal use, subject to the approval
of the Chinese government and to its relevant regulations.

    Article 21  The spouse and underage children of consular officers, of
members of the administrative or technical staff of the consular post, or of
members of the service staff of the consular post forming part of their
respective households, except those who are nationals of China or aliens
permanently residing in China, shall respectively enjoy the privileges and
immunities accorded to the consular officers, the members of the
administrative or technical staff of the consular post or the members of the
service staff of the consular post in accordance with the provisions of
Articles 7, 17, 18 or 19 of the present Regulations.

    Article 22  Consular officers who are nationals of China or aliens
permanently residing in China shall enjoy the privileges and immunities
provided for in the present Regulations only in respect of acts performed in
the course of official duties.

    Members of the administrative or technical staff of the consular post and
members of the service staff of the consular post who are nationals of China
or aliens permanently residing in China shall not enjoy the privileges and
immunities provided for in the present Regulations except that they shall have
no obligation to give evidence concerning matters connected with the exercise
of their functions.

    Private attendants shall not enjoy the privileges and immunities provided
for in the present Regulations.

    Article 23  The following persons shall enjoy necessary immunity and
inviolability during their transit through or sojourn in China:

    (1) a consular officer stationed in a third State who passes through China
together with his spouse and underage children forming part of his household;
and

    (2) a visiting foreign consular officer who has obtained a diplomatic visa
from China or who holds a diplomatic passport of a State with which China has
an agreement on the mutual exemption of visas.

    Article 24  Persons enjoying consular privileges and immunities under the
present Regulations shall:

    (1) respect Chinese laws and regulations;

    (2) not interfere in the internal affairs of China; and

    (3) not use the premises of the consular post and the residence of members
of the consular post for purposes incompatible with the exercise of consular
functions.

    Article 25  Consular officers shall not practise for personal profit any
professional or commercial activity outside his official functions on Chinese
territory.

    Article 26  In case the consular privileges and immunities accorded by a
foreign State to the Chinese consular post and its members in that State and
to transitting or visiting Chinese consular officers stationed in a third
State are different from those China would give under the present Regulations
to the consular post of that State and its members in China and its
transitting or visiting consular officers stationed in a third State, the
Chinese Government may accord them such consular privileges and immunities as
appropriate on a reciprocal basis.

    Article 27  Where the international treaties to which China is a
contracting or acceding party provide otherwise in respect of consular
privileges and immunities, such provisions shall prevail, with the exception
of those on which China has declared reservations.

    Where the bilateral treaties or agreements between China and other
countries provide otherwise in respect of consular privileges and immunities,
such provisions shall prevail.

    Article 28  For the purposes of the present Regulations, the following
expressions shall have the meanings hereunder assigned to them:

    (1) “consular post” means any consulate-general, consulate, vice-consulate
or consular agency;

    (2) “consular district” means the area assigned to a consular post for the
exercise of consular functions;

    (3) “head of consular post” means the consul-general, consul, vice-consul
or consular agent charged by the sending State with the duty of leading the
consular post;

    (4) “consular officer” means the consul-general, vice-consul-general,
consul, vice-consul and consular attache or consular agent;

    (5) “members of the administrative or technical staff of the consular
post” means the members of the staff of the consular post engaged in the
administrative or technical work of the consular post;

    (6) “members of the service staff” means the members of the staff of the
consular post engaged in the domestic service of the consular post;

    (7) “members of the consular post” means consular officers, members of
the administrative or technical staff of the consular post and members of the
service staff of the consular post;

    (8) “private attendant” means an attendant in the private employment of a
member of the consular post;

    (9) “consular premises” means the buildings or parts of buildings and the
land ancillary thereto used exclusively for the purposes of the consular post.

    Article 29  The present Regulations shall enter into force as of the date
of promulgation.






INTERIM REGULATIONS OF PRC CONCERNING THE ASSIGNMENT AND TRANSFER OF THE RIGHT TO THE USE OF THE STATE-OWNED LAND IN THE URBAN AREAS

Interim Regulations of PRC Concerning the Assignment and Transfer of the Right to the Use of the State-owned Land in the Urban Areas

     (Effective Date:1990.05.19–Ineffective Date:)

CHAPTER I GENERAL PROVISIONS

CHAPTER II THE ASSIGNMENT OF THE RIGHT TO THE USE OF THE LAND

CHAPTER III THE TRANSFER OF THE RIGHT TO THE USE OF THE LAND

CHAPTER IV THE LEASE OF THE RIGHT TO THE USE OF THE LAND

CHAPTER V THE MORTGAGE OF THE RIGHT TO THE USE OF THE LAND

CHAPTER VI THE TERMINATION OF THE RIGHT TO USE OF THE LAND

CHAPTER VII THE ALLOCATED RIGHT TO THE USE OF THE LAND

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   Article 1. These Regulations are formulated in order to reform the system of using the State-owned land in the urban areas, rationally develop,
utilize and manage the land, strengthen land administration and promote urban construction and economic development.

