PROVISIONS FOR ENCOURAGING DOMESTIC AND FOREIGN INVESTMENTS IN TIBET

Provisions for Encouraging Domestic and Foreign Investments in Tibet

(Effective Date:1992.07.14–Ineffective Date:)

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

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

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

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

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

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

(2) Purchases of stocks and bonds.

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

(4) Technical cooperation, transfer, and contracting.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

REGULATIONS FOR IMPLEMENTATION OF THE ASSEMBLIES, PROCESSIONS AND DEMONSTRATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) convicted persons serving their sentences;

(3) persons undergoing rehabilitation through labor; or

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The General Administration of Customs

Decree of the General Administration of Customs

No.29

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

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

Director of the General Administration of Customs: Dai Jie

July 25, 1992

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

Chapter 1 General Provisions

Article 1

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

Article 2

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

Article 3

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

Article 4

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

Article 5

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

Chapter 2 Procedures for the Recording of Customs Clearance Basis

Article 6

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

Article 7

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

Article 8

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

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

Article 9

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

Article 10

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

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

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

Article 11

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

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

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

Chapter 3 Provisions on Taxing Import and Export Goods

Article 12

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

Article 13

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

(1)

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

(2)

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

(3)

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

Article 14

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

Article 15

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

Article 16

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

Article 17

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

Article 18

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

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

(1)

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

(2)

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

(3)

machinery, equipment and other materials for 5 years

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

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

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

Article 19

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

Article 20

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

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

Article 21

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

Article 22

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

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

Article 23

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

Article 24

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

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

Article 25

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

Article 26

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

Article 27

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

Chapter 5 Mortgage, Bankruptcy and Liquidation

Article 28

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

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

Article 29

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

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

Article 30

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

Article 31

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

(1)

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

(2)

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

(3)

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

Article 32

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

Chapter 6 Supplementary Provisions

Article 33

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

Article 34

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

Article 35

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

Article 36

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

Article 37

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

Article 38

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

Attachment:(omitted)

The General Administration of Customs
1992-08-22

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

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

(Effective Date:1992.11.20–Ineffective Date:)

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

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

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

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

3. High-grade residential and office buildings.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PROVISIONS ON THE CONTROL OF MARITIME NAVIGATIONAL WARNINGS AND NAVIGATIONAL NOTICES

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

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

(December 22, 1992)

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

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

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

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

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

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

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

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

(1) Changing navigation lanes or troughs;

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

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

(4) Salvaging sunken ships or objects;

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

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

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

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

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

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

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

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

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

The written application shall include the following:

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

(2) The content and form of the activity;

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

(4) The area of the activity; and

(5) Safety measures.

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

The written application shall include the following:

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

(2) The time for beginning of the towing;

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

(4) The total length of the tow; and

(5) The navigational speed.

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

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

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

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

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

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

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

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

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

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

(1) Placement, adjustment or removal of anchorages;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

20020201

The Ministry of Finance

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

the Ministry of Finance

June 24,1992

Chapter I General Provisions

Article 1

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

Article 2

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

Article 3

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

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

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

Chapter II Accounting Practices and Principles

Article 4

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

Article 5

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

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

Article 6

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

Article 7

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

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

Article 8

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

Article 9

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

Article 10

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

Article 11

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

Chapter III Book Keeping and Accounting Books

Article 12

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

Article 13

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

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

Article 14

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

Article 15

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

Article 16

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

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

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

Article 17

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

Article 18

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

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

Chapter IV Current Assets

Article 19

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

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

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

Article 20

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

Article 21

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

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

Article 22

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

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

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

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

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

Article 23

Inventory shall be accounted for at historical cost.

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

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

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

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

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

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

Article 24

Inventory shall be accounted for using the perpetual inventory method.

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

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

Article 25

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

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

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

Chapter V Long Term Investments

Article 26

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

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

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

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

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

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

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

Article 27

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

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

Article 28

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

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

Chapter VI Fixed Assets and Work in Progress

Article 29

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

Article 30

Fixed assets shall be accounted for at cost.

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

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

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

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

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

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

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

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

Article 31

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

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

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

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

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

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

Article 32

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

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

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

Article 33

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

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

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

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

payment on account to contractors — the actual amount paid;

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

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

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

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

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

Article 34

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

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

Article 35

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

Chapter VII Intangible and Other Assets

Article 36

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

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

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

Article 37

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

Article 38

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

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

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

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

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

Article 39

Other fixed assets shall be amortized on the following basis:

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

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

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

Chapter VIII Current Liabilities, Long Term Liabilities and Other Liabilities

Article 40

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

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

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

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

Article 41

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

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

Article 42

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

OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE ESTABLISHMENT OF THE KUNSHAN ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE

Category	SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-08-22	Effective Date	1992-08-22

Official Reply of the State Council Concerning the Establishment of the Kunshan Economic and Technological Development Zone

(August 22, 1992)

People’s Government of Jiangsu Province:

The Report on the Request for the Listing of the Kunshan Economic and
Technological Development Zone in the Catalogue of National Development Zones,
submitted by your Province, has been received. We hereby make an official
reply as follows:

The State Council has agreed to establish the Kunshan Economic and
Technological Development Zone, in which the policies, regarding levying the
income tax on enterprises with foreign investment of a production nature in
Economic and Technological Development Zones of open coastal cities at a
reduced rate of 15 percent, shall apply, but in which other policies in
Economic and Technological Development Zones of open coastal cities shall not
be cited as precedents.

The planned area of the Kunshan Economic and Technological Development
Zone is 10 square kilometers, of which a 5 square kilometers area is to be
developed at the first phase. Its detailed scope shall be verified by the
Special Economic Zones Office under the State Council in consultation with
other relevant departments.

