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1999

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON REVISING THE TRADEMARK LAW (ATTACHED WITH THE FIRST REVISION OF THE TRADEMARK LAW )

Category	INTELLECTUAL PROPERTY RIGHT	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1993-02-22	Effective Date	1993-07-01

Decision of the Standing Committee of the National People’s Congress on Revising the Trademark Law of the People’s Republic of China (Attached With the First Revision of the Trademark Law of the People’s Republic of China)

Appendix: Trademark Law of the People’s Republic of China
Contents
Chapter I  General Provisions
Chapter II  Application for Trademark Registration
Chapter III  Examination and Approval of Trademark Registration
Chapter IV  Renewal, Assignment and Licensing of Registered
Chapter V  Determination of Disputes Concerning Registered
Chapter VI  Administrative Control of the Use of Trademarks
Chapter VII  Protection of the Right to Exclusive Use of a
Chapter VIII  Supplementary Provisions

(Adopted at the 30th Meeting of the Standing Committee of the

Seventh National People’s Congress on February 22, 1993 and promulgated
by Order No.69 of the President of the People’s Republic of China on
the same date)

The 30th Meeting of the Standing Committe of the Seventh
National People’s Congress, having considered the proposal of the
Draft Amendment to the Trademark Law of the People’s Republic of China submitted by the State Council, decides to make the following
amendments to the Trademark Law of the People’s Republic of China:

1. Article 4 is amended to include the following three
paragraphs:

“Any enterprise, institution or self-employed industrialist or
businessman that needs to acquire the right to exclusive use of a
trademark for the goods it or he produces, manufactures, processes,
selects or markets shall file an application for registration of goods trademark with the Trademark Office.

Any enterprise, institution or self-employed industrialist or
businessman that needs to acquire the right to exclusive use of a
trademark for the services it or he provides shall file an
application for registration of service trademark with the
Trademark Office.

Provisions regarding the goods trademarks in this Law shall be
applicable to service trademarks.”

2. A new paragraph is added to Article 8 as the second
paragraph: “Geographic names of administrative divisions at or
above the county level or foreign geographic names known to the
public shall not be used as trademarks, with the exception,
however, of those geographic names having other meanings.
Registered trademarks in which geographic names are used shall
remain valid.”

3. Article 12 is amended to read as follows: “If an applicant
intends to use the same trademark on goods in different classes, it
or he shall submit applications for registration in accordance with
the classification of goods.”

4. A new paragraph is added to Article 26 as the second
paragraph: “If any party is authorized to use a registered
trademark of another person, the name of the licensee and the
origin of the goods must be indicated on the goods that bear the
registered trademark.”

5. The first paragraph of Article 27 is amended to read as the
following two paragraphs: “If a registered trademark contravenes
the provisions of Article 8 of this Law, or the registration
thereof is obtained through fraudulent or other unfair means, the
Trademark Office shall cancel such registered trademark; other
entities or individuals may request the Trademark Review and
Adjudication Board to make a ruling cancelling such registered
trademark.

If a dispute arises over a registered trademark, with the
exception of the circumstances specified in the preceding
paragraph, the disputant may, within one year from the date the
trademark is registered after due verification, apply to the
Trademark Review and Adjudication Board for a ruling.”

6. Article 29 is amended to read as follows: “After the
Trademark Review and Adjudication Board has made the final ruling
upholding or revoking a registered trademark, it shall notify the
parties concerned in writing.”

7. A sub-paragraph is added to Article 38 as sub-paragraph
(2): “Knowingly selling goods bearing counterfeit registered
trademarks;”

Sub-paragraph (2) of Article 38 is amended to be sub-paragraph
(3): “forging or making without authorization representations of a
registered trademark of another person or selling representations
of a registered trademark which are forged or made without
authorization.”

Sub-paragraph (3) of Article 38 accordingly becomes
sub-paragraph (4).

8. The first paragraph of Article 39 is amended to read as
follows: “In the event of any infringement of the right to the
exclusive use of a registered trademark as set forth in Article 38
of this Law, the infringed may request the administrative
department for industry and commerce at or above the county level
for disposition. The relevant administrative department for
industry and commerce shall have the power to order the infringer
to stop the infringing act immediately and to compensate the
infringed for its or his losses; the amount of the compensation
shall be the profits the infinger has obtained as a result of the
infringement during the period of the infringement or the losses
suffered by the infringed as a result of the infringement during
the period of the infringement. If the infringement of the right to
exclusive use of a registered trademark does not constitute a
crime, the administrative department for industry and commerce may
impose a fine upon the infringer. If any party is not satisfied
with the decision of the administrative department for industry and
commerce ordering a cessation of the infringing act and imposing a
fine, it may bring a suit in a people’s court within 15 days from
receipt of notification of the decision. If, on the expiration of such a period, the party has neither brought a suit nor complied
with the decison, the relevant administrative department for
industry and commerce shall apply to the people’s court for
compulsory enforcement.”

9. Article 40 is amended to include the following three
paragraphs:

“Any person who counterfeits a registered trademark of another
person shall, if the act constitutes a crime, be investigated for
criminal responsibility according to law in addition to
compensating for the losses suffered by the infringed.

Any person who forges or makes without authorization
representations of a registered trademark of another person or
sells representations of a registered trademark which are forged or
made without authorization shall, if the act constitutes a crime,
be investigated for criminal responsibility according to law in
addition to compensating for the losses suffered by the infringed.

Any person who knowingly sells goods bearing counterfeit
registered trademarks shall, if the act constitutes a crime, be
investigated for criminal responsibility according to law in
addition to compensating for the losses suffered by the infringed.”

This Decision shall come into force as of July 1, 1993.

The Trademark Law of the People’s Republic of China shall be
amended correspondingly in accordance with this Decision and shall
be republished.

Appendix: Trademark Law of the People’s Republic of China
(Adopted at the 24th Meeting of the Standing Committee of the
Fifth National People’s Congress on August 23, 1982, and amended in
accordance with the Decision on Revising the Trademark Law of the
People’s Republic of China adopted at the 30th Meeting of the
Standing Committee of the Seventh National People’s Congress on
February 22, 1993)
Contents

Chapter I General Provisions

Chapter II Application for Trademark Registration

Chapter III Examination and Approval of Trademark Registration

Chapter IV Renewal, Assignment and Licensing of Registered Trademarks

Chapter V Determination of Disputes Concerning Registered Trademarks

Chapter VI Administrative Control of the Use of Trademarks

Chapter VII Protection of the Right to Exclusive Use of a

Registered Trademark

Chapter VIII Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated for the purpose of improving
the administration of trademarks, protecting the right to exclusive
use of trademarks and encouraging producers to guarantee the
quality of their goods and maintain the reputation of their
trademarks, so as to protect the interests of consumers and promote
the development of the socialist commodity economy.

Article 2 The Trademark Office of the administrative
department for industry and commerce under the State Council shall
be in charge of the work of trademark registration and
administration throughout the country.

Article 3 Registered trademarks are those that have been
approved and registered by the Trademark Office. Trademark
registrants shall enjoy the right to exclusive use of their
trademarks and shall be protected by law.

Article 4 Any enterprise, institution or self-employed
industrialist or businessman that needs to acquire the right to
exclusive use of a trademark for the goods it or he produces,
manufactures, processes, selects or markets shall file an
application for registration of goods trademark with the Trademark
Office.

Provisions regarding the goods trademarks in this Law shall be
applicable to service trademarks.

Article 5 With respect to goods that the State has designated
as requiring the use of a registered trademark, an application for
trademark registration must be filed; the goods may not be sold on
the market before registration is granted.

Article 6 The user of a trademark shall be responsible for the
quality of the goods on which the trademark is used. The
administrative departments for industry and commerce at all levels
shall, by means of trademark administration, exercise supervision
over the quality of goods and stop any practice that deceive
consumers.

Article 7 Any word or design, or combination thereof, used as
a trademark, shall have distinctive characteristics so as to
facilitate identification. Wherever a registered trademark is used,
it shall bear the words “Registered trademark” or a sign indicating
that it is registered.