   Article 2. The State, in accordance with the principle of the ownership being separated from the right to the use of the land, implements ten
system whereby the right to the use of the State-owned land in the urban areas may be assigned and transferred, with the exclusion
of the underground resources, the objects buried underground, and the public works.

The term “State-owned land in the urban areas~ as used is the preceding paragraph refers to the land owned by the whole people (hereinafter
referred to as “the land~) within the limits of cities, county sites, administrative towns and industrial and mining areas.

   Article 3. Any company, enterprise, other organization and individual within or outside the People’s Republic of China may, unless otherwise
provided by law, obtain the right to the use of the land 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 right to the use of the land in accordance with these Regulations may, within the term of
land use, transfer, lease, or mortgage the right to the use of the land 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 right to the use of the land.

   Article 7. The registration of the assignment, transfer, lease, mortgage and termination of the right to the use of the registration of the
above-ground buildings and other attached objects shall be handled by the land administration department and housing 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 RIGHT TO THE USE OF THE LAND

   Article 8. The assignment of the right to the use of the land refers to the act of the State as the owner of the land who, within the term of
a certain number of years, assigns the right to the use of the land to land users, who shall in turn pay fees for the assignment
thereof to the State.

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

   Article 9. People’s governments at the municipal and county levels shall be in charge of assigning the right to the use of the land, 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 administration departments, draw up a plan concerning
the size and location, the purposes, the term, and other conditions with respect to the assigning of the right to the use of the
land. The plan shall be submitted for approval in accordance with the limits of authority for approval as stipulated by the State
Council and shall then the implemented by the land administration departments.

   Article 11. The contract for assigning the right to the sue of the land shall be signed by and 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 right to the use of the land 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 right to the use of the land may be carried out by the following means:

(1) by reaching an agreement through consultations;

(2) by invitation to bid; or

(3) by auction.

The specific procedures and steps for assigning the right to the use of the land 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 of the signing of the contract for the assignment of the right to the use of the land, pay the
total amount of the assignment fee thereof, failing which, 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 right to the use of the land thus assigned,
failing which, 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 fee for the assignment of the right to the use of the land, the land user shall, in accordance
with the relevant provisions, go through the registration thereof, obtain the certificate for land use and accordingly the right
to the sue of the land.

   Article 17. The land user shall, in conformity with the stipulations of the contract for the assignment of the right to the use of land 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 right to the use of the land without compensation.

   Article 18. If the land user needs to alter the purposes of land use as stipulated in the contract for assigning the right to the use of land,
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 right to
the use of the land, readjust amount of the assignment fee thereof, and undertake registration anew.

CHAPTER III THE TRANSFER OF THE RIGHT TO THE USE OF THE LAND

   Article 19. The transfer of the right to the use of the land refers to the land user’s act of re-assigning the right to the use of the land,
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 contract and the conditions
therein, the right to the use thereof may not be transferred.

   Article 20. A transfer contract shall be sighed for the transfer of the right to the use of the land.

   Article 21. With the transfer of the right to the use of the land, the rights and obligations specified in the contract for assigning the right
to the use of the land and in the registration documents shall be transferred accordingly.

   Article 22. The land user who has acquired the right to the use of the land 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 right to the use of the land minus the number of the years
in which the original land user has used the land.

   Article 23. With the transfer of the right to the use of the land, 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 right to the use of the land within
the limits of use 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 right to the use
of the land within the limits of use of the said buildings and objects shall be transferred accordingly, with the exception of the
movables.

   Article 25. With respect to the transfer of the right to the use of the land and of 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 right to the use of the land and of 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 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 transfer of the right to the use of the land is priced at a level obviously lower than the prevailing market price, the
people’s governments at the municipal and county levels shall have the priority of the purchase thereof.

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

CHAPTER IV THE LEASE OF THE RIGHT TO THE USE OF THE LAND

   Article 28. The lease of the right to the use of the land refers to the act of the land user as the lessor to lease the right to the use of the
land 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 contract and the conditions
therein, the right to the use thereof may not be leased.

   Article 29. A lease contract shall be signed for leasing the right to the use of the land by and between the lessor and the lessee.

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

   Article 30. After leasing the right to the use of the land the lessee must continue to perform the contract for assigning the right to the use
of the land.

   Article 31. With respect to the lease of the right to the use of the land together with the above-ground buildings and other attached objects,
the lessee shall undertake registration in accordance with the relevant provisions.

CHAPTER V THE MORTGAGE OF THE RIGHT TO THE USE OF THE LAND

   Article 32. The right to the use of the land may be mortgaged.

   Article 33. With the mortgage of the right to the use of the land, the above-ground buildings and other attached objects thereon shall be mortgaged
accordingly.