PROVISIONS ON SEARCH AND RESCUE OF CIVIL AIRCRAFT

Category	CIVIL AVIATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-12-28	Effective Date	1992-12-28

Provisions of the People’s Republic of China on Search and Rescue of Civil Aircraft

Chapter I  General Provisions
Chapter II  Preparations for Search and Rescue
Chapter III  Conduct of Search and Rescue
Chapter IV  Penalty
Chapter V  Supplementary Provisions

(Approved by the State Council on December 8, 1992 and promulgated by

Decree No. 29 of the Civil Aviation Administration of China on December 28,
1992)
Chapter I  General Provisions

Article 1 These Provisions are formulated to meet the requirements for
timely and efficient search and rescue of civil aircraft in emergency, so as
to obviate or minimize the casualties of persons and loss of property.

Article 2 These Provisions are applicable to the search and rescue of all
civil aircraft in the territory of the People’s Republic of China, and on such
portion of the high seas where China shall undertake such search and rescue
operations as stipulated in the international treaties concluded or acceded to
by the People’s Republic of China.

Article 3 In addition to the application of these Provisions, the search
and rescue of civil aircraft on the sea shall comply with the other provisions
governing search and rescue on the sea prescribed by the State Council.

Article 4 The search and rescue of civil aircraft shall be conducted in
accordance with the following division of labour:

(1) The Civil Aviation Administration of China (hereinafter referred to as
CAAC) shall be responsible for the overall direction of the search and rescue
of civil aircraft in the country;

(2) The people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall be responsible for
the search and rescue of civil aircraft on land within their respective
administrative areas, and CAAC regional administrations (hereinafter referred
to as CARA) shall assist in such operations;

(3) The national maritime search and rescue service shall be responsible
for the search and rescue of civil aircraft on the sea and the departments
concerned shall render support thereto.

Article 5 The CAAC Search and Rescue Coordination Centre and CARA search
and rescue coordination centres shall undertake to coordinate the search and
rescue of civil aircraft on and over the land.

Article 6 The Civil Aviation Search and Rescue Area of the People’s
Republic of China covers the territory of the People’s Republic of China and
such portion of the high seas where China shall undertake search and rescue
operations as stipulated in the international treaties concluded or acceded to
by the People’s Republic of China. The Civil Aviation Search and Rescue Area
shall be divided into several regional civil aviation search and rescue areas,
the delineation of which shall be published by CAAC.

Article 7 The civil aviation shall be the main force in search and rescue
missions when aircraft is used, and in cases where civil aviation is
inadequate in force, the armed forces shall dispatch aircraft in support of
such missions.

Article 8 In order to perform the urgent mission of the search and rescue
of civil aircraft, all localities, departments, units and personnel concerned
must take initiative in active coordination and fulfil the mission with all
efforts. Those units and individuals making outstanding achievements in search
and rescue operations shall be awarded by the organs at higher levels.
Chapter II Preparations for Search and Rescue

Article 9 Each CARA shall work out a programme for the search and rescue
of civil aircraft on and over the land by aircraft. The programme, after being
approved by CAAC, shall be submitted to the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government
for file.

Article 10 The maritime search and rescue services of coastal provinces,
autonomous regions and municipalities directly under the Central Government
shall work out a programme for the search and rescue of civil aircraft by
vessels and aircraft at sea. The programme, after being approved by the
national maritime search and rescue service, shall be submitted to the
people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government and CAAC for file with copies to CARAs
concerned at the same time.

Article 11 The programme of search and rescue of civil aircraft shall
contain the following provisions:

(1) provisions concerning the units to conduct search and rescue
operations by aircraft and vessels, the types of aircraft and vessels, and the
preparedness for the operations;

(2) provisions concerning the airports to be used by aircraft and ports to
be used by vessels, the area for the search and rescue operations, and the
services in support of such operations;

(3) provisions concerning the coordination between the vessels and the
aircraft conducting the search and rescue operations on the sea;

(4) provisions concerning the request through consultation for local
garrison to dispatch aircraft or vessels to support the search and rescue
operation when the force of civil aviation conducting the operation is
inadequate.

Article 12 The CARAs and the maritime search and rescue services of
coastal provinces, autonomous regions and municipalities directly under the
Central Government shall organize periodical search and rescue exercises in
the light of approved programmes.

Article 13 The communications used in the search and rescue of civil
aircraft shall conform to the following provisions:

(1) The civil aviation air traffic control units and the aircraft
undertaking search and rescue mission shall be equipped with communication
facilities with aeronautical emergency frequency 121.5 MHz, and are to be
equipped, step by step, with communication facilities with aeronautical
emergency frequency 243 MHz;

(2) Aircraft undertaking search and rescue mission on the sea shall be
equipped with communication facilities with distress frequency 2,182 KHz;

(3) Some of the aircraft undertaking search and rescue mission shall be
equipped with homing devices so as to enable themselves to home in on the
emergency location beacon of aircraft in distress according to its
transmission signals, and in addition, with the facilities to communicate with
search and rescue vessels on modulation frequency 156.8 MHz.

Article 14 CARA search and rescue coordination centres shall establish
direct communication with the maritime search and rescue services of relevant
provinces, autonomous regions and municipalities directly under the Central
Government.

Article 15 The units conducting search and rescue mission shall be
responsible for preparing the survival supplies to be airdropped to personnel
in distress in accordance with the following stipulations:

(1) medical and first aid supplies_red;

(2) food and water_blue;

(3) protective clothing and blankets_yellow;

(4) other supplies_black;

(5) mixed supplies in the same container or package_mixed colours.

