CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING MATTERS RELATING TO STUDENTS STUDYING ABROAD

Category	EDUCATION	Organ of Promulgation	The General Office of the State Council	Status of Effect	In Force
Date of Promulgation	1992-08-12	Effective Date	1992-08-12

Circular of the General Office of the State Council Concerning Matters Relating to Students Studying Abroad

(August 12, 1992)

The vast numbers of students studying abroad love their motherland and are
willing to devote themselves to the prosperity and might of the Chinese
nation. They study hard and many of them have achieved remarkable success and
won honour abroad. Students studying abroad are the treasures of the State.
The Party and Government have always earnestly cared for, united with and
educated the mass of students studying abroad. The motherland wishes that they
can succeed in their studies and come home to make contributions and
achievements. With a view to implementing the spirit of the instructions of
the Party Central Committee on the work for going abroad to study, further
stepping up the work and serving better the cause of the socialist
construction of our country, a circular concerning matters relating to
students studying abroad is hereby made as follows:

1. Students studying abroad are welcome to come home for a job. Those
studying abroad at public expense shall have an obligation to return to and
serve the country after succeeding in their studies. All students studying
abroad are welcome to come home regardless their political positions in the
past. They may have a short stay for academic exchange and cooperation, or
visit relatives and friends, or take a holiday. All those who made improper
remarks or did wrong things abroad are exempt from investigation. Even if
those who participated in the anti-Chinese Government organizations and were
engaged in activities of endangering the security, honour and interests of the
State, so long as they can withdraw from such organizations and no longer be
engaged in the anti-Government activities which violate the Constitution and
laws of our country, all of them are also welcome to come home for a job.

2. Students studying abroad who hold an expired common service passport or
a common service passport for one exit-entry trip may be permitted to extend
or renew their passports. Applications to change a common service passport
into a common private passport may be accepted. Those who have acquired
foreign nationality shall offer an application to renounce their Chinese
nationality, which shall be handled in accordance with the Nationality Law of
our country, and they shall be regarded as Chinese of foreign nationality.

3. Applications submitted by students studying abroad for extension or
renewal of their passports, or for renunciation of Chinese nationality shall
be accepted. If they are involved in financial and other unsettled affairs
with the originally sending departments or units, the students studying abroad
shall seek a settlement through consultation with such departments or units.
This will not affect the completion of the above-mentioned formalities.

4. Students studying abroad may leave the country again after a short stay
home without renewing the formalities for approval, provided that they hold
our country’s valid passports bearing foreign re-entry visas.

5. Sending units shall keep in close contact with students studying abroad
and take the initiative to care for their work and lives. Returned students
may, according to the principle of “mutual choice”, go back to their original
work units or seek jobs for themselves, may work in enterprises with foreign
investment, or establish their own enterprises. Exchange and cooperation with
foreign countries is encouraged. Returned students may concurrently hold other
positions abroad with the content of the units to which they belong.

6. Family members of students studying abroad shall be allowed to visit
them abroad if they so apply for. The public security organs shall examine the
applications according to the Law of the People’s Republic of China on the
Control of the Exit and Entry of Citizens.

7. Each locality and each department shall, in the spirit of this
Circular, adopt specific measures to make it convenient for students studying
abroad to come home, simplify entry and exit formalities and make proper
arrangements for work and lives of returned students.

8. In places where returned students live concentratedly, local
governments, departments concerned or social organizations concerned shall, in
the light of actual need, set up service institutions for students studying
abroad, which help students studying abroad deal with relevant affairs and
provide them with various services.

9. Our country’s embassies and consulates abroad shall represent the State
in handling matters relating to studying abroad. They shall protect the
legitimate rights and interests of students studying abroad, help them in
their study, research, work and daily lives, relieve them of worries and solve
their problems and timely introduce our country’s condition. Education shall
be given to students studying abroad for the purpose of urging them to observe
the laws of the residing countries, studying hard, respecting themselves,
getting on well with people in the residing countries, loving the motherland,
maintaining the honour and interests of the country and wining glory for the
country.

CIRCULAR OF THE STATE COUNCIL CONCERNING THE FURTHER OPENING UP OF HEIHE CITY AND THREE OTHER FRONTIER CITIES

Category	SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-03-09	Effective Date	1992-03-09

Circular of the State Council Concerning the Further Opening up of Heihe City and Three Other Frontier Cities

(March 9, 1992)

The State Council has decided to further open to the outside world the
following four frontier cities: Heihe City and Suifenhe City in Heilongjiang
Province, Hunchun City in Jilin Province and Manzhouli City in the Inner
Mongolia Autonomous Region.

After the further opening of the aforesaid four frontier cities, they are
expected to expand actively frontier trade and local trade with Russia and
other countries in the Commonwealth of Independent States; to develop economic
cooperation in various forms such as investment cooperation, technical
exchange, service cooperation and so on; and to make reasonable use of local
advantages to develop manufacturing industries and tertiary industries so as
to promote the prosperity and stability of frontier areas.

The four frontier cities shall carry out following policies:

1. With respect to the frontier trades and foreign economic cooperation,
the aforesaid four cities shall implement the “Suggestions Concerning the
Vigorous Development of Frontier Trades and Economic Cooperation for Promoting
the Prosperity and Stability of Frontier Areas” which was approved by the
State Council in 1991, and other related stipulations of the state. The
provinces and the autonomous region may, within the limits of their own
authorities, vest the people’s governments of those four cities with certain
authority in administering frontier trade and economic cooperation. Within
these delegated authorities, contracts including frontier trade, manufacturing
and service cooperation and so on, may be examined and approved by these four
cities themselves. The four cities may establish, after being ratified by the
Ministry of Foreign Trade and Economic Cooperation, one or two more frontier
trade companies at the city level.

2. Encouraging the development of manufacturing trade and foreign
exchange-making agriculture. During the Eighth Five-Year Plan period, import
custom duties and product taxes (or value-added taxes) shall be exempted for
seeds, seed plants, feed and other related technical equipment imported for
developing export-oriented agricultural products, as well as for machinery and
other goods and materials imported by enterprises for manufacturing
export-oriented products or for technical improvement.

3. The four cities shall actively absorb domestic and foreign investments
so as to accelerate economic development. At present, the first stage is to
lay stress on absorbing investments from the Commonwealth of Independent
States and those from domestic enterprises so as to promote the development of
export trade; and is meanwhile to actively create favorable conditions to
expand the absorption of foreign investment from other countries or areas. The
people’s governments of the related provinces and autonomous region may
extend, within the limit of their respective authority, the limits of power
vested in the people’s governments of the four cities for examining and
approving foreign investment programs. After being approved by local tax
authorities, the enterprise income tax may be levied at the reduced rate of 24
percent for foreign-invested enterprises.

The investors from the Commonwealth of Independent States are permitted to
include within their total investment value capital goods and other goods or
equipment as contributing investments. These goods may be sold in accordance
with the frontier trade bartering stipulations and shall be granted a 50
percent reduction in import custom duties and consolidated industrial and
commercial tax.

4. The aforesaid four cities may set aside certain areas within the
administrative region of each city so as to set up frontier economic
cooperation zones. With the intent of attracting investment from inland
enterprises, each city may establish manufacturing enterprises and relevant
tertiary industries, whose products are to be exported to countries within the
Commonwealth of Independent States. The specific limits of the frontier
economic cooperation zones shall be examined and decided by the Office for
Specific Economic Zones under the State Council in conjunction with other
departments concerned.

5. Those industrial enterprises in the frontier economic cooperation zones
which have a cooperation agreement with other domestic industrial enterprises
and which have a production capacity and export figures over certain amounts,
may be granted licenses for engaging in import from and export to the
Commonwealth of Independent States after the approval by the Ministry of
Foreign Trade and Economic Cooperation. The specific standards of permitted
import and export amounts shall be decided by the Ministry of Foreign Trade
and Economic Cooperation after a study. Enterprise income tax for the
aforesaid enterprises shall be levied at a reduced rate of 24 percent locally.
Investors in the aforesaid enterprises who bring their share of profits back
to other inland regions, shall have 9 percent more income tax collected by the
tax authorities of those inland regions. The investment direction adjustment
tax shall be exempted within the period of the Eighth Five-Year Plan of the
national economy.