With the above-ground buildings and other attached objects, the right to the use of the land within the limits of use of the said
buildings and objects shall be mortgaged accordingly.

   Article 34. A mortgage contract shall be signed for mortgaging the right to the use of the land by and between the mortgagor and the mortgagee.

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

   Article 35. With respect to the mortgage of the right to the use of the land 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 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 of the mortgaged property in accordance with the laws
and regulations of the State and the stipulations of the mortgage contract.

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

   Article 37. The mortgagee shall have the priority of compensation with respect to the receipts resulting from the disposal of the mortgaged property.

   Article 38. If the mortgage is eliminated as a result of the liquidation of liabilities or for other reasons, procedures shall be undertaken
to nullify the mortgage registration.

CHAPTER VI THE TERMINATION OF THE RIGHT TO USE OF THE LAND

   Article 39. The right to the use of the land shall terminate for such reasons as the expiration of the term of use as stipulated in the contract
for assigning the right to the use of the land, the withdrawal of the right before the expiration, or the loss of the land.

   Article 40. Upon expiration of the term of use, the right to the use of the land 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 use, the land user may apply for its renewal. 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 fee for the assignment
of the right to the use of the land and undertake registration.

   Article 42. The State shall not withdraw before the expiration of the term of use the right to the use of the land 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 right before the expiration of the term of use in line with 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 RIGHT TO THE USE OF THE LAND

   Article 43. the allocated right to the use of the land refers to the right to the use of the land 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 tax for the use of the land in accordance with the provisions of the
Interim Regulations of the People’s Republic of China Concerning the Tax for the Use of the Land in the Urban Areas.

   Article 44. The allocated right to the use of the land 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 right to the use of the land 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 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 right to the use of land 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 right to the use of the land 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 right to the use of the land 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 right to the use of the land 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 right to the use of the land 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 right to the use of the land without compensation and may assign it in accordance with the
relevant provisions of these Regulations.

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

CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 48. The right to the use of the land 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 tax laws and regulations of the State.

   Article 50. Fees collected by assigning the right to the use of the land 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
as their pilot testing grounds some of the cities or towns where conditions are relatively ripe.

   Article 52. With respect to foreign investors engaging in developing and managing tracts of land, the administration of the right to the use
of the land 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 go into effect as of the date of promulgation.

    






REGULATIONS ON THE INVESTIGATION AND HANDLING OF MARITIME TRAFFIC ACCIDENTS

Regulations of the PRC on the Investigation and Handling of Maritime Traffic Accidents

     (Effective Date:1990.03.03–Ineffective Date:)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II REPORT

CHAPTER III INVESTIGATION

CHAPTER IV HANDLING OF ACCIDENTS

CHAPTER V MEDIATION

CHAPTER VI PENALTIES

CHAPTER VII SPECIAL PROVISIONS

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   Article 1. These Regulations are formulated according to the relevant provisions of the Maritime Traffic Safety Law of the People’s Republic
of China in order to strengthen the control of maritime traffic safety and promptly investigate and handle maritime traffic accidents.

   Article 2. The harbour superintendency establishments of the People’s Republic of China shall be responsible for implementing these Regulations.

   Article 3. These Regulations shall apply to the maritime traffic accidents happening to the vessels and installations in the coastal waters
of the People’s Republic of China.

If there exist special provisions in state laws and administrative regulations for the investigation and handling of the maritime
traffic accidents happening in the fishing port waters or of the maritime traffic accidents happening between fishing vessels or
between military vessels in the coastal waters, these special provisions shall prevail.

   Article 4. The maritime traffic accidents referred to in these Regulations mean the following accidents happening to vessels and installations:

(1) Collision, strike or damage by waves;

(2) Hitting hidden rocks or running aground;

(3) Fire or explosion;

(4) Sinking;

(5) Damage or loss of machinery parts or important tools during a voyage which affects the vessel’s seaworthiness;

(6) Other maritime traffic accidents which cause losses in property and human lives.

CHAPTER II REPORT

   Article 5. The persons in charge of the vessels and installations which are involved in maritime traffic accidents must report immediately to
the harbour superintendency administration at the nearest harbour by a high-frequency telephone, radiotelegram or other effective
means. The content of the reports shall include: name of the vessel or installation, call sign, nationality, port of departure and
port of arrival, owners or managers of the vessel or installation,when and where the accident happened and the attending circumstances
on the sea, the extent of damage of the vessel or installation, request for salvage, etc.

   Article 6. The persons in charge of the vessels and installations which are involved in maritime traffic accidents must, in addition to making
brief reports immediately in accordance with the provisions in Article 5, submit the Report Concerning Maritime Traffic Accidents
and other necessary documents and material according to the following stipulations to the harbour superintendency administration;

(1) If maritime traffic accidents happen to vessels or installations within the waters of the harbour areas, it is necessary to submit
a report and other material to the local harbour superintendency administration within 24 hours after the accidents.

