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.

DECISION OF THE CENTRAL COMMITTEE OF THE COMMUNIST PARTY OF CHINA AND THE STATE COUNCIL ON ACCELERATING DEVELOPMENT OF TERTIARY INDUSTRY

Category	GENERAL	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-06-16	Effective Date	1992-06-16

Decision of the Central Committee of the Communist Party of China and the State Council on Accelerating Development of Tertiary Industry

I. Accelerating Development of the Tertiary Industry is of Great Strategic
II. The Goal and Key Areas of the Tertiary Industry to be Quickly
III. Main Policies and Measures for Development of the Tertiary Industry

(June 16, 1992)

With a view to taking advantage of the present opportunity, speeding up
steps of reform and opening up, concentrating efforts to facilitate
economic construction and in accordance with the Ten-Year Programme and Eighth
Five-Year Plan on National Economic Development and Social Progress, the
tertiary industry should be developed comprehensively and swiftly.
I. Accelerating Development of the Tertiary Industry is of Great Strategic
Significance

1. Speedy development of the tertiary industry is the necessary result of
the growth of productivity and social progress. The situation of the tertiary
industry is an important indicator by which economic development is
measured in a modern society. The tertiary industry of our country suffers
slow and backward development which falls short of demands of national
economic development. The law of economic development observed in many
countries indicates that when an economy is developed to certain level,
the tertiary industry normally enjoys more speedy development than the first
and secondary industries and obviously plays a role of impetus to the overall
growth of national economy. Our country has just entered that stage. With a
view to smoothly realizing the gigantic objectives of socialist modernization,
we must catch up with the opportunity and promote development of the tertiary
industry to a new level.

2. Acceleration of the development of the tertiary industry can facilitate
the forthcoming of a fully developed market, improve socialization and
standardization of service industry, strengthen social security and be
beneficial to smooth implementation of a series of reforms in respect to
labour, wage, price, operational mechanism in enterprises and the
circulation system, and be beneficial to further opening up, attraction of
larger foreign investment, institutional simplification, efficiency growth
and to gradual change of the undesirable status quo that government
agencies, institutions and enterprises take on what ought to be done by
the society. Consequently the tertiary industrial development can create
better conditions for development of reform and opening up in a broader and
in-depth area.

3. Our country suffers low industrial economic efficiency, low
commercialization of agricultural products, retarded circulation and
financial difficulties which has severely impeded further development of
the national economy. One of the important reasons for which those problems
arise is the ill structure of the whole economy, which can be indicated by
the fact that the tertiary industry falls short of demands of the first and
secondary industries. Even low investment in the tertiary industry can
create immediate efficiency and good social effect. To quicken development of
the tertiary industry can, on one hand, readjust ratio of three
industries and optimize the overall structure of national economy and, on the
other hand, effectively alleviate in-depth structural contradictions of the
economic life and promote faster economic growth.

4. The 1990s sees large number of new grown-up labour and those labour
that are removed from the first and secondary industries waiting for
reemployment. The tertiary industry has particular advantages in recruitment
of labour; variety of trades and occupations; co-existence of labour;
technology and knowledge concentrated professions which can recruit large
number of various personnel of different levels, especially large number of
technological and specialized talents. To accelerate development of the
tertiary industry is a major solution to alleviation of employment pressure
which is becoming more and more serious in our country.

5. Towards the end of this century our people’s lives will become fairly
better off. Compared with the living standard of sufficient food and
clothing, the level of well-to-do livelihood does not only mean certain
standards of income already satisfied, but more importantly it should be
measured in terms of commercialization of services and living quality of
residents. Along with economic development and increase of income, the
people are asking for more and higher demands not only upon material life in
respect to clothing, food, housing, transportation, communication, hygiene and
living environment, but also upon cultural life in respect to cultural
entertainment, broadcasting, movies and TV programmes, publications, physical
training and recuperation, and tourism. Only when the tertiary industry is
quickly developed could the ever increasing material and cultural demands of
the people be satisfied and the construction of the socialist material and
cultural, ethical civilization be advanced.
II. The Goal and Key Areas of the Tertiary Industry to be Quickly
Developed

6. In the light of national circumstances, we have categorized national
economy into three productive industries with agriculture being the first
productive industry, manufacture and construction the secondary industry
and all trades other than the abovementioned being categorized as the
tertiary industry including circulation departments, departments that
serve production and livelihood and departments that provide services for
improvement of science and culture awareness and quality of citizens.

7. The goal of accelerating the tertiary industry development is to
gradually establish, in about ten years or longer times, an integrated
socialist market system, a comprehensive socialized service system in both
cities and countryside and a social security system, all of which are adapted
to circumstances of our country. In 1990s, development of the tertiary
industry should enjoy higher speed than before along with development of the
first and secondary industries so that the overall national economy could be
brought to a new stage every couple of years. For this purpose, the tertiary
industry should enjoy development at higher speed than the first and secondary
industries. The proportion of the tertiary industry value to GNP and the
proportion of the employment in the tertiary industry to the total social
labour should be brought up to or nearly to the average level of that
proportion in developing countries.

8. Key areas of the tertiary industry to be developed at high speed are
specified as the following:

— Firstly, trades which require small investment but generate immediate
result and high efficiency, have large capacity of labour recruitment and
direct relevance to economic development and people’s livelihood. Such trades
mainly refer to those in commerce, goods and materials, external trade,
banking, insurance, tourism, real estate, storehousing, neighborhood services,
catering, entertainment, hygiene, etc.;

— Secondly, those newly developed trades related to scientific and
technological progress, which mainly consist of consultancy (including
consultancy in science and technology, law, accounting and auditing, etc.),
information and various technical services, etc.;

— Thirdly, the tertiary industry in countryside, which mainly refer to
those trades that provide services before, during and after harvest or offer
services for improvement of farmers quality and living standards;

— Fourthly, those basic trades that have comprehensive influence upon
and guiding significance for development of national economy, including
communication and transportation, posts and telecommunications, scientific
research, education and other public undertakings, etc..
III. Main Policies and Measures for Development of the Tertiary Industry

9. All positive factors including the state, collectives and individuals
should be fully mobilized. Economic collectives, private-run enterprises
and individuals in both cities and countryside should be given free rein to
develop those trades which are small in investment, quick in result,
concentrated with labour and directly serve production and livelihood. The
trades that have comprehensive influence upon and guiding significance
to national economic development should be mainly run by the state, but
competition should be introduced so that under uniform planning and
management localities, departments and economic collectives could also be
mobilized to establish such trades. The acceleration of the tertiary industry
development should principally depend on social forces subject to the
principle of “whoever invest will hold the ownership and be the beneficiary”.
The state should not be dependent upon too much for investment.

10. Acceleration of steps for development of the tertiary industry should
depend upon deepening reform and further opening up. Reforms and trials in
different forms should be conducted actively. Overseas funds, technologies
and marketing channels should be utilized boldly. Multiple approaches and
methods such as issue of stocks and bonds should be adopted to collect
funds. The form of business groups should be promoted actively so that
limits of departmental, regional or trade ownership could be broken through
and national and regional enterprise groups in the tertiary industry could
be established to the benefit of accelerated development of the tertiary
industry. All practices that are proved by reality to be effective should
be spread as soon as possible. Those that do not bring forth obvious
result should be tried continuously. Those practices that are proved really
unsuccessful should be changed to other forms.

11. A vital self-development mechanism oriented to industrialization
should be established for the tertiary industry progress. Most of the tertiary
industry organizations should be transformed to business entities or
operated in business manner and try to be independent in operation and
responsible for both wins and losses. Most of the present tertiary industry
organizations which are charity like or public welfare or public undertaking
like should be gradually transformed into business entities under corporate
management.

12. Where conditions permit, present information, consultancy
institutions and internal service installments and transport vehicles
attached to state organs or enterprises and public institutions should, to
the direction of socialization, be open, in an active manner, to the society
for paid services subject to confidential and safety requirements. Conditions
should be created to make those institutions to be divorced from their
original units, to be independent in operation and accounting. At the same
time social service organizations should be encouraged to contract rear
services, management of retired personnel and other routine work of state
organs, enterprises and public institutions. The close self-service systems
which are often ” big and complete” or “small but complete” should be broken.
Abovementioned services should be socialized gradually.

13. Enterprises of the tertiary industry should be encouraged to attempt
transdepartmental, transregional or conglomerate merger of other industrial
enterprises that should be closed, suspended, merged or changed in line of
production, and should be rendered preferential support in terms of assets
transfer, liability settlement, credit and taxation. This should be an
important measure for readjustment of industrial structure.

14. Part of administrative personnel should be actively encouraged to be
separated from administration and to enter trades of services. Those people
that have been separated should be divorced from the administrations. Those
trades that serve production and people’s lives should be developed
vigorously and should recruit as many personnel separated from
administration as possible so that conditions could be created for smooth
progressing of government organizational reform and staff reduction.

15. To advance reform in labour and personnel system, the tertiary
industry enterprises should be offered discretion with labour employment. The
practice of discharge and resignation should be institutionalized gradually
so as to realize mutual selection in employment. Those institutions that
are operated in business manner and no longer need financial allocation
should be given freedom in recruitment of personnel and independence in
determination of staff size. Those institutions that only partially
depend upon financial allocation should be given more freedom in expansion
of staff size. Surplus labour with industrial enterprises, especially those
skilled personnel, should be encouraged to move to the tertiary industry.
Graduates from colleges and training schools and armymen to be transferred to
civilian work should be encouraged to work in units of the tertiary industry.

16. Price system should be reformed according to the law of value so that
the long standing problem of insufficient value compensation for the
tertiary industry could be solved. Except for a few items for which it is
really necessary for the state to set the prices and fee collection
standards, most of the prices and service fee standards in the tertiary
industry should be open, subject to floating prices, negotiated prices and
self-quoted prices so that a reasonable price parity could be established.

17. International business should be encouraged. Some large and medium
sized state-run commercial and materials enterprises should be authorized
with the power to import and export business. Where condition permits
external business development should be promoted energetically and active
efforts should be made to establish China-run enterprises overseas. Subject
to approval, large and medium-sized state-run external enterprises can be
authorized the right to enter domestic market so that business could be
operated in a uniform manner within both domestic and global markets.
Procedures regarding examination and approval of overseas business
development should be further simplified.

18. Banking, taxation and other economic measures should be adopted for
development of the tertiary industry. Demand for loans by key trades should be
satisfied through arrangements under credit planning. Banks and both city and
township credit cooperatives can issue small loans, for maintenance of
fixed assets and simple equipment, to those collective and private
enterprises, individual industrial and commercial households who have good
efficiency and repayable capacity. When it is really necessary, taxation
upon newly established tertiary industry enterprises may, according to
industrial policies, be delayed or deducted over certain period of time.

19. Procedures regarding examination and approval should be simplified
so as to alleviate business opening difficulties with establishments of the
tertiary industry. Business autonomy of the tertiary industry enterprises
should be set free. Such enterprises should be permitted to adopt more
flexible operations and expand business scope while their administration
and supervision should be strengthened effectively.

20. Legal systems governing the tertiary industry should be strengthened.
Relevant laws and regulations regarding corporate and market behavious should
be formulate more speedily. Enterprises should operate according to law
while administrative authorities and economic superintendent departments
should exercise administration and supervision according to law so that the
tertiary industry could enjoy healthy development in a legal approach.

21. Planning and administration of the tertiary industry should be
strengthened. Different regions have different economic structure and
development level. Their tertiary industry development should also be
different in development focus and speed. Development focus should be
determined in the light of local circumstances and in accordance with state
industrial policies. Investment, credit, employment and land use in the
interest of the tertiary industry should be placed under the overall
development planning and general arrangements of cities and townships. All
regions and departments should formulate programmes for implementation of
the present Decision and revise at the soonest possible time those policies
or regulations that run counter to the present Decision.

The Party Central Committee and the State Council call for close
attention of the whole party and governments at different levels to the
development of the tertiary industry. All party and government officials
at different levels should unify ideology, renew conception, broaden
thinking, give play to creativity and mobilize the cadres and the people to
work strenuously for realization of the important strategic tasks of the
tertiary industry development.

CIRCULAR OF THE STATE COUNCIL CONCERNING THE PILOT PROJECT FOR NATIONAL TOURIST VACATION AREAS

Category	TOURISM	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-08-17	Effective Date	1992-08-17

Circular of the State Council Concerning the Pilot Project for National Tourist Vacation Areas

(August 17, 1992)

For the purpose of further expanding the opening up of our country,
developing and exploiting our country’s rich tourist resources, promoting the
transformation of the sightseeing industry into a sightseeing and vacationing
industry in our country, and expediting the development of tourism, the State
Council has decided to launch a pilot project for national tourist vacation
areas in the places where the conditions are ripe, in which enterprises and/or
individuals from abroad and/or Taiwan, Hong Kong and Macau (hereinafter
referred to as the foreign investors) are encouraged to invest in the
development of tourist facilities and tourist businesses. A circular is hereby
promulgated as follows:

1. National tourist vacation areas refer to comprehensive tourist areas
established in conformity with international requirements for vacation tours
and mainly open to overseas tourists. The areas shall be bounded clearly and
shall be located in the places which are suitable for concentrating complete
sets of tourist facilities, abundant with tourist vacation resources and
source of tourists, convenient for communications and have relatively firm
foundations of foreign relations.