6. Goods which are obtained by the aforesaid enterprises and the
foreign-invested enterprises located in the frontier economic cooperation
zones through barter trade with countries in the Commonwealth of Independent
States may be sold without authorization, and a 50 percent reduction of
customs duties and consolidated industrial and commercial taxes shall be
granted at the time of their importation. As to those commodities whose
imports are limited by the State, the enterprises shall go through the
examination and approval procedures in accordance with related stipulations by
the State.

7. With respect to machinery, equipment and other construction goods which
must be imported for the construction of the necessary infrastructure within
the frontier economic cooperation zones, import customs duties and product
taxes (or value-added taxes) may be exempted. Within the period of the Eighth
Five-Year Plan, the newly increased fiscal revenue in the frontier economic
cooperation zones may be left with the localities and used for the
construction of the necessary infrastructure.

8. Within the period of the Eighth Five-Year Plan, the People’s Bank of
China shall arrange forty million yuan (ten million yuan for each city) in
special fixed assets loans each year, which shall be used for the development
of the frontier economic cooperation zones. This shall be listed in the state
credit and investment plan.

The people’s governments of Heilongjiang Province, Jilin Province and the
Inner Mongolia Autonomous Region shall strengthen their leadership role
towards the four cities, and shall help them to perfect overall planning of
development. The scale of construction in the four cities must be appropriate
to the feasibility of development, and over-ambitious development plans must
be abandoned. While expanding the opening to the outside world and speeding up
economic construction, the four cities shall strengthen the building of a
socialist society with an advanced culture and ideology, strengthen economic
management and control, and ensure the security and stability in frontier
areas as well as the healthy development of various undertakings.

REGULATIONS ON CONTROL OF OUTBOUND AND INBOUND LUGGAGE AND ARTICLES CARRIED BY CHINESE CITIZENS

Regulations of the PRC on Control of Outbound and Inbound Luggage and Articles Carried by Chinese Citizens

(Effective Date:1992.06.01–Ineffective Date:)

Article 1. These regulations are formulated in accordance with relevant provisions of “The Customs Law of the People’s Republic of China” and
“Procedures of the Customs of the People’s Republic of China for Controlling Inbound and Outbound Luggage and Articles Carried by
Passengers”.

Article 2. Chinese citizens mentioned in these regulations refer to Chinese who reside in China and enter and exit of China through passports
for private affairs signed and issued by Chinese public security departments.

Article 3. Clearance shall be given by the Customs, upon duty levying or exemption according to Customs provisions, to items and amounts of
inbound luggage and articles within limits as prescribed in the attached “Table of Limits on Articles Carried into China by Chinese
Citizens (Referred hereafter as “Table of Limits”, see Appendix 1) if they are carried by Chinese citizens who have resided continuously
outside China for a year or more before the date of entry.

For articles beyond the limit of duty exemption as prescribed in Items 4 and 5 of the Table of Limits, clearance shall be given to
only one article upon examination and approval by the Customs.

Article 4. Clearance and exemption shall be given by the Customs to articles within limits as prescribed in Items 1, 2 and 3 of the Table of
Limits which are carried into China by Chinese citizens having resided outside China continuously for less than one year before the
current entry. For articles in Items 4 and 5 of the Table of Limits, clearance shall be given to only one article chosen from among
them after duty payment if Chinese citizens enter China for the first time in each Gregorian-calendar year.

Articles beyond the limit of those taxed and permitted to enter shall not be allowed to come into Chinese territories. Travellers
shall go through procedures to claim and send them out of China on their own within the time limit set by the Customs. The Customs
shall dispose of the articles beyond the time limit.

Article 5. For travellers under the age of 16 full years, clearance shall be given only to articles necessary for travelling.

Article 6. Except articles the exit of which is prohibited or restricted by the State, a reasonable amount of luggage and articles carried by
Chinese residents for their own use are allowed to leave Chinese territories.

Article 7. Articles listed in “Table of Articles Prohibited to Enter or Leave the People’s Republic of China” shall not be carried by Chinese
citizens into or outside of China.

Article 8. Inbound and outbound luggage and articles carried by personnel holding passports for private affairs or valid passes issued by competent
Chinese departments in charge of Hongkong, Macro and Taiwan affairs shall be processed by the Customs pursuant to other related regulations.

Clearance is given only to inbound and outbound luggage and articles necessary for travelling of personnel who hold the above-mentioned
documents and cross Chinese borders with neighbouring countries.

Article 9. Matters not provided for in these regulations are handled according to related Customs laws and regulations.

Article 10. The regulations shall come into force as of June 1, 1992.

Appendix 1

TABLE OF LIMITS ON ARTICLES CARRIED INTO CHINA BY CHINESE CITIZENS

Amount

Residing abroad Residing abroad

Item continuously continuously

for more than for less than

one year one year

1. Foodstuffs, clothing

material, clothing, arts

and crafts, ordinary

watches and other

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE COMPLETION OF FORMALITIES CONCERNING RATIFICATION AND APPROVAL OF INTERNATIONAL TREATIES AND AGREEMENTS

Category	FOREIGN AFFAIRS	Organ of Promulgation	The General Office of the State Council	Status of Effect	In Force
Date of Promulgation	1992-08-12	Effective Date	1992-08-12

Circular of the General Office of the State Council Concerning the Completion of Formalities Concerning Ratification and Approval of International Treaties and Agreements

(August 12, 1992)

The conclusion or accession of international treaties and agreements
constitutes serious work and must strictly conform with the Law of the
People’s Republic of China regarding the Procedure of the Conclusion of
Treaties. To facilitate and ensure the timely completion of formalities
associated with ratification, approval, accession and acceptance of
international treaties and agreements and in conformance with the State
Council’s directives, the following circular requires that:

1. Concerning international treaties or agreements that are statutorily
required to be submitted to the Standing Committee of the National People’s
Congress for ratification or to the State Council for approval, the relevant
department shall submit these documents within three months of the date of
their signature to the State Council. In the event that the existence of
special circumstances requires a choice of a proper opportunity for
ratification of the Standing Committee of the National People’s Congress or
for approval of the State Council, the documents may be submitted at a later
date to the State Council provided that the relevant department include with
these documents the reasons for such delay.

2. Concerning international treaties or agreements that are to be
submitted to the Standing Committee of the National People’s Congress for
ratification or accession at a date as promised to a foreign party(s), the
relevant department shall submit the documents to the State Council no later
than two and a half months prior to the promised date. Concerning
international treaties or agreements that are to be submitted to the State
Council for approval, accession or acceptance at a date as promised to a
foreign party(s), the relevant department shall submit the documents to the
State Council no later than one and a half months prior to the promised date.
In either case, if by reason of special circumstances or urgent requirements,
submission of these documents within these time period is made impossible, the
relevant department shall consider them as urgent documents by providing
reasons at the time of their submission to the State Council.

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON SAFETY IN MINES

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.65

The Law of the People’s Republic of China on Safety in Mines which has benn adopted at 28th session of the Standing Committee of the
7th National People’s Congress on November 7, 1992 is promulgated now, and shall enter into force as of May 1, 1993.

President of the People’s Republic of China: Yang Shangkun

November 7, 1992

Law of the People’s Republic of China on Safety in Mines ContentsChapter I General Provisions

Chapter II Guarantees for Satefy in Mine Construction

Chapter III Guarantees for Safety in Exploitation of Mines

Chapter IV Safety Managment of Mining Enterprises

Chapter V Supervision and Control over Safety inMines

Chapter VI Disposition of Accidents in Mines

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purpose of ensuring safety in production in mines, preventing accidents and protecting personal safety
of workers and staff at mines and promoting the development of mining industry.

Article 2

All activities relating to exploitation of mineral resources conducted within the boundaries of the People’s Republic of China, as
well as in other sea areas under its jurisdiction must comply with this Law.

Article 3

Mining enterprises must possess facilities that ensure safety in production, establish and perfect the system of safety management,
take effective measures to improve the working conditions for workers and staff and strengthen the work of safety control in mines
in order to ensure safe production.