Article 8 The following words or designs may not be used in
trademarks:

(1) those identical with or similar to the national name,
national flag, national emblem, military flag or medals of the
People’s Republic of China;

(2) those identical with or similar to the national name,
national flag, national emblem or military flag of any foreign
country;

(3) those identical with or similar to the flag, emblem or
name of any intergovernmental international organization;

(4) those identical with or similar to the symbol or name of the Red Cross or the Red Crescent;

(5) the generic name or design of the goods concerned;

(6) those directly indicating the quality, main raw materials,
function, use, weight, quantity or other characteristics of the
goods concerned;

(7) those having the nature of discrimination against any
nationality;

(8) those constituting exaggerated and deceitful advertising;
and

(9) those detrimental to socialist morality or customs, or
having other harmful influences.

Geographic names of administrative divisions at or above the
county level or foreign geographic names known to the public shall
not be used as trademarks, with the exception, however, of those
geographic names having other meanings. Registered trademarks in
which geographic names are used shall remain valid.

Article 9 Where a foreigner or foreign enterprise applies for
trademark registration in China, the matter shall be handled in
accordance with any agreement concluded between the country to
which the applicant belongs and the People’s Republic of China, or
any international treaty to which both countries are parties, or on
the basis of the principle of reciprocity.

Article 10 Where a foreigner or foreign enterprise applies for
trademark registration or deals with other trademark matters in
China, it shall entrust an organization designated by the Chinese
Government to act on its behalf.
Chapter II Application for Trademark Registration

Article 11 An applicant for trademark registration shall
report, in accordance with the prescribed classification of goods,
the class of the goods and the designation of the goods on which
the trademark is to be used.

Article 12 If an applicant intends to use the same trademark
on goods in different classes, it or he shall submit applications
for registration in accordance with the classification of goods.

Article 13 If a registered trademark needs to be used on other
goods of the same class, a new application for registration shall
be filed.

Article 14 If any word or design of a registered trademark
needs to be changed, a new application for registration shall be
filed.

Article 15 If a change needs to be made in the name, address
or any other registered matter concerning the registrant of a
registered trademark, an application to make the change shall be
filed.
Chapter III Examination and Approval of Trademark Registration

Article 16 When an application has been made to register a
trademark that is in conformity with the relevant provisions of this Law, the Trademark Office shall make a preliminary examination
and approval of that trademark and shall publicly announce it.

Article 17 If an application has been made to register a
trademark that is not in conformity with the relevant provisions of this Law or that is identical with or similar to another person’s
trademark which has already been registered or given preliminary
examination and approval for use on the same kind of goods or
similar goods, the Trademark Office shall reject the current
application and shall not publicly announce that trademark.

Article 18 If two or more applicants apply for registration of identical or similar trademarks for the same kind of goods or
similar goods, the trademark whose registration was first applied
for shall be given preliminary examination and approval and shall
be publicly announced; if the applications are filed on the same
day, the trademark which was first used shall be given preliminary
examination and approval and shall be publicly announced, and the
applications of the others shall be rejected and shall not be
publicly announced.

Article 19 Any person may file an opposition to a trademark
which has been given preliminary examination and approval, within
three months from the day it was publicly announced. If no
opposition is filed, or if it is determined that the opposition is
not justified, registration shall be granted, a trademark
registration certificate shall be issued and the trademark shall be
publicly announced. If it is determined that the opposition is
justified, no registration shall be granted.

Article 20 The administrative department for industry and
commerce under the State Council shall establish a Trademark Review
and Adjudication Board to be responsible for handling trademark
disputes.

Article 21 When an application for trademark registration has
been rejected and the trademark is not to be publicly announced,
the Trademark Office shall notify the applicant in writing. If the
applicant does not agree with the rejection, it may apply for a
reexamination within 15 days after receiving the notification, and
the Trademark Review and Adjudication Board shall make a final
decision and notify the applicant in writing.

Article 22 If an opposition is filed against a trademark which
has been given preliminary examination and approval and has been
publicly announced, the Trademark Office shall hear the opponent’s
and the applicant’s statements of the facts and reasons and shall,
after investigation and verification, make a decision. If a party
disagrees with the decision, it may apply for a reexamination
within 15 days after receiving notification of the decision, and
the Trademark Review and Adjudication Board shall make a final
decision and notify the opponent and the applicant in writing.
Chapter IV Renewal, Assignment and Licensing of Registered
Trademarks

Article 23 The period of validity of a registered trademark
shall be ten years, counted from the day the registration is
approved.

Article 24 If a registrant needs to continue to use the
registered trademark after the period of validity expires, an
application for renewal of registration shall be made within six
months before the expiration. If the registrant fails to make such
an application within that period, an extension period of six
months may be granted. If no application has been filed before the
extension period expires, the registered trademark shall be
cancelled.

The period of validity for each renewal of registration shall
be ten years.

After a renewal of registration has been approved, it shall be
publicly announced.

Article 25 When a registered trademark is to be assigned, the
assignor and the assignee shall jointly file an application with
the Trademark Office. The assignee shall guarantee the quality of the goods on which the registered trademark is to be used.

After the assignment of a registered trademark has been
approved, it shall be publicly announced.

Article 26 A trademark registrant may, by concluding a
trademark licensing contract, authorize another person to use its
registered trademark. The licensor shall supervise the quality of the goods on which the licensee uses the licensor’s registered
trademark, and the licensee shall guarantee the quality of the
goods on which the registered trademark is to be used.

If any party is authorized to use a registered trademark of another person, the name of the licensee and
the origin of the
goods must be indicated on the goods that bear the registered
trademark.

The trademark licensing contract shall be submitted to the
Trademark Office for the record.
Chapter V Determination of Disputes Concerning Registered
Trademarks

Article 27 If a registered trademark contravenes the
provisions of Article 8 of this Law, or the registration thereof is
obtained through fraudulent or other unfair means, the Trademark
Office shall cancel such registered trademark; other entities or
individuals may request the Trademark Review and Adjudication Board
to make a ruling cancelling such registered trademark.

After the Trademark Review and Adjudication Board has received
an application for a ruling, it shall notify the parties concerned
and request them to reply within a specified period.

Article 28 If an opposition was filed and a ruling already
made prior to the approval of the registration of a trademark, the
same facts and reasons may not be used in an another application
for a ruling.

Article 29 After the Trademark Review and Adjudication Board
has made the final ruling upholding or revoking a registered
trademark, it shall notify the parties concerned in writing.
Chapter VI Administrative Control of the Use of Trademarks

Article 30 In the event of any of the following acts
concerning the use of a registered trademark, the Trademark Office
shall order rectification of the situation within a specified
period or shall revoke the registered trademark:

(1) if any word or design, or combination thereof, of the
registered trademark is altered without authorization;

(2) if the registrant’s name, address or any other registered
matters concerning the registered trademark is changed without
authorization;

(3) if the registered trademark is assigned without
authorization; and

(4) if the registered trademark has not been used for three
consecutive years.

Article 31 If a registered trademark is used on crudely
manufactured goods that are passed off as being of high quality,
thus deceiving consumers, the administrative departments for
industry and commerce at various levels shall, according to the
circumstances, order rectification of the situation within a
specified period and may, in addition, circulate a notice on the
matter or impose a fine, or the Trademark Office may revoke the
registered trademark.

Article 32 If a registered trademark is revoked or is not
renewed after its period of validity expires, the Trademark Office
shall not approve any application for the registration of a
trademark identical with or similar to the said trademark within
one year from the day of the revocation or cancellation.

Article 33 In the event of a violation of the provisions of Article 5 of this Law, the local administrative department for
industry and commerce shall order the violator to file an
application for registration within a specified period and may, in
addition, impose a fine.