2. The State encourages the development of tourism and treats it as a key
industry for earning foreign exchange. National tourist vacation areas shall
be granted the following preferential policies:

(1) The income tax on the enterprises with foreign investment established
within the areas shall be levied at a reduced rate of twenty-four percent.
Among them, enterprises with foreign investment of a productive nature
scheduled to operate for a period of not less than ten years shall, from the
first year of beginning to make a profit, be exempted from income tax in the
first and second years and allowed a fifty percent reduction in the third to
fifth years.

(2) Building materials, production and management equipment,
transportation equipment and office supplies imported for enterprise use and
included in the total amount of investment by enterprises with foreign
investment established within the areas, as well as settling-in articles and
transportation equipment imported in reasonable quantities by foreign
investors or technicians or other personnel residing in the areas, shall be
exempted from customs duties and consolidated industrial and commercial taxes.
Raw materials, spare parts, components, fittings, auxiliary materials and
packaging materials imported for the production of tourist export goods shall
be treated as bonded goods by Customs.

(3) Machinery, equipment and other materials for capital construction
required by the construction of infrastructure within vacation areas shall be
exempted from customs duties and product taxes (or value-added taxes).

(4) Foreign exchange payment shops may be established within the areas.
The examination and approval of these shops shall be handled according to the
relevant State provisions.

(5) Tourist automobile companies with Chinese-made automobiles and in
co-operation with foreign investors may be established within the areas.
Chinese-made automobiles purchased by the companies within a verified quantity
shall be exempted from the horizontal supporting fees, surcharges for
purchases of motor vehicles and extra consumption taxes. Tourist automobile
companies established by domestic enterprises within the areas may be treated
in reference with the above-mentioned policies. Such automobiles shall be used
only by tourist automobile companies established within the areas, and shall
not be transferred to others for sale. These policies shall be put into effect
by the State Planning Commission in consultation with other relevant
departments.

(6) Tourist agencies of Category 1 in co-operation with foreign investors
may be established within the areas for overseas tourist services. The
National Tourism Administration shall be in charge of the examination and
administration of the tourist agencies.

(7) The development of land for the construction within the areas shall be
handled according to 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. Fees for the assignment of land use rights shall, within
five years from the approval date of the establishment of the areas, be
reserved within the areas for the construction of infrastructure.

(8) Tourist foreign exchange earnings derived from the areas shall, within
five years from the approval date of the establishment of the areas, be
reserved in full as foreign exchange quotas for the sustained development of
the areas.

3. Projects for tourist facilities built with foreign investment within
national tourist vacation areas shall, if the amount of investment falls
within the limit of powers for approval laid down by the State Council, be
examined and decided by the provinces, autonomous regions and municipalities
directly under the Central Government, and cities separately listed under the
national plan; those of projects for tourist lodging facilities shall be
submitted to the National Tourism Administration, the State Planning
Commission and the Ministry of Economic Relations and Foreign Trade for the
record. If the amount of investment exceeds the limit of powers for approval
laid down by the State Council, the projects shall be decided according to the
relevant State provisions. For enterprises established for projects of tourist
lodging facilities built with foreign investment, their term of operation
shall not exceed thirty years in principle.

4. The pilot project for national tourist vacation areas shall be
submitted by local people’s governments to the State Council for examination
and approval.

5. The pilot project for national tourist vacation areas is an important
arrangement in order to deepen the reform, expand the opening of the tourist
industry, change the structure of tourist products in our country, upgrade the
tourist products and improve their competitive power in the international
market. Departments concerned under the State Council and local governments
concerned shall make proper planning in real earnest and do a good job for
this pilot project. It’s inadvisable to establish too large-scale national
tourist vacation areas in the opening stages. They should gradually develop
from small to large.

CIRCULAR OF THE STATE SCIENCE AND TECHNOLOGY COMMISSION, THE STATE ECONOMIC RESTRUCTURING COMMISSION ON PRINTING AND ISSUING THE INTERIM PROVISIONS ON SEVERAL ISSUES CONCERNING THE ESTABLISHMENT OF HIGH AND NEW TECHNOLOGY INCORPORATED COMPANIES WITHIN NATIONAL HIGH AND NEW TECHNOLOGY INDUSTRY DEVELOPMENT ZONES

The State Science and Technology Commission, the State Economic Restructuring Commission

Circular of the State Science and Technology Commission, the State Economic Restructuring Commission on Printing and Issuing the Interim
Provisions on Several Issues Concerning the Establishment of High and New Technology Incorporated Companies within National High
and New Technology Industry Development Zones

GuoKeFaGaiZi [1992] No.796

November 19,1992

All the people’s governments of provinces, autonomous regions, municipalitie directly under the Central Government, ministries, commissions
and directly subordinate institutions of the State Council:

“Interim Provisions on Several Issues Concerning the Establishment of High and New Technology Incorporated Companies within National
High and New Technology Industry Development Zones” drafted by the Commission of Science Technology and the commission for economic
restructuring is hereby issued to you for the earnest implementation. Attachment:Interim Provisions on Several Issues Concerning the Establishment of High and New Technology Incorporated Companies within National
High and New Technology Industry Development Zones

Article 1

These Provisions are formulated in accordance with the Opinions on the Standardization of Incorporated Companies issued by the State
Economic Restructuring Commission and in consideration of the actual conditions of high and new technology industry development zones
and for the purposes of promoting the optimal combination of high and new technologies with other production factors and advancing
the development of high and new technology industry.

Article 2

These Provisions apply to the establishment of incorporated companies with a high and new technology nature within high and new technology
industry development zones which are approved by the State Council.

Article 3

High and new technology incorporated companies (hereinafter referred to as the company) mean the enterprise legal persons which are
established according to the Opinions on the Standardization of Incorporated Companies of the State Economic Restructuring Commission
(hereinafter referred to as the Opinions on the Standardization) and these Provisions and meet the requirements issued by the State
Science and for acknowledging high and new technology enterprises Technology Commission.

Article 4

The place of registration of a company is its residence. Both the company’s place of registration and its main working offices must
be located within the prescribed high and new technology industry development zone.

Article 5

When a former high and new technology enterprise is restructured into a company, its initiator may be one person if it is acknowledged
by the State Science and Technology Commission as a large or medium-sized high and new enterprise and is approved by the examination
and approval organ.

Article 6

If an enterprise legal person outside the territory or a foreign-capital enterprise legal person within the territory transferring
a high and new technology published by the State Science and Technology Commission or using the said technology as the share in the
company is to be an initiator of the company, it must be reported to the State Economic Restructuring Commission and the State Science
and Technology Commission for special examination and approval, however, the total number thereof may not exceed one-third of the
initiators.

Article 7

When a former high and new technology enterprise is transformed into a company, the property rights of the enterprise’s original net
assets must be defined. Assets of which property rights are difficult to be defined may be invested into the company and managed
in the form of legal person shares.

Article 8

The administrative departments of high and new technology industry development zones are the competent business departments for the
companies, and are responsible for examining the establishment of the companies within high and new technology development zones.

Article 9

The commissions (offices) for restructuring economic system of provinces, autonomous regions and municipalities directly under the
Central Government in the places where the companies are located or the organs authorized by the government are the examination and
approval organs for the companies.

Article 10

When intangible assets are priced as shares, the total amount of intangible assets priced may not, with special approval of the examination
and approval department for the company, exceed 30% of the company’s registered capital if the intangible assets include high and
new technologies. However, such a high and new technology included must meet the following requirements:

(1)

to be the core technology for the company’s main products;

(2)

to meet the requirements issued by the State Science and Technology Commission for acknowledging the high and new technology ;

(3)

to produce by the share subscriber the documentary evidence of post_title to the technology invested as shares, and to guarantee that the
company’s right over the said technology, within the scope or terms agreed upon, may challenge any third party; and

(4)

to have evaluation certificates issued by the technology evaluation organization approved by the State Science and Technology Commission
or its authorized department and a qualified certified public accountant firm.

Article 11

When a former high and new technology enterprise is transformed into a company, the enterprise may, after examination and approval
by the enterprise’s competent department and unanimous resolution of the active employees’ meeting of the former enterprise, give
reward in the form of personal shares to the scientific and technological personnel of the company who have made outstanding contributions
in creating the former enterprise in order to continue to ensure and promote the company’s consolidation and development and to bring
the advantage of intellectual resources into play.

Article 12

The Opinions on the Standardization apply to any matters not included in these Provisions.

Article 13

The science and technology commissions and the commissions for restructuring economic system of provinces, autonomous regions and
municipalities directly under the Central Government may formulate the rules for implementation in accordance with these Provisions.

Article 14

The State Science and Technology Commission is responsible for the interpretation of these Provisions.

Article 15

These Provisions shall enter into force as of the date of promulgation.

The State Science and Technology Commission, the State Economic Restructuring Commission
1992-11-19

PROVISIONS FOR ENCOURAGING DOMESTIC AND FOREIGN INVESTMENTS IN TIBET

Provisions for Encouraging Domestic and Foreign Investments in Tibet

(Effective Date:1992.07.14–Ineffective Date:)

These Provisions are formulated for attracting domestic and foreign investments to speed up economic development in Tibet.

Article 1. The Autonomous Region encourages domestic and foreign businesses, companies, other economic organizations, or individuals (hereinafter
referred to as “businessmen”) to make investments in Tibet to start economic entities or various economic and social undertakings.

Article 2. The Autonomous Region shall protect the legitimate rights and interests of businessmen according to law. Assets set up by businessmen
shall not be nationalized. When the assets are to be conceded to the State by the businessmen, or have to be expropriated by the
State according to public interests, legal procedures shall be followed with corresponding compensation given.

Article 3. Investments to Tibet can be made in the following forms without any restriction in areas, departments and trades:

(1) Joint equity, cooperative, solely funded ventures or other types of businesses allowed by law.

Terms of operation, proportions of investment, and the form of joint operation shall be determined in contracts of both sides approval
by departments in charge.

(2) Purchases of stocks and bonds.

(3) Participation in operation by sharing of capital, contracting or leasing.

(4) Technical cooperation, transfer, and contracting.

(5) Compensation trade, processing and assembling with supplied materials, and co-production.

(6) Purchase of real estates and development of land through land leasing.

(7) Coop with businesses of the Autonomous Region to run joint equity or cooperative ventures in China’s special economic zones, open
cities, economic and technological development areas, and inland provinces and cities, as well as in places abroad.

(8) Other conventional forms of business at home and abroad.

Article 4. Projects funded by domestic and foreign businessmen in Tibet shall be given priority for planning approval, supporting funds, starting
construction, setting up of enterprises, and registration.

Article 5. On the principle of separating the ownership of land from the right to use land, the Region shall sell the land-use right to businessmen,
who can also use State land in the Region in other ways.

(1) The term of land use is 50-70 years. Prices for land-use shall be set at preferential terms.

(2) The Tibetan partner in a joint equity or cooperative venture, or in other joint operation can use their original right of land
use as investment or share.

(3) Solely-funded enterprises in the Region with an operation term of 10 years or more use State land in the Region, shall be exempted
from urban land-use tax or farmland-occupation tax in the construction period approved. The enterprises shall pay half the land-use
tax in the eight years after their starting operation. Enterprises that have an operation term of less than 10 years shall be exempted
from land-use tax for use of farmland and, in the construction period, from urban land-use tax.

(4) When joint equity or cooperative ventures or other joint operations use the site of a business in the Region to build a project
or use new State land with approval to do so, it shall be exempted from urban land-use tax and farmland-occupation tax in the construction
period approved. They shall be exempted from land-use tax for eight years after their starting operation.

(5) Enterprises funded by businessmen to engage in production shall enjoy preferential treatment in land-use charges.

Article 6. Businessmen can develop mineral resources in the Region with payment according to law. Except for special mineral resources stipulated
by the State, businessmen can establish joint equity, cooperative or solely-funded ventures to explore and exploit mineral resources
in the Region with the approval of the Regional People’s Government.

Article 7. Beginning from the profit-making year, industrial enterprises funded by businessmen shall pay 10% income tax for their operation.
They shall be exempted from local income tax. Enterprises that engage in the following operations shall enjoy further preference:

(1) Enterprises with an operation term of 10 years or more that engage in energy, transportation, agriculture or animal husbandry
shall be exempted from income tax in the first five profit-making years and pay half the income tax in the following three years.

(2) Enterprises with an operation term of 10 years or more that engage in processing animal by-products and native and special produce,
or in national handicrafts, or tourist merchandise, or other processing industries, shall be exempted from income tax in the first
four profit-making years and pay half the income tax in the following two years.