Article 4

The competent departments of labour administration under the State Council shall exercise unified supervision over the work of safety
control throughout the country.

The competent departments of labour administration of the local people’s governments at or above the county level shall exercise unified
supervision over the work of safety control in mines within their respective administrative regions.

The authorities in charge of mining enterprises under the people’s governments at or above the county level shall administer safety
work in mines.

Article 5

The State shall encourage research in science and technology relating to safety in mines, popularize advanced technology, improve
safety facilities and enhance the level of safe production in mines.

Article 6

Units and individuals that have make outstanding achievements in persistent safe production in mines, prevention of accidents, participation
in rescue work at mines and scientific and technological research relating to safety in mines shall be awarded.

Chapter II Guarantees for Satefy in Mine Construction

Article 7

Safety facilities in mine construction projects must be designed, constructed and put into operation and use at the same time with
the principal parts of the projects.

Article 8

The design papers for mine construction projects must comply with the safety rules and technological standards for mining industry
and shall, according to regulations of the State, be subject to the approval of the authorities in charge of mining enterprises;
those failing to comply with the safety rules and technological standards for mining industry may not be approved.

The designs of safety facilities in mine construction projects must be examined with the participation of the competent department
of labour administration.

The safety rules and technological standards for mining industry shall be formulated by the authorities in charge of mining enterprises
under the State Council.

Article 9

The following items in mining designs must comply with the safety rules and technological standards for mining industry:

(1)

ventilation system of the shaft, and quantity, quality and speed of underground air;

(2)

slope angles of an opencast mine and the width and height of its steps;

(3)

electricity supply system;

(4)

hoisting and transportation systems;

(5)

water control and drainage systems and fire control and fire- extinguishing systems;

(6)

gas control system and dust control system;

(7)

other items concerning safety in mines.

Article 10

Each underground mine must have at least two walkable safety outlets and the direct horizontal distance between such outlets must
comply with the safety rules and technological standards for mining industry.

Article 11

Mines must have transportation and communication facilities that link the mines with the outside and meet safety requirements.

Article 12

Mine construction projects must be constructed in accordance with the design papers approved by the authorities in charge of mining
enterprises.

Upon completion, the safety facilities in mine construction projects shall be subject to inspection for acceptance by the authorities
in charge of mining enterprises, with participation of the competent department of labour administration; those failing to comply
with the safety rules and technological standards for mining industry may not pass inspection for acceptance, and may not be put
into operation.

Chapter III Guarantees for Safety in Exploitation of Mines

Article 13

For exploitation of mines, requirements that ensure safe production must be met, and the safety rules and technological standards
for mining industry corresponding to the exploitation of different types of minerals must be observed.

Article 14

Mine pillars and rock pillars to be preserved as specified in the mining designs shall, within the prescribed period of time, be protected
and may not be exploited or damaged.

Article 15

Equipments, apparatus, protective appliances and safety testing instruments used in mines with special safety requirements must comply
with the national safety standards or safety standards of the mining industry; those failing to comply with the national safety standards
or safety standards of the mining industry shall not be put into use.

Article 16

Mining enterprises must regularly carry out inspection, maintenance and repair of mechanical and electrical equipments and protective
installations thereof, as well as safety testing instruments, so as to ensure safe operation.

Article 17

Mining enterprises inspect the poisonous and harmful substances at the work sites and the percentage of oxygen in underground air
to ensure that they meet safety requirements.

Article 18

Mining enterprises must adopt preventive measures against the following hidden dangers of accidents that jeopardize safety:

(1)

roof falling, slabbing, slope sliding, and surface collapsing;

(2)

gas blast and coal dust explosion;

(3)

bumps, gas outburst and blowout;

(4)

fire and flood on surface and underground;

(5)

perils arising from demolition apparatus and demolition operations;

(6)

perils caused by dust, poisonous and harmful gases, radioactive and other harmful substances; and

(7)

other perils.

Article 19

Mining enterprises shall take preventive measures against perils that may arise out of using mechanical and electrical equipment,
soil tips, mine tips, dams and lagoons, as well as from disused mine pits.

Chapter IV Safety Managment of Mining Enterprises

Article 20

Mining enterprises must establish and improve the safe production responsibility system.

Managers of mines shall be responsible for the safe production in their respective enterprises.

Article 21

Managers of mines shall, on a regular basis, report their work on safe production to the corresponding congresses of workers and staff
or assemblies of workers and staff, thus bringing into play the supervisory role of the congresses of workers and staff.

Article 22

Workers and staff of mining enterprises must observe the laws, regulations and enterprise rules concerning safety in mines.

Workers and staff of mining enterprises have the right to make criticisms, reports and charges against any conduct that endangers
safety.

Article 23

Trade unions of mining enterprises shall safeguard, in accordance with the law, the lawful rights and interests of the workers and
staff in relation to safe production, organize the workers and staff to carry out supervision over the safety work of the mines.

Article 24

If a mining enterprise violates any laws or regulations concerning safety, the trade union is enpost_titled to demand that the management
of the enterprise or the department concerned deal with the case seriously.

Meetings held by mining enterprises to discuss matters concerning safe production shall be attended by representatives of trade unions,
and trade unions have the right to advance their opinions and proposals.

Article 25

Where the management of an enterprise gives a command contrary to the established rules and compels workers to operate under unsafe
conditions, or, major hidden dangers of accidents and occupational hazards are found in the course of production the trade union
has the right to put forward proposals for a solution; where the life of the workers and staff is in danger, the trade union has
the right to propose to the management that the workers and staff be evacuated from the dangerous site in an organized manner, and
the management must make a decision without delay.

Article 26

Mining enterprises must give safety education and training to their workers and staff; those who have not received safety education
and training may not take up a post of duty.

Special operators in charge of safe production in mining enterprises must receive special training; they may take up a post of such
duty only after they have obtained a certificate of operation qualification after passing due examination and verification.

Article 27

Managers of mines must prove, through examination, to have special knowledge of safety and the capability of leading safe production
and disposing of accidents in mines.

Personnel in charge of safety work in mining enterprises must possess necessary specialized knowledge of safety and experience in
safety work in mines.

Article 28

Mining enterprises must distribute to their workers and staff labour protective gadgets necessary for guaranteeing safe production.

Article 29

Mining enterprises may not recruit adolescents to engage in underground work.

Mining enterprises shall in accordance with regulations of the State practise special labour protection with respect to women workers
and staff, and may not assign women workers any underground work.

Article 30

Mining enterprises must adopt preventive measures against accidents in mines, and be responsible for their implementation.

Article 31

Mining enterprises shall establish rescue and first-aid groups composed of full-time or part-time personnel and equipped with necessary
equipment and medicine.

Article 32

Mining enterprises must, in accordance with regulations of the State, draw special funds for safety technical measures from the amount
of sales of their mineral products. The special funds for safety technical measures must be used exclusively to improve conditions
of safe production in mines and may not be diverted to any other purposes.

Chapter V Supervision and Control over Safety inMines

Article 33

Competent departments of labour administration of the people’s governments at or above the county level shall exercise the following
supervisory functions and responsibilities with respect to safety work in mines:

(1)

to inspect the implementation of laws and regulations on safety in mines by mining enterprises and the authorities in charge of mining
enterprises;

(2)

to participate in the examination of designs of safety facilities in mine construction projects as well as the inspection for acceptance
upon completion of such projects;

(3)

to inspect the working conditions and state of safety in mines;

(4)

to inspect the work of giving education and training in safety to workers and staff by mining enterprises;

(5)

to supervise the allocation and use of the special funds for safety technical measures by mining enterprises;

(6)

to participate in and supervise investigation and disposition of accidents in mines;

(7)

other supervisory functions and responsibilities provided for in laws and administrative rules and regulations.