Article 34 In the event of any of the following acts
concerning the use of an unregistered trademark, the local
administrative department for industry and commerce shall stop the
use of the trademark, order rectification of the situation within
a specified period and may, in addition, circulate a notice on the
matter or impose a fine:

(1) if the trademark is falsely represented as being a
registered one;

(2) if the trademark violates the provisions of Article 8 of this Law; or

(3) if the trademark is used on crudely manufactured goods
that are passed off as being of high quality, thus deceiving
consumers.

Article 35 If a party disagrees with the decision of the
Trademark Office to revoke a registered trademark, it may apply for
a reexamination within 15 days after receiving notification of the
revocation, and the Trademark Review and Adjudication Board shall
make a final decision and notify the applicant in writing.

Article 36 If a party disagrees with the decision of the
administrative department for industry and commerce to impose a
fine under the provisions of Articles 31, 33 or 34 of this Law, it
may bring a suit in a people’s court within 15 days after receiving
the notification of the decision. If, at the expiration of such a
period, the party has neither brought a suit nor complied with the
decision, the relevant administrative department for industry and
commerce shall apply to the people’s court for compulsory
enforcement of its decision.
Chapter VII Protection of the Right to Exclusive Use of a
Registered Trademark

Article 37 The right to exclusive use of a registered
trademark shall be limited to trademarks which have been approved
for registration and to goods on which the use of a trademark has
been approved.

Article 38 Any of the following acts shall be an infringement
of the right to exclusive use of a registered trademark:

(1) using a trademark which is identical with or similar to
the registered trademark on the same kind of goods or similar goods
without a licence from the owner of that registered trademark;

(2) knowingly selling goods bearing counterfeit registered
trademarks;

(3) forging or making without authorization representations
of a registered trademark of another person or selling
representations of a registered trademark which are forged or made
without authorization; or

(4) harming, in other ways, another person’s right to
exclusive use of a registered trademark.

Article 39 In the event of any infringement of the right to
the exclusive use of a registered trademark as set forth in Article
38 of this Law, the infringed may request the administrative
department for industry and commerce at or above the county level
for disposition. The relevant administrative department for
industry and commerce shall have the power to order the infringer
to stop the infringing act immediately and to compensate the
infringed for its or his losses; the amount of the compensation
shall be the profits the infinger has obtained as a result of the
infringement during the period of the infringement or the losses
suffered by the infringed as a result of the infringement during
the period of the infringement. If the infringement of the right to
exclusive use of a registered trademark does not constitute a
crime, the administrative department for industry and commerce may
impose a fine upon the infringer. If any party is not satisfied
with the decision of the administrative department for industry and
commerce ordering a cessation of the infringing act and imposing a
fine, it may bring a suit in a people’s court within 15 days from
receipt of notification of the decision. If, on the expiration of such a period, the party has neither brought a suit nor complied
with the decison, the relevant administrative department for
industry and commerce shall apply to the people’s court for
compulsory enforcement.

In the event of an infringement of the right to exclusive use
of a registered trademark, the party whose right has been infringed
may also directly bring a suit in a people’s court.

Article 40 Any person who counterfeits a registered trademark
of another person shall, if the act constitutes a crime, be
investigated for criminal responsibility according to law in
addition to compensating for the losses suffered by the infringed.

Article 41 Applicants for trademark registration and the
handling of other trademark matters shall pay a fee, the specific
standards of which shall be prescribed separately.

Article 42 Rules for the implement

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON RELATED MATTERS CONCERNING THE ESTABLISHMENT OF DUTY-FREE STORES (MARKETS)

Category	ADMINISTRATION FOR INDUSTRY AND COMMERCE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1993-03-27	Effective Date	1993-03-27

Circular of the General Office of the State Council on Related Matters Concerning the Establishment of Duty-free Stores (Markets)

(March 27, 1993)

In the early period of reforming and opening, the business of
duty-free commodity sales has been introduced in China to meet the
needs of opening to the outside world and promote tourism development.
There are strict restrictions on the categories of people who supply
commodities and in the variety of those duty-free items on sale. In
the past ten years, the following types of duty-free stores (markets)
have been established successively in China: those operated and
administrated by the China Duty-free Commodity Company and other units
for supplying those leaving the country and resident personnel of
foreign institutions in China, foreign personnel of enterprises with
foreign investment; those operated by the Service Company for Chinese
Personnel Going Abroad and other units for supplying to people
travelling abroad on behalf of the State, working personnel and
service personnel of inward and outward transportation entities; those
operated by the General Cooperation of Chinese Overseas Travel and
Overseas Remittance Service in China for supplying to Taiwan
compatriots, overseas Chinese, Chinese holding foreign nationality and
personnel going abroad privately; State operated units opened in the
special economic zones for supplying to Hong Kong and Macao
compatriots, overseas Chinese, foreigners and staff living without
China etc.. The establishment of such a wide variety of duty-free
stores (markets) has played a positive role in expanding the opening
process to the outside world, improving the investment environment,
satisfying consumer needs and increasing foreign exchange revenue.
However, at the moment, some duty-free markets are operated beyond the
scope of normal business operations and have increased the categories
of people to whom the commodities are supplied without authorization.
Some duty-free stores established in localities which are
administrated by the central companies have insisted on separating
themselves from the general companies, operating and administering the
outlets themselves. In recent years because of the higher profits
realized in the sale of duty-free goods many localities and
departments have wanted to establish duty-free stores (markets) and
engage in importing duty-free commodities. We must therefore adopted a
prudent attitude towards it.

The sales of duty-free commodities involves such matters as import
regulations, import tax revenue, foreign exchange control and the use
of foreign exchange within China. As a result it is extremely
sensitive. Owing to exempted State tax revenue from the commodities
offered by duty-free stores (markets), there has emerged an
administrative loophole which enables such stores to open in large
numbers, and for an increase in the categories of people to whom the
commodities are supplied along with the amount of commodities. This
will most certainly reduce the central financial revenue, affect and
hurt the domestic market and commodity production. Meanwhile, along
with the development of China’s economic construction, the production
level, quality, grade, and variety of designs of consumer goods in
China has been greatly improved. Duty-free stores (markets) are also
able to promote the sales of home-produced goods in order to improve
exports and thus increase foreign exchange revenue. Therefore, having
been approved by the State Council, the following are outline
regulations on such related matters:

1. All types of duty-free stores operated and administrated by
various types of central companies in a unified way at the moment,
must still adhere to the principle of unified management, which
incorporates stock, retail prices and administration. Where it is
found necessary to establish branches of duty-free stores, the unit
concerned must apply to the central companies and the General Customs
Administration must be kept informed and give its approval. The
customs in localities and local governments shall not approve such
projects without central authorization. The central companies of
various types shall improve and complete related measures for
administration, and to enhance the quality of service.

2. At present, there is no approval for opening duty-free markets
in special economic zones or beyond the zones in principle. Those
already established may not set up a branch of a duty-free market
of special zone’ model. The existing duty-free market of special zone’s
model must be strictly handled according to the relevant State Council
regulations. They may not expand the variety of commodities or the
categories of people to whom the commodities are supplied without
authorization, and must be supervised and controlled by Customs. It is
now five years since duty-free markets were first initiated. It is
necessary to further summarize and improve on their administration. We
request that the State Planning Commission be responsible for leadership
and jointly with the Ministry of Finance, the State Economy and Trade
Commission, the General Administration of Customs, the Special Economic
Zones Office of the State Council, the State Administration of Taxation
and the State Administration of Exchange Control carefully investigate
and summarize the situation and make suggestions for further development
after such research.

3. The State actively encourages duty-free stores (markets) to sell
home-produced products. The specific measures and rules shall be drawn
up by the Ministry of Finance jointly with the State Administration of
Taxation and the General Administration of Customs.

4. With a view to developing the domestic industry, increase sales
to tourists, meet the needs of travellers leaving the country and
domestic residents, and to increase China’s foreign exchange revenue,
foreign exchange stores may be established in major tourist cities,
the coastal cities in which the domestic residents use foreign
exchange much more than other area, and in provincial capital cities.
This is in addition to the existing friendship stores and overseas
Chinese stores. These stores shall sell mainly home-produced products,
and a small amount of import commodities, but the import tax shall not
be reduced or remitted. We request that the State Administration of
Exchange Control consults with other departments concerned to study and
formulate the specific measures needed for such projects.