(3) Enterprises engaging in tourism that have an investment topping US$5 million or RMB30 million each and an operation term of 10
years or more shall be exempted from income tax in the first three profit-making years and pay half the income tax in the fourth
year. Those that are not up to the above standards shall be exempted from income tax in the first two profit-making years and pay
half the income tax in the third year.

Article 8. Businessmen who do not set up any entity in the Region but receive dividends, interests, rent, charges of using special rights, or
other income from the Region shall pay income tax at a rate of 20%, except those who are exempted from income tax according to law.

Article 9. Businessmen who earn profits from enterprises in the Region but make new investment in other projects or in expanded reproduction
with an operation term of not less than five years, shall have all their income tax already paid for that part of profit that is
used as new investment refunded.

Article 10. For other taxes other than income tax businessmen shall pay as or according to similar trade in the Region. They are allowed to pay
taxes in RMB.

Article 11. When businessmen remit their profits from China or when foreign workers and staff members remit their personal income, they shall
be exempted from tax for the remittance.

Article 12. All joint equity or cooperative ventures or other joint operations shall enjoy the above-mentioned tax-reduction and tax-free treatment,
Besides, those enterprises that export 50% of their annual output (sales amount) or more shall pay half the income tax that year.

Article 13. Joint equity or cooperative ventures or other joint operations shall first receive their profits, then pay tax. In the final distribution,
the share of profit by the businessmen can be higher than their share of investment. The specific proportions of sharing shall be
clearly defined in their contracts. This principle holds true for the distribution of profits in foreign exchange.

Article 14. For joint ventures established in the Region by businesses in other parts of China, gross output values shared by such businesses
can be accounted for by the localities where they come from. In the case, the businesses shall pay their income tax on their profits
to the people’s government of the localities concerned. According to negotiations between various parties or mutual-benefit contracts
between provinces, the financial department of the Region can refund a proportion of the circulation tax on the businessmen to the
financial department of their original localities.

Article 15. Productive enterprises in Tibet established by businessmen and enterprises specified by Article 3 (7) of these provisions shall enjoy
same preference of similar enterprises in the Region.

(1) They shall obtain loans from banks in the Region according to same conditions. They shall enjoy the unified interest rate of the
Region.

(2) They shall be given equal priority for the supply for fuel, power, raw and semi-finished materials, and subsidiary materials and
for prices.

(3) The related department shall provide convenience for the sale of their products inside and outside the Region. They can also entrust
commercial departments in the Region with the sales.

(4) When they export their products, they shall enjoy foreign trade preferential treatment as do similar enterprises in the Region,
except for products specially stipulated by the State.

(5) Solely-funded and joint operated enterprises can take part in border trade between Tibet and neighboring countries and enjoy relevant
preferential treatment.

(6) Business operators shall enjoy full decision-making power in operation.

(7) They shall enjoy other preferential treatment in production and operation.

Article 16. When businessmen import machinery, equipment, building materials, spare parts, components, and devices within the total investment
for the construction of their enterprises, they shall be exempted from import duty and industrial and commercial consolidated tax.

When businessmen import a reasonable amount of articles, for office or home use, or self-use motor vehicles, they shall be exempted
from import duty and industrial and commercial consolidated tax. Under the supervision of the Customs, they need not apply for an
import permit.

When businessmen import raw and semi-finished materials, subsidiary materials, packaging materials, spare parts, components, and devices
(hereinafter referred to as “materials and devices”) for production and export all the processed products, they shall be exempted
from import duty and industrial and commercial tax. Those who export part of their products shall be exempted from the import duty
and industrial and commercial tax imposed on the materials and devices involved. For the products sold at home, they shall pay half
the import duty and industrial and commercial tax on materials and devices.

Article 17. Businessmen can entrust the assets of their solely-funded or joint operated in Tibet to their relative or friends in China who hold
a trust deed of legal validity. Or they can transfer or bequeath their assets and assign 3-5 relatives to work in the business, who
are allowed to move their residence from rural areas and settle in the area where the enterprise is.

Article 18. The depreciation rate of fixed assets of enterprises in Tibet funded by businessmen can be increased by 5-10% on the current basis
stipulated by the State, with the approval of the local financial departments.

Article 19. Businessmen can make a choice from among projects published by the related departments of the Regional government or government at
lower levels, then invest in them. Or they can propose other projects and apply to the related departments of the local government.

Article 20. Overseas technical and managerial personnel employed by businessmen can apply for multiple entry and exit permits.

Article 21. Should disputed arise about contracts or in execution of contracts, the disputing parties shall try to settle the disputes through
consultation. If the disputing parties do not want to consult or consultation fails, businessmen can apply to the Regional Trade
Arbitration Commission for a settlement. Or, with the agreement of all parties, they can apply to an arbitration organ outside the
Region, or a national arbitration organ, or an international arbitration organization.

Article 22. Those who recommend investors to Tibet shall be awarded, no matter they are Chinese citizens, overseas Chinese (including Tibetans
abroad), Hong Kong and Macao compatriots, or foreign friends, provided they are not investors, project decision-makers, or assigned
introducers who are awarded introducing charges. The benefited unit shall award the recommender 3% of an investment of less than
RMB1,000,000 or US$200,000 and 5% of an investment more than that. The recommender shall be exempted from personal income tax for
the reward.

Article 23. Chinese and foreign personages who help Tibet develop its economy and social undertakings free of charge shall receive an honorary
certificate from the People’s Government of the Tibet Autonomous Region. For those who help build major projects, the Regional government
shall report to the Chinese State Council and obtain its approval for the State to award them an honorary certificate and for establishing
a permanent memorial symbol in Tibet.

REGULATIONS FOR IMPLEMENTATION OF THE ASSEMBLIES, PROCESSIONS AND DEMONSTRATIONS

Category	PROTECTION OF CITIZENS’ RIGHTS AND INTERESTS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-06-16	Effective Date	1992-06-16

Regulations for Implementation of the Law of the People’s Republic of China on Assemblies, Processions and Demonstrations

Chapter I  General Provisions
Chapter II  Application and Permission for Assemblies, Processions and
Chapter III  The Holding of Assemblies, Processions and Demonstrations
Chapter IV  Legal Responsibility
Chapter V  Supplementary Provisions

(Approved by the State Council on May 12, 1992, promulgated by Decree

No.8 of the Ministry of Public Security on June 16, 1992)
Chapter I  General Provisions

Article 1 These Regulations are formulated according to the Law of the
People’s Republic of China on Assemblies, Processions and Demonstrations
(hereinafter referred to as the Law on Assemblies, Processions and
Demonstrations).

Article 2 The people’s governments at various levels shall, in
accordance with the law, safeguard citizens’ exercise of their rights to
assembly, procession and demonstration, maintain social stability and public
order, and protect assemblies, processions and demonstrations held in
compliance with law from disturbance, attack or disruption by anybody by
violence, coercion or any other illegal means.

Article 3 Public places in the open air mentioned in Article 2 of the
Law on Assemblies, Processions and Demonstrations mean open-air public places
that the public may enter freely or by ticket, not including interior open-air
places administrated by state organs, public organizations, enterprises or
institutions; public roads mean those on both land and water except interior
roads specially used by state organs, public organizations, enterprises or
institutions.

Article 4 Recreational or sports activities, normal religious activities
and traditional folk events shall be subject to the administration by the
people’s governments at various levels or relevant competent departments in
accordance with relevant laws, regulations and other relevant state
provisions.

Article 5 Weapons as mentioned in the Law on Assemblies, Processions and
Demonstrations mean various firearms and ammunition and other weapons which
may be used to do personal injury; controlled cutting tools mean daggers,
triangular swords, spring swords and other swords controlled in accordance
with law; explosives mean all explosive substances with explosive force and
destructiveness that may cause personal injuries or deaths or property
damages in a flash.

No weapons, controlled cutting tools or explosives as mentioned in the
preceding paragraph shall be carried on in assemblies, processions or
demonstrations, or transported to the localities where assemblies,
processions or demonstrations are held.

Article 6 If any activities are held without prior applications under
Paragraph 2, Article 7 of the Law on Assemblies, Processions and
Demonstrations, the traffic and social order shall be maintained.

Article 7 Assemblies, processions and demonstrations shall be governed
by the municipal public security bureaus, county public security bureaus or
municipal public security sub-bureaus in the localities where the assemblies,
processions or demonstrations are held.

If the route of a procession or demonstration covers two or more
districts or counties within a same municipality directly under the central
government, a same municipality under the provincial or autonomous regional
government, or a same prefecture under the provincial or autonomous regional
government, the procession or demonstration shall be governed by the
municipal public security bureau or the prefecture public security
department; if the route of a procession or demonstration covers two or more
municipalities under the provincial government, municipalities under the
autonomous regional government, or prefectures, within a same province or
autonomous region, the procession or demonstration shall be governed by the
provincial or autonomous regional public security department; if the route of
a procession or demonstration covers two or more provinces, autonomous
regions or municipalities directly under the central government, the
procession or demonstration shall be governed by the Ministry of Public
Security or the public security department of the province, autonomous
region or municipality directly under the central government authorized by
the Ministry of Public Security.
Chapter II Application and Permission for Assemblies, Processions and
Demonstrations

Article 8 There must be a person(s) responsible for the holding of an
assembly, procession or demonstration.

Persons coming under any of the following categories shall not be a
person responsible for the holding of an assembly, procession or
demonstration:

(1) persons having no capacity for legal conduct or persons with limited
capacity for legal conduct;

(2) convicted persons serving their sentences;

(3) persons undergoing rehabilitation through labor; or

(4) persons under criminal compulsory measures or other legal measures
restricting personal freedom.

Article 9 For holding of an assembly, a procession or a demonstration,
the person responsible must personally submit an application in writing to
the competent public security organ stipulated in Article 7 of these
Regulations. The competent public security organ shall not entertain an
application if it is not submitted personally by the person responsible.

When submitting an application in writing, the person responsible for the
holding of the assembly, procession or demonstration shall produce his
identity card or other valid certificates, and fill in the application and
registration form truthfully.

Article 10 Upon the receipt of an application for assembly, procession
or demonstration, the competent public security organ shall make timely
examination and, within the stipulated period, render a decision in writing
to grant or not to grant permission. The permitted matters or reasons why no
permission is given shall be stated in the decision.

The decision shall be served on the person responsible two days before
the date of assembly, procession or demonstration, with the person
responsible signing the receipt. If the person responsible refuses to receipt
the decision, the person serving the decision shall ask representatives from
the grass-roots organization in location of the person responsible or other
persons as witnesses to appear on the scene, explain the situation to them,
and record on the receipt the reasons for refusal and the date of it. After
the person serving the decision and the witnesses have affixed their
signatures to the receipt, the decision shall be left at the place of the
person responsible and the service shall be deemed completed.

If there is a prior appointment on the serving time and place, and the
service cannot be completed because the person responsible fail to appear at
the appointed place within the appointed time limits, it shall be deemed that
the application has been withdrawn; failure by the competent public security
organ to make service at the appointed place within the appointed time limits
shall be deemed as the granting of permission.

Article 11 If an application is made for an assembly, procession or
demonstration which will press for the settlement of specific issues, the
competent public security organ shall, within two days of receiving the
application, issue a Notice of Consultation on Specific Issues respectively
to the person responsible for the assembly, procession or demonstration and
the departments or units concerned and, if necessary, to the competent
authority to the departments or units concerned. The departments or units
concerned and the person responsible for the assembly, procession or
demonstration shall conduct consultation within two days from the next day of
the day on which the Notice of Consultation on Specific Issues issued by the
public security organ is received. If an agreement is reached through
consultation, the agreement signed by the persons responsible of the two
sides shall be submitted in time by the departments or units concerned to the
competent public security organ; if no agreement is reached or no
consultation has been taken within two days from the next day of the day on
which the Notice of Consultation on Specific Issues is received, and the
applicant insists on the holding of assembly, procession or demonstration,
the departments or units concerned shall inform the competent public security
organ of the situation in good time, and the latter shall, in accordance with
the provisions of Article 10 of these Regulations, make a decision to grant
or not to grant permission without delay.

If one or both parties notified by the competent public security organ to
conduct consultation on specific issues are in towns or cities other than
where the competent public security organ is, the stipulated period for
serving or sending a Notice of Consultation on Specific Issues, an agreement
reached through consultation or a notice that no agreement has been reached,
shall not include the starting day of the serving or sending nor the period
within which the notice or the agreement is on the way.

Article 12 Pursuant to the provisions of Article 15 of the Law on
Assemblies, Processions and Demonstrations, no citizens shall, in a city
other than his place of residence, start, organize or participate in an
assembly, procession or demonstration of local citizens. The place of
residence in that article means a place where a citizen has his permanent
residence registration or a place where a citizen has his preliminary
residence registration and has been residing for six months or more without
interruption.