Article 34

The authorities in charge of mining enterprises under the people’s governments at or above the county level shall exercise the following
functions and responsibilities with respect to the control of safety work in mines:

(1)

to inspect the implementation of laws and regulations on safety in mines by mining enterprises;

(2)

to examine and approve designs of safety facilities in mine construction projects;

(3)

to be responsible for the inspection for acceptance upon completion of safety facilities in mine construction projects;

(4)

to organize the training of managers of mines and personnel in charge of safety work in mining enterprises;

(5)

to investigate and deal with serious accidents in mines; and

(6)

other controlling functions and responsibilities provided for in laws and administrative rules and regulations.

Article 35

The personnel in charge of mine safety supervision under the competent department of labour administration are enpost_titled to enter mining
enterprises and make on-the-spot inspections on the state of safety; when circumstances of emergency threatening the safety of workers
and staff are discovered, they shall demand a prompt action thereof by the mining enterprise involved.

Chapter VI Disposition of Accidents in Mines

Article 36

In case an accident occurs in a mine, the mining enterprise concerned must organize rescue work immediately so as to prevent the spreading
of the accident and reduce casualties and property losses, and must immediately and truthfully report any accident involving causalities
to the competent department of labour administration and the authorities in charge of mining enterprises.

Article 37

In the case of an ordinary mine accident, the mining enterprise concerned shall be responsible for the investigation and the disposition
thereof.

In the case of a serious mine accident, the relevant government, together with its competent department, the trade union and the mining
enterprise concerned, shall investigate and deal with the case in accordance with the provisions of administrative rules and regulations.

Article 38

Mining enterprises shall, in accordance with regulations of the State, give pensions or compensations for workers and staff members
who died or were injured in accidents in mines.

Article 39

After the occurrence of a mine accident, dangers at the scene shall immediately be eliminated, causes of the accident promptly ascertained
and preventive measures timely devised. Production may be resumed only after dangers at the scene have been eliminated.

Chapter VII Legal Responsibilities

Article 40

Whoever commits any of the acts enumerated below in violation of this Law shall be ordered by the competent department of labour administration
to make a rectification and may concurrently be punished by a fine; if the circumstances are serious, the case shall be submitted
to the people’s government at or above the county level for a decision ordering the suspension of production for a cleaning up; the
person in charge and the person directly responsible shall be subjected to administrative sanctions by the unit to which they belong
or by the competent authorities at higher levels:

(1)

assigning any worker or staff member to a post of duty without due education and training in safety;

(2)

using equipment, apparatus, protective appliances and safety examination and testing instruments manufactured not in compliance with
the national safety standards or safety standards of the industry;

(3)

failing to allocate or use the special funds for safety technical measures in compliance with relevant regulations;

(4)

refusing personnel in charge of safety in mines to make on-the-spot inspections, or concealing hidden dangers of accidents or failing
to truthfully report the situations when being inspected;

(5)

failing to make timely and truthful reports, as prescribed, on accidents at mines.

Article 41

Mine mangers without special knowledge of safety, or specialized operators in charge of safe production taking up a post of duty without
certificates of operation qualifications shall be ordered by the competent department of labour administration to make a rectification
within a fixed period of time; where rectifications are not made upon expiration of the period, the matter shall be submitted to
the relevant people’s government at or above the county level for a decision ordering the suspension of production, and production
may not be resumed until qualified personnel are assigned to such posts after readjustment.

Article 42

Where a mine construction project is started without having the designs of its safety facilities approved, the mining enterprise concerned
shall be ordered by the authorities in charge of mining enterprises to stop the construction; with respect to the mining enterprise
refusing to carry out the order, the matter shall be submitted by the authorities in charge of mining enterprises to the relevant
people’s government at or above the county level for a decision on the rescission of its mining permit and business license by the
competent authorities.

Article 43

Where the safety facilities in a mine construction project are put into operation without having been inspected for acceptance or
without having passed inspection for acceptance, the mining enterprise concerned shall be ordered to stop production by the competent
department of labour administration in conjunction with the authorities in charge of mining enterprises, and shall also be fined
by the competent department of labour administration; with respect to the mining enterprise refusing to stop production, the matter
shall be submitted by the competent department of labour administration to the relevant people’s government at or above the county
level for a decision on the rescission of its mining permit and business license by the competent authorities.

Article 44

Where a mining enterprise already put into operation but without the due conditions for safe production insists on forced exploitation,
it shall be ordered by the competent authorities of labour administration in conjunction with the authorities in charge of mining
enterprises to make improvement within a fixed period of time; with respect to the mining enterprise that still fails to meet the
conditions for safe production upon expiration of the period, the matter shall be submitted by the competent department of labour
administration to the relevant people’s government at or above the county level for a decision on the suspension of production for
the purpose of readjustment or on the rescission of its mining permit and business license by the competent authorities.

Article 45

If any party is not satisfied with the decision on administrative sanctions, it may, within 15 days from receiving the notification
of the decision, apply for reconsideration to the higher authorities next to the one that has made the decision; the party also may
directly bring a suit before a people’s court within 15 days from receiving the notification of the decision.

The authorities responsible for shall make a decision within 60 days from receiving the application for reconsideration. If the party
is not satisfied with the decision, it may bring a suit before a people’s court within 15 days from receiving the decision. If upon
expiration of the time limit, the authorities fail to make a decision, the party may bring a suit before the people’s court within
15 days upon expiration of the period for reconsideration.

If upon expiration of the time period, the party concerned has not applied for reconsideration, nor brought a suit before the people’s
court, nor complied with the decision, the authorities that has made the decision may apply to the people’s court for compulsory
execution.

Article 46

Any responsible person of a mining enterprise who gives command in violation to established regulations and compels workers to carry
out operations at risks, thus causing accidents involving serious causalities, shall be investigated for criminal responsibilities
in accordance with the provisions of Article 114 of the Criminal Law.

Article 47

Any responsible person who fails to take measures with respect to hidden dangers of accidents in a mine, thereby causing accidents
involving serious causalities, shall be investigated for criminal responsibilities by applying mutatis mutandis the provisions of
Article 187 of the Criminal Law.

Article 48

Where any person in charge of safety supervision or safety control in a mine abuses his power, neglects his duty, or practices favoritism
and irregularities, and if the act constitutes a crime, the person concerned shall be investigated for criminal responsibilities
in accordance with the law; if the act does not constitute a crime, administrative sanctions shall be given.

Chapter VIII Supplementary Provisions

Article 49

Regulations for implementation shall be formulated by the competent department of labour administration under the State Council in
accordance with this Law, and the regulations formulated shall be submitted to the State Council for approval before implementation.

The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central
Government may, in accordance with this Law and in light of the actual conditions of their respective areas, draw up measures of
implementation.

Article 50

This Law shall enter into force as of May 1, 1993.

The Standing Committee of the National People’s Congress
1992-11-07

OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE ABSORPTION OF FOREIGN INVESTMENT FOR THE DEVELOPMENT OF THE YANGPU AREA IN HAINAN PROVINCE

Category	SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-03-09	Effective Date	1992-03-09

Official Reply of the State Council Concerning the Absorption of Foreign Investment for the Development of the Yangpu Area in Hainan Province

(March 9, 1992)

People’s Government of Hainan Province:

The Report on the Project Proposal for the Foreign-Invested Development
and Management of Thirty Square Kilometers of Land in the Yangpu Development
Zone, submitted by your Province, has been received. An official reply is
hereby made as follows:

1. We have agreed in principle with your Province to absorb foreign
investment for the development and management of about thirty kilometers of
land in the Yangpu area and build the area into the Yangpu Economic
Development Zone. You are allowed to negotiate with foreign investors
according to the provisions of the Interim Measures for the Administration of
the Foreign-Invested Development and Management of Tracts of Land.

2. We have agreed in principle that your Province may assign to foreign
developers the right to the use of all about thirty square kilometers of land
in the Yangpu area at a time. You are allowed to negotiate with foreign
investors and conclude contracts for the assignment of land use rights under
the Interim Regulations of the People’s Republic of China Concerning the
Assignment and Transfer of the Right to Use of State-Owned Land in the Urban
Areas. The contracts shall expressly provide detailed conditions and terms of
development and exploitation of land, assignment, lease and mortgage of land
use rights, and land-use fees. The contracts shall take effect with the
approval of the State Council.