5. It shall be prohibited for foreigners to invest and operate the
duty-free stores (markets) or foreign exchange stores of various types
within the People’s Republic of China.

6. The sales of duty-free commodities is classified as a special
business item and, therefore, all types of import tax have been
exempted by the State. Thus, the operating profits of duty-free stores
(markets) of all types shall be turned over to the Central Treasury in
proportion. The specific measures shall be determined by the Ministry
of Finance jointly with the departments concerned.

7. As the foreign exchange earned from the operation of duty-free
stores (markets) belongs to the non-trade foreign exchange revenue,
the unit concerned shall conduct the foreign exchange settlement,
handle the foreign exchange retained and turn over the foreign
exchange quota to the central government in accordance with the
relevant stipulations of the State. We request that the specific
measures shall be formulated by the Ministry of Finance jointly with
the State Planning Commission and the State Administration of Exchange
Control.

PROVISIONS ON THE ADMINISTRATION OF GROUND RECERIVING FACILITIES FOR SATELLITE TELEVISION TRANSMISSIONS

Category	CULTURE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1993-10-05	Effective Date	1993-10-05

Provisions on the Administration of Ground Receriving Facilities for Satellite Television Transmissions

(Approved at the 7th Executive Meeting of the State Council on August

20, 1993, promulgated by Decree No.129 of the State Council on October 5,
1993, and effective as of the date of promulgation)

Article 1 These Provisions are formulated for the sake of strengthening
the administration of ground receiving facilities for satellite television
transmissions and promoting the building up of socialist spiritual
civilization.

Article 2 The term “ground receiving facilities for satellite television
transmissions” (hereinafter abbreviated to “ground receiving facilities for
satellites”) referred to in these Provisions denotes the facilities used for
reception of television programmes transmitted via satellites, including
antennas, h.f. tuners, receivers, coders, decoders, etc.

Article 3 A licensing system shall be implemented by the State for the
production, importation, selling, installation and putting into use of the
ground receiving facilities for satellites. Conditions on the licensing for
the production, importation, selling, installation and putting into use of
the ground receiving facilities for satellite shall be formulated by the
administrative departments concerned under the State Council.

Article 4 Ground receiving facilities for satellites shall be produced
by enterprises designated by the administrative department of electronic
industry under the State Council and not by any other units.

Article 5 Selling of the ground receiving facilities for satellites
shall be conducted by units designated jointly by administrative departments
of industry and commerce, of domestic trade, of radio and television and of
electronic industry under a provincial people’s government (or a people’s
government of autonomous region or municipality directly under the Central
Government). Any other units or individuals must not engage in the said
selling.

Article 6 An importer of ground receiving facilities for satellites shall
bring a certificate issued by the administrative department of radio and
television under the State Council and an importer of components used
specifically in ground receiving facilities for satellites shall bring a
certificate issued by the administrative department of electronic industry
under the State Council and apply to the administrative department of import
and export of mechanical and electrical products under the State Council for
implementation of examination and approval procedures. The Customs shall give
clearance against effective instruments of ratification.

Entrance into the country of ground receiving facilities for satellites
by means of carrying by individuals or mailing shall be prohibited.

Article 7 Instruments and marks of quality accreditation for ground
receiving facilities for satellites shall be issued by administrative
department of quality supervision of products under the State Council of
accreditation organizations authorezed by the said administrative department,
after having accredited the facilities produced as up to standard in
accordance with the relevant law and/or regulations on quality accreditation.
Those products without having been accredited must not be sold or put into
use.

Article 8 A unit intending to install ground receiving facilities for
satellites shall submit and application to the administrative department of
radio and television under the local county or municipal people’s government,
which should be transferred to the administrative department of radio and
television under the competent provincial people’s government (or people’s
government of autonomous region or municipality directly under the Central
Government) for examination and approval. The unit shall purchase ground
receiving facilities for satellites relying on the certificate issued by the
body exerting the examination and approval. After the completion of
installation, a “License for Reception of TV Programmes Transmitted by
Satellites” will be issued by the said body.

Article 9 Individuals must not install and put into use ground receiving
facilities for satellites.

In special situations, an individual who is really necessitated by the
needs to install and put into use ground receiving facilities for satellites
and meets the conditions for permit formulated by the administrative
department of radio and television under the State Council, shall submit an
application to the unit with which he or she is associated. The application,
after having been endorsed by the administrative department of radio and
television under the local county or municipal people’s government, shall be
transferred to the administrative department of radio and television under
the competent provincial people’s government (or people’s government of
autonomous region or municipality directly under the Central Government) for
examination and approval.

Article 10 For those ground receiving facilities for satellites
installed without having been approved before the promulgation of these
Provisions, procedures seeking for examination and approval shall be
implemented within six months after the promulgation of these Provisions.

Article 11 Production conducted presumptuously in violation of these
Provisions of ground receiving facilities for satellites shall be ordered
to cease by the competent administrative department of electronic industry.

Selling conducted presumptuously in violation of these Provisions of
ground receiving facilities for satellites shall be ordered to cease by the
competent administrative department of industry and commerce. The ground
receiving facilities for satellites in the possession of the seller shall
be confiscated and a fine equivalent to less than two times the aggregate
sales may be imposed on the seller.

For any individual or unit which has installed and put into use ground
receiving facilities for satellites presumptuously in violation of these
Provisions, the facilities installed and put into use shall be confiscated
by the competent administrative department of radio and television and a
fine below five thousand yuan may be imposed on the individual concerned,
or a fine below fifty thousand yuan on the unit concerned.

Article 12 Any party concerned who doed not accept the decision on
penalties may appeal for and administrative reconsideration or bring an
administrative lawsuit before a people’s court in accordance with the
relevant law and/or administrative regulations.

Article 13 Rules for the implementation of these Provisions shall be
formulated by the administrative department of radio and television under
the State Council in consultation with administrative departments concerned
under the State Council.

Article 14 These Provisions shall go into effect on the date of
promulgation.

INTERIM PROCEDURES ON THE MANAGEMENT OF STOCK EXCHANGES

Interim Procedures on the Management of Stock Exchanges

(Effective Date:1993.07.07–Ineffective Date:)

CHAPTER ONE GENERAL PROVISIONS CHAPTER TWO ESTABLISHMENT AND DISBAND OF A STOCK EXCHANGE CHAPTER THREE FUNCTIONS OF A STOCK EXCHANGE
CHAPTER FOUR ORGANIZATION OF A STOCK EXCHANGE CHAPTER FIVE SUPERVISION AND CONTROL OF STOCK TRADING BY A STOCK EXCHANGE CHAPTER SIX
CONTROL AND SUPERVISION OVER STOCK EXCHANGES CHAPTER SEVEN LEGAL RESPONSIBILITY AND SETTLEMENT OF DISPUTES CHAPTER EIGHT SUPPLEMENTARY
PROVISIONS

CHAPTER ONE GENERAL PROVISIONS

Article 1. This set of interim procedures has been formulated with a view to strengthening the management of stock exchanges, standardizing
the acts of stock exchanges and maintaining the order of the stock markets.

Article 2. The procedures apply to all stock exchanges operating within the territory of the People’s Republic of China.

Article 3. “Stock Exchange” mentioned in these procedures are referred to non-profit making institutional legal persons practicing the membership
and self policing system and providing sites and facilities for concentrated and organized trading of stocks and perform the relevant
functions and responsibilities.

Article 4. Stock exchanges are subject to the management of the local people’s governments and the supervision and control by the China Securities
Supervision and Control Committee (CSSCC).

Article 5. The name of a stock exchange shall be XXX stock exchange. No other unit or individual is allowed to use the term “stock exchange”
or related names.

CHAPTER TWO ESTABLISHMENT AND DISBAND OF A STOCK EXCHANGE

Article 6. The establishment of stock exchanges shall be examined by the Securities Committee of the State Council (SCSC) and approved by the
State Council.