Article 13 If it decides to grant permission after receiving an
application for an assembly, procession or demonstration, the competent
public security organ may, under any of the following circumstances, make
changes to the time, place or route of the assembly, procession or
demonstration, and inform the person responsible thereof in good time:

(1) the time for the holding of the assembly, procession or demonstration
applied for falls on traffic rush hours, and a serious and long-time traffic
jam may be caused;

(2) the place or route for the assembly, procession or demonstration
applied for is under construction and without traffic capacity;

(3) the place for the assembly, procession or demonstration applied for
is a ferry crossing or a railway-road junction, or near the country’s
boundaries(borders);

(4) the motor-vehicles to be used are not in compliance with provisions
concerning road maintenance;

(5) at the time and place for the assembly, procession or demonstration
applied for, there will be important activities of national affairs; or

(6) with regard to the time, place and route for the assembly, procession
or demonstration applied for, a permission has been granted to other people
applying for an assembly, procession or demonstration.

If the competent public security organ decides to grant permission and
considers that it is necessary to make changes to the time, place or route of
the assembly, procession or demonstration, it shall state the changes in its
decision.

If, after permission has been granted, at the place for the assembly,
procession or demonstration applied for or along the route thereof, natural
or public security calamity has occurred, the relief work is being
undertaken, and it is impossible to resume normal order before the date on
which the assembly, procession or demonstration is to be held, the competent
public security organ may make changes to the time, place or route for the
assembly, procession or demonstration, and shall, before the date applied
for, service a Decision on Changing Matters Related to Assembly, Procession
or Demonstration on the person responsible for the assembly, procession or
demonstration.

Article 14 If the person responsible for the assembly, procession or
demonstration refuses to accept the competent public security organ’s
no-permission decision, he may apply to the people’s government at the same
level for reconsideration within three days of receiving the decision. The
people’s government shall, within three days of receiving the reconsideration
application, make a reconsideration decision to affirm or annul the competent
public security organ’s decision, and service an Reconsideration Decision on
Assembly, Procession or Demonstration on the person responsible for the
assembly, procession or demonstration as well as the competent public
security organ who make the original decision. The competent public security
organ and the person responsible for the assembly, procession or
demonstration must implement the reconsideration decision made by the
people’s government.

Article 15 If the person responsible for an assembly, procession or
demonstration withdraws his application after submitting it and before
receiving a notice of the competent public security organ, he shall go
through the withdrawal procedure in good time with the competent public
security organ entertaining the application.

If, after receiving the competent public security organ’s decision
granting permission or the people’s government’s reconsideration decision
granting permission, the person responsible for an assembly, procession or
demonstration decides not to hold the assembly, procession or demonstration,
he shall, before the date on which the assembly, procession or demonstration
is originally to be held, return the decision or reconsideration decision to
the relevant competent public security organ or people’s government.

Article 16 If an assembly, procession or demonstration is held or
participated in in the name of a state organ, a public organization, an
enterprise or an institution, the person responsible must, submit a
certification with the signature of the leader of the state organ, public
organization, enterprise or institution and the official seal affixed,
in addition to an application.
Chapter III The Holding of Assemblies, Processions and Demonstrations

Article 17 With respect to an assembly held in compliance with law,
the public security organ shall, in the light of the actual needs, dispatch
the people’s police to maintain order and ensure the smooth progress of the
assembly.

With respect to a procession or demonstration held in compliance with
law, the people’s police responsible for maintaining order shall, along the
route or at the location of the procession or demonstration as permitted by
the competent public security organ, relieve traffic congestion, protect the
procession or demonstration order from any disturbance or disruption and, if
necessary, may temporarily exercise flexibility in their execution of the
relevant provisions of traffic regulations, and ensure the smooth progress of
the procession or demonstration.

Article 18 The people’s police responsible for maintaining traffic and
social order shall be unifiedly commanded by the on-the-spot person in charge
appointed by the competent public security organ. The on-the-spot person in
charge of the people’s police shall keep in touch with the person responsible
for the assembly, procession or demonstration.

Article 19 If it becomes impossible for a procession on the march to
follow the permitted route because of the occurrence of natural calamity,
traffic accident or other public security calamity on the way ahead, the
occurrence of serious conflicts and chaos between the marchers or the marchers
and the onlookers, or the occurrence of any other unexpected circumstances,
the on-the-spot person in charge of the people’s police shall have the
authority to change the route of the procession.

Article 20 There shall be clear marks for the temporary security lines
established by the competent public security organ and, if necessary,
barriers may be placed.

Article 21 The peripheral distance from a place within which no
assembly, procession or demonstration may be held as mentioned in Article 23
of the Law on Assemblies, Processions and Demonstrations means the radiate
distance from the periphery of the building at that place; in the case of
enclosing walls or railings, the peripheral distance shall be measured from
the periphery of the enclosing walls or railings. The specific peripheral
distance from a place within which no assembly, procession or demonstration
may be held shall be stipulated and published by the people’s government of
the province, autonomous region or municipality directly under the central
government.

When determining a peripheral distance from a place within which no
assembly, procession or demonstration may be held, the people’s governments
of province, autonomous region or municipality directly under the central
government shall take consideration of both the security and order of the
place and the convenience for the holding of the assembly, procession or
demonstration.

Article 22 The person responsible for an assembly, procession or
demonstration must be responsible for keeping the order of the assembly,
procession or demonstration, and shall dissuade other persons from joining
the assembly, procession or demonstration; in case of failure of dissuasion,
he shall promptly report it to the on-the-spot people’s police responsible
for maintaining order. The people’s police shall make those persons stop
upon receipt of the report.

If the person responsible for an assembly, procession or demonstration
appoints persons to assist the people’s police in keeping order, he shall,
before the holding date, submit a model of the identification mark to be worn
by persons appointed to the competent public security organ for record.

Article 23 Pursuant to the provisions of Article 27 of the Law on
Assemblies, Processions and Demonstrations, the people’s police has the
authority to stop an assembly, procession or demonstration that is being
held, if it is illegally held or a situation which endangers public security
or seriously undermines public order emerges in the course of the activity.
In case of failure of dissuasion and it is necessary to order a dismissal,
the people’s police shall, through broadcast, shouting propaganda or by other
clear methods, tell people on the spot to leave the spot through the
designated passage within the specified time limits. If someone refuses to
leave within the specified time limits, the on-the-spot person in charge of
the people’s police shall have the authority to order, in accordance with
relevant state provisions, the adoption of police weapons or other police
instruments to force a dismissal; those continuing to stay on the spot may
be taken away from the spot be force or be detained at once.
Chapter IV Legal Responsibility

Article 24 Those refusing or obstructing the people’s police who are
carrying out their functions of maintaining traffic and social order
according to law shall be given an administrative penalty in accordance with
relevant provisions of the Regulations on Administrative Penalties for Public
Security; if a crime is constituted, the criminal responsibility shall be
investigated.

If someone violates Article 5 of these Regulations but the circumstances
are not serious enough to constitute a crime, he shall be given an
administrative penalty in accordance with relevant provisions of the
Regulations on Administrative Penalties for Public Security.

Article 25 Those whose criminal responsibilities shall be investigated
under Article 29 or 30 of the Law on Assemblies, Processions and
Demonstrations shall be handled by the competent public security organ
of the holding place in accordance with the procedures stipulated by the
Criminal Procedure Law.

Article 26 With respect to those being detained under Article 33 of the
Law on Assemblies, Processions and Demonstrations, the public security organ
shall make interrogation within twenty-four hours; for those who should be
sent back, the competent public security organ of the place of action shall
make a Decision on Sending back by Force, and assign a policeman(men) to
carry out the decision. The policeman(men) assigned shall take the person in
question back to his place of residence and turn them together with the
Decision on Sending back by Force over to the public security organ of the
residence place of the person for handling according to law.

Article 27 If someone should be given an administrative penalty for
public security in accordance with Article 28 or 30 of the Law on Assemblies,
Processions and Demonstrations or Article 24 of these Regulations, the
penalty shall be decided and carried out by the public security organ of
place of action in accordance with the procedures stipulated in the
Regulations on Administrative Penalties for Public Security. If the penalized
person refuses to accept the penalty decision, he may apply for
reconsideration; if he refuses to accept the reconsideration decision made by
the public security organ at higher level, he may institute a law suit with
the people’s court in accordance with relevant provisions of law.

Article 28 With respect to those who are taken away from the spot by
force or those who are detained at once under Article 27 of the Law on
Assemblies, Processions and Demonstrations, the public security organ shall
make interrogation within twenty-four hours. If no legal responsibility is to
be investigated, the person in question shall be ordered to make statement of
repentance and then be released; if legal responsibility is to be
investigated, matters shall be handled in accordance with relevant provisions
of law.

Article 29 If, in an assembly, procession or demonstration, someone
destroys private or public property or infringes upon other persons’ privacy
resulting in personal injuries or deaths, he shall bear the compensation
responsibility in accordance with law. In the case of administrative penalty
for public security, the public security organ of the place of action shall,
in accordance with relevant provisions of the Regulations on Administrative
Penalties for Public Security, rule on the amount of compensation and the
bearing of expenses for medical treatment; in the case of crime, an
incidental civil action shall be instituted.
Chapter V Supplementary Provisions

Article 30 These Regulations shall be applicable to assemblies,
processions and demonstrations held by foreigners within the territory of
China.

If there is a foreigner(s) wishing to participate in an assembly,
procession or demonstration held by Chinese citizens within the territory of
China, the person responsible for the assembly, procession or demonstration
shall state the matters in the application; foreigners may not participate
without approval by the competent public security organ.

Article 31 Measures formulated by the standing committee of the people’s
congress of a province, autonomous region or municipality directly under the
central government for implementation of the Law on Assemblies, Processions
and Demonstrations shall be applicable within its own administrative region;
in case of any discrepancy between those measures and these Regulations,
these regulations shall prevail.

Article 32 The Ministry of Public Security shall be responsible for
interpreting issues arising from the implementation of these Regulations.

Article 33 These Regulations shall enter into force on the date of
promulgation.

MEASURES OF THE CUSTOMS OF PEOPLE’S REPUBLIC OF CHINA ON THE CONTROL OVER AND THE LEVY AND EXEMPTION OF TAX FOR IMPORT AND EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

The General Administration of Customs

Decree of the General Administration of Customs

No.29

Measures of the Customs of People’s Republic of China on the Control over and the Levy and Exemption of Tax for Import and Export
Goods of Enterprises with Foreign Investment is hereby promulgated, and will come into force as of September 1,1992.

Provisions on Control over and the Levy and Exemption of Tax for Import and Export Goods of of Chinese-foreign Contractual Joint Ventures,
Provisions on Control over and the Levy and Exemption of Tax for Import and Export Goods of Chinese-foreign Equity Joint Ventures,
Measures of the Customs of People’s Republic of China on Administration of Import Materials Needed to Implement the Product Export
Contracts by Enterprises with Foreign Investment is nullified at the same time.

Director of the General Administration of Customs: Dai Jie

July 25, 1992

Measures of the Customs of People’s Republic of China on the Control over and the Levy and Exemption of Tax for Import and Export
Goods of Enterprises with Foreign Investment

Chapter 1 General Provisions

Article 1

In order to encourage foreign companies, enterprises and other economic organizations or individuals to come to China and set up Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint enterprises and foreign enterprises (hereinafter referred to as enterprises
with foreign investment), implement the state industrial policy, develop the national economy, simplify procedures for legal import
and export and strengthen customs supervision and control, these Measures are hereby formulated in accordance with the stipulations
of the Customs Law of the People’s Republic of China and related laws and regulations.

Article 2

Enterprises with foreign investment shall perform their various duties in accordance with the stipulations of the laws, regulations
and measures of the People’s Republic of China. They shall accurately declare at Customs their import and export goods, accept customs
supervision and control and enjoy relevant preferential treatment.

Article 3

For enterprises with foreign investment considered to properly comply with the stipulations of Customs, upon examination, Customs
will grant the post_title “Enterprises with a Good Reputation”, and provide with relevant conveniences in the performance of customs formalities.

Article 4

Enterprises with foreign investment, which meet the conditions of customs supervision and control, may be allowed to set up bonded
warehouses and bonded factories. When considered to be necessary, Customs may send customs personnel to be stationed in enterprises
with foreign investment to carry out the supervision and control and handle customs procedures. Relevant enterprises should provide
necessary conveniences.

Article 5

Goods imported by enterprises with foreign investment, which come under the supervision and control of Customs according to the stipulations
of the Customs Law of People’s Republic of China, shall not be sold, transferred, mortgaged or diverted to other purposes without
authorization or permission of Customs.

Chapter 2 Procedures for the Recording of Customs Clearance Basis

Article 6

Enterprises with foreign investment shall bring with the copies or duplicates of the documents of ratification issued by the Department
in charge of foreign economic relations and trade of the People’s Republic of China, or the organization it authorized, and the copies
or duplicates of the business license issued by the State Administration for Industry and Commerce, or the department it authorized,
as well as the articles of association and contracts of enterprises’, to go through the formalities of registration with local Customs
for the record.

Article 7

Each party of enterprises with foreign investment shall pay the required funds in accordance with the stipulations of contracts, articles
of association and relevant State regulations and, within 1 month after the funds are verified, hand in the report of verified funds
to Customs.