After the right to the use of State-owned land has been assigned, the
ownership of resources and objects buried thereunder shall be reserved by the
State. If it is necessary to exploit and utilize them, the relevant laws and
administrative regulations of the State shall apply. The exploitation of
underground water resources in the Yangpu area shall be planned and controlled
in a rational way.

3. The development of land may be conducted by a single foreign investor,
or jointly by several foreign investors, or by a Sino-foreign joint venture.
For the purpose of the development and management of land, development
enterprises shall be established according to the laws. Under the jurisdiction
and protection of laws of the State, such enterprises must observe laws and
regulations of the State in engaging in any activity.

4. The Yangpu Economic Development Zone should be built into an
export-oriented industrial area, with advanced technology industries as its
leading sector and with the third industry developed correspondingly.
Development enterprises shall, according to this principle, draw up their
overall planning for the development and construction in the Yangpu Economic
Development Zone, which shall specify the main targets of the development and
construction, and its respective targets in different stages, the details and
requirements for achieving the development target, as well as the plans for
using the developed land.

5. The projects for the construction in the Yangpu Economic Development
Zone shall reflect the State industrial policies and meet the requirements for
economic development in Hainan, and shall be subject to the approval of the
Chinese Government. With regard to the authorities for examination and
approval of these projects, the relevant provisions of the Circular Concerning
the Summary of a Forum on Further Opening up and Quickening Economic
Development and Construction on Hainan Island, approved and transmitted by the
State Council in 1988, shall apply. Projects with foreign investment within
the Development Zone shall, if they don’t depend on the domestic market in
terms of finance, energy resources, raw materials and the sale of products, be
subject to the examination and approval of your Province. However, for those
of them beyond the approved quota, the project proposals shall obtain the
consent of the State Planning Commission before you examine and approve them.
Projects for infrastructure constructed within the Development Zone according
to planning may be examined and approved by your Province.

With the approval of the People’s Bank of China, banks or other financial
institutions with foreign investment may be established within the Development
Zone.

6. We have agreed in principle that the Yangpu Economic Development Zone
shall be administered as a closed or separate area. The detailed separation
and supervision measures shall be formulated by the General Customs
Administration and the Special Economic Zone Office under the State Council in
consultation with other relevant departments, and shall be enforced upon
approval.

7. Subject to the effective separation and supervision measures, policies
for bonded areas shall apply in the Yangpu Economic Development Zone to the
import and export control, collection and exemption of import and export
duties, product tax and value-added tax levied on behalf of the tax
authorities, but not to the administration of consumer goods imported for
market supplies. Before the enforcement of such measures, policies and
measures described in the Circular Concerning the Summary of a Forum on
Further Opening up and Quickening Economic Development and Construction on
Hainan Island, approved and transmitted by the State Council in 1988, and the
Provisions of the State Council Concerning the Encouragement of Investment in
Developing Hainan Island in 1988, shall continue to apply in the Yangpu area.

Other tax policies in the Yangpu Economic Development Zone shall refer in
principle to the tax policies of the Hainan Special Economic Zone laid down by
the State. The reduction and exemption of taxes under the central authorities
shall be subject to the approval of the Ministry of Finance and the State
Administration of Taxation. Taxes under the local authorities shall be
adjusted in the light of the actual situations in different industries and
nobody may reduce and exempt all of them at a time.

8. We have agreed in principle to your Province’s preliminary plan for
infrastructure construction with regard to facilities for water supply,
electricity supply, post and telecommunications, and means of transport in the
Yangpu Economic Development Zone. If the linking up of facilities and the
division of management work involves institutions outside the Development
Zone, you shall invite the institutions concerned to sign an agreement or a
contract with development enterprises so as to specify the detailed
requirements and measures. The issue on the building of a small-scale airstrip
in Yangpu shall be referred to the competent authority for special discussion.

9. The overall planning for allocating shorelines for ports in Yangpu Bay
shall be drawn up by the traffic departments, in which consideration shall be
given to reserve the land extension in depth from shorelines according to the
actual needs for planned ports or piers. The contracts for the assignment of
land use rights and the overall planning for the development and construction
shall specify such consideration. Subject to the planning, Chinese and foreign
parties may jointly invest in the construction and management of ports and
piers, and foreign investors may build and operate piers for the use of
enterprises. Ports and navigation affairs shall be under the unified
administration of the traffic departments.

10. We have agreed to your Province’s guideline on environmental
protection and measures for controlling the total quantity of pollutants
charged in the Yangpu Economic Development Zone. You should lose no time in
completing the assessment of regional environmental impact and doing other
preparatory work before the development and construction of the land is
started. Construction projects shall be in strict conformity with the
requirements of environmental protection. Facilities for the prevention and
control of pollution shall be designed, built and put into operation
simultaneously with the main project.

11. We have agreed in principle to your Province’s conception about the
administrative organ to be set up in the Yangpu Economic Development Zone. You
must make the administrative staff simple and efficient, divide functions
among them clearly, and intensify the effective administration as a government
department.

CIRCULAR OF THE STATE COUNCIL REGARDING THE FURTHER OPENING OF NANNING, KUNMING, PINGXIANG AND OTHER FOUR BORDER CITIES (OR COUNTIES OR TOWNS)

Category	SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-06-09	Effective Date	1992-06-09

Circular of the State Council Regarding the Further Opening of Nanning, Kunming, Pingxiang and Other Four Border Cities (or Counties or Towns)

(June 9, 1992)

The State Council has resolved to further open such places as
Nanning (city), Kunming (city), Pingxiang (city), Dongxing (town),
Wanting (city), Ruili (county) and Hekou (county).

1. The policies for costal open cities shall be implemented in the cities
of Nanning and Kunming.

2. The following policies shall be implemented in some cities (or counties
or towns)–Pingxiang, Dongxing, Wanting, Ruili, and Hekou:

(1) Border trade and economic cooperation with foreign companies shall
be carried out in accordance with relevant regulations approved by the State
Council. The people’s governments of Guangxi Zhuang Autonomous Region and
Yunnan Province within the limit of their authority, may grant certain
authority to the governments of the five cities (or counties or towns)
concerning the administration of border trade and economic cooperation so
that they may have the right to examine and approve some economic contracts
concerning border trade, product processing, and labor service cooperation
without asking a superior department for instructions. The five cities (or
counties or towns) may, with the approval of the Ministry of Foreign Trade
and Economic Cooperation, increase the number of companies dealing with border
trade by one or two.

(2) The development of processing trades and foreign-exchange-earning
agriculture shall be encouraged in these regions. During the Eighth Five-Year
Plan period, the five cities (or counties or towns) shall be exempt from
import duties and product taxes (value-added taxes) for imported seeds, seed
plants, breeding stocks, fodder, related technical equipment for developing
the export of agricultural products, and imported machinery and other
materials for processing and export of agricultural products and for
technological reform of enterprises.

(3) Both domestic and foreign investment should be actively absorbed to
promote development of the economy. The governments of Guangxi Zhuang
Autonomous Region and Yunnan Province, within the limit of their authority,
may extend the authority of the governments of the five cities (or counties or
towns) to examine and approve foreign-funded projects. Income taxes shall be
levied on foreign-funded enterprises in the five cities (or counties or towns)
at a reduced rate of 24 percent.

(4) Investors from neighboring countries may include the means of
production or other materials and equipment in the total amount of their
investment. These goods may be sold in accordance with the regulations
concerned, and the import duties and the consolidated industrial and
commercial tax shall be reduced by half.

(5) Qualified cities (or counties or towns) are allowed to establish
border economic cooperation zones, and set up export-oriented processing
enterprises and relevant tertiaries. The specific scope of border economic
cooperation zones shall be examined and approved by the Special Economic
Zones Office of the State Council in conjunction with relevant departments.
The imported machines, equipment, and other materials, as well as office
articles within a reasonable quantity, so long as they are used for
infrastructure construction of border economic cooperation zones, shall be
exempt from import duties and product taxes (value-added taxes). During the
Eighth Five-Year Plan period, the newly-earned financial income of the
economic cooperation zones should be reserved for the construction of local
infrastructure.