Article 7. In applying for the establishment of a stock exchange, the following documents are required:

1. An application;

2. Drafts of the constitution and operational rules;

3. A list of members planning to join the stock exchange;

4. A list of candidates of the council and their resumes;

5. A brief account of the site, facilities and funds;

6. A brief account of the management personnel planned to be appointed;

7. Other documents as may be required by the SCSC.

Article 8. The constitution of a stock exchange should include the following items:

1. Purpose;

2. Name;

3. Locations of main office and trading site and facilities;

4. Functions;

5. Qualifications of a member and the procedures for entry and withdrawal;

6. Rights and obligations of members;

7. Disciplinary punishment on members;

8. Organizational setup and functions and power;

9. The selection, appointment and removal of senior management personnel and their functions and powers;

10. Capital and accounting;

11. Requirements and procedures for disband;

12. Other items required in the constitution.

Article 9. When the membership congress decides to disband the stock exchange under conditions of disbanding as provided for in the constitution,
the case shall be submitted to the SCSC for examination and to the State Council for approval.

If the SCSC has decided to disband a stock exchange on account of its serious law violating acts, it shall be disbanded after getting
the approval from the State Council.

CHAPTER THREE FUNCTIONS OF A STOCK EXCHANGE

Article 10. A stock exchange is obliged to create an open and fair market environment and provides facilities for easy trading so as to ensure
the normal operation of the stock exchange.

In supervising and managing the listing of stocks and trading activities, a stock exchange shall observe the “Provisional Regulations
Concerning the Issuing and Trading of Stocks”.

Article 11. The functions of a stock exchange shall include:

1. To provide the site and facilities for stock trading;

2. To formulate the rules for stock trading;

3. To examine and approve applications for stock listing;

4. To organize and supervise the stock trading activities;

5. To exercise supervision and control over the listed companies in compliance with the provision regulations and the operational
rules of stock exchanges;

6. To exercise supervision and control over its members in accordance with the constitution and the operational rules of the stock
exchange;

7. To provide and manage stock market information of the stock exchange;

8. To exercise other functions allowed by the SCSC.

Article 12. A stock exchange shall formulate its operational rules within the scope of its functions. Except otherwise provided for in the interim
procedures, the operational rules of a stock exchange shall be adopted by the council meeting of the stock exchange and become effective
after the approval by the local people’s government and submitting to the SCSC for the record.

The operational rules of a stock exchange shall incorporate the rules for listing and trading and rules associated with stock exchange
activities.

The operational rules of a stock exchange shall specify the following items:

1. Requirements for the listing of stocks, application procedure and the contents and form of a listing agreement;

2. The contents and form of the listing announcement;

3. The category and time limit of stock for trading;

4. Methods and operational procedures for stock trading;

5. The settlement of disputes over trading;

6. The payment and keeping of the deposit in securities;

7. Temporary suspension, resumption and cancellation of the trading of listed stocks;

8. Suspension or closure of a stock exchange;

9. Collection of listing fees and trading commissions;

10. Provision and management of the market information of the stock exchange;

11. The handling of acts violating the operational rules of the stock exchange;

12. Other items required to be provided for in the operational rules of a stock exchange.

CHAPTER FOUR ORGANIZATION OF A STOCK EXCHANGE

Article 13. A stock exchange shall set up a membership congress, a council and sub-committees.

Article 14. The membership congress is the supreme power organ of a stock exchange. It shall exercise the following functions and powers:

1. To formulate the constitution;

2. To elect and remove council members;

3. To examine and adopt the work reports by the council and the general manager;

4. To examine and adopt the reports on financial budgets and final accounts of the stock exchange;

5. To decide on other major matters concerning the stock exchange.

After the constitution is adopted by the membership congress, it shall be submitted to the local people’s government and the CSSCC
for examination and to the SCSC for approval.

Article 15. The membership congress shall be convened at least once every year.

A membership congress shall have the attendance of two-thirds of the members and a decision by the membership congress is valid only
when it gets the approval of more than half of the members.

Article 16. The council is the policy making organ of a stock exchange, to be accountable for the membership congress. The term of the council
members is three years. The council shall exercise the following functions and powers:

1. To execute the resolutions of the membership congress;

2. To draft and revise the operational rules of the stock exchange;

3. To appoint the general manager and decide on the deputy managers nominated by the general manager;

4. To examine and finalize the work plan submitted by the general manager;

5. To examine and finalize the budget and final account plans;

6. To examine the acceptance of a new member of the stock exchange;

7. To examine and finalize the punishment on a member;

8. To decide on the setup of sub-committees according to needs;

9. To exercise other functions and powers authorized by the membership congress.

Article 17. In recruiting members, a stock exchange shall get the approval of its council meeting and submit it to the local people’s government
for the record.

A member of a stock exchange shall be a qualified securities handling organization.

Article 18. The council of a stock exchange shall be made up of at least seven persons, with the number of non-membership council members being
no less than one-third of the total of the membership council members.

The membership council members shall be elected by the membership congress and the non-membership council members shall be nominated
by the local people’s government and the CSSCC and elected by the membership congress.

“Membership council member” mentioned in the preceding paragraph is referred to a person who serves a member company and elected by
the membership congress as a council member. ” Non-membership council member ” mentioned in the preceding paragraph is referred to
a person who does not serve a member company and elected by the membership congress as a council member. A council member is not
allowed to serve for more than two successive terms.

A council meeting shall be attended by more than two thirds of the members and its decision is valid only when it is adopted by at
least two-thirds of the votes.

Article 19. The council shall have a president, one or two vice- presidents or a number of permanent members.

The president, vice-presidents or permanent council members shall be nominated by the local people’s government and elected by the
council and submitted to the SCSC for the record.

The president is responsible for calling and presiding over council meetings. In case of the president is absent, a vice-president
or a permanent council member designated by the president shall act in his behalf.

The president shall act as the chairman of the membership congress during his terms of office.

Article 20. A stock exchange shall have a general manager and one to three deputy general managers. The term of office for the general manager
and the deputy general managers shall be three years.

The general manager shall be nominated by the local people’s government and appointed by the council meeting and submitted to the
SCSC for the record. Deputy managers shall be nominated by the general manager and appointed by the council meeting and submitted
to the local people’s government and the SCSC for the record.

Article 21. The general manager is responsible for the routine operations of the stock exchange under the leadership of the council and acts
as its legal representative. Should the president be unable to perform his duties for some reasons, a deputy general manager shall
act in his behalf.

Article 22. The council shall have a listing committee which shall exercise the following functions:

1. To examine and approve the listing of stocks;

2. To draft the listing rules and put forward the proposals for revising the listing rules.

The working group of the listing committee shall be the examination and approval organ of the listing of stocks.

Article 23. A listing committee shall be made up of 13 members. The members shall be:

1. Lawyers, registered accountants and two persons representing the members in places of the stock exchange and two representing members
in places of the stock exchange and two representing members elsewhere. They shall be appointed by the council and submitted to the
local people’s government and SCSC for the record.

2. The CSSCC and the organ authorized by the local people’s government shall each send a person to act as a member.

3. The president and the general manager.

4. One of the other council members of the stock exchange.

The listing committee shall have a chairman and a vicechairman, who shall be elected at the first meeting of the listing committee.

Article 24. The meeting of the listing committee of the listing committee shall be called and presided over by the chairman. The quorum of the
meeting is at least seven. Its decision shall be valid only when it is adopted by the two-thirds majority through secret ballot.
If the chairman is unable to perform his duties for some reasons, the vice- chairman shall act in his behalf.

Article 25. The members of the listing committee, except the president and general manager members, shall be replaced by one-third every year.

Article 26. The council shall have a supervision and control committee, which functions for a term of three years. Its functions for a term of
three years. Its functions and responsibilities are:

1. To supervise over and check up on the implementation by the council members, the general manager and other senior management personnel
of the decisions and resolutions of the membership congress and the council meetings.