Article 8

When declaring their import and export goods at Customs, enterprises with foreign investment shall fill in a bill of entry specially
provided for enterprises with foreign investment and declare to Customs and hand in all goods invoices, packing lists and other related
documents for examination. They shall also hand in import or export licenses for commodities needing to no license according to State
regulation, Customs will check and give clearance in accordance with the documents approving the establishment of the enterprises
or with the import and export contract.

Enterprises with foreign investment are not required to apply for approval and to obtain import licenses for a reasonable amount of
goods imported for their own use.

Article 9

When a enterprise with foreign investment purchases goods that are not products of the enterprises for export in order to obtain a
balance of foreign exchange income and expenditure, Customs shall check the document of ratification issued by the economic and trade
department in charge. For commodities which come under state export license control, the enterprise shall apply for export license
in accordance with the document of ratification, and Customs shall check and issue clearance.

Article 10

A enterprise with foreign investment shall, before importing goods, bring with its approved contract and equipment detailed lists
and other documents to perform the Customs in charge. After examination and approval, the Customs shall issue the “Tax Levy and Exemption
Certificate of the Customs of the People’s Republic of China for the Import Goods of Enterprise with Foreign Investment” (hereinafter
referred to as Tax Levy and Exemption Certificate). When the goods are imported, the enterprise shall bring the “Tax Levy and Exemption
Certificate” to perform the procedures of declaration at Customs.

The period of validity of the “Tax Levy and Exemption Certificate” is 3 months. The period can be extended upon the approval of the
Customs in charge under special circumstances. The longest additional extension period is 3 months.

For the above-mentioned tax levy and exemption, the examination formalities can either be performed by the Customs in charge or by
Customs in the entry area. The triplicate form of the “Tax Levy and Exemption Certificate” shall be returned to the Customs in charge
for record and examination within 1 month after the goods are given clearance.

Article 11

The Customs shall verify and issue to the enterprises with foreign investment, which implement the product export contract, the “Registration
Handbook of the Customs of the People’s Republic of China on Processing for Reexport of Imported Materials Needed to Implement the
Product Export Contracts by Enterprises with Foreign Investment” (hereinafter referred to as Registration Handbook).

Raw materials, fuel, bulk parts, spare parts, components, auxiliary parts, semi-finished materials and packing materials imported
by enterprises with foreign investment in order to implement product export contract shall be placed under the supervision and control
of Customs as bonded goods. When these goods are imported, no import license is required. Customs shall give clearance in accordance
with the enterprises contract or import and export contract.

Products processed for export by an enterprise with foreign investment, which come under the states export license control, are given
clearance for export in accordance with their export license.

Chapter 3 Provisions on Taxing Import and Export Goods

Article 12

A enterprise with foreign investment, which import goods within the amount of total investment and approved additional investment,
can enjoy preferential tax reduction or exemption treatment. Tax shall be levied, according to regulations, on goods imported over
the amount of investment.

Article 13

No customs duties or industrial and commercial consolidated tax shall be levied on the following goods imported by a Chinese-foreign
equity joint venture:

(1)

machinery and equipment, spare parts and components, and other materials (other materials refer to materials needed for the construction
of a factory and the installation and reinforcing of machinery) contributed as investment by the foreign partner in accordance with
the stipulations of the contract;

(2)

machinery, equipment, spare parts, components and other materials imported with funds within the total investment;

(3)

machinery, equipment, spare parts, components and other materials imported with added capital, the production and supply of which
cannot be guaranteed in China.

Article 14

Goods prescribed in Article 13 as well as production and management equipment imported by a enterprise with foreign investment are
exempted from import duties and industrial and commercial consolidated tax.

Article 15

Machinery, equipment, spare parts and materials directly used in prospecting and development work by Chinese-foreign cooperative exploitation
of offshore petroleum, imported spare parts, components and materials necessary for the manufacture of machinery and equipment used
in exploitation work as well as projects imported with foreign-investment for energy development, the infrastructure of railways,
highways and ports, as well as in industry, scientific research education, and medical and health services, and machinery and equipment
imported in accordance with the stipulations of contracts and materials needed for the construction of factories and sites and for
installing and reinforcing machinery and equipment, are all exempted from import duties and the industrial and commercial consolidated
tax.

Article 16

Goods imported for Chinese-foreign cooperatively managed commerce, catering, photo studios, and other service trades, maintenance
centres, worker training operation, passenger and cargo vehicle transportations, offshore fishing as well as other trades, shall
be levied on import duties and industrial and commercial consolidated tax according to regulations, unless there are separate stipulations
of the State.

Article 17

A reasonable amount of communication equipment, vehicles used in production, office articles (equipment) imported for self-use by
an enterprise with foreign investment within the total amount of investment are exempted from import duties and the industrial and
commercial consolidated tax according to the stipulations of the State.

Article 18

For imported goods enjoying preferential tax reduction and exemption treatment as listed in Articles 13, 14, 15 and 17, the term for
supervision control shall be regulated by Customs. The term is counted from the day the tax-free imported goods are given customs
clearance.

Term of imported goods enjoying preferential tax-free treatment are as follows:

(1)

ships, aircrafts and building materials (including rolled steel, timber, plywood, artificial board and glass) for 8 years

(2)

motor-driven vehicles and house-hold electrical appliances for 6 years

(3)

machinery, equipment and other materials for 5 years

For tax-reduced and exempted goods that exceed the term of customs supervision and control, the enterprise may apply to Customs to
lift supervision and control. Upon ratification, the Customs in charge shall issue a “Certificate of the Customs of People’s Republic
of China on Lifting Supervision and Control over Tax-Reduced and Exempted Imported Goods of Enterprises with Foreign Investment”.

For the tax reduction and exemption of imported goods within the term of customs supervision and control which are resold or sold
in China upon the approval of the original examination and approval department, the Customs shall make an appraisal of depreciation
according to the time of use of these goods and re-levy the import duties.

With regard to tax-reduced or exempted imported goods not included in the term of customs supervision and control, Customs shall make
a price appraisal according to the use of the goods and re-collect the import duties.

Article 19

A reasonable amount of catalytic agents, grinding materials and fuel consumed in production which are imported by the enterprise with
foreign investment in order to perform the product export contract and are directly used in processing export products shall be exempted
from import duties and industrial and commercial consolidated tax.

Article 20

When by-products, substandard products, and leftover industrial surplus generated in the process of production are converted to domestic
sales by the enterprise with foreign investment in order to perform the product export contract, after being verified and according
to the circumstances. Wastes proved really worthless can be exempted from repayment tax.

Materials imported by an enterprise with foreign investment for trial run shall be levied on duties according to regulations when
they are imported.

Article 21

Materials and parts imported by an enterprise with foreign investment for processing products for domestic sales, with the approval
of the economic and trade department in charge, shall be levied on duties when they are imported.

Article 22

Products produced by the enterprise with foreign investment for export, except those commodities which are restricted for export or
except there are separate provisions of the State, are exempted from export duties.

Chapter 4 Management, Verification and Cancellation of Bonded Imported Materials and Parts

Article 23

Enterprises with foreign investment shall set up special account books meeting all customs requirements and state in form of the import,
storage, drawing, using and processing at another factory of bonded imported materials and parts (hereinafter referred to as materials
and parts), as well as the storage, export and internal sales of processed products, and regularly report them to Customs for verification.

Article 24

Materials and parts imported by an enterprise with foreign investment shall be, except due to special reasons and with the approval
of Customs, processed to finished products to perform related export contracts within 1 year from the date of imported.

When imported materials, parts and processed products are changed to internal sales for some reasons, the enterprise with foreign
investment shall have the approval of the economic and trade department concerned, and repay duties and the industrial and commercial
consolidated tax on the imported materials and parts before they are allowed to be sold in the domestic market. For materials and
parts under license management, the import licenses shall be submitted for check.

Article 25

Materials and parts imported by an enterprise with foreign investment are not allowed to be processed directly at another factory.
If they have to be processed at another factory due to special circumstances, the enterprise with foreign investment shall report
to Customs in advance for approval. Within the term of the customs approval, the finished and semi-finished products processed at
another factory must be transferred to the original enterprise. When imported materials and parts of an enterprise with foreign investment
processed into finished or semi-finished products are not directly exported, but instead are sold or transferred to another processing
and exporting enterprise for re-processing and assembling, the enterprise with the imported materials and parts shall, together with
the original enterprise, bring with them the purchasing and sale contract, or production and processing contracts and other related
documents signed by both parties to Customs to perform the carry-over, verification and writing off procedures.

Article 26

For materials and parts under an import contract, an enterprise with foreign investment must, within 1 month from the day of the export
of the last batch of finished products, bring in the “Registration Handbook” and the declaration of export goods and other related
documents to the Customs to perform the verification and writing off procedures.

Article 27

After an enterprise with foreign investment imports materials and parts, if there are changes, transfer and termination of the contract,
it shall immediately perform relevant procedures at Customs.

Chapter 5 Mortgage, Bankruptcy and Liquidation

Article 28

When an enterprise with foreign investment uses goods under customs supervision and control as a loan mortgage to domestic and foreign
financial institutions, it shall apply in advance to the customs department in charge and perform mortgage procedures upon approval.

When the above-mentioned collaterals are being actually handled, the enterprise shall depreciate them according to their used years,
repay duties and complete the customs procedures.

Article 29

When an enterprise with foreign investment terminates or cancels a contract, it shall, within 15 days from the date of approval of
liquidation by examination and approval department, or within 15 days from the date of enforcement of the bankruptcy is decided by
the court, bring with it duplicates of the documents of ratification issued by the examination and approval organization, detailed
statements of the duty levy or exemption on imported materials, the “Tax Levy or Exemption Certificates” and the “Registration Handbooks”
issued by Customs, to apply to the customs in charge and perform the procedures for cancelling the tax reduction and exemption on
imported materials. The enterprise shall return the “Customs Declaration Registration Certificate”, the “Declarant Certificate” and
other related certificates.

Before Customs completes the procedures for cancelling the case of the above-mentioned enterprises duty reduction and exemption of
imported materials, it shall seal the related imported materials for safekeeping.

Article 30

Before a bankrupt enterprise with foreign investment clears off its property, it shall perform the procedures of paying duties for
the supervised and managed goods enjoying preferential customs duty treatment according to State regulations.

Article 31

With regard to the duty reduction or exemption of imported goods of an enterprise with foreign investment which terminates or cancels
a contract within the term of customs supervision and control, Customs shall handle the goods according to the following provisions:

(1)

When the imported goods are left to the Chinese partner of the joint venture for its continued use, or transferred or sold to domestic
units, Customs shall depreciate and re-levy duties on them according to the duration of their usage;

(2)

Imported goods transferred to another domestic enterprise with foreign investment enjoying equal preferential treatment, after approval
of the examination and approval department and completion of the carry-over procedures at Customs, can continue to have duty reduction
and exemption treatment;

(3)

Upon approval from Customs, the foreign partner to a joint venture is allowed to ship the original duty-free imported goods out of
China.

Article 32

For the above-mentioned enterprise with foreign investment which has completed customs procedures, Customs shall issue it the “Notice
for the Enterprise Completing Customs Procedures”.

Chapter 6 Supplementary Provisions

Article 33

Enterprises with foreign investment set up in the special economic zones, economic and technological development areas, free-trade
zones, high-tech development areas, coastal open cities, coastal open areas as well as other regions practising special preferential
policies, shall handle their imported and exported goods in accordance with the Measures. In addition, they shall also implement
the related policies granted by the State to the enterprise with foreign investment in the above-mentioned areas.

Article 34

Enterprises invested by compatriots from Taiwan, Hong Kong and Macao and overseas Chinese, besides carrying out the relevant stipulations
of the Provisions of the State Council on Encouraging Investment of Taiwan Compatriots, and the Provisions of the State Council on
Encouraging Investment of Overseas Chinese and Hong Kong and Macao Compatriots, shall also implement the stipulations of the Measures.

Article 35

With regard to actions violating the Measures, Customs shall deal with them according to the Customs Law of the People’s Republic
of China, and the Rules for the Implementation of the Customs Administrative Law of the People’s Republic of China on Punishment.
For those who violate the Criminal Law, the judicial organ shall affix on them the criminal responsibility according to the Law.

Article 36

When provisions contravene the Measures, the Measures shall be followed as the criterion.

Article 37

The General Administration of Customs is responsible for the interpretation of the Measures.

Article 38

The Measures shall enter into force as of September 1, 1992.

Attachment:(omitted)

The General Administration of Customs
1992-08-22

PROVISIONS OF THE BEIJING MUNICIPAL PEOPLE’S GOVERNMENT FOR THE DEVELOPMENT AND MANAGEMENT OF REAL ESTATE BY FOREIGN INVESTORS

Provisions of the Beijing Municipal People’s Government for the Development and Management of Real Estate by Foreign Investors

(Effective Date:1992.11.20–Ineffective Date:)

Article 1. The provisions are formulated in accordance with the relevant State laws and regulations and in line with the actual conditions of
the city with a view to importing foreign capital for developing real estate, accelerating municipal construction and promoting economic
development in the city.