(6) If the scale of production and export of export-oriented productive
enterprises which have links with the inland areas in the border economic
cooperation zones reaches a certain volume, they shall be granted the right
to import from and export to the neighboring countries with the approval of
the Ministry of Foreign Trade and Economic Cooperation. The income taxes of
the inland-associated enterprises shall be levied at a reduced rate of 24
percent supposing the profits remain in the locality, but an additional amount
of nine percent shall be collected by the region in which the inland investors
are if they transfer the profits to inland areas. Until the end of the Eighth
Five-Year Plan period, the above-mentioned enterprises shall be exempt from
regulation tax on investment orientation.

(7) The commodities received through barter by inland-associated
enterprises and foreign-funded enterprises in the border economic cooperation
zones may be sold by enterprises themselves, and import duties and
consolidated industrial and commercial tax shall be reduced by half for these
commodities. For importing commodities on which the state has placed
restrictions, the formalities of import examination and approval should be
handled in accordance with the relevant regulations of the state.

(8) The state shall grant appropriate subsidies to assist construction of
customs and other port facilities in these five cities (or counties or towns).
The specific amount and means of subsidization shall be appraised and decided
by the Ministry of Finance.

The five cities (or counties or towns) are allowed to collect managerial
fees (0.6 yuan/ton) on goods passing through the ports. These fees shall be
used for maintenance and construction of the port facilities and cities.

(9) Every year during the Eighth Five-Year Plan period, the People’s Bank
shall allocate to Wanting and Ruili 10 million yuan each, and to Pingxiang,
Dongxing, and Hekou 20 million yuan each as credit for fixed assets. These
allocations shall be used for the construction of the border cities and the
border economic cooperation zones and shall be included in the state’s credit
and investment plan.

(10) From this year to the end of the Eighth Five-Year Plan period, each
of the five cities (or counties or towns) shall be allowed to import 30 items
of transportation for their own use, which shall be exempt from import duties,
value-added taxes and special consumption taxes. These vehicles are to be used
only within the local region, and resale or conveyance outside is forbidden.
This shall be strictly supervised by the local customs offices. The authority
to check and issue import licences shall be granted to the department of
economy and trade of the Guangxi Zhuang Autonomous Region and Yunnan Province.

(11) Investment and establishment of overseas enterprises in peripheral
countries shall be permitted. According to Document No.13 issued by the State
Council in 1991, the projects with a total investment volume below US$1
million shall be examined and approved by the Guangxi Zhuang Autonomous Region
and Yunnan Province, and licences shall be issued after authority is granted
by the Ministry of Foreign Trade and Economic Cooperation.

The governments of the Guangxi Zhuang Autonomous Region and the Yunnan
Province should reinforce their leading role over the further-opened cities
and border towns and help them make overall plans for construction and
development. The scale of construction for land development should be suited
to the practical conditions of the localities. While expanding opening up and
speeding up economic construction, the two regions should strengthen
construction of the legal system and socialist spiritual civilization, tighten
macro-control over the economy, take strong measures against crimes such as
smuggling and narcotics trafficking so as to guarantee the security and
stability of the borders and the sound development of all undertakings.

MEASURES FOR THE ADMINISTRATION OF REGISTRATION OF ENTERPRISES FROM FOREIGN COUNTRIES (REGIONS) ENGAGING IN PRODUCTION AND BUSINESS WITHIN THE TERRITORY OF CHINA

Measures for the Administration of Registration of Enterprises from Foreign Countries (Regions) Engaging in Production and Business
within the Territory of China

Decree No.10, 1992 of State Administration for Industry and Commerce
August 15, 1992

(Promulgated by Decree No. 10 of State Administration for Industry and Commerce on August, 15, 1992)

Article 1

These Measures are formulated in accordance with laws and regulations with a view to promoting economic cooperation with foreign
countries, strengthening administration of enterprises from foreign countries (regions) (hereinafter referred to as foreign enterprises)
that are engaged in production and business within the territory of China, protecting their legitimate rights and interests, and
maintaining economic order.

Article 2

According to relevant laws and regulations, foreign enterprises, approved by the State Council and administrative authorities authorized
by the State Council (hereinafter referred to as examination and approval authorities) and engaged in production and business with
the territory of China, shall register with the State Administration for Industry and Commerce or the local administrations for industry
and commerce authorized by the State Administration for Industry and Commerce (hereinafter referred to as the administrative departments
of registration). Foreign enterprises may start production and business only when their applications for registration have been examined
and approved by administrative departments of registration and they are given Business Licenses of People Republic of China (hereinafter
referred to as Business Licenses. Foreign enterprises, who fail to be approved by the examination and approval authorities and whose
applications for registration fail to be examined and approved by administrative departments of registration, may not be engaged
in production and business within the territory of China.

Article 3

According to the state’s laws and regulations in force, foreign enterprises shall apply for registration if they are engaged in the
following production and business:

(1)

Exploration and exploitation of onshore and offshore oil and other mineral resources,

(2)

Contract projects for the construction and decoration of houses and civil engineering, or the installation of circuit pipelines and
equipment,

(3)

Operation and management of foreign-invested enterprises by contracts or authorization,

(4)

Branches established in China by foreign banks, and

(5)

Other production and business permitted by the State.

Article 4

When the projects for production and business conducted by foreign enterprises are approved by the examination and approval authorities,
the foreign enterprises shall register with the administration departments of registration within 30 days of approval.

Article 5

When the foreign enterprises apply for registration, they shall submit the following documents or certificates:

(1)

Applications signed by the chairperson of the board of directors or general manager, and

(2)

Documents and certificates approved by the examination and approval authorities.

Those engaged in the exploration and exploitation of onshore and offshore oil and other mineral resources shall submit documents approved
by the Ministry of Foreign Trade and Economic Cooperation; those engaged in contract projects for offshore oil shall submit approval
letter issued by China National Offshore Oil Corporation; those engaged in contract projects for onshore oil shall submit approval
letter issued by China National Petroleum Corporation or the entities authorized by it; those foreign banks that establish branches
shall submit approval documents issued by People’s Bank of China; those engaged in contract projects for the construction and decoration
of houses and civil engineering, or the installation of circuit pipelines and equipment shall submit Qualification Certificate for
Foreign-Owned Enterprises to Contract Projects issued by the Ministry of Construction; those engaged in operation and management
of foreign-invested enterprises by contracts or authorization shall submit approval document issued by authorities in charge of the
examination and approval of the contracts and articles of association of the foreign enterprises; those engaged in other production
and business shall submit approval documents issued by administrative authorities concerned in accordance with the industry which
their production and business belong to.

(3)

Contract for the production and business that foreign enterprises are engaged in (branches established in China by foreign banks are
not subject to this item).

(4)

Legitimate certificate of operation for enterprises issued by the governments of the countries (regions) where the foreign enterprises
are from,

(5)

Certificate of capital creditability of foreign enterprises,

(6)

Authorization letter issued by the China project person in-charge designated by the chairperson of the board of directors or the general
manager of the foreign enterprises, his/her resume, and ID card, and

(7)

CIRCULAR OF THE STATE COUNCIL REGARDING FURTHER REFORM OF THE ADMINISTRATION OF INTERNATIONAL OCEAN SHIPPING INDUSTRY

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-11-10	Effective Date	1992-11-10

Circular of the State Council Regarding Further Reform of the Administration of International Ocean Shipping Industry

(November 10, 1992)

In order to meet the needs of developing foreign economic
relations and trade, a set of reform measures have been drawn up
which concern the administration of the international ocean shipping
industry in China, and which have played an active role in
enlivening foreign trade shipping and promoting the development
of the international ocean shipping industry. However, non-
separation between enterprises and administrative departments,
too much administrative interference and the inactivity of some
reform measures have restricted the management of goods shipping
agencies (hereinafter referred to as cargo agencies), shipping
agencies and the international ocean shipping enterprises
(hereinafter referred to as shipping companies), have caused a lack
of vigor in enterprises and affected the international ocean
shipping industry in China. Thus, further reform in the
administration of the international ocean shipping industry in
China must be undertaken. The following are to be especially
noted:

1. Free up cargo agencies and shipping agencies, allow more
managers, and encourage competition in order to improve service
quality. Those enterprises, including branches which have
obtained business licenses, which meet business operational
conditions and legally conduct business activities, may engage in
cargo agency and shipping agency activities after approval; cargo
owners and shipping companies shall have the right to freely
select cargo agencies or shipping agencies, and carriers and
cargo owners may establish direct carriage and consignment
relationships; no department may undertake to interfere with
them.