2. To supervise over and check up on the council members, the general manager and other staff members concerning their observation
of the disciplines, laws and regulations and the constitution and operational rules of the stock exchange.

3. To supervise over and check up on the financial situation of the stock exchange.

A stock exchange shall formulate rules for the supervision and control committee and submit them to the local people’s government
and the CSSCC for approval before they become effective and to the SCSC for the record.

Article 27. The supervision and control committee shall be made up of nine members. They are:

1. Two from the members at the place of the stock exchange and four from members elsewhere and they shall be elected by the membership
congress.

2. One lawyer and one registered accountant to be nominated by the council and adopted by the membership congress.

3. The council shall elect one member to act as the chairman of the supervision and control committee.

Article 28. The supervision and control committee shall meet when circumstance calls. Its decision shall be valid only it is adopted by two-thirds
majority through secret ballot. The chairman of the supervision and control committee shall be responsible for calling and presiding
over the meeting. If the chairman is unable to perform his duties for some reasons, the chairman shall designate a member to act
in his behalf.

Article 29. The supervision and control committee has the right to exercise supervision and examination over matters within the scope of its
functions and responsibilities and take the necessary decisions or put forward settlement proposals according to the relevant provisions
of the laws, regulations and the constitution and operational rules of the stock exchange.

The expenses by the supervision and control committee shall be incorporated in the budget.

Article 30. The council members, the general manager, deputy general managers and members of the subcommittees are the senior management personnel
of a stock exchange.

The general manager and the deputy general managers shall have the qualification of at least a college education and had served as
responsible members of a securities handling organization or other financial organizations for at least three years.

A management personnel of a stock exchange or securities handling organization who was dismissed for law violating acts is not allowed
to be re-employed as a senior management personnel within five years of the dismissal.

Chapter Five Supervision and Control of Stock Trading by a Stock Exchange

Article 31. A stock exchange shall list and publish the up-to-the minute market information in an appropriate form with the following items:

1. Name of the stocks listed.

2. The prices at the opening, at the peak, at the lowest and at closing.

3. A comparison to the prices concerned of the current and the previous day.

4. Itemized and aggregate amounts and values of trans-actions.

5. Stock indices and their rises and falls.

6. Other items required by the SCSC to be made public.

Article 32. A stock exchange shall make a daily report, a weekly report, a monthly report and an annual report of the transactions and make them
public all in good time.

Article 33. A stock exchange shall sign an agreement with every listed company to set the mutual rights, interests and obligations of both.

Article 34. A stock exchange shall see to it that the listed company shall reveal information as required.

Article 35. A stock exchange shall set up a sponsor system for stock listing to ensure the listing standard of the list companies.

Article 36. A stock exchange shall make decisions on the temporary suspension, resumption or cancellation of trading of listed securities in
accordance with the laws and regulations on securities, the listing rules of the stock exchange, the provisions of the listing agreement
or the requirements of the CSSCC.

Article 37. A stock exchange shall keep files of listed companies and supervise over the existing amounts of stocks held by directors, supervisors
and senior management staff members of the listed companies and their changes.

Article 38. Members of a stock exchange shall observe the constitution and operational rules of the stock exchange and pay the seat fees, commissions
and other expenses to and deposit a certain amount of guaranty fund for securities trading in the exchange according to the regulations
and operational rules.

Article 39. Members of a stock exchange are obliged to provide the stock exchange and the CSSCC with quarterly, medium-term and annual reports
and immediate reports on related problems. A stock exchange has the right to demand for financial reports, accounting books, trading
records and other documents from its members.

CHAPTER SIX CONTROL AND SUPERVISION OVER STOCK EXCHANGES

Article 40. A stock exchange is not allowed in any form to transfer the licenses for its establishment and operation.

Article 41. The non-membership council members and other working staff of a stock exchange are not allowed to hold concurrent posts in any member
companies of the exchange.

The council members, the general manager, the deputy general managers and other working staff of a stock exchange are neither allowed
to leak by any means the internal information nor make use of such information for their own advantage. They are also not allowed
to make gains from the stock exchange members or listed companies.

Article 42. Whatever concerning their relative or their own interests, the senior management personnel and other working staff shall keep avoidance
in exercise of their duties. Matters that require avoidance shall be specified in the constitution and operation rules of the stock
exchange.

Article 43. A stock exchange shall establish control systems that are required for efficient control, supervision real-time monitoring of the
securities and provide required information about securities market to the local people’s government and the CSSCC upon request.

Article 44. Organs authorized by the local people’s government and the CSSCC have the right to demand the provision of information by stock exchanges
on members and listed companies of the exchanges.

Article 45. A stock exchange shall make a financial statement audited by an certified accountants office for securities within three months after
the end of a fiscal year and submit it to the local people’s government and the CSSCC for the record, with a copy being sent to the
SCSC.

Article 46. If a stock exchange stops operation due to an unexpected event or technically stops the operation to keep the deals in order, it
shall report to the local people’s government and the CSSCC immediately, with a copy of the report being sent to the SCSC.

Article 47. The local people’s government and the CSSCC have the right to demand reports and information from a stock exchange to detail its
operations and financial situation or send people to examine the operations, financial situation, accounting books and other relevant
materials of the stock exchange.

Article 48. A stock exchange shall, according to the relevant regulations of the State, deposit the guaranty funds for securities transactions
of its members into the special account of a bank and shall not use them without approval.

Article 49. A stock exchange shall report in good time to the organs authorized by the local people’s government and the CSSCC if the exchange
or its member is involved in a law suit or their senior management personnel are involved in the law suits in performing their duties
or deserve a punishment of dismissal according to the relevant securities regulations.

CHAPTER SEVEN LEGAL RESPONSIBILITY AND SETTLEMENT OF DISPUTES

Article 50. If inapt conditions on election and appointment of senior management personnel of a stock exchange or violations of the securities
law and regulations, the constitution or operation rules of the exchange by the senior management personnel of the exchange to make
them no longer qualified to hold their posts are found by the local government or the CSSCC, the latters have the right to order
the stock exchange to dismiss the people concerned according to the provisions provided for in the constitution and operational rules
of the stock exchange.

Article 51. Violations of the constitution or operational rules of the stock exchange by a member of a stock exchange or a listed company are
liable to punishment by the stock exchange according to the constitution or operational rules of the exchange.

Violations of provisions of the State securities laws and regulations by a member of a stock exchange or a listed company can be punished
by the exchange under authorized power according to law.

Article 52. Upon disqualification of a member by a stock exchange for violations of relevant State laws and regulations or the provisions of
the constitution or operational rules of the stock exchange, the exchange should notify the department in charge, and the latter
may give the member concerned administrative punishments according to law and its authorized power.

Article 53. If a stock exchange is found violating the relevant State regulations by having used the guaranty fund paid by its members without
authorization, an organ authorized by the local people’s government shall order it to correct it and the illegal proceeds, if any,
shall be confiscated accompanied with a fine of over RMB 30,000 and less than RMB 300,000 on the general manager and the people directly
responsible.

Article 54. If a stock exchange, a member of a stock exchange or a listed company and their relevant personnel is found to have violated this
set of interim procedures, it shall be punished according to the relevant provisions of the “Provisional Regulations Concerning the
Issuing and Trading of Stocks” in addition to the punishment specified in these procedures.

Article 55. If a listed company refuses to accept the punishment given by a stock exchange according to the operational rules of the exchange,
the company, if it is situated in the same place of the exchange, may apply for a ruling by an organ authorized by the local people’s
government within 15 days starting from the date when the punishment decision is received, and if it is a company elsewhere, it may
apply for a ruling with an organ designated by the SCSC within 15 days starting from the date when the punishment decision is received.

Article 56. If a member of a stock exchange refused to accept the punishment given by the exchange according to the constitution and operational
rules of the exchange, the company, if it is situated in the same place of the stock exchange, may apply for a ruling by the authorized
organ of the local people’s government within 15 days starting from the date when the punishment decision is received, and if it
is a company elsewhere, it may apply for a ruling with an organ designated by the SCSC within 15 days starting from the date when
the punishment decision is received.