Instructions on the use of survival supplies shall be enclosed in each
container or package in Chinese, English and another optional language.
Chapter III Conduct of Search and Rescue

Article 16 Any unit or person having observed or listened in to the
emergency of a civil aircraft shall immediately notify and CARA search and
rescue coordination centre concerned;when the position of the civil aircraft
in emergency is found on land, the local government shall be notified at the
same time; when it is at sea, the local maritime search and rescue service
shall be notified at the same time.

    Article 17  Upon receiving the information of a civil aircraft in
emergency, the CARA search and rescue coordination centre must make a
judgement immediately and take search and rescue measures in accordance with
the provisions of Article 19, Article 20 and Article 21,  as  appropriate, of
these Provisions, and report or notify thereon  to  the CAAC Search and Rescue
Coordination Centre and units concerned in time accordingly.

Article 18 The state of emergency of a civil aircraft referred to in
these Provisions is classified into the following three phases:

(1) Uncertainty phase refers to a situation where uncertainty exists as to
the safety of a civil aircraft, including such cases where:

(i) the air traffic control unit cannot establish communication with the
civil aircraft in prescribed time;

(ii) the civil aircraft does not land within prescribed time, and with no
other information available.

(2) Alert phase refers to a situation where apprehension exists as to the
safety of a civil aircraft, including such cases where:

(i) the air traffic control unit still cannot establish contact with a
civil aircraft in uncertainty phase;

(ii) the operating capability of the civil aircraft has been impaired, but
not yet to the extent that a forced landing is likely;

(iii) communication has not been reestablished with the civil aircraft
which has been cleared to land and the aircraft has failed to land within five
minutes of the estimated time of landing.

(3) Distress phase refers to a situation where there is a reasonable
certainty that a civil aircraft is threatened by grave and imminent danger and
consequently requires immediate rescue, including such cases where:

(i) it is difficult for the civil aircraft in alert phase to proceed
further according to calculation of fuel consumption;

(ii) the operating capability of the civil aircraft has been gravely
impaired to the extent that a forced landing is likely;

(iii) the civil aircraft has made a forced landing or has crashed.

Article 19 With regard to civil aircraft in uncertainty phase, the CARA
search and rescue coordination centre shall:

(1) determine the area to be searched in the light of specific conditions;

(2) notify to activate relevant facilities such as aeronautic stations,
radio navigation aids, direction finders and radars with a view to locating
the aircraft;

(3) establish contact with the civil aircraft as soon as possible and take
necessary measures.

Article 20 With regard to civil aircraft in alert phase, the CARA search
and rescue coordination centre shall:

(1) alert immediately the units concerned;

(2) require the aircraft and vessels undertaking the search and rescue
mission to be immediately on the alert;

(3) urge the checking of all electronic facilities, and continue to
establish contact with and search for the civil aircraft in uncertainty phase;

(4) organize the guidance of the civil aircraft to land at the nearest
airport in accordance with the extent of the impairment of its operating
capability and the opinion of the pilot-in-command;

(5) promptly find out, jointly with the airport where the civil aircraft
is to land, the situation of the aircraft which has been cleared to land but
failed to land within five minutes of the estimated time of landing, and take
necessary measures.

Article 21 With regard to civil aircraft in distress phase, the CARA
search and rescue coordination centre shall:

(1) notify immediately the units concerned that a civil aircraft is in
distress;

(2) estimate by analysis the possible distressed area of the civil
aircraft which has run out of fuel and the position of which is still unknown,
and notify search and rescue units to send people or dispatch aircraft and
vessels to conduct immediate search and rescue operations;

(3) notify the search and rescue units to dispatch aircraft to escort the
civil aircraft, the operating capability of which has been impaired so gravely
that a forced landing is likely, or dispatch people or aircraft and vessels to
the predetermined site of forced landing to conduct rescue operations;

(4) report immediately to the people’s governments of the relevant
provinces, autonomous regions and municipalities directly under the Central
Government when the position of the civil aircraft having made a forced
landing or having an accident is on land; when the position is at sea, notify
immediately the maritime search and rescue services of relevant coastal
provinces, autonomous regions and municipalities directly under the Central
Government.

Article 22 Upon receiving the report or notification of the forced
landing or accident of a civil aircraft, the people’s governments of the
relevant provinces, autonomous regions and municipalities directly under the
Central Government or the maritime search and rescue services of the relevant
coastal provinces, autonomous regions and municipalities directly under the
Central Government shall immediately organize the departments concerned and
the local garrison to conduct search and rescue operations, and designate a
personincharge at the scene of accident.

Article 23 The main duties of the person-in-charge at the scene of
accident are as follows:

(1) to organize the rescue of survivors;

(2) to take measures to deter the civil aircraft from bursting into fire
or to extinguish the fire;

(3) carefully to protect the scene of accident of the civil aircraft, the
scene that has to be disrupted for the rescue of personnel or fire fighting
shall be photographed or videotaped;

(4) carefully to protect the distressed civil aircraft and the property of
its occupants.

Article 24 Prior to the arrival of the designated person-in-charge at the
scene of accident, the competent person of the rescue unit that first arrives
at the scene shall act as provisional person-in-charge at the scene and
exercise the duties provided in Article 23 of these Provisions, and shall be
responsible to hand over the work to the person-in-charge at the scene after
the latter’s arrival.

Article 25 The CARA search and rescue coordination centre shall manage to
notify the crew of the civil aircraft in emergency of the rescue measures
already taken.