2. Every positive factor should be brought into play to
develop international ocean shipping. Those enterprises,
including large scale enterprise groups and specialized import
and export companies, which meet business operational conditions
and legally conduct business activities may establish shipping
companies after being approved for engaging in international
ocean shipping.

3. Freedom in management of the shipping companies shall be
enlarged in accordance with the provisions of the Regulations on
the Transformation of the Mechanisms of the Industrial
Enterprises Owned by the Whole People. Shipping companies may, in
light of state macro requirements, freely determine route
management, ship allocation, increases or decreases in shipping
and ship renewal.

4. Those routes which domestic shipping companies are not
able to open or those routes for which shipping densities are
insufficient may, on the principle of reciprocity, absorb
foreign-funded regular shipping vessels or overseas Chinese-
funded regular shipping vessels staying at ports in China, but
shipping may not be carried out along the coast. Foreign shipping
companies are allowed to run foreign-funded or Chinese-foreign
joint shipping ventures in a proper manner, and may canvass cargo
business, sign bills, convert foreign exchange and conclude
contracts for their own ships after approval.

5. The management functions of government departments shall
be conscientiously transferred. The Ministry of Communications
and the Ministry of Foreign Economic Relations and Trade shall,
on the principle of simpler administration and loosened control,
decrease the approval and administrative interference of the
specific routines of enterprises. The Ministry of Foreign Economic
Relations and Trade shall be in charge of the policy, guidelines,
regulations and statistical surveys concerning the administration
of cargo agencies; the Ministry of Communications shall be in charge
of the policies, guidelines, regulations and statistical surveys
concerning the administration of shipping companies and shipping
agencies. Henceforth the two ministries shall, through macroscopic
regulation and economic and legal measures, carry out macro
management of shipping companies, cargo agencies and shipping
agencies engaged in international shipping. Moreover, they shall,
in line with international invention and on the basis of China’s
national conditions, formulate just and reasonable operational
qualification standards and administrative approval measures for
the shipping companies, shipping and cargo agencies, and provide a
fair competitive market environment for enterprises. The two
ministries shall strengthen industrial administration of those
enterprises which participate in competition, without any
discrimination, and shall not treat them differently because they
are subject to different ministries. Each local government shall
also simplify administration, loosen control, and prevent local
protectionism.

6. The Ministry of Communications shall study the measures
taken by foreign countries in developing the shipping industry
and, through consultation with the relevant departments, formulate
specific policies for promoting the development of the ocean freight
industry in China, which shall be effective after being submitted to
and approved by the State Council.

The Ministry of Communications, the Ministry of Foreign Economic
Relations and Trade and other departments shall conduct research on
and formulate specific policies for the following items: fair
competition in taxation and management between state-owned shipping
agency enterprises, cargo agency enterprises, shipping companies
and foreign-funded or joint shipping agency enterprises, cargo
agency enterprises or shipping companies; improved supervisory and
restraint mechanisms; getting rid of barriers between different
levels or departments; preventing monopolies; and implementing
measures for the banning of illegal businesses and other activities
concerning the ocean shipping market. These measures shall be
effective after being submitted to and approved by the State Council.

7. The enterprises subject to the Ministry of Communications
and the Ministry of Foreign Economic Relations and Trade shall
bring into play their respective superiorities and develop a
horizontal integration by adopting joint operation and stock
purchasing measures.

8. The Ministry of Foreign Economic Relations and Trade and
the Ministry of Communications shall strengthen unity, cooperate
closely and consult with each other in administering
international ocean shipping. In case of problems involving other
departments concerned, agreement must be reached from such
departments or a joint document must be issued; no document with
which the relevant departments do not agree shall be promulgated.
Major issues which do not have the agreement of the relevant
departments through consultation may be submitted to and decided
by the State Council.

9. The China Ocean Shipping Company and the China National
Foreign Trade Transportation Corporation are the two largest
foreign trade shipping enterprises in China, and shall share the
same policy treatment by the state. The relevant departments shall
support them, improve their competitive power with foreign
companies, and promote the development of the international ocean
shipping industry in China.

10. Every relevant department shall, in the spirit of this
Circular, check up on the documents promulgated earlier by this
department; in case of any discrepancy with this Circular, former
documents shall be amended in accordance with the provisions of
this Circular and submitted for implementation.

This Circular shall be implemented as of the date of
promulgation.

PROVISIONAL RULES ON ADMINISTRATION OF ALLOCATED LAND USE RIGHT

Provisional Rules on Administration of Allocated Land Use Right

(Effective Date:1992.03.08–Ineffective Date:)

Article 1. With a view to implementing “PRC Regulations on Leasing and Transferring of the Right to Use State-owned Urban and Rural Land” (hereinafter
referred to as “Regulations”) and strengthening the administration of allocated land use right, these rules are formulated.

Article 2. Allocated land use right denotes the right to use State-owned land procured by land users through means other than land-use right
transference.

Article 3. These rules are applicable to the transferring, leasing and mortgaging of the right to use allocated land (hereinafter referred to
as land use right).

Article 4. The land administrations of the people’s governments above the county level shall control and supervise in accordance with law the
transferring, leasing and mortgaging of land use right.

Article 5. Land users who have not got approval from land administrations of municipal or county people’s governments and fail to go through
procedures for the leasing of land use right and pay lease fees shall not transfer, lease or mortgage land use right.

Article 6. Land users conforming to the following conditions may transfer, lease and mortgage land use right upon approval by land administrations
of municipal or county people’s governments:

a. They are corporations, enterprises, other economic entities and individuals;

b. Bearer of State-owned land use right certificate;

c. Bearer of legal documents of premises and other attached structures and properties on land; and

d. Those who sign land use right leasing contract in accordance with the “Regulations” and these rules and pay lease fees to municipal
or county people’s governments or turn over benefits from the transfer, leasing or mortgaging of rights in lieu of lease fees.

Article 7. The transfer of land use right denotes the transfer to others of land use right or the right along with the premises and other attached
structures and properties on the land in question by land users.

The original owner of the land use right is the transferor and the party that receives the land use right is the transferee.

Article 8. Ways of land use right transfer cover sales, exchange, donations, etc.

Sale means that the transferor trades land use right for given benefits.

Exchange means the exchange of land use rights among land users.

Donation means that the transferor transfers land use right gratis to the transferee.

Article 9. Leasing of land use right means that land users lease land use right or the right along with the premises and other attached structures
and properties on the land in question to others for rents.

The original owner of land use right is the lessor and the party that rents the right is the lessee.

Article 10. Mortgaging of land use right means that land users mortgage mortgageable land use rights as a guarantee for clearance of debts.

The original owner of the land use right is the mortgagor and the mortgage holder is the mortgagee.

Article 11. In transferring and mortgaging land use right, ownership of the premises and attached structures and properties on the land in question
is correspondingly transferred and mortgaged; in transferring and mortgaging ownership of the premises and attached structures and
properties, the land use right covered by their use is correspondingly transferred and mortgaged. The transfer of premises and other
attached structures as movable estate is an exception.

In leasing land use right, the use right of the premises and attached structures on land is correspondingly leased; in leasing the
use right of the premises and attached structures, the land use right covered by their use is correspondingly leased.

Article 12. Land users who transfer, lease or mortgage land use right must bear State-owned land use certificate and legal documents of the premises
and attached structures and properties and apply in written form to land administrations of local municipal or county people’s governments.

Article 13. Land administrations of municipal or county people’s governments must give a reply in 15 days as of the date of receipt of written
applications for transferring, leasing or mortgaging land use right.

Article 14. Land administrations of municipal or county people’s governments, through negotiations, sign land use right transfer contract with
the applicant.