(2) If maritime traffic accidents happen to vessels or installations in the coastal waters beyond the waters of harbour areas, it
is necessary to submit a report and other material within 48 hours after the vessels arrive at the first harbour in the People’s
Republic of China of the harbour superintendency administration; in the case of installations, it is necessary to report by telegram,
the content of which shall cover all the items required in the Report Concerning Maritime Traffic Accidents to the harbour superintendent
at the nearest harbour within 48 hours after the accidents.

(3) If a maritime traffic accident happens in the course of pilotage, the pilot shall submit the Report Concerning Maritime Traffic
Accidents to the local harbour superintendency administration within 24 hours after his return to the harbour.

If, because of special circumstances, the Report Concerning Maritime Traffic Accidents cannot be submitted within the time limit set
in paragraphs (1) and (2) of this Article, the time limit may be appropriately extended after permission is obtained from the harbour
superintendency administration.

   Article 7. The following information shall be truthfully provided in the Report Concerning Maritime Traffic Accidents:

(1) Basic conditions of the vessel or installation and the data concerning its main functions;

(2) Name and address of the owner or manager of the vessel or installation;

(3) When and where the accident happened;

(4) The climatic conditions and the conditions on the sea when the accident happened;

(5) A detailed description of the course of the accident (for a collision, a sketch map illustration the face-to-face movements shall
be attached);

(6) Degree of the damage (A sketch showing the damaged parts of the vessel or installation shall be attached. If it is difficult to
make a thorough investigation within the set time limit, a report shall be submitted at a later date after the examination.)

(7) Estimated location of sinking in case where the vessel or installation sank;

(8) Other information related to the accident.

   Article 8. A report concerning maritime traffic accidents must be truthful and there must not be any concealment or falcification.

   Article 9. If a vessel or an installation is damaged due to a maritime traffic accident, the captain in of the vessel or the person in charge
of the installation shall apply to China’s local inspection department or the inspection department at the vessel’s first port of
arrival in China for inspection or appraisement and send a copy of the inspection report to the harbour superintendency administration
for the record.

The harbour superintendency administration may entrust the inspection and appraisement mentioned in the preceding paragraph to relevant
unite or department and the expenses shall be borne by the owner or manager of the vessel or installation.

If the accident happening to a vessel or installation involved fire or explosion, the captain or the person in charge of installation
must apply to a fire fighting brigade in the public security organ for an appraisement and send a copy of the appraisement report
to the harbour superintendency administration for the record.

CHAPTER III INVESTIGATION

   Article 10. Harbour superintendency administration shall be responsible for the investigation of the maritime traffic accidents which happen
in the waters of their respective harhour areas.

The maritime traffic accidents which happen outside the waters of harbour areas shall be investigated by the harbour superintendency
administration of the nearest harbour or that of the vessel’s first port of arrival in the People’s Republic of China. The Harbour
Superintendency Administration Bureau of the People’s Republic of China may designate a harbour superintendency administration to
carry out the investigation, if the Bureau deems it necessary.

When the harbour superintendency administration concerned deems it necessary, he may request relevant departments and social organizations
to take part in the investigation of the accidents.

   Article 11. Upon receiving accident reports, the harbour superintendency administration shall promptly carry out investigation. Investigation
shall be carried out in an objective and all-round manner and must not be restricted by the information provided by the parties involved
in the accidents. If the investigation warrants it, the harbour superintendency administration has the right to:

(1) Question the persons concerned;

(2) Demand written material and testimonial from the persons under investigation;

(3) Demand the parties involved to provide logbooks, engine room logs, wheel-bell records, radio operation logs, course records, charts,
data of the vessel, functions of the navigation equipment and instruments and other necessary original papers and materials;

(4) Examine certificates of the vessels, installations and the relevant equipment and certificates of the personnel and verify seaworthiness
of the vessels and technical conditions of the installations before the accident;

(5) Examine the damage to the vessels, installations and goods and assertain casualties of personnel;

(6) Survey the scene of the accident and collect relevant material evidences.

During the investigation, the harbour superintendency administration may use recording, photographing and video equipment and may
resort to other means of investigation permitted by law.

   Article 12. The persons being investigated must subject themselves to the investigation, honestly state the relevant circumstances of the accident
and provide authentic papers and materials.

In conducting investigations, the personnel of harbour superintendency administration shall produce their certificates to the persons
being investigated.

   Article 13. If the investigation of a maritime traffic accident so requires, the harbour superintendency administration may order the vessel(s)
involved to sail to the spot for investigation. Except when its (their) own safety is in danger, the vessel(s) involved must not
leave the said spot without the permission of the harbour superintendency administration.