Article 26 Radio communication shall be used to establish contact among
the aircraft and vessels conducting search and rescue mission, survivors and
search and rescue teams. In case of non-availability of such equipment or the
failure of radio communication, international search and rescue signals as
stipulated in the Appendix to these Provisions shall be used for
communication.

Article 27 If the state of emergency of a civil aircraft no longer exists
or if the search and rescue operation may be terminated, the CARA search and
rescue coordination centre shall timely issue closure notification of the
state of emergency to units concerned in accordance with prescribed
procedures.
Chapter IV Penalty

Article 28 Whoever violates of these Provisions by one of the following
acts shall be subjected to administrative sanction by the unit where he
serves, or by a higher authority. Where the offence constitutes a crime, the
criminal responsibility shall be investigated according to law:

(1) Great losses have been incurred due to the failure to act actively and
to coordinate with each other in performing the search and rescue mission;

(2) Losses have been aggravated due to the failure to actively perform his
duties or to obey directions;

(3) Losses have been incurred due to neglect of duty, improper judgement
on the state of emergency of a civil aircraft, improper disposition of the
emergency or forfeit of chance.
Chapter V Supplementary Provisions

Article 29 The expenses incurred by aircraft conducting search and rescue
missions may be subsidized by the State. Detailed method of subsidy shall be
formulated by the department concerned in conjunction with the financial
department through consultation.

Article 30 CAAC shall be responsible for the interpretation of these
Provisions.

Article 31 These Provisions shall go into effect as of the date of
promulgation.

REGULATIONS ON ENCOURAGEMENT OF FOREIGN INVESTMENT OF HUNAN PROVINCE

Regulations on Encouragement of Foreign Investment of Hunan Province

(Effective Date:1992.02.15–Ineffective Date:)

Article 1. With a view to improve investment environment, absorb more investment from foreign corporations, enterprises and other economic organizations
and individuals (hereinafter referred to as foreign investors) and promote the province’s economic development, these regulations
are formulated in accordance with relevant laws and administrative regulations and with reference to the concrete conditions of the
province.

Article 2. These regulations are to be put into effect by governments at the county level or higher.

The foreign economic relations and trade departments of governments at the county level or higher are in charge of the work of absorbing
foreign investment in areas under their jurisdiction. All departments concerned including those of planning, economic, taxation,
industrial and commerce administration, banks, foreign exchange control, customs, commodity inspections and insurance shall try their
best to help promote such a work within their assigned duties.

Article 3. Apart from State-formulated preferential treatments, foreign investors shall enjoy additional preferences in the province in accordance
with these regulations and their legal rights and interests shall be protected by Chinese law.

Foreign investors in the province shall abide by Chinese laws.

Article 4. Foreign investors may invest in all parts of the province.

Foreign investments are especially encouraged in:

economic and technical development zones and high and new technological development zones;

basic industries and infrastructure such as energy, communications and raw materials and development-oriented projects in agriculture,
forestry and animal husbandry in line with the national industrial policy;

export-oriented and technically advanced enterprises and technical renovations of existing productive firms.

Article 5. Foreign investors may take the following forms in their investment:

a. To establish fully foreign-funded enterprises;

b. To establish Sino-foreign joint-equity or Sino-foreign cooperative enterprises;

c. To engage in processing and assembling with customer’s materials and parts and compensatory trade; and

d. To engage in State-permitted land development, enterprise leasing operation and other forms.

Article 6. Foreign investors may contribute their respective investments in cash, kind, industrial property rights, proprietary technology and
other property rights.

Article 7. Formalities for foreign investment application shall be simplified and such application shall be examined and approved timely. The
authority and procedures for such examination and approval are to be defined by the provincial people’s government.

Article 8. Foreign-funded, Sino-foreign joint-equity and Sino-foreign cooperative enterprises (hereinafter referred to as foreign-funded enterprises)
which comply with Chinese regulations for legal person, upon approval by administrations of industry and commerce, shall obtain the
status of Chinese legal person.

Article 9. Foreign investors may appoint their relatives or friends in China as their agents.

Foreign investors may recommend that their relatives or friends in China be employed in the enterprises where they invest.

Article 10. Relevant departments shall preferentially arrange water and power supply, transport and telecommunications facilities needed by foreign-funded
enterprises for operation and charge them on a par with local State-owned enterprises. Fuel and raw materials which need to be supplied
by the Chinese partner will be preferentially provided by goods and materials departments.

Article 11. Chinese partner of Sino-foreign joint-equity and Sino-foreign cooperative enterprises may apply for bank loans to make up for the
deficiency between its pledged investment and self-raised funds.

Short-term circulating loans and other necessary credits needed by foreign-funded enterprises in the process of production and circulation,
upon approval banks, may be extended in priority.

Article 12. Machines, equipment, parts, vehicles for productive purposes and other goods and materials imported by foreign-funded enterprises
as investment are exempted from Customs duty and consolidated industrial and commercial tax in accordance with Chinese regulations.

Machinery, vehicles for productive purposes, raw materials, fuel, loose parts, parts, elements and components and supplementary parts
imported by foreign-funded enterprises to fulfill product export contracts are exempted from import licences, Customs duty and consolidated
industrial and commercial tax.

Apart from those controlled by the State, export products produced by foreign-funded enterprises are exempted from Customs duty and
consolidated industrial and commercial tax.

Article 13. Productive foreign-funded enterprises with operational terms of more than ten years are exempted from local taxes for ten years and
non-productive ones for five years.

Enterprises engaged in energy, transport infrastructure and raw materials and enterprises established in economic and technical development
zones and high and new technological development zones are exempted from local taxes.

Article 14. Export-oriented enterprises after the period of exemption of income tax in accordance with Chinese regulations, whose exports account
from more than 70% of the total output value in the year, may pay the enterprise income tax at half the going rate.