Article 2. All foreign enterprises, other organizations and individual investors (hereinafter referred to as “investors”) may engage in the
development and management of real estate in the administrative districts of the city according to the provision in areas of:

1. Science and technology, industry, agriculture and communications;

2. Tourism, commerce, banking, recreation and sports;

3. High-grade residential and office buildings.

The provisions also apply to enterprises, other organizations and individuals from Hong Kong, Macao and Taiwan and overseas Chinese.

Article 3. The term “real estate” used here means State owned land, of which the right of use it (hereinafter referred to as “land use right”),
structures on it and other attachments have been granted.

The term “management of real estate” means transferring, leasing and mortgaging of the land use right and buying, selling, leasing
and mortgaging of housing and other structures and attachments on the land.

Article 4. In developing and managing real estate, investors must abide by the Chinese laws, regulations and rules. The development enterprises
they invest in have the right to carry out their operations freely within the limit covered by the law and the contracts.

The legitimate rights and interests of investors shall be protected by law.

Article 5. In developing and managing real estate, investors shall enter into joint equity or cooperative ventures or establish their own enterprises
(all referred to as “development enterprises” below) in compliance with the “Law of the People’s Republic of China on Sino-Foreign
Joint Equity Ventures”, the “Law of the People’s Republic of China Concerning Sino-Foreign Cooperative Ventures” and the “Law of
the People’s Republic of China on wholly Foreign Owned Enterprises”.

Enterprises and other organizations within the jurisdiction of the city, who intend to enter into development enterprises with investors,
must have the necessary qualifications for developing and managing real estate.

If a wholly foreign owned development enterprise wants to develop land by large tracts and if a joint equity or cooperative venture
or a wholly owned enterprise engages in commercial and trading activities by using the real estate, it shall be subject to examination
by the Beijing Municipal People’s Government and approval by the department in charge of the State Council.

Article 6. In developing and managing real estate, development enterprises shall acquire the land use right according to the “Provisional Regulations
of the People’s Republic of China Concerning the Leasing and Transferring of the Right to Use State Owned Land in Urban Areas” (referred
to as “Regulations” below) and the “Procedures of the Beijing Municipality for Implementing the Provisional Regulations of the People’s
Republic of China Concerning the Leasing and Transferring of the Right to Use State Owned Land in Urban Areas” (referred to as “Procedures”
below).

The lease-out of a tract of land for development must be approved by the municipal people’s government, publicly noticed by the Land
Management Bureau or the Real Estate Management Bureau, and the corresponding information of which must be provided to the projected
lessees in accordance with the provisions of Article 14 of the Procedures.

Article 7. Development enterprises may sell and lease the right of the real estate to other Chinese and foreign enterprises, organizations and
individuals. But approval of the municipal people’s government must be sought whenever houses are sold to Chinese individuals (excepting
those from Hong Kong, Macao and Taiwan).

In selling and leasing of real estate, the parties concerned shall sign contracts and go through the registration and transfer procedures
concerning the house property right and the land use right according to the relevant provisions of the Regulations and Procedures.
In selling high-grade houses, it is necessary to formulate agreements on the use, management and servicing of the houses, submitted
to the Real Estate Management Bureau for examination and approval.

Article 8. A building may be sold in its entity or in floors or in units. In the case of selling floors or units, clear provisions shall be
made with regard to the proportion of land use right and remaining years of property of the houses in the contract. The time limit
for renting houses shall be in keeping with the time limit for the leasing of the land use right.

The prices for selling houses or buildings shall be fixed by the development enterprises themselves.

Article 9. The following requirements shall be met in selling houses and buildings in advance after the approval of the municipal real estate
management bureau: 1. The payment for the land use right is made (including the municipal construction fees, resettlement compensation
fees and fees for leasing the land use right, the same below) and certificates for using the land are obtained;

2. The blueprints for construction have been approved and licenses for project plans have been obtained;

3. More than 25 percent of the total investment for the engineering construction have been paid up;

4. The work schedule and the date for project delivery have been fixed.

After the housing sold in advance is put into use, the buyers shall go through the property right and land use right registration
procedures.

Article 10. The selling and leasing of real estate may be conducted at home or abroad. If it is conducted abroad, the Chinese law shall apply.

In selling and leasing real estate, the procedure for notarization and authentication shall be completed according to provisions.

Article 11. Development enterprises may mortgage their real estate to Chinese and foreign banks or other financial institutions and sign contracts
according to the Regulations and Procedures and go through the registration procedures.

If the pledger uses the rented houses as the pledge, it shall notify the lessees in writing and the original leasing contract continue
to be valid.

Article 12. In developing and managing real estate, development enterprises shall pay taxes and fees according to law.

Development enterprises may refuse to pay fees other than those provided for by the State and the municipal people’s government.

Article 13. Development enterprises shall keep their own balance in foreign exchange payment. The part of profits in Renminbi derived from the
development and management by investors shall be disposed of and used according to the relevant regulations of the State.

Article 14. If enterprises and other organizations within the jurisdiction of the city use the land use right and structures on the ground and
other attachments allocated to them by the State as their share of investment to enter into joint equity or cooperative venture with
investors, they must apply for examination and approval according to the provisions of the Regulations and Procedures and make good
in payment of the land.

The provisions above apply to enterprises, other organizations and individuals which use the land and structures and attachments on
it to cooperate with other domestic enterprises, organizations and individuals (not including those from Hong Kong, Macao and Taiwan)
in engaging in joint equity or cooperative venture.

Article 15. The people’s government shall set up a leading group and an office in charge of real estate development and authorize them to coordinate
and make policy decisions concerning work on the real estate development and management. The right of interpreting the provisions
rests with the municipal real estate development office.

Article 16. The provisions shall come into effect on November 20, 1992.

PROVISIONS ON THE CONTROL OF MARITIME NAVIGATIONAL WARNINGS AND NAVIGATIONAL NOTICES

Category	CIVIL AVIATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-12-22	Effective Date	1993-02-01

Provisions of the People’s Republic of China on the Control of Maritime Navigational Warnings and Navigational Notices

(December 22, 1992)

Article 1 These Provisions are enacted in accordance with
the relevant provisions of the Maritime Traffic Safety Law of the
People’s Republic of China, with the purpose of strengthening the
control of maritime navigational warnings and navigational
notices, and ensuring the safety of vessels and installations in
navigations and operations.

Article 2 These Provisions shall apply to all vessels,
installations and personnel that engage in activities in the
coastal waters of the People’s Republic of China that affect
or may affect the safety of maritime traffic, and the relevant
units and personnel responsible for issuing maritime navigational
warnings and navigational notices.

Article 3 The harbor superintendency agency of the People’s
Republic of China (hereinafter referred to as the state competent
authority) is responsible for issuing maritime navigational
warnings and navigational notices throughout the country.

The harbor superintendency agencies along coastal waters
(hereinafter referred to as regional competent authorities) are
responsible for issuing maritime navigational warnings and
navigational notices within their jurisdiction areas.

The jurisdiction areas of the harbor superintendency agencies
along the coastal waters shall be determined by the state
competent authority.

Article 4 Maritime navigational warnings shall be issued by
the state competent authority or its authorized agencies through
radiogram or radio telephone.

Maritime navigational notices shall be issued by the state
competent authority or regional competent authorities in writing
or through newspaper, radio, television, and other news medium.

Article 5 To engage in following activities in the coastal
waters of the People’s Republic of China, an application to issue
maritime navigational warnings and navigational notices must be
filed with the regional competent authority for the sea area
concerned:

(1) Changing navigation lanes or troughs;

(2) Designating, changing, or revoking restricted navigation
zones, earth-dumping zones, aquatic zones, speed-measuring
zones, or water amusement areas;

(3) Placing or removing public compasses or demagnetization
fields;

(4) Salvaging sunken ships or objects;

(5) Laying, removing, inspecting, or repairing cables, pipes,
and tunnels;

(6) Placing or removing mooring buoys or other structures;

(7) Placing or removing installations used for maritime
exploration or exploitation, and the safety zones thereof;

(8) Engaging in such operations as sea sweeping, dredging,
demolition, pile driving or pile pulling, lifting, or drilling;

(9) Engaging in over-length, over-height, or ponderous towing
operations which limit the navigational capacity of vessels;

(10) Making oceanic geological surveys, exploration, or
hydrologic surveys which hinder maritime navigational safety; or

(11) Conducting other activities which affect maritime
navigation and operational safety.

Where military units have designated, changed, or revoked
military forbidden navigation zones, military training zones,
maritime navigational warnings and navigational notices shall be
issued by the state competent authority or regional competent
authority.

Article 6 Those units which organize or engage in the
activities listed in Paragraph 1, Article 5 shall, before seven
days as of the day of conducting the operation(s), file a written
application to issue maritime navigational warnings and
navigational notices with the regional competent authority
concerned, except in those cases where maritime navigational
warnings and navigational notices need to be issued at once and
that has been affirmed by the regional competent authority.
Activities listed in Item (9), Paragraph 1 of Article 5 shall be
conducted in accordance with Article 7 of these Provisions.

The written application shall include the following:

(1) The dates of the beginning and end of the activity and
daily times of operation;

(2) The content and form of the activity;

(3) The names of the vessels, installations, and units which
will take part in the activity;

(4) The area of the activity; and

(5) Safety measures.

Article 7 Where vessels engage in activities listed in
Item (9) of Article 5, a written application to issue maritime
navigational warnings and navigational notices shall, three days
in advance of the day of towing, be filed with the regional
competent authority of the maritime area in which such activity
is concerned.

The written application shall include the following:

(1) The names of the towing and towed vessels;

(2) The time for beginning of the towing;

(3) The beginning and ending positions and points of
major changes of direction;

(4) The total length of the tow; and

(5) The navigational speed.

Article 8 After the maritime navigational warnings and
navigational notices are issued, the applicant shall conduct
activities in the area and during the time approved by the state
competent authority or the regional competent authority; if the
time or the area need to be changed, a new application shall be
submitted in accordance with these Provisions.

Article 9 Vessels and installations shall, when encountering
the following cases, report to the nearby regional competent
authority:

(1) Shallows or rocks not recorded in navigational books;

(2) Unusual magnetic areas or color changes of sea water;

(3) Sunken vessels or objects, dangerous objects and flotsam
which jeopardizes navigation;

(4) Variations in or disorder of navigational aids or
navigational facilities; or

(5) Other abnormal situations jeopardizing the safety of
navigation.

Report should include the time and place of discovery, and
the objects found.

Article 10 After receiving a report which concerns
jeopardizing the safety of navigation or an application to issue
maritime navigational warnings and navigational notices, the
regional competent authority shall verify the materials at once,
and in light of the actual need and scope of jurisdiction, decide
to issue maritime navigational warnings and navigational notices.

Article 11 Regional competent authorities shall issue
maritime navigational warnings and navigational notices in the
following cases in their jurisdiction areas:

(1) Placement, adjustment or removal of anchorages;

(2) Establishment or dissolution of sea disaster rescue
areas, pollution-prevention operation areas, and major sea-operation
accident areas;

(3) Placement, alteration, or removal of sub-navigational
routing systems;

(4) Placement, removal, renovation, alteration or restoration
of navigational aids or navigational facilities; or

(5) Other circumstances which jeopardize the safety of
navigation.

Article 12 The state competent authority or regional
competent authority shall, in issuing maritime navigational
warnings and navigational notices and receiving the reports
provided for by Article 9 of these Provisions, provide at once
relevant materials to the naval maritime navigation security
department and inform them of relevant situations.

Article 13 Coastal radio stations shall be responsible for
broadcasting maritime navigational warnings in accordance with
the specified time, frequency and demand. The specific procedures
and measures shall be formulated by the competent department of
communications under the State Council.

Article 14 The relevant personnel shall receive and copy the
maritime navigational warnings broadcast by the coastal radio
station in accordance with regulations.

Article 15 Relevant units receiving maritime navigational
notices shall take effective measures and inform their
subordinate vessels and installations.

Article 16 Those units or persons who have outstanding
achievements in enforcing these Provisions shall be given rewards
by the state competent authority or regional competent authority.

Article 17 Anyone who violates Paragraph 1 of Article 5, or
Article 8 of these Provisions shall be ordered to cease such
activity and may be concurrently given a fine of up to 2,000 RMB
yuan by the state competent authority or regional competent
authority.

Article 18 Anyone who fails to apply to issue maritime
navigational warnings or navigational notices during the period
provided for in Articles 6 and 7 of these Provisions may be
given a warning and may be concurrently given a fine of up to
800 RMB yuan by the state competent authority or regional
competent authority.

Article 19 The person(s) responsible for violating the
provisions of Article 14 of these Provisions shall be given a
warning or have their work certificates withheld or revoked by
the state competent authority or regional competent authority
in accordance with the facts of the case.

Article 20 In the event violation of these Provisions
results in a maritime traffic accident, in addition to civil
compensation responsibility in accordance with the law, the state
competent authority or regional competent authority shall, in
accordance with the facts of the case, give fines or withhold or
revoke work certificates; if said actions constitute a crime,
criminal responsibility shall be investigated in accordance with
law.