   Article 14. The organs respectively in charge of public security, state security, supervision, procuratorial work, and judicial work, as well
as maritime arbitration committees and other organs and personnel designated under the law may consult, make extracts of or duplicate
the findings concerning maritime traffic accidents prepared by the harbour superintendency administrations for the purpose of handling
cases. judicial organs may borrow these findings if they are really needed in the trials.

CHAPTER IV HANDLING OF ACCIDENTS

   Article 15. The harbour superintendency administrations shall, according to the investigations of maritime traffic accidents, work out the Report
on Findings Concerning Maritime Traffic Accidents, in which causes of the accident shall be ascertained and the responsibility of
the persons concerned be determined. A serious accident shall be reported to the local procuratorial organ.

   Article 16. The Report on Findings Concerning the Maritime Traffic Accident shall include the following items:

(1) Basic conditions of the vessels or installations and the main data;

(2) Names and addresses or the owners or managers of the vessels or installations;

(3) When and where the accident happened, the course of the accident, weather and sea conditions at the time, seriousness of the damage;

(4) Causes of the accident and evidences thereof;

(5) Liabilities of the parties involved and evidences thereof;

(6) Other relevant information.

   Article 17. The harbour superintendency administrations may, according to the nature and seriousness of their liabilities, mete out the following
penalties according to law to the persons who are held responsible for the maritime traffic accidents:

(1) Warnings, fines, suspension or revocation of their job certificates may be resorted to when the crew, pilots or personnel working
on the installations are of Chinese nationality;

(2) Warnings and fines may be imposed on the crew or the personnel working on the installations who are of foreign nationalities or
their faults may be reported to the competent organs of their respective countries.

   Article 18. If it is necessary to pursue the administrative responsibility of the persons involved, owners or managers of the vessels or installations
who are held responsible for the maritime traffic accidents, the harbour superintendency administrations shall submit the cases to
their competent organs or the organs in charge of administrative supervision, With respect to persons whose action constitutes a
crime, the judicial authorities shall, in accordance with the law, investigate their criminal responsibility.

   Article 19. The harbour superintendency administration may, in the light of the causes of the maritime traffic accidents, order the owners and
managers of the vessels involved or installtions involved to strengthen safety control over their vessels or installations within
a time limit. In case of refusal to strengthen safety administration or failure to meet the safety requirements within the said time
limit, the harbour superintendent has the right to order the vessels or installations to suspend navigation, change courses or suspend
operation and may adopt other necessary compulsory measures.

CHAPTER V MEDIATION

   Article 20. If a maritime traffic accident happening to vessels or installations gives rise to a civil dispute over tort liability, the parties
may apply to the harbour superintendency administration for mediation.

Mediations must be carried out on the principles of voluntariness and impartiality and no coercion shall be allowed.

   Article 21. If s suit has been brought before a maritime court or an application sent to a maritime arbitration organ, the parties to the civil
disputes mentioned in the preceding article shall not apply to the harbour superintendency administration for mediation.

   Article 22. Written applications for mediations shall be submitted, by the parties within 30 days after the accident happened, to the harbour
superintendency administration responsible for the investigation of the accident. If guarantees are demanded by the harbour superintendency
administration the parties shall provide papers of economic compensation guarantee.

   Article 23. If an agreement is reached after mediation, the harbour superintendency administration shall prepare a mediation document. The mediation
document shall include the following items: names and addresses of the parties, names and positions of the legal representatives,
main points of the disputes, liabilities of the parties, content of the agreement, payment of the mediation fees and the time limit
for the execution of the mediation agreement. The parties concerned shall jointly sign the mediation document and the superintendency
administration shall confirm it by affixing its seal thereon. One copy of the mediation document shall be held by each party concerned
and one copy kept by the harbour superintendency administration.

   Article 24. All the parties concerned shall execute the agreement of mediation of their own accord. If the parties renegue or fail to execute
the agreements within the time limit after the agreement is reached, the mediation shall be regarded as failing.

   Article 25. If a party to a civil dispute who has applied to the harbour superintendency administration for mediation wants to withdraw from
it, the party shall send a written application to the harbour superintendency administration for mediation cancellation and notify
the other party to the dispute at the same time.

   Article 26. If the harbour superintendency administration fails to make the parties reach an agreement of mediation within 3 months as of the
date of receipt of the application for mediation, the mediation may be announced as failing.

   Article 27. If the parties do not want mediation or the mediation has failed, they may bring a suit in a maritime court or apply to a maritime
arbitration organ for arbitration.

   Article 28. Anyone who has applied to the harbour superintendency administration for mediation shall pay mediation fees. Standards for mediation
charges shall be worked out by the Ministry of Communications in conjunction with the State Administration for Commodity Prices and
the Ministry of Finance.

If an agreement is reached through mediation, the mediation charge shall be shared according to the seriousness of the parties’ faults
or the agreed proportions. If mediation has failed, the expenses shall be shared out equally among the parties.