Technically advanced enterprises after the period of exemption of enterprise income tax in accordance with Chinese regulations may
enjoy reduction of half of their enterprise income tax in the ensuing three years.

Article 15. Foreign-funded enterprises which invest in agriculture, forestry and animal husbandry or in less-developed outlying districts, after
the period of exemption of enterprise income tax in accordance with Chinese regulations, upon approval by national taxation departments,
may continue to enjoy a 15%-30% tax reduction for another ten years.

Article 16. Foreign investors reinvest their profits made from the venture involving their investment to directly boost its registered capital
or start other enterprises for an operational term of no less than five years, upon application by the investors and approval by
the taxation departments, shall be returned 40% of the income tax payment on the amount reinvested. Those who reinvest in export-oriented
or technically advanced enterprises for an operational period of five years or more, upon application by the investors and approval
by taxation departments, shall be returned all income tax payment on the amount reinvested. Those who withdraw before the five years
term shall hand in the returned income tax.

Article 17. Vehicles needed to be imported by foreign investors into the province for operations of processing with customer’s raw materials
are exempted from import licences; machinery for compensatory trade is exempted from import tax.

Article 18. Export-oriented and technically advanced foreign-funded enterprises are exempted from land utility fees for five to ten years as
of the date of establishment and are charged at half the rates after the period of exemption.

Foreign-funded enterprises engaged in agriculture and animal husbandry are exempted from land utility fees for ten to fifteen years
as of the date of approval on use of the land; enterprises in forestry, for twenty to thirty years.

Article 19. Export-oriented and technically advanced foreign-funded enterprises, except for paying labor insurance premiums, welfare expenses
and subsidiary housing fund for Chinese workers, are exempted from payment of other State subsidies for Chinese workers.

Article 20. Foreign-funded enterprises which need to transfer forex into or out of the enterprises may do so through the provincial forex swapping
center. The forex transferred into the enterprises may be used to repay capital with interest, buy equipment and raw materials, remit
profits out of the country and pay the legitimate income of foreign staff.

Forex may be swapped among foreign-funded enterprises or between foreign-funded and Chinese enterprises under the supervision of forex
control departments.

Article 21. Products of foreign-funded enterprises as imports-substitutes to be sold in China may be paid in forex upon approval.

Sino-foreign joint-equity and Sino-foreign cooperative productive enterprises, upon approval, may purchase Chinese products for export
to balance their forex earnings and expenditures in the year in accordance with Chinese regulations.

Article 22. Foreign-funded enterprises have the right to work out their production and operational plans, collect and use funds, buy capital
goods and market their products within approval contracts.

Foreign-funded enterprises may, in accordance with the need of production and operations as well as with regulations of the State
and the provincial people’s government, independently determine the structure of offices and management, employment and dismissal
of staff, commendation and punishment, standards and forms of wages, bonuses and subsidies.

Article 23. Boards of directors or joint administrative organizations of foreign-funded enterprises exercise their authority in accordance with
law. Chinese staff on the boards of directors or joint administrative organizations of Sino-foreign joint ventures or foreign-funded
cooperative enterprises shall not be changed at will in their terms of office.

Article 24. Foreign-funded enterprises have the right to own, use, benefit from and dispose of the property of the enterprises in question in
accordance with law.

Article 25. Foreign investors may remit overseas the profits and other legal income from their investment in the province in accordance with
law.

Article 26. No organization shall be allowed to apportion expenses among foreign-funded enterprises or collect fees from them apart from taxes
and charges sanctioned by laws and regulations. Foreign-funded enterprises may refuse to pay charges outside of laws and regulations.

Article 27. Those (excluding government staff who engage in attracting foreign funds) who introduce foreign investors to the province with success
will be awarded a bonus proportionate to the amount of foreign investment. Detailed rules are to be formulated by the provincial
people’s government.

Article 28. Foreign investors or foreign-funded enterprises have the right to appeal to people’s governments and relevant departments against
acts that encroach on their legal rights and interests or take legal proceedings to people’s courts against such acts.

Article 29. For investments in the province by compatriots from Hong Kong, Macao and Taiwan and overseas Chinese, these regulations serve as
a reference, in addition to “Regulations on Encouraging Investment by Overseas Chinese and Hong Kong and Macao Compatriots” and “Regulations
on Encouraging Investment by Taiwan Compatriots” promulgated by the State Council.

Article 30. These regulations shall come into effect as of the date of promulgation.

These regulations shall apply where previous regulations of the province are not in accord with these regulations.

DEPUTIES TO THE NATIONAL PEOPLE’S CONGRESS AND TO THE LOCAL PEOPLE’S CONGRESSES AT VARIOUS LEVELS

Law of the PRC on Deputies to the National People’s Congress and to the Local People’s Congresses at Various Levels

(Adopted at the Fifth Session of the Seventh National People’s Congress on April 3, 1992, promulgated by Order No. 56 of the President
of the People’s Republic of China on April 3, 1992, and effective as of the same date)

CHAPTER I GENERAL PROVISIONS

CHAPTER II WORK OF DEPUTIES DURING A SESSION OF THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL

CHAPTER III ACTIVITIES OF DEPUTIES WHEN THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL IS NOT IN SESSION

CHAPTER IV GUARANTEES FOR THE PERFORMANCE OF FUNCTIONS AS DEPUTIES CHAPTER V SUSPENSION OF PERFORMANCE OF FUNCTIONS AS
A DEPUTY AND DISQUALIFICATION OF A DEPUTY

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 1 This Law is formulated in accordance with the Constitution to ensure that deputies to the National People’s Congress and deputies
to the local people’s congresses at various levels exercise their functions and powers, fulfill their duties and play their
roles, according to law and in their capacity as deputies.

