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1998

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

The Standing Committee of the National People’s Congress

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

No.65

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

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

November 7, 1992

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

Chapter II Guarantees for Satefy in Mine Construction

Chapter III Guarantees for Safety in Exploitation of Mines

Chapter IV Safety Managment of Mining Enterprises

Chapter V Supervision and Control over Safety inMines

Chapter VI Disposition of Accidents in Mines

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

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

Article 2

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

Article 3

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

Article 4

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

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

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

Article 5

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

Article 6

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

Chapter II Guarantees for Satefy in Mine Construction

Article 7

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

Article 8

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

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

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

Article 9

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

(1)

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

(2)

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

(3)

electricity supply system;

(4)

hoisting and transportation systems;

(5)

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

(6)

gas control system and dust control system;

(7)

other items concerning safety in mines.

Article 10

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

Article 11

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

Article 12

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

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

Chapter III Guarantees for Safety in Exploitation of Mines

Article 13

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

Article 14

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

Article 15

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

Article 16

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

Article 17

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

Article 18

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

(1)

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

(2)

gas blast and coal dust explosion;

(3)

bumps, gas outburst and blowout;

(4)

fire and flood on surface and underground;

(5)

perils arising from demolition apparatus and demolition operations;

(6)

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

(7)

other perils.

Article 19

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

Chapter IV Safety Managment of Mining Enterprises

Article 20

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

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

Article 21

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

Article 22

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

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

Article 23

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

Article 24

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

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

Article 25

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

Article 26

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

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

Article 27

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

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

Article 28

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

Article 29

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

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

Article 30

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

Article 31

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

Article 32

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

Chapter V Supervision and Control over Safety inMines

Article 33

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

Article 34

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

to investigate and deal with serious accidents in mines; and

(6)

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

Article 35

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

Chapter VI Disposition of Accidents in Mines

Article 36

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

Article 37

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

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

Article 38

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

Article 39

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

Chapter VII Legal Responsibilities

Article 40

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

Article 41

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

Article 42

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

Article 43

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

Article 44

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

Article 45

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

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

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

Article 46

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

Article 47

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

Article 48

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

Chapter VIII Supplementary Provisions

Article 49

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

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

Article 50

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



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

 






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

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


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



(March 9, 1992)

    People’s Government of Hainan Province:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                  





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

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


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



(June 9, 1992)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





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

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

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

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

Article 1

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

Article 2

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

Article 3

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

(1)

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

(2)

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

(3)

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

(4)

Branches established in China by foreign banks, and

(5)

Other production and business permitted by the State.

Article 4

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

Article 5

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

(1)

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

(2)

Documents and certificates approved by the examination and approval authorities.

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

(3)

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

(4)

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

(5)

Certificate of capital creditability of foreign enterprises,

(6)

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

(7)

Other relevant documents

Article 6

Main items about the registration of the foreign enterprises: name of enterprise, catalogue of enterprise, address, director, amount
of the fund, business scope, and period of business.

Name of enterprise refers to the name of the foreign enterprise stated in the legitimate certificate of operation, and it shall be
consistent with the name in the contract signed by the foreign enterprise for production and business. When foreign banks establish
branches in China, they shall name the branches after their own names with the name of the sites where the branches are located and
“branch”.

Catalogue of enterprise refers to divisions determined by the different elements of production and business that foreign enterprises
are engaged, and the types are: exploration and exploitation of mineral resources, contract projects, foreign-funded banks and contract
operation and management.

Address of enterprise refers to the sites where foreign enterprises are engaged in production and operation within the territory of
China. If the residences of the foreign enterprises within the territory of China are inconsistent with the sites of their business,
then they shall register both.

Director of enterprise refers to the project director designated by the chairperson of the board of directors or the general manager
of the foreign enterprise.

Amount of the fund refers to the total expense of the foreign enterprise for production and business, such as the total amount of
the contract, the accumulative expense of management of the foreign enterprise contracted or entrusted to operate and manage foreign-invested
enterprises during its period of management, the expense for exploration, exploitation, production and operation in the cooperation
of oil exploitation, operation funds of the branches of the foreign banks.

Business scope refers to the scope of production and business conducted by foreign enterprises within the territory of China. Period
of business refers to the period of production and business conducted by foreign enterprises within the territory of China.

Article 7

Administrative departments of registration shall decide whether or not they will approve the registration within 30 days upon their
acceptance of the applications submitted by foreign enterprises. Upon the approval, the administrative departments shall issue Business
licenses to them.