CHAPTER VI PENALTIES

   Article 29. The harbour superintendency administration may, depending on the circumstances, warn or impose a fine of not more than 200 yuan on
the persons concerned (natural person), or impose a warning or a fine of not more than 5,000 yuan on the owners or managers of the
vessels, if they violate these Regulations in one of the following manners:

(1) Failing to report the accident to the harbour superintendency administration or submit the Report Concerning Maritime Traffic
Accident or duplicate copies of the documents of court verdict, arbitration award or mediation document as stipulated in Article
32 of these Regulations within the time limit;

(2) Failing to sail to the spot designated by the harbour superintendency administration or leaving the designated spot without the
permission of the harbour superintendency administration when nothing is endangering the vessel (s);

(3) Affecting the progress of the investigations or causing losses to the departments concerned because the content of the accident
report or the Report Concerning Maritime Traffic Accident does not meet the stipulated requirement or it is not truthful;

(4) Affecting the investigation of the accident by violating the provisions of Article 9;

(5) Refusing to be investigated or unjustifiably obstructing and interfering with the investigation by the harbour superintendency
administration;

(6) Intertionally concealing facts or providing false testimonial during investigation.

With respect to persons whose acts have constituted a crime as specified in paragraphs (5) and (6) of this Article, the judicial organs
shall investigate their criminal responsibility according to law.

   Article 30. Administrative sanctions shall be given by administrative supervision organs or relevant units to those persons working in harbour
superintendency administrations who violate the provisions of these Regulation, neglect their duties, abuse their powers, engage
in malpractices for selfish ends and ask for and accept bribes. If their acts constitue crimes, their criminal responsibilities shall
be investigated by judicial organs according to law.

   Article 31. If the parties concerned do not agree with the penalties imposed on them by the harbour superintendency administration according
to the provisions of these Regulations, they may bring a suit in a people’s court according to law.

CHAPTER VII SPECIAL PROVISIONS

   Article 32. If maritime traffic accidents happen to vessels of Chinese nationality outside the coastal waters of the People’s Republic of China,
their owners or managers shall report to the harbour superintendency administration where the vessels have registered and shall submit
the Report Concerning Maritime Traffic Accident within 60 days after the accidents happened. If lawsuits, arbitrations of mediations
concerning the accidents take place abroad, the owners or managers shall submit copies or photocopies of the court verdicts, awards
or mediation documents to the harbour superintendent of the harbour where the vessels have registered for the record within 60 days
after the termination of the lawsuits, arbitration or mediation.

   Article 33. If crew members of Chinese nationality holding job qualification certificates of the People’s Republic of China are held responsible
for maritime traffic accidents while they are working on board foreign vessels, their respective units in China shall submit the
Report Concerning Maritime Traffic Accidents to the harbour superintendency administration issuing the job qualification certificates
within 60 days after the accidents happened.

The maritime traffic accidents mentioned in the first paragraph of this Article and in Article 32 shall be investigated and dealt
with in accordance with the relevant provisions of these Regulations.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 34. With respect to those operations which have violated the regulations concerning maritime traffic safety and have constituted latent
threats of potential major accidents although direct traffic accidents have not been caused, the harbour superintendency administration
may carry out investigation and mete out penalties according to the provisions of these Regulations.

   Article 35. The maritime traffic accidents which have caused marine environmental pollution shall be dealt with in accordance with the relevant
laws and regulations of China concerning marine environmental protection.

   Article 36. These Regulations shall be interpreted by the Ministry of Communications.

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

    






PROCEDURES FOR THE ADMINISTRATION OF CHINESE FINANCIAL INSTITUTIONS ABROAD

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-04-13 Effective Date  1990-04-13  


Procedures for the Administration of Chinese Financial Institutions Abroad



(Approved by the State Council on March 12, 1990 and promulgated by Decree

No.1 of the People’s Bank of China on April 13, 1990)

    Article 1  These Procedures are formulated for the purpose of
strengthening the administration of Chinese financial institutions outside
China and ensuring the sound development of financial undertakings.

    Article 2  All banking and non-banking financial institutions inside China
(hereinafter collectively referred to as “domestic financial institutions”),
all non-financial corporations, enterprises and other organizations inside
China (hereinafter collectively referred to as “domestic non-financial
institutions”), all Chinese-invested banking and non-banking financial
institutions outside China (hereinafter collectively referred to as
“Chinese-invested financial institutions abroad”), and all Chinese-invested
non-financial corporations, enterprises and other organizations outside China
(hereinafter collectively referred to as “Chinese-invested non-financial
institutions abroad”) that wish to invest in the establishment or purchase of
a financial institution abroad shall abide by these Procedures.