Article 21 If a party does not agree with the fine or
the withholding or revocation of the work certificate, he may
apply for an administrative reconsideration to the harbor
superintendency agency of the People’s Republic of China within
15 days after receiving notification of the penalty, or may bring
a suit to the people’s court directly. If neither an application
for an administrative reconsideration nor legal suit is made, and
the penalty has not been complied with upon the expiration of the
given time period, the competent authority which made the penalty
decision shall request compulsory enforcement from the people’s
court.

Article 22 In the event of constructing, altering or
extending installations or conducting other operations within the
waters of fishing harbors, the fishery administration and fishing
harbor superintendency agency shall issue maritime navigational
notices in accordance with these and other relevant provisions.

Article 23 Measures concerning the administration of
maritime navigational warnings and navigational notices involving
military units shall be formulated separately in accordance with
the provisions of Maritime Traffic Safety Law of the People’s
Republic of China.

Article 24 The Ministry of Communications shall be
responsible for the interpretation of these Provisions.

Article 25 These Provisions shall enter into force as of
February 1, 1993.

ACCOUNTING SYSTEM OF THE PEOPLE’S REPUBLIC OF CHINA FOR ENTERPRISES WITH FOREIGN INVESTMENT

20020201

The Ministry of Finance

Accounting System of the People’s Republic of China for Enterprises with Foreign Investment

the Ministry of Finance

June 24,1992

Chapter I General Provisions

Article 1

These System are formulated in accordance with the laws and regulations of the People’s Republic of China concerning enterprises with
foreign investment with a view to strengthening the accounting functions of enterprises with foreign investment and to protect the
legal rights of these enterprises and their investors.

Article 2

These System shall apply to enterprises with foreign investment established in the People’s Republic of China which include Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint ventures and wholly foreign owned enterprises.

Article 3

The Ministry of Finance shall be responsible for the administration of the accounting affairs relating to enterprises with foreign
investment throughout the People’s Republic of China.

The finance department and bureau of each province, autonomous regions and municipalities directly under the Central Government and
the responsible authorities under the State Council shall administer the accounting affairs relating to enterprises with foreign
investment in its own region or under its administration and may, in accordance with the System and the practical circumstances,
formulate supplementary provisions, copies of which shall be filed with the Ministry of Finance for reference.

Enterprises with foreign investment shall formulate their own accounting systems, based on the System and related supplementary provisions,
to suit their own practical circumstances. The manuals on these accounting systems shall be filed with the responsible finance bureau,
local tax authorities and other relevant supervisory authorities.

Chapter II Accounting Practices and Principles

Article 4

Accounting practices of enterprises with foreign investment shall conform with the relevant laws and regulations of the People’s Republic
of China and with the provisions of the System.

Article 5

Enterprises with foreign investment shall account for their transactions in distinct accounting periods (month, quarter and year).

The accounting year of enterprises with foreign investments shall coincide with the calendar year, i.e. from January 1 to December
31 on the Gregorian calendar.

Article 6

Enterprises with foreign investment shall only account for business transactions which have actually taken place, and shall ensure
that the accounting books are accurate, complete, prepared up to date, and shall also ensure that correct methods and appropriate
procedures have been applied.

Article 7

Enterprises with foreign investment shall maintain their accounting books using the accrual method. Income earned and expenses incurred
during the period shall be accounted for as income and expenses of the period, regardless of whether the amount has been received
or paid during the period.

Income and expenses not earned and incurred during the period shall not be accounted for as income and expenses of the period, even
if the amount has been received or paid during the period.

Article 8

Enterprises with foreign investment shall match their income with the related expenses. Income earned during an accounting period
shall be taken into the accounts of the same accounting period together with the related costs and expenses.

Article 9

Assets of enterprises with foreign investment shall be accounted for at historical cost. Unless otherwise authorized, enterprises
may not adjust the carrying value of their assets at their own discretion.

Article 10

Enterprises with foreign investment shall distinguish capital expenditure from revenue expenditure. Expenditure shall be regarded
as capital expenditure where the benefits to the enterprise last for more than one (not including one) accounting year and as revenue
expenditure where the benefits to the enterprise last for only one accounting year.

Article 11

Accounting methods adopted by enterprises with foreign investment shall be consistent within each accounting period and from one period
to the next and shall not be changed at will. Where changes are necessary, such changes shall generally be introduced at the beginning
of a new accounting year and shall be disclosed in the notes to the accounts of that accounting year.

Chapter III Book Keeping and Accounting Books

Article 12

Enterprises with foreign investment shall adopt the double entry accounting method.

Article 13

Enterprises with foreign investment may maintain their accounts in Renminbi or a foreign currency (generally, the foreign currency
shall be one for which the exchange rate is quoted by the State Administration of Exchange Control. The same definition applies wherever
reference is made to foreign currency). This reporting currency shall not be changed at will once it is adopted. Where changes are
necessary, approval shall be obtained from the responsible finance bureau or other relevant supervisory authorities under the State
Council. Such changes shall be introduced at the beginning of a new accounting year and disclosed in the notes to the accounts of
that accounting year.

Enterprises engaged in multi-currency financing or finance leasing may maintain their accounts in Renminbi as well as other related
foreign currencies according to their actual requirements.

Article 14

Accounts of enterprises with foreign investment shall be kept in Chinese or in both Chinese and another foreign language.

Article 15

Enterprises with foreign investment shall obtain the original supporting document or prepare a primary voucher whenever there is a
business transaction. All original documents and primary vouchers must be true, complete and accurate, and shall be obtained or prepared
through proper procedures. The original documents and primary vouchers shall be used as accounting vouchers only after they have
been verified as correct.

Article 16

Enterprises with foreign investment shall keep three major accounting books namely the journal ledger, general ledger and sub-ledgers
together with all other necessary supporting books.

All accounting books shall be kept based on the primary vouchers, accounting vouchers or voucher summaries which have been verified
as correct. All entries to the accounting books must be made on a timely basis, and must be complete, accurate and denoted with clear
particulars.

Corrections to any of the accounting books must be made strictly following the working rules for accounting personnel.

Article 17

In the case of Chinese-foreign co-operative joint ventures where parties to the joint ventures pay their taxes separately, combined
accounting books shall be kept in accordance with the provisions set out in Article 16 of the System in respect of assets and liabilities
and income and expenses commonly shared and borne by the parties. The parties shall also keep relevant books of their own.

Article 18

Where enterprises with foreign investment use computers in maintaining their accounting books, the software used shall conform with
the requirements provided in the System and possess functions for ensuring security and confidentiality.

Data stored in magnetic or other media shall be supported by back-up files and hard copies of the data shall be printed on a regular
basis.

Chapter IV Current Assets

Article 19

Current assets of enterprises with foreign investment shall include cash on hand, cash in bank, marketable securities, receivables,
prepayments and inventory.

Cash on hand, cash in bank and marketable securities shall be accounted for separately; receivables shall be accounted for separately
where appropriate as bills receivable, accounts receivable, short term loans receivable and other receivables; prepayments shall
be accounted for separately where appropriate as deposits to suppliers (trade deposits), income tax prepaid and expenses prepaid;
inventory shall be accounted for separately where appropriate as merchandise, raw materials, work-in-progress, semi-finished goods,
finished goods, containers and low-value consumables.

Amounts receivable after one year from the balance sheet date shall be separately disclosed below the long term investment category
in the balance sheet.

Article 20

Enterprises with foreign investment shall keep a journal for cash on hand and cash in bank and shall record each transaction on a
daily basis. Where the accounting books are maintained in multi-currencies (including foreign exchange certificates. The same definition
applies wherever reference is made to multi-currencies), different journals shall be kept for each currency.

Article 21

Marketable securities include inventory and debentures to be realized within one year from the balance sheet date and shall be accounted
for at cost. Where the cost includes an element of dividend declared or interest accrued, that portion relating to the dividend and
interest shall be accounted for as a temporary payment and disclosed under other receivables.

Dividend and interest income received or receivable from marketable securities; and profit or loss arising from disposal or liquidation
of marketable securities shall be accounted for as non-operating income or expenses being profit or loss on investments.

Article 22

Receivables and prepayments shall be separately accounted for in their originating currency.

Enterprises may make a general provision for bad debts at the end of the accounting year. The general provision should not exceed
3 % of the total receivables, such as accounts and bills receivable or loans, outstanding at the end of the accounting year.

Provision for bad debts shall be accounted for separately and stated in the balance sheet as a deduction from receivables or loans.
Where the amount of provision to be provided at the accounting year end exceeds the amount of provision already made in the accounts,
the difference shall be made up by making an additional provision in the accounts; where it is below the amount already provided
for, the balance of the provision should be adjusted downward accordingly.

Enterprises with foreign investment shall charge losses arising from bad debts to general and administrative expenses. For enterprises
which have made a provision for bad debts, any amount of bad debt to be written off shall be charged against the provision for bad
debts. Any subsequent recoveries of bad debts written off shall be credited to the provision for bad debts or general and administrative
expenses.

The write-off of bad debts shall be dealt with in accordance with relevant regulations in the People’s Republic of China.

Article 23

Inventory shall be accounted for at historical cost.

The historical cost of inventory purchased includes the purchase consideration, transportation, loading and unloading expenses, insurance,
reasonable loss incurred in transit, preparatory expenses incurred before warehousing and taxes payable. For trading and service
enterprises, the historical cost of commodities purchased includes purchase consideration and taxes payable.

The historical cost of materials manufactured, produced or excavated by the enterprise itself shall be the actual costs incurred in
the process of manufacturing, production and excavation of these materials.

The historical cost of inventory processed by third party subcontractors includes costs of raw materials or semi-finished goods actually
used together with processing charges, transportation, loading and unloading expenses, insurance and taxes payable. For trading and
service enterprises, the historical cost of commodities processed by third parties includes the cost of unprocessed materials, processing
charges and taxes payable.

The historical cost of inventory donated to the enterprise includes the price of the inventory determined based on the provisions
set out in the second paragraph of Article 49 of the System together with transportation, loading and unloading expenses, insurance
and taxes payable borne by the enterprise.

Inventory gains shall be accounted for at original historical cost or at the historical cost or at the historical cost of similar
inventory.

Where inventory is accounted for at the planned cost (or standard cost. The same definition applies wherever reference is made to
planned cost), any difference between the planned cost and historical cost shall be accounted for separately.

Article 24

Inventory shall be accounted for using the perpetual inventory method.

Merchandise, raw materials, semi-finished goods and finished-products shall be accounted for at historical cost; the historical cost
can be determined using the first-in-first-out, weighted average, moving average, last-in-first-out or batch methods. Where the planned
cost is used, the difference in cost in each period shall be taken up to adjust the budget cost of inventory acquired or delivered
to historical cost.

Low-value consumables and containers for repetitive use may be expended entirely upon incurring or amortized over two years or by
installments. Low-value consumable acquired in large quantities on commencement of business may be accounted for as other assets.

Article 25

Inventory counts shall be conducted on a regular basis but not less than once every year. Differences between the results of inventory
counts and book records shall be adjusted for as soon as possible after the reasons for such differences are identified. The adjustment
shall normally be made before the finalisation of accounts for the accounting year in which the inventory count is conducted.

Gains on inventory shall generally be used to offset relevant expenses. Losses on inventory or damages shall be charged to relevant
expenses after taking into account and compensation from person(s) causing such losses or damage or from insurance companies and
the scrap value of the inventory. Net losses as a result of extraordinary causes shall be accounted for as non-operating expenses.

At the accounting year end, where defects in or obsolescence of the merchandise, finished goods or semi-finished goods available for
sale to third parties have caused the net realizable value of the merchandise and products to be less than their book costs, such
loss may be charged to the selling expenses of the accounting year after approval is obtained from the responsible finance bureau
or other relevant supervisory authorities under the State Council. Such loss may also be charged to a provision for losses that may
arise on sale of the inventory and stated as a deduction from inventory in the balance sheet. On actual sale of inventory for which
the provision has been made, any over-provision shall be used to write down the selling expenses. Net realizable value shall be determined
based on the expected sales proceeds less any necessary processing or maintenance charges.

Chapter V Long Term Investments

Article 26

Long term investments of enterprises with foreign investment represent capital injected into other enterprises for a period of more
than one year and include cash on hand, tangible and intangible assets and shares and debentures not expected to be realized within
one year from the balance sheet date. Long term investments shall be accounted for separately and separately disclosed in the balance
sheet.

Any portion of long term investments to be realized or recoverable within one year from the balance sheet date shall be separately
disclosed under current assets in the balance sheet.

Investments in other enterprises shall be accounted for based on actual payments or based on the cost of materials or intangible assets
contributed as agreed in the investment contracts or agreements.

Investments in shares shall be accounted for based on actual payments or based on the cost of materials or intangible assets contributed
as agreed in the investment contracts or agreements including expenses related to the transactions. Where the actual payments include
dividends declared by the investing company, that portion of the dividend shall be accounted for as a temporary payment and disclosed
under other receivables in the books of the investing company.