Article 15. Both parties involved in transfer, leasing or mortgaging of land use right shall, in accordance with relevant laws, decrees and the
land use right leasing contract, sign a contract on transfer, leasing or mortgaging of land use right.

Article 16. Land users shall, within 60 days after the signing of land use right leasing contracts, pay lease fees to local municipal or county
people’s governments and have the land use right leasing registered at the land administrations of the municipal or county people’s
governments.

Article 17. Both parties shall, within 15 days after the registration of a land use right lease, go to land administrations of municipal or county
people’s governments to have the transfer, leasing or mortgaging of land use right registered.

To get them registered, it is necessary to present the following documents and materials:

a. Certificate of State-owned land use;

b. Land use right leasing contract;

c. Contract on transfer, leasing and mortgaging of land use right; and

d. Other documents and materials deemed necessary by the land administrations of the municipal or county people’s governments.

Article 18. When land use right is transferred, the rights and obligations recorded in the land use right leasing contract and the registration
documents are correspondingly transferred.

Article 19. In leasing and mortgaging land use right, the lessor or mortgagor must continue to implement the land use right leasing contract.

Article 20. After land use right is transferred, if the lessee has the need to change the contents as defined in the land use right leasing contract,
must get consent from the land administrations of the local municipal or county people’s governments and, in accordance with the
approving authority, the approval of the land administrations and urban planning departments and, in accordance with “Regulations”
and these rules, re-sign land use right leasing contract, re-adjust lease fees and go through land registration formalities.

Article 21. After land use right is leased, the lessee must not add permanent premises and structures. If it is necessary to build interim premises
and structures, the lessee must get consent from the lessor and go through relevant approval formalities in accordance with relevant
laws and regulations.

After land use right is leased, if the lessee has the need to change the content as defined in the land use right leasing contract,
the lessee must get consent from the lessor and approval from the land administrations and urban planning departments in accordance
with “Regulations” and these rules, re-sign land use right leasing contract, re-adjust lease fees and go through land registration
formalities.

Article 22. After the termination of the land use right leasing contract, the lessor shall, within 15 days as of the date of termination of the
contract, go to the original registration office to cancel the land use right leasing registration.

Article 23. After the termination of the land use right mortgaging contract, the mortgagor shall, within 15 days as of the date of termination
of the contract, go to the original registration office to cancel the land use right mortgaging registration.

Article 24. If the mortgagor fails to honor his debt due, or the mortgagor is disbanded or goes bankrupt during the effective period of the mortgaging
contract, the mortgagee has the right, in accordance with State laws and decrees and the mortgaging contract, to dispose of the mortgaged
properties.

Land users who procure land use right through disposing of mortgaged properties must, within 15 days of the date of procurement of
the right, go through formalities to change land registration at the land administrations of the local municipal or county people’s
governments.

Article 25. When land users who are transferring, leasing or mortgaging the land use right are going through procedures to lease land use right,
the land use right leasing period must be clearly determined through negotiations between the land administrations of the local municipal
or county people’s governments and land users and recorded in the land use right leasing contract and must not exceed the maximum
length of period as defined in the “Regulations”.

Article 26. Land use right leasing fees are charged in accordance with different means of transferring, leasing or mortgaging to a given proportion
of the listed land price, with the lowest no less than 40% of the listed land price. The listed land price is determined by the land
administrations of the local municipal or county people’s governments by referring to the basic land price, the term of transferring,
leasing or mortgaging the land use right and land conditions.

Article 27. Land use right fees are collected and managed in accordance with relevant State regulations by land administrations of local municipal
or county people’s governments on behalf of the government.

Article 28. When the lease term of the land use right is due, land users must, with 15 days as of the date of maturity of the term, bear the
State land use certificate and land use right leasing contract and go to the original registration office to cancel the leasing registration.

Article 29. After the lease term of the land use right is due, if land users transfer, lease or mortgage the land use right again, they shall,
in accordance with these rules, re-sign land use right leasing contract, pay lease fees and go through formalities to change land
registration.

Article 30. During the period of land use right leasing, the State, under special circumstances and in accordance with the public interest, may
recover through legal procedures the land use right and pay corresponding compensations according to the length of use and the degree
of development and utilization by land users.

Article 31. If land users fail to pay all lease fees within the period as prescribed in the land use right leasing contract, the lessor has the
right to cancel the contract and may ask the violator of the contract to compensate.

Article 32. If a land user fails to go through formalities for land registration in transferring, leasing and mortgaging land use right, his
deed shall be invalid and unprotected by law.

Article 33. Units and individuals who transfer, lease or mortgage land use right without approval shall be dealt with by land administrations
of local municipal or county people’s governments according to Article 46 of the “Regulations”.

Article 34. If an involved party does not agree with administrative punitive decisions by land administrations, it may bring a suit to the local
people’s court in accordance with “PRC Administrative Procedural Law”.

Article 35. Land administrations of people’s governments above the county level should strengthen supervision over and examination of the transferring,
leasing and mortgaging of land use right and handle in time violations of law.

Article 36. When land administrations are checking or examining the transferring, leasing or mortgaging of land use right, the units or individuals
under examination shall cooperate, report factually and present relevant documents and materials and must not obstruct the execution
of such examinations.

Article 37. In supervision and examination, land administrations may take the following measures:

a. To check or copy documents or materials;

b. To ask the units or individuals under supervision or examination to present or send documents and materials and other information
relating to supervision and examination; and

c. To order the units or individuals to stop land-related acts underway that violate the law.

Article 38. The expenses of land administrations in handling leasing of land use right are covered according to relevant State regulations.

Article 39. Organizations other than economic entities engaged in transferring leasing or mortgaging land use right are handled in the light
of these rules.

Article 40. Collaboration with others in building houses and running joint ventures with land use right as the condition is deemed as transfer
of land use right and handled according to these rules.

Article 41. Land administrations of municipal or county people’s governments should organize task forces to check up on the unauthorized acts
of transferring, leasing or mortgaging land use right executed in the period after the “Regulations” was put into force and before
these rules come into effect and have them go through formalities for leasing as a complementary measure after being punished according
to “Regulations”.

Article 42. The right to interpret these rules rests with the State Land Administration.

Article 43. These rules come into force as of the date of promulgation.

CONSTITUTION ACT, 1982 – page 22

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

1998

MEASURES FOR THE CONTROL OF CHINESE CITIZENS TRAVELLING TO OR FROM THE REGION OF TAIWAN

INTERIM PROVISIONS FOR THE CONTROL OF SHANGHAI METAL EXCHANGE

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING MATTERS RELATING TO STUDENTS STUDYING ABROAD

CIRCULAR OF THE STATE COUNCIL CONCERNING THE FURTHER OPENING UP OF HEIHE CITY AND THREE OTHER FRONTIER CITIES

REGULATIONS ON CONTROL OF OUTBOUND AND INBOUND LUGGAGE AND ARTICLES CARRIED BY CHINESE CITIZENS

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE COMPLETION OF FORMALITIES CONCERNING RATIFICATION AND APPROVAL OF INTERNATIONAL TREATIES AND AGREEMENTS

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON SAFETY IN MINES

OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE ABSORPTION OF FOREIGN INVESTMENT FOR THE DEVELOPMENT OF THE YANGPU AREA IN HAINAN PROVINCE

CIRCULAR OF THE STATE COUNCIL REGARDING THE FURTHER OPENING OF NANNING, KUNMING, PINGXIANG AND OTHER FOUR BORDER CITIES (OR COUNTIES OR TOWNS)

MEASURES FOR THE ADMINISTRATION OF REGISTRATION OF ENTERPRISES FROM FOREIGN COUNTRIES (REGIONS) ENGAGING IN PRODUCTION AND BUSINESS WITHIN THE TERRITORY OF CHINA

CIRCULAR OF THE STATE COUNCIL REGARDING FURTHER REFORM OF THE ADMINISTRATION OF INTERNATIONAL OCEAN SHIPPING INDUSTRY

PROVISIONAL RULES ON ADMINISTRATION OF ALLOCATED LAND USE RIGHT

CONSTITUTION ACT, 1982 – page 22

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CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7