    The term “financial institutions abroad” referred to in the preceding
paragraph denotes institutions which are established or purchased abroad by
domestic financial institutions or non-financial institutions, or
Chinese-invested financial institutions or non-financial institutions abroad
and which engage in such financial business operations as deposits, loans,
discount of negotiable instruments, settlements, trust investment, financial
lease, guarantees, insurance and deals in securities.

    Article 3  The organ to examine, approve and administer the establishment
or purchase of financial institutions abroad is the People’s Bank of China.

    Article 4  A domestic financial institution that applies for the
establishment or purchase of a financial institution abroad shall satisfy
the following requirements:

    1) it has been approved by the State Council or the People’s Bank of
China, has been registered in accordance with the law and holds a Licence
of Financial Business Operations issued by the People’s Bank of China;

    2) it has been permitted by the State Administration of Foreign Exchange
Control to handle foreign exchange operations, holds a Licence of Foreign
Exchange Operations issued by the State Administration of Foreign Exchange
Control and has the experience in handling foreign exchange operations for
over three years and the required specialized personnel;

    3) it possesses legitimate sources of funds in foreign exchange; and

    4) it possesses a foreign exchange fund of its own equivalent to no less
than 80 million Renminbi yuan.

    Article 5  A domestic non-financial institution that applies for the
establishment or purchase of a financial institution abroad shall satisfy
the following requirements:

    1) it is a large corporation or enterprise that has been established
upon approval by the department concerned and has been registered in
accordance with the law;

    2) it has a group corporation or group enterprise or other large
enterprise operating abroad with a relatively solid foundation and good
prospect of making profit;

    3) it has been permitted by the department in charge to establish a
financial institution abroad and possesses a foreign exchange fund of its own
equivalent to no less than 100 million Renminbi yuan; and

    4) it possesses the specialized personnel required for handling financial
and foreign exchange operations.

    Article 6  A Chinese-invested financial institution or non-financial
institution abroad that applies for the establishment or purchase of a
financial institution abroad shall satisfy the following requirements:

    1) it has been established abroad upon approval by the department in
charge in accordance with the law, possessing the official document of
approval and the documents certifying that it is engaged in legitimate
business operations in the locality;

    2) the Chinese-invested financial institutions in the locality where the
intended financial institution is to be established or purchased are in a
relatively weak position, which renders it necessary to establish the
financial institution; and

    3) the application submitted is in conformity with the law of the country
or region concerned.

    Article 7  The application for the establishment or purchase of a
financial institution abroad of shall be submitted for approval in accordance
with the following provisions:

     1) the application by a domestic financial institution for the
establishment abroad a representative agency, a branch office, or for the
establishment abroad of a Chinese-invested financial institution or a
Chinese-foreign joint financial institution, or for the purchase of a
financial institution abroad, shall be submitted to the People’s Bank of
China for approval;

    2) the application by a domestic non-financial institution for the
establishment abroad of a Chinese-invested financial institution or a
Chinese-foreign joint financial institution or for the purchase of a financial
institution abroad shall, upon verification and consent by the department in
charge which has solicited the opinions of the Ministry of Foreign Economic
Relations and Trade, be submitted to the People’s Bank of China for approval;
and

    3) the application by a Chinese-invested financial institution or non-
financial institution abroad for the establishment or purchase of a financial
institution abroad shall, after its domestic investing unit has solicited the
opinions of the Ministry of Foreign Economic Relations and Trade, be submitted
to the People’s Republic of China for approval.

    Article 8  For the establishment or purchase of a financial institution
abroad, the domestic investing unit concerned shall apply to the People’s
Bank of China. The application shall clearly state the name of the financial
institution to be established or purchased, its business scope, the
conditions, and the necessity therefor. After the content has been examined,
verified and filed as an item for processing by the People’s Bank of China,
the application shall be submitted in accordance with the provisions of these
Procedures.

    The People’s Bank of China shall examine the application submitted by the
applying unit and shall, within three months of receipt of the same, make the
decision as to whether or not it will grant the approval.

    Article 9  After the establishment or purchase of a financial institution
abroad has been approved, the domestic investing unit concerned shall, on
the strength of the document of approval by the People’s Bank of China and
in accordance with the pertinent provisions, approach the State Administration
of Foreign Exchange Control and go through the procedures to remit abroad
the required foreign exchange.

    Article 10  A domestic financial institution that applies for the
establishment abroad of a representative agency shall submit the following
documents:

    1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed representative
agency, its address, the name of the chief representative and his/her
curriculum vitae; and

    2) the estimated expense of the proposed agency and the certificate of
its source of foreign exchange.

    Article 11  A domestic financial institution that applies for the
establishment abroad of a branch office shall submit the following documents:

    1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed branch office,
its address, the amount of its operating funds, the type(s) of business
operations, the curriculum vitae of the chief person in charge;

    2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

    3) the feasibility study report; and

    4) other relevant documents required by the People’s Bank of China.