Investments in debentures shall be accounted for based on actual payments. Where the actual payments include interest accrued, that
portion of the interest shall be accounted for as a temporary payment and disclosed under other receivables.

Where debentures are acquired at a premium or discount, the difference between the cost and the face value of the debentures shall
be amortized by installments using the straight line method or effective interest rate method over the period to maturity of the
debentures in order to adjust the interest income and the book value of the long term investments.

Any difference between the appraised values of tangible or intangible assets contributed and their book values shall be treated as
deferred investment profits or losses which shall be accounted for as non-operating income or expenses over the investment period
by equal annual installments. The balance of deferred investment profits or losses as at the accounting year end shall be separately
disclosed under other assets or other liabilities in the balance sheet.

Article 27

The cost method shall generally be used in accounting for investments in other enterprises and shares. The equity method may also
be used where an enterprise’s investment exceeds 25% of the total capital or total share capital of the invested enterprise and significance
influence can be exercised over its management.

Dividend and interest income received or receivable from long term investments; profit or loss on liquidation or assignment of long
term investments and, in the case of enterprises which equity account for long term investments, the changes in book value of long
term investments arising from any changes in the interest in the invested enterprise shall be treated as investment gains or losses
and accounted for as non-operating income or expenses.

Article 28

Funds to branches which keep their own accounts but do not pay their taxes individually shall be accounted for as funds to branches
and separately disclosed under long term investments in the balance sheet.

Funds to branches shall be accounted for at the book value of the cash, tangible or intangible assets actually contributed.

Chapter VI Fixed Assets and Work in Progress

Article 29

Fixed assets of enterprises with foreign investment shall be accounted for separately and separately disclosed in the balance sheet.
Assets under finance leases shall be accounted for separately until ownership is transferred. Assets under operating leases shall
be recorded in supporting memorandum books and shall be disclosed in the notes to the accounts.

Article 30

Fixed assets shall be accounted for at cost.

The cost of fixed assets contributed by the investors represents the amount stated in contracts, agreements, the enterprise’s application
document for incorporation or the statement of examination and receipt of fixed assets contributed including transportation, loading
and unloading expenses, insurance and taxes payable borne by the enterprise.

The cost of fixed assets purchased represents the purchase consideration including transportation, loading and unloading expenses,
insurance and taxes payable.

Cost of fixed assets manufactured and constructed by the enterprise itself represents actual expenses incurred in the manufacturing
and construction process.

The cost of fixed assets under finance leases represents the purchase consideration stated in the contracts including transportation,
loading and unloading expenses, insurance and taxes payable borne by the enterprise. Where the purchase consideration stated in the
contracts includes interest and handling charges, that portion of the interest and handling charges shall be deducted from the cost.
Such interest and handling charges need not be accounted for separately if the value of the fixed assets under finance leases is
not substantial and the term of the lease is not long.

The cost of fixed assets donated to the enterprise represents the price of the fixed assets determined based on the provisions set
out in the second paragraph of Article 49 of the System, including transportation, loading and unloading expenses, insurance and
taxes payable borne by the enterprise. For used assets, the rate of depreciation shall be estimated according to the condition of
these assets.

Surplus of fixed assets on physical counts shall be determined by the replacement cost of such assets and their rates of depreciation
shall be estimated according to the condition of these assets.

Expenses incurred in modifying fixed assets for the purpose of expansion, replacement, renovation or technological improvement may
be included under the cost of fixed assets.

Cost shall also include installation costs, if any, of the fixed assets.

Article 31

Fixed assets shall generally be depreciated using the straight line method. The production or service output method may also be used
where the straight line method is not appropriate.

Depreciation of fixed assets shall generally be determined based on the cost of fixed assets and the depreciation rate set for each
category of fixed assets. Depreciation rates may also be applied on an individual asset basis where the depreciation rate by category
is not appropriate. The rates of depreciation of fixed assets shall be determined based on their cost, estimated residual values,
which shall generally be not less than 10% of their cost, and their expected useful lives.

Accelerated depreciation shall generally be calculated using only the double reducing balance method or sum-of-digits method.

Fixed assets shall be depreciated on a monthly basis from the month following that in which the assets are used in operation. For
fixed assets which are no longer used in operation, provision for depreciation on such assets shall cease to be made from the month
following that in which the assets cease to be used. Fixed assets may continue to be used after they have been fully depreciated
during which time no further depreciation shall be required. Provision for depreciation shall also cease to be made for fixed assets
damaged before the end of their expected useful lives.

Where the cost of fixed assets is adjusted for the purpose of expansion, replacement, renovation or technological improvement, depreciation
shall be calculated after taking into account the adjusted cost, accumulated depreciation already provided, estimated residual values
and the remaining useful lives. Fixed assets used in construction work during the set-up period of the enterprise may be depreciated
in full on completion of work or be equal installments over the period of construction and the depreciation charge shall be included
in the cost of construction. In respect of fixed assets used during the set-up period but not directly related to the construction
work, the depreciation charge shall be included in pre-operating expenses. Assets under finance and operating leases shall also be
depreciated. Fixed assets, other than buildings, idle for a long period shall not be depreciated.

Accumulated depreciation shall be accounted for separately and separately disclosed as a deduction under fixed assets in the balance
sheet. Accumulated depreciation for fixed assets under finance leases shall be accounted for separately.

Article 32

A physical count of fixed assets shall be made on a regular basis, at least once every year. Differences between the physical count
results and book records shall be adjusted for as soon as possible after the reasons for such differences are identified. The adjustment
shall normally be made before the finalisation of accounts for the accounting year in which the physical count of assets is conducted.
Any surplus of fixed assets identified on physical counts shall be accounted for as operating income at an amount equal to their
cost less accumulated depreciation while losses shall be accounted for as operating expenses at an amount equal to their cost less
accumulated depreciation and any compensation from person(s) causing such losses or from insurance companies. Surplus and shortage
of fixed assets on physical counts during the construction period shall be included in the related construction cost.

Net profit or losses on disposals of fixed assets arising from sale, obsolescence or damage shall be accounted for as non-operating
income or expenses. Net profit or losses on the disposal of fixed assets arising during the period of construction shall be accounted
for as part of the construction cost.

During the set-up period of the enterprise, surplus or shortage of fixed assets on physical counts or on disposals not directly related
to any construction work, and profits or losses on disposals of fixed assets as a result of extraordinary causes shall be accounted
for as pre-operating expenses.

Article 33

Construction in progress of enterprises with foreign investment shall include preparation work before commencement of the construction,
work under construction, and construction and installation work completed but not yet used in operation. Construction in progress
shall be accounted for separately and separately disclosed in the balance sheet.

Where the period of construction exceeds one year, and construction items are numerous and construction cost is substantial, construction
items may be accounted for separately. Construction in progress shall be accounted for on the following basis:

materials used in construction — provisions out in Article 23 of the System;

equipment to be installed — provisions set out in Article 30 of the System;

payment on account to contractors — the actual amount paid;

management expenses of the construction work — the actual management expenses incurred;

construction work undertaken by the enterprise itself — the direct materials, direct labour, direct mechanical work expenses and
attributable management expenses;

construction work undertaken by third party subcontractors — the amount paid to subcontractors and attributable management expenses;

installation of equipment — the cost of equipment including installation charges, trial run expenses and attributable management
expenses.

Equipment acquired or invested during the set-up period of the enterprise but not yet installed may also be accounted for as construction
in progress.

Article 34

Where there is spoilage or damage to the construction in progress, net losses resulting shall generally be accounted for as part of
the cost of construction in progress after deduction of the residual value and compensation from person(s) causing such losses or
from insurance companies. Net losses arising from spoilage or damage as a result of extraordinary causes shall be accounted for as
pre-operating expenses if the construction is undertaken during the set-up period and accounted for as non-operating expenses if
the asset has already been used in operation.

Net expenses arising from trial runs before the asset is used in operation shall be accounted for as part of the cost of construction
in progress. Where products produced during trial runs can be sold to third parties, the actual or estimated sale proceeds shall
be deducted from the cost of construction in progress.

Article 35

When the construction of an asset is completed and it is used in operation but the total cost of the asset is yet to be determined,
the asset shall be transferred to fixed assets at the estimated value based on the budgeted price or cost of the work, and shall
be depreciated according to the provisions set out in Article 31 of the System. The estimated value of the asset and its accumulated
depreciation shall be adjusted for after the actual cost of the asset is ascertained.

Chapter VII Intangible and Other Assets

Article 36

Intangible assets of enterprises with foreign investment include patents, proprietary technology, patents and trademarks, land occupancy
rights and other intangible assets, and shall be accounted for separately and separately disclosed in the balance sheet.

Intangible assets contributed by the investors shall be accounted for at the amount specified in the contracts, agreements or the
enterprise’s application document for incorporation including related expenses borne by the enterprise.

Intangible assets acquired by the enterprises shall be accounted for at cost.

Article 37

Intangible assets shall be amortized by equal installments over the beneficiary period from the time the enterprise starts deriving
beneficiary period from the intangible assets or, where there is no specified beneficiary period, over the estimated beneficiary
period.

Article 38

Other assets of enterprises with foreign investment include pre-operation expenses, exchange losses during the set-up period, deferred
investment losses and other deferred expenses to be amortized by installments, and shall be accounted for separately and separately
disclosed in the balance sheet.

Pre-operating expenses shall be accounted for based on cost incurred in relation to business registration fees, wages and salaries,
business trip expenses, staff training expenses, expenses incurred by the board of directors (or a joint management committee. The
same definition applies wherever reference is made to the board of directors.) and other expenses not included in the purchase or
construction of fixed assets or intangible assets.

Exchange losses during the set-up period shall be accounted for based on the amounts realized during the set-up period.

Deferred investment losses shall be accounted for based on the difference between the appraised value and the book value of the investments.

Deferred expenses shall be accounted for based on actual expenses incurred.

Article 39

Other fixed assets shall be amortized on the following basis:

Pre-operating expenses and exchange losses during the set-up period — by equal installments over a period of not less than 5 years
from the date the enterprise commences operation

Deferred investment losses — by equal installments over the investment period but not less than 10 years

Other deferred expenses — by equal installments over the estimated beneficiary period but not less than 10 years

Chapter VIII Current Liabilities, Long Term Liabilities and Other Liabilities

Article 40

Current liabilities of enterprises with foreign investment include short term borrowings, payables, deposits from customers (advance
deposits) and accrued expenses.

Short term borrowings, deposits from customers (advance deposits) and accrued expenses shall be accounted for separately. Payables
shall be accounted for separately where appropriate as bills payable, accounts payable, accrued payroll, tax payable, dividend payable
and other payables. Current liabilities denominated in multi-currencies shall be individually accounted for in their originating
currencies.

Staff and workers’ bonus and welfare fund and other funds, which are liabilities in nature, shall be accounted for as current liabilities.

Amounts payable after one year from the balance sheet date shall be separately disclosed under long term liabilities in the balance
sheet.

Article 41

Long term liabilities of enterprises with foreign investment include long term borrowings, redeemable bonds and amounts payable under
finance leases, and shall be accounted for separately and separately disclosed in the balance sheet.

Long term liabilities repayable within one year from the balance sheet date shall be separately disclosed under current liabilities
in the balance sheet.

Article 42

Redeemable bonds shall be accounted for based on the face value of the bonds issued. The difference between the proceeds of issue
and the face value of the bonds shall be accounted for as the premium or discount on issue and shall be accounted for separately
and separately disclosed as an addition to or a deduction from the redeemable bonds account in the balance sheet. Accrue

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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

PROVISIONAL RULES ON ADMINISTRATION OF ALLOCATED LAND USE RIGHT

DECISION OF THE CENTRAL COMMITTEE OF THE COMMUNIST PARTY OF CHINA AND THE STATE COUNCIL ON ACCELERATING DEVELOPMENT OF TERTIARY INDUSTRY

CIRCULAR OF THE STATE COUNCIL CONCERNING THE PILOT PROJECT FOR NATIONAL TOURIST VACATION AREAS

PROVISIONS FOR ENCOURAGING DOMESTIC AND FOREIGN INVESTMENTS IN TIBET

REGULATIONS FOR IMPLEMENTATION OF THE ASSEMBLIES, PROCESSIONS AND DEMONSTRATIONS

MEASURES OF THE CUSTOMS OF PEOPLE’S REPUBLIC OF CHINA ON THE CONTROL OVER AND THE LEVY AND EXEMPTION OF TAX FOR IMPORT AND EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

PROVISIONS OF THE BEIJING MUNICIPAL PEOPLE’S GOVERNMENT FOR THE DEVELOPMENT AND MANAGEMENT OF REAL ESTATE BY FOREIGN INVESTORS

PROVISIONS ON THE CONTROL OF MARITIME NAVIGATIONAL WARNINGS AND NAVIGATIONAL NOTICES

ACCOUNTING SYSTEM OF THE PEOPLE’S REPUBLIC OF CHINA FOR ENTERPRISES WITH FOREIGN INVESTMENT

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7