Article 2 Deputies to the National People’s Congress and to the local people’s congresses at various levels shall be elected according
to law.

Deputies to the National People’s Congress are component members of the highest organ of State power, and deputies to the
local people’s congresses at various levels are component members of the organs of State power at the corresponding levels.

Deputies to the National People’s Congress and to the local people’s congresses at various levels shall, representing the interests
and will of the people, participate in the exercise of State power in accordance with the functions and powers vested in the
people’s congresses at the corresponding levels by the Constitution and relevant laws.

Article 3 Deputies must play an exemplary role in abiding by the Constitution and the law and keeping State secrets and,
in the production, work or public activities that they take part in, assist the enforcement of the Constitution and the law.

Article 4 Deputies shall maintain close contacts with the voters of the electoral districts or the electoral units that elected them and
with the masses of the people, listen to and convey their opinions and demands, and strive to serve the people.

Article 5 Deputies shall be subject to the supervision of the voters of the electoral districts or the electoral units that elected them.
The voters or the electoral units have the right to recall according to law the deputies they elected. The deputies to be recalled
have the right to attend the meetings for recalling them to state their opinions or present a written statement of their
opinions.

Article 6 Deputies’ work carried out according to the provisions of this Law, when the people’s congresses at the corresponding levels
are in session, and their activities conducted according to the provisions of this Law, when the people’s congresses at
the corresponding levels are not in session, shall all constitute the performance of their functions as deputies.

The State and society shall provide guarantees for deputies in their performance of functions as deputies.

CHAPTER II WORK OF DEPUTIES DURING A SESSION OF THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL

Article 7 Deputies shall attend sessions of the people’s congress at the corresponding level and exercise the functions and powers as
deputies according to law.

Article 8 Deputies shall attend plenary meetings of a session, general meetings and group meetings of the delegation, deliberate on the
bills or proposals and reports that have been placed on the agenda of a session.

Deputies may attend, upon recommendation or invitation, and as nonvoting participants, meetings of the Presidium or meetings
of the special committees and advance their opinions.

Article 9 Deputies have the right, in accordance with procedures prescribed by law, to submit to the people’s congress at
the corresponding level bills and proposals within the scope of its functions and powers. Bills and proposals submitted
shall consist of subjects, grounds and schemes.

Deliberations on a bill or proposal already placed on the agenda of a session shall be terminated upon approval by the Presidium
of a request made by the sponsor deputy for its withdrawal before it is put to vote at the session.

Article 10 Deputies to the National People’s Congress have the right, in accordance with the procedures prescribed by the Constitution, to
submit to the National People’s Congress bills on the amendment to the Constitution.

Article 11 Deputies shall participate in the elections conducted by the people’s congress at the corresponding level.

Deputies to the National People’s Congress have the right to advance opinions on candidates nominated by the Presidium for
the component members of the Standing Committee of the National People’s Congress, President and Vice-President of the
People’s Republic of China, Chairman of the Central Military Commission, President of the Supreme People’s Court and Procurator-General
of the Supreme People’s Procuratorate and candidates for the various special committees of the National People’s Congress.

Deputies to the local people’s congresses at or above the county level have the right, in accordance with the procedures prescribed
by law, to nominate candidates for the component members of the standing committees of the people’s congresses, leading members
of the people’s governments, presidents of the people’s courts and procurators-general of the people’s procuratorates
at the corresponding levels, as well as candidates for the deputies to the people’s congresses at the next higher
levels, and have the right to advance opinions on the aforesaid candidates nominated according to law by the presidiums and deputies
to the people’s congresses at the corresponding levels.

Deputies to the people’s congresses of townships, nationality townships or towns have the right, in accordance with the procedures
prescribed by law, to nominate candidates for the leading members of the people’s governments at the corresponding levels,
and have the right to advance opinions on the aforesaid candidates nominated according to law by the presidiums and deputies
to the people’s congresses at the corresponding levels.

Deputies to the people’s congresses at various levels have the right to advance opinions on the candidates for the presidiums
of the people’s congresses at the corresponding levels.

With respect to a candidate that has been determined, deputies may vote for or against, or vote another person instead, or abstain
from voting.

Article 12 Deputies to the National People’s Congress shall participate in deciding on the choice of the component members of the State Council,
and Vice-Chairmen and members of the Central Military Commission.

Deputies to the National People’s Congress and to the people’s congresses of provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures and cities divided into districts shall participate in
the vote for determining the component members of various special committees of the people’s congresses at the
corresponding levels.

Article 13 During deliberations on a bill or proposal, or a report, deputies may make inquiries to the relevant State organ at
the corresponding level, and such organ shall send its leading cadre or a person in charge to answer the inquiries.

Article 14 During a session of the National People’s Congress, a delegation or a group of thirty or more deputies have the right to
make a proposal in writing for addressing inquiries to the State Council, ministries and commissions under the State Council,
the Supreme People’s Court and the Supreme People’s Procuratorate.

Deputies to the people’s congresses at or above the county level have the right, in accordance with the procedures prescribed
by law, to make proposals for addressing inquiries to the people’s governments and governmental departments, the people’s
courts and the people’s procuratorates at the corresponding levels.

Deputies to the people’s congresses of townships, nationality townships or towns have the right, in accordance with the procedures
prescribed by law, to make proposals for addressing inquiries to the people’s governments at the corresponding levels.

In a proposal for addressing inquiries, the person to be inquired and the subject and content to be inquired about shall be clearly
stated.