    Article 12  A domestic financial institution or non-financial institution
or a Chinese-invested financial institution or non-financial institution
abroad that applies for the establishment abroad of a Chinese foreign joint
financial institution shall submit the following documents:

    1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed Chinese-invested
financial institution, its address, its registered capital and the actual
capital, the source(s) of funds, the type(s) of business operations and the
curriculum vitae of the chief person in charge;

    2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

    3) the feasibility study report; and

    4) other relevant documents required by the People’s Bank of China.

    Article 13  A domestic financial institution or non-financial institution
or a Chinese-invested financial institution or non-financial institution
abroad that applies for the establishment abroad of a Chinese-foreign joint
financial institution shall submit the following documents:

    1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed Chinese-foreign
joint financial institution, its registered capital and the actual capital,
the type(s) of business operations, the names of the respective investing
parties and the percentage of their respective capital contributions, the
source(s) of funds of the Chinese investor(s), and the curriculum vitae of
the chief person in charge;

    2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

    3) the agreement, the contract and the articles of association of the
joint financial institution initialled by the respective investing parties
thereto;

    4) the feasibility study report; and

    5) other relevant documents required by the People’s Bank of China.

    Article 14  A domestic financial institution or non-financial institution
or a Chinese-invested financial institution or non-financial institution
abroad that applies for the purchase of a financial institution abroad shall
submit the following documents:

    1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the financial institution that
is to be purchased, its address, the articles of association, the total
capital and total assets, the state of affairs of the institution and its
personnel, its financial position, the reasons of the purchase and the
objectives thereof, the amount of the fund needed for the purchase, and the
source(s) of the fund;

    2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

    3) the feasibility study report; and

    4) other relevant documents required by the People’s Bank of China.

    Article 15  If a financial institution abroad is to make any one of the
following changes, its domestic investing unit shall in advance submit an
application to the People’s Bank of China for examination and approval:

    1) if a representative agency is to be upgraded to a branch office;

    2) if a representative agency, or a branch office, or a Chinese-invested
financial institution or a Chinese-foreign joint financial institution is to
be disbanded; and

    3) if the percentages of the shares held by the respective investing
parties to a Chinese-foreign joint financial institution are to be adjusted
or if the capital is to be increased.

    Article 16  The domestic investing unit of a financial institution abroad
shall, prior to the date of July 31 every year, submit to the provincial
branch bank of the People’s Bank of China in the locality where it is situated
the work report of the financial institution abroad for the first half of
the year, which shall include the changes in the personnel of the institution,
a breakdown of the deposits and loans, a breakdown of the money sent abroad
or received therefrom; a breakdown of the import and export settlements, an
analysis of the projects of investment and an analysis of the business
transactions in foreign exchange, securities and gold. The afore-said report
shall then be transmitted to the People’s Bank of China, by its provincial
branch bank.

    Article 17  The domestic investing unit of a financial institution abroad
shall, prior to the date of March 31 every year, submit to the provincial
branch bank of the People’s Bank of China the statement of assets and
liabilities, the statement of loss and profit, and the annual work report of
the financial institution abroad for the previous fiscal year, which shall
then be transmitted to the People’s Bank of China by its provincial branch
bank.

    Article 18  The People’s Bank of China and its various provincial branch
banks shall have the right to exercise supervision over the work of the
financial institutions abroad.

    Article 19  If any party, in violation of the provisions in Article 7 of
these Procedures, establishes or purchases a financial institution abroad
without the approval of the People’s Bank of China, the People’s Bank of China
shall have the right to freeze a corresponding amount of the foreign exchange
of the domestic investing unit thereof or of its Renminbi deposits, order it
to disband the financial institution abroad or set a deadline for it to make
up for the procedures of application for examination and approval, and conduct
close investigations into the liability of the chief person in charge of
the unit and of those who are directly responsible therefor.

    If any party violates the provisions in Article 15 of these Procedures,
the People’s Bank of China shall have the right to freeze a corresponding
amount of the foreign exchange of the domestic investing unit thereof or of
its Renminbi deposits and order it to stop the business operations of the
financial institution abroad for rectification.

    If any party violates the provisions in Articles 16 and 17 of these
Procedures, to a serious extent, the People’s Bank of China may impose a fine
of 100,000 Renminbi yuan or less on the domestic investing unit thereof.

    Any party violates the regulations concerning foreign exchange control
shall be penalized in accordance with the pertinent provisions of the State.

    Article 20  If any party has, before these Procedures go into effect,
established or purchased a financial institution abroad without approval of
the People’s Bank of China, it shall, within the time limit prescribed by
the People’s Bank of China, make up for the procedures of application for
examination and approval.

    Article 21  These Procedures shall not apply to the enterprises with
foreign investment inside China.

    Article 22  The People’s Bank of China shall be responsible for the
interpretation of these Procedures.

    Article 23  These Procedures shall go into effect 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...