Article 8

Based on the different categories of production and operation foreign enterprises are engaged in, the term of validity of “Business
Licenses” shall be checked and ratified respectively in accordance with the following terms:

(1)

For foreign enterprises engaged in the exploration and exploitation of mineral resources, the term of validity of their Business Licenses
will be checked and ratified in line with the terms of exploration, exploitation and production.

(2)

For branches set up by foreign banks, the term of validity of their Business Licenses is 30 years, and the licenses shall be renewed
every 30 years. And

(3)

For foreign enterprises engaged in other production and business, the term of validity of their Business Licenses shall be checked
and ratified based on the term of operation specified in their contracts.

Article 9

Foreign enterprises shall conduct business within the scope of production and business checked and ratified by the administrative
departments of registration. Their legitimate rights and interests and business are protected by Chinese laws. Foreign enterprises
may not conduct production and business beyond the scope of production and business checked and ratified by the administrative departments
of registration.

Article 10

If foreign enterprises change their registration items, they shall apply to the administrative departments of registration for making
changes in their registration within 30 days.

The procedures for handling the changes in registration and the documents and the certificates required to be submitted shall follow
the provision in Article Five of these Measures.

Article 11

If foreign enterprises do not intend to apply for an extension of the registration at the expiration of the term of validity of the
Business Licenses, or if they discontinue their contracts or agreements ahead of time, they shall apply to the original administrative
departments of registration for cancellation of registration.

Article 12

When applying for cancellation of registration, foreign enterprises shall submit the following documents or certificates:

(1)

Applications for cancellation of registration signed by the chairperson of the board of directors or the general manager of the foreign
enterprises;

(2)

Business Licenses, their duplicates and official seals;

(3)

Certificates showing the completion of taxes issued by the customs and taxation departments; and

(4)

Documents of approval on the applications for foreign enterprises’ cancellation of registration issued by the competent departments
in charge of their projects.

When checking and ratifying the foreign enterprises’ cancellation of registration, the administrative departments of registration
shall recall Business Licenses, their duplicates, official seals, cancel the register numbers, and notify relevant banks, such departments
as taxation and customs and so on.

Article 13

Foreign enterprises shall pay registration fees when they register for business or for changes in registration. The fee standard
for registration shall follow the provisions stipulated in Notification of the fee standard for the registration of enterprises as
legal persons issued by the Ministry of Finance, the State Price Bureau and the State Administration for Industry and Commerce.

Article 14

Branches of foreign banks, foreign enterprises engaged in business management and that engaged in the exploration and exploitation
of mineral resources shall receive annual check-up in the original administrative departments of registration before May every year.
When receiving annual check-up, they shall submit Business Licenses, their duplicates, reports on last year’s production and business,
etc.

Article 15

Chinese enterprises that have signed contracts for production and business with foreign enterprises may notify timely the administration
departments of registration of cooperation projects, contents and time, and assist the foreign enterprises in going through business
registration, registration for changes, and cancellation of registration. If the Chinese enterprises fail to perform their duty,
they shall bear commensurate responsibilities.

Article 16

What the administrative departments of registration mainly supervise and administer the foreign enterprises are as follows:

(1)

To supervise the foreign enterprises in going through business registration, registration for changes, and cancellation of registration
according to these Measures;

(2)

To supervise the foreign enterprises in conducting production and business within the scope of business checked and ratified by the
administrative departments of registration;

(3)

To supervise the foreign enterprises to receive annual check-up; and

(4)

To supervise the foreign enterprises to conform with Chinese laws and regulations.

Article 17

If foreign enterprises violate these Measures, the administrative departments of registration shall investigate and punish them in
accordance with the articles concerning punishment of the Regulations of the People’s Republic of China for Controlling the Registration
of Enterprises as Legal Persons and Rules for Implementation thereof.

Article 18

Enterprises from Hong Kong, Macao, and Taiwan engaged in the above-mentioned production and business shall follow these Measures.
Foreign enterprises with contracts for business management over domestic enterprises shall follow these Measures.

Article 19

The State Administration for Industry and Commerce is responsible for the interpretation of these Measures.

Article 20

These Measures shall take effect from October 1, 1992.



 
The State Administration for Industry and Commerce
1992-08-15

 






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

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


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



(November 10, 1992)

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

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

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

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

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

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

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

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

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

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

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

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

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





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

 






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.

    





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.





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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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