A proposal for addressing inquiries shall, according to a decision of the Presidium, be replied by the State organ inquiried.
If half or more of the deputies who made the proposal for addressing inquiries are not satisfied with the reply, they may
demand another reply from the organ in question.

Article 15 Deputies to the National People’s Congress have the right, in accordance with the procedures prescribed by law, to make a proposal
for the removal from office of a member of the Standing Committee of the National People’s Congress, the President or
Vice-President of the People’s Republic of China, a component member of the State Council, a component member of the Central
Military Commission, the President of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate.

Deputies to a local people’s congress at or above the county level have the right, in accordance with the procedures prescribed
by law, to make a proposal for the removal from office of a component member of the standing committee of the people’s
congress, a component member of the people’s government, the president of the people’s court or the procurator-general
of the people’s procuratorate at the corresponding level.

Deputies to the people’s congress of a township, nationality township or town have the right, in accordance with the procedures
prescribed by law, to submit a proposal for the removal from office of a leading member of the people’s government at
the corresponding level.

In a proposal for removal from office, the reasons for the removal shall be clearly stated.

Article 16 Deputies to a people’s congress at or above the county level have the right to put forward, according to law, a proposal for
setting up a committee for the investigation of a specific question.

Article 17 Deputies may, in a vote conducted by the people’s congress at the corresponding level, cast an affirmative vote or a negative vote
or abstain from voting.

Article 18 Deputies have the right to put forward proposals, criticisms or opinions to the people’s congress at the corresponding
level concerning any sphere of work. The State organs or institutions concerned must make study and disposition thereof
and be responsible for giving a reply.

CHAPTER III ACTIVITIES OF DEPUTIES WHEN THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL IS NOT IN SESSION

Article 19 The standing committee of a people’s congress at or above the county level shall organize deputies to the people’s congress
at the corresponding level to carry out activities when the people’s congress at the corresponding level is not in session.

The standing committee of a local people’s congress at or above the county level shall, upon the commission of the standing
committee of the people’s congress at the next higher level, organize the deputies to the people’s congress at the next higher
level who are elected by the people’s congress at the corresponding level to carry out activities when the people’s congress
at the next higher level is not in session.

Article 20 Deputies to the people’s congresses at or above the county level may, with the assistance of the standing committees of
the people’s congresses at the corresponding levels or lower levels, form themselves into deputy groups in the light
of the principle of facilitating the organization and conduct of their activities.

Deputies to the people’s congresses at or above the county level may take part in the group activities of deputies to the people’s
congresses at lower levels.

Article 21 Deputies to the people’s congresses at or above the county level may, in line with the unified arrangements made by the standing
committees of the people’s congresses at the corresponding levels, carry out inspections on the work of the State organs and
relevant units at the corresponding levels or lower levels.

Deputies may, during inspections conducted in accordance with the provisions of the preceding paragraph, suggest an interview
with the responsible personnel of the relevant State organs at the corresponding or lower levels. The responsible personnel
to be interviewed of the State organs concerned or the persons in charge entrusted by them shall listen to the proposals,
criticisms or opinions of the deputies.

Deputies may conduct on-the-spot inspections in their respective localities on the strength of their deputy cards.
The standing committees of the local people’s congresses at or above the county level shall, upon requests by deputies, make
arrangements for deputies to the people’s congresses at the corresponding or higher levels to conduct on- the-spot inspections
in their respective localities on the strength of their deputy cards.

Deputies may, during their inspections, put forward proposals, criticisms or opinions to the units inspected, but shall
not deal with the problems directly.

Article 22 Deputies have the right, in accordance with the procedures prescribed by law, to propose the convening of an interim session
of the people’s congress at the corresponding level.

Article 23 Deputies to the people’s congresses at or above the county level may attend, upon invitation, and as nonvoting participants,
meetings of the standing committees of the people’s congresses at the corresponding levels. Deputies to the National People’s
Congress and those to the people’s congresses of provinces, autonomous regions, municipalities directly under the
Central Government, autonomous prefectures or cities divided into districts may attend, upon invitation and as nonvoting
participants, meetings of the special committees of the people’s congresses at the corresponding levels.

Article 24 Deputies to the National People’s Congress and those to the people’s congresses of provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures or cities divided into districts may attend, as nonvoting participants,
meetings of the people’s congresses of the electoral units that elected them, and may also attend, upon invitation and as nonvoting
participants, meetings of the standing committees of the people’s congresses of the electoral units that elected them.

Article 25 Deputies shall, through various ways, constantly listen to the opinions of the masses of the people, answer inquiries of voters
of the electoral district or of the electoral unit that elected them about their work and activities as deputies and assist
the people’s government at the corresponding level in its work.

Article 26 Deputies to the people’s congresses at or above the county level shall, according to decisions of the people’s congresses at
the corresponding levels or of their standing committees, join the committees for the investigation of specific questions.

Article 27 Deputies to a people’s congress at or above the county level have the right to put forward proposals, criticisms or opinions
concerning any sphere of work to the standing committee of the people’s congress at the corresponding level. State organs
or institutions concerned must make study and disposition thereof and be responsible for giving a reply.

Article 28 Deputies to the people’s congress of a township, nationality township or town shall have division of labour in their contacts
with the voters, form themselves into deputy groups according to law, reflect the opinions and demands of the masses and
assist the work of the people’s government at the corresponding level.

CHAPTER IV GUARANTEES FOR THE PERFORMANCE OF FUNCTIONS AS DEPUTIES

Article 29 Deputies shall hold no legal liability for their speeches or votes at various meetings of the people’s congresses.