CHAPTER EIGHT SUPPLEMENTARY PROVISIONS

Article 57. The meaning of some terms used in this set of interim procedures:

1. “Listing” refers to the fact that an issuer, with the approval, puts its stocks at a stock exchange for trading.

2. “Listed company” refers to a limited liability company which has got the permission to list its stocks in a stock exchange.

3. “Listing announcement” refers to the announcement and explanation of a company on matters on the listing of its stocks through
a designated newspaper or magazine before the listing according to the relevant laws and regulations on securities and the operational
rules of the stock exchange.

4. “Listing fees” refers to the money paid by an issuer of stocks to a stock exchange for listing its stock according to the operational
rules of the stock exchange.

5. “Listing sponsor” refers to a formal member of a stock exchange which, with the acknowledgment of the stock exchange, recommend
an issuer of stocks for a listing.

6. “Seat fees” refers to the money paid by a member of a stock exchange for the use of its seat according to the constitution and
operational rules of the stock exchange.

7. “Guaranty fund for transaction” refers to the fund paid to a stock exchange by a member according to the provisions of the constitution
and operational rules to guarantee the normal trading of the stocks concerned.

The meaning of the terms not defined in these procedure shall follow those defined in the “Provisional Regulations Concerning the
Issuing and Trading of Stocks”.

Article 58. The SCSC shall be responsible for interpreting these procedures.

Article 59. The procedures shall become effects as of the date of promulgation.

CATALOGUE OF FOREIGN-RELATED REGULATIONS PROMULGATED BEFORE THE END OF AND ANNULLED BY THE STATE COUNCIL (NOTE)

Category	CATALOGUE OF INVALIDATED LAWS AND ADMINISTRATIVE TEGULATIONS GOVERNING FOREIGN-RELATED MATTERS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1994-05-16	Effective Date	1994-05-16

A Catalogue of Foreign-related Regulations Promulgated before the End of 1993 and Annulled by the State Council (Note)

(Promulgated by Decree No.154 of the State Council of the People’s

Republic of China on May 16, 1994)

    I. A Catalogue of Regulations Promulgated Before the End of 1993 Which
Are Annulled or Have Become Invalid Automatically (3 Pieces)

Serial        post_title           Organ and
Date                  Comments
Number                        of
Promulgation

1      Regulations of the    Promulgated on      The
Standardization Law of         People’s Republic     July 31, 1979
the People’s Republic of         of China on
by the State        China was adopted and

Standardization Council
promulgated on December 29,

1988
by the Fifth Meeting

of
the Standing Committee

of
the Seventh National

People’s
Congress. The Law

of
the People’s Republic of China
on Product Quality

was
adopted and promulgated

on
February 22, 1993 by the

30th
Meeting of the

Standing
Committee of the

Seventh
National People’s

Congress.
2 Rules for Approved on
Replaced by the Regulations

Implementation of December 10, for
Implementation of the

the Individual 1980 by the
Individual Income Tax Law

Income Tax Law of State Council, of
the People’s Republic of the People’s promulgated
China which were promulgated

Republic of China on December 14,
on January 28, 1994 by the

1980
by the State Council

                              Ministry
of                               Finance
3      Interim Measures      Approved on
Provisions, formulated to

for the
December 15, suit the circumstances at

Administration of 1984 by the
that time, have become

Petty Trade in State Council, invalid
automatically

the Border Areas promulgated on

December
20,

1984
by the

Ministry
of Foreign
Economic

Relations
and

Trade

    II. A Catalogue of Regulations Which Have Been Annulled by Laws or
Regulations Promulgated from 1986 to 1993 (25 Pieces)

Serial       post_title             Organ and
Date              Comments
Number
of Promulgation

1      Provisions of the      Promulgated on      Annulled
by the Provisions

People’s Republic November 18, of
the General Customs

of China on the 1976 by the
Administration of the

Administration of State Council
People’s Republic of China

        the Import and
on the Administration of         Export of Articles
the Import and Export of         by Foreign
Articles by Foreign

Diplomatic Missions Diplomatic
Missions and

and Diplomats in
Their Personnel in China

China which
were approved on

October 31, 1986 by the

State Council and

promulgated on December 1,

1986 by the General

Customs Administration
2 Provisional Customs Promulgated on Annulled
by the Customs

Law of the April
18, 1951 Law of the People’s

People’s Republic by the Government Republic
of China which

of China Administration
was adopted and promulgated

Council on
January 22, 1987 by the

Standing Committee of the

National People’s Congress
3 Provisions for the Promulgated on
Annulled by the Measures

        Administration of     September 13,        for
the Control of         Narcotic Drugs        1978
by the          Narcotic Drugs which were

State
Council promulgated on

November 28, 1987 by the

State Council
4 Interim Measures Approved on Annulled
by the Measures

of the Bank of March 13, 1981
of the Bank of China

        China for
by the State         Concerning the Granting of         Granting
Loans        Council,
Loans to Enterprises with

to Chinese-Foreign promulgated by
Foreign Investment which

Equity Joint the Bank of were
approved on April 7,

Ventures China 1987
by the State Council

and promulgated on

April 24, 1987 by the Bank

of China
5 Interim Regulations Promulgated on Annulled
by the

on Control of February 6, Regulations
on Control of

Advertisements 1982 by the Advertisements
which were

State
Council promulgated on October 26,

1987 by the State Council
6 Interim Regulations Promulgated on Annulled
by the Regulations

on Control of on August 6,
of the People’s Republic

        Prices                1982
by the          of China on Control of                               State
Council        Prices which were

promulgated on

September 11, 1987 by the

State Council
7 Measures for Approved on Annulled
by the Rules for

Examination and August 26, 1985 the
Implementation of the

Approval of by the State
Regulations of the People’s

Technology- Council,
Republic of China on

        Introduction          promulgated
on       Administration of         Contracts
September 18,        Technology-Introduction

1985
by the Contracts which were

Ministry
of approved on December 30,

Foreign
Economic 1987 by the State Council

Relations
and and promulgated on

Trade January
20, 1988 by the

Ministry of Foreign

Economic Relations and

Trade
8 Regulations for Promulgated on
Annulled by the Regulations

        Controlling the       July 26, 1980        of
the People’s Republic of         Registration of       by
the State         China for Controlling the

Chinese-Foreign Council Registration
of Enterprises

Equity Joint
as Legal Persons which were

Ventures
promulgated on June 3,

1988 by the State Council
9 Regulations for Promulgated on
Annulled by the Regulations

        Controlling the       August 9, 1982
of the People’s Republic of         Registration of
by the State         China for Controlling the

Industrial and Council Registration
of Enterprises

Commercial
as Legal Persons which were

Enterprises promulgated
on June 3,

1988 by the State Council
10 Rules for the Promulgated on
Annulled by the Rules for

Implementation of March 10, 1983
Implementation of the

the Trademark Law by the State
Trademark Law of the

of the People’s Council People’s
Republic of China

Republic of China which
were amended on

January 3, 1988 with the

approval of the State

Council and promulgated on

RESOLUTIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE APPLICATION OF PROVISIONAL REGULATIONS ON VALUE-ADDED TAX, CONSUMPTION TAX, BUSINESS TAX, ETC., TO ENTERPRISES WITH FOREIGN INVESTENT AND FOREIGN ENTERPRISES

Resolutions of the standing committee of the National People’s Congress Regarding the Application of Provisional Regulations Onvalue-Added
tax, Consumotion Tax,Business Tax,etc.,to Enterprises With foreign investent and Foreign Enterprises

(Standing Committee, National People’s Congress: 29 December 1993)

Whole Doc.