Article 30 No deputy to a people’s congress at or above the county level may be arrested or placed on criminal trial without the consent
of the Presidium of the people’s congress at the corresponding level, or without the consent of its standing committee
when the people’s congress is not in session. If a deputy is caught in the act and detained, the organ executing the detention
shall immediately report the matter to the Presidium or the standing committee of the people’s congress at the corresponding
level.

If any other restriction of personal freedom prescribed by law is imposed on a deputy to a people’s congress at or above
the county level, it shall be subject to the approval of the Presidium or the standing committee of the people’s congress
at the corresponding level.

If a deputy to the people’s congress of a township, nationality township or town is arrested or placed on criminal trial, or subjected
to any other restrictions of personal freedom prescribed by law, the executing organ shall immediately report the matter
to the people’s congress of the township, nationality township or town.

Article 31 Where a deputy participates in activities as deputy arranged by the people’s congress at the corresponding level or its standing
committee when the people’s congress is not in session, The unit to which the deputy belongs must ensure him the needed
time.

Article 32 The performance by a deputy of his or her functions as deputy in accordance with the provisions of Article 31 of this Law shall
be regarded as normal attendance by his or her unit and the wage and other benefits of the unit shall be duly enjoyed by the
deputy.

Deputies with no fixed income of wages or salaries shall, for the performance of their functions as deputies, be appropriately
subsidized by the governmental finance at the corresponding level in light of the specific circumstances.

Article 33 Funds for deputy activities shall be included in the financial budget of the governments at the corresponding levels.

Article 34 The standing committees of the people’s congresses at or above the county level shall, through various ways, maintain contacts
with deputies to the people’s congresses at the corresponding levels.

Article 35 The standing committees of the local people’s congresses at or above the county level shall provide necessary conditions
for deputies within their respective administrative areas to perform their functions as deputies.

Article 36 The offices of the standing committees of the people’s congresses at or above the county level shall provide services
for deputies in their performance of functions as deputies.

Article 37 For the convenience of deputies’ performance of their functions as deputies, the people’s congresses at various levels
may make and issue deputy cards to deputies to the people’s congresses at the corresponding levels.

Article 38 When deputies of minority nationalities perform their functions as deputies, the departments concerned shall provide them
with necessary help and give special considerations in such aspects as languages, both spoken and written, habits and
customs.

Article 39 All organizations and individuals must respect the rights of deputies and support them in their performance of functions as deputies.

Whoever has the duty to assist deputies in their performance of functions as deputies but refuses to do so shall
be admonished, criticized, even subjected to administrative sanctions by the unit concerned.

Whoever obstructs deputies from performing their functions as deputies according to law shall be subjected to administrative
sanctions by the unit to which he or she belongs or by the department at the higher level, or shall be punished in accordance
with the provisions of Article 19 of the Regulations on Administrative Penalties for Public Security. Whoever obstructs,
by means of violence or threat, deputies from performing their functions as deputies according to law shall be
investigated for criminal responsibility in accordance with the provisions of Article 157 of the Criminal Law.

CHAPTER V SUSPENSION OF PERFORMANCE OF FUNCTIONS AS A DEPUTY AND

Article 40 Where a deputy is involved in either of the following circumstances, the performance of his or her functions as deputy
shall be temporarily suspended:

(1) being held in custody and subjected to investigation, prosecution and trial for criminal cases; or

(2) being sentenced to public surveillance, criminal detention or fixed- term imprisonment without the supplementary punishment of
deprivation of political rights and now serving the sentence.

As soon as the circumstances specified in the preceding paragraph no longer exist during the term of the deputy in question,
the performance of his or her functions as deputy shall be restored, except for the one who is disqualified as deputy.

Article 41 A deputy involved in any of the following circumstances shall be disqualified as a deputy:

(1) a deputy to a local people’s congress at any level who has moved or is transferred away from the corresponding administrative
area;

(2) his or her resignation as a deputy being accepted;

(3) being absent, without approval, from two sessions of the people’s congress at the corresponding level;

(4) being recalled;

(5) having forfeited the nationality of the People’s Republic of China;

(6) being deprived of political rights in accordance with the law.

Article 42 The disqualification of a deputy to a people’s congress at or above the county level shall be reported by the credential committee
to the standing committee of the people’s congress at the corresponding level for its announcement.

The disqualification of a deputy to the people’s congress of a township, nationality township or town shall be reported by
the credential committee to the people’s congress at the corresponding level for its announcement.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 43 The people’s congresses of provinces, autonomous regions and municipalities directly under the Central Government and their standing
committees may, in accordance with this Law and in light of the actual conditions of their respective administrative areas,
formulate measures for implementation.

Article 44 This Law shall enter into force as of the date of promulgation.

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1998

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

INTERIM PROVISIONS FOR THE CONTROL OF SHANGHAI METAL EXCHANGE

PROVISIONS FOR ENCOURAGING DOMESTIC AND FOREIGN INVESTMENTS IN TIBET

REGULATIONS FOR IMPLEMENTATION OF THE ASSEMBLIES, PROCESSIONS AND DEMONSTRATIONS

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

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

PROVISIONS ON THE CONTROL OF MARITIME NAVIGATIONAL WARNINGS AND NAVIGATIONAL NOTICES

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

OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE ESTABLISHMENT OF THE KUNSHAN ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE

PROVISIONS ON SEARCH AND RESCUE OF CIVIL AIRCRAFT

REGULATIONS ON ENCOURAGEMENT OF FOREIGN INVESTMENT OF HUNAN PROVINCE

DEPUTIES TO THE NATIONAL PEOPLE’S CONGRESS AND TO THE LOCAL PEOPLE’S CONGRESSES AT VARIOUS LEVELS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7