The Fifth Session of the Standing Committee Meeting of the EighthNational People’s Congress has reviewed the proposals on
the applicationof the provisional regulations of Value-Added Tax, Consumption Tax,Business Tax, etc., to enterprises with
foreign investment and foreignenterprises submitted for examination and approval by the State Council.In order to unify the
tax system, balance the tax burden, improve theinvestment environment of our Country, and cater for the need ofestablishing
and developing the socialist market economy, the followingresolutions were specifically made:

1. Before the relevant tax laws have been formulated, the ProvisionalRegulations on Value Added Tax, The Provisional Regulations
on ConsumptionTax and the Provisional Regulations on Business Tax promulgated by theState Council shall be applicable to enterprise
with foreign investmentand foreign enterprises with effect from January 1, 1994. The adopted in principle at the 101st Session of theStanding committee Meeting of the National People’s Congress on September11,
1958 and promulgated for trial implementation on September 3, 1958 bythe State Council shall be repealed on the same date.

Value-Added Tax for the Chinese-foreign co-operative exploitation ofoffshore oil and natural gas shall be collected in kind.
The tax rates andcollection measures shall be separately formulated by the State Council.

2. Where the tax burden of the enterprise with foreign investmentapproved to be established before December 31, 1993 increases
due to theimposition of Value-Added Tax, Consumption Tax, and Business Tax pursuantto Article 1 of these Resolutions, such enterprises
may, upon applicationto and with the approval of the tax authorities, have a refund on theexcess tax paid due to such increased
tax burden within the approvedoperation period, with a maximum limit of not exceeding five years. Ifthere is no limit on
the operation period, the enterprise may, uponapplication to and with the approval of the tax authorities, have a refundon
the excess tax paid due to such increased tax burden for a maximum offive years. The detailed measures shall be formulated
by the StateCouncil.

3. Apart from Value-Added Tax, Consumption Tax and Business Tax, theapplication of the other types of taxes for enterprise
with foreigninvestment and foreign enterprises shall be implemented in accordance withthe laws when there are provisions in the
laws; and be implemented inaccordance with the stipulations of the State Council where there are noprovisions in the laws.

Enterprise with foreign investment mentioned in these Resolutionsmeans Chinese-foreign equity joint ventures, Chinese-foreign
contractualjoint ventures and wholly foreign-owned enterprises that are establishedwithin the territory of China.

Foreign enterprises mentioned in these Resolutions means foreigncompanies, enterprises and other economic organizations
which have set upestablishments or places within the territory of China to engage inproduction or business operations, as
well as which, though have not setup any establishments or places, have income sourced within the territoryof China.

These Resolutions shall come into effect on the date of promulgation.

INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON LAND VALUE- ADDED TAXES

The State Council

Decree of the State Council of the People’s Republic of China

No.138

“Interim Regulations of the People’s Republic of China on Land Value-Added Taxes” was adopted the at the 12th Executive Meeting of
the State Council on November 26, 1993 and is hereby promulgated, and shall come into force on the day of January 1,1994.

Premier of the State Council Li Peng

December 13, 1993

Interim Regulations of the People’s Republic of China on Land Value- Added Taxes

Article 1

These regulations are formulated to standardize the marketing of land and real estate, reasonably regulate the gains from added value
of land and safeguard the rights and interests of the State.

Article 2

Units and individuals (hereinafter referred to as taxpayers) shall pay land value-added taxes on their incomes derived from transference
of use rights of State-owned land and property right of buildings and attached installations thereon (hereinafter referred to as
transference of real estate) according to stipulations in these regulations.

Article 3

The land value-added taxes are levied on increased values the taxpayers derive from the transference of the real estate at rates specified
in Article 7 of these regulations.

Article 4

In calculating the added value, costs and expenses listed in Article 6 of these regulations shall be deducted from the taxpayers
gains from the real estate transference.

Article 5

Taxpayers’ gains from his real estate transference includes incomes in cash, kind and other forms.

Article 6

Deductions to be made in the calculation of land added-value:

(1)

The lease price paid for the use of the land;

(2)

The cost and expenses spent in the development of the land;

(3)

The cost and expenses in the construction of new buildings and attached installations, or the evaluated prices of old buildings and
structures;

(4)

Tax payments involved in the real estate transference;

(5)

Other deductions as prescribed by the Ministry of Finance.

Article 7

Land value-added taxes shall be levied in four progressive levels:

The tax rate is 30% for that part of the added value which does not exceed 50% of the deducted amount.

The tax rate is 40% for that part of the added value which does not exceed 50% but less than 100% of the deducted amount.

The tax rate is 50% for that part of the added value which is greater than 100% but less than 200% of the deducted amount.

The tax rate is 60% for that part of the added value which exceeds 200% of the deducted amount.

Article 8

On one of the following conditions, a taxpayer is exempt from land value-added tax:

(1)

The taxpayer builds houses of ordinary standard for sale and the added value does not exceed 20% of the deducted amount;

(2)

Land and properties recalled and requisitioned by the State according to law for construction purposes.

Article 9

On one of the following conditions, the land value-added tax rates are set according to the evaluated prices of the real estate:

(1)

Concealment and falsification in reporting the transaction prices in real estate transference;

(2)

Untrue reporting of the deducted amount;

(3)

The transaction prices in the real estate transference are lower than the evaluated prices for no justifiable reasons.

Article 10

A taxpayer should declare the real estate transaction at the tax authority in the place where the real estate is located within seven
days of the signing of the contract for the transference of the real estate and pay the land value-added tax within the time limit
ascertained by the tax office.

Article 11

The land value-added taxes are to be collected by the tax offices. The land and house property administration departments shall supply
the tax offices with relevant materials and assist them in the levy of the land value-added taxes according to law.

Article 12

Land and house property administration departments shall not perform the procedure for changes in the proprietary rights for the taxpayers
who fail to pay the land value-added tax in accordance with these regulations.

Article 13

The collection and administration of the land value-added taxes shall be carried out according to relevant stipulations in the Law
of the People’s Republic of China on Administration of Tax Collection and the relevant provisions of these regulations.

Article 14

The Ministry of Finance is responsible for interpretation of these regulations and in charge of formulating detailed rules for their
implementation.

Article 15

These regulations will enter into force as of January 1, 1994. All measures of the localities for the collection of the land value-added
taxes that contravene these regulations will cease to be effective at the same time.

Send to: People’s government of various provinces, autonomous regions and municipalities directly under the Central Government, all
ministries and commissions of the State Council and organizations directly under the State Council.

General Office of the Central Government, General Office of the Central Military Committee, General Office of the Standing Committee
of the National People’s Congress, General Office of the National Political Consultative Committee, the Supreme Court and the Supreme
Procuratorate.

The State Council
1993-12-13

PROGRESS OF SCIENCE AND TECHNOLOGY LAW

Law of the People’s Republic of China on Progress of Science and Technology



	(Adopted at the Second Meeting of the Standing Committee of the Eighth National People’s Congress and promulgated by Order No.4 of the President of the People’s Republic of China on July 2, 1993) Contents Chapter I General Provisions Chapter II Science and Technology in Economic Construction and Social Development Chapter III High-tech Research and High-tech Industries Chapter IV Basic Research and Applied Basic Research Chapter V Research and Development Institutions Chapter VI Scientific and Technical Workers Chapter VII Measures to Guarantee Progress of Science and Technology Chapter VIII Science and Technology Awards Chapter IX Legal Liability Chapter X Supplementary Provisions Chapter I General Provisions Article 1 This Law is formulated in accordance with the Constitution with a view to promoting progress of science and technology, assigning priority to the development of science and technology and bringing the role of science and technology as the primary productive force into full play in socialist modernization drive, so as to improve the service of science and technology to economic construction. Article 2 The State practises a basic guideline of basing economic construction and social development on science and technology and orienting undertakings of science and technology to economic construction and social development. Article 3 The State protects the freedom of scientific research, encourage scientific exploration and technological innovation so as to raise its science and technology to an advanced level in the world. The State and the whole society shall respect knowledge, esteem talent, value the creative work of scientific and technical workers, and protect intellectual property rights. Article 4 The State shall, in compliance with the demands of scientific and technological progress and the socialist market economy, restructure and improve the system of science and technology, and establish a mechanism capable of effectively integrating science and technology with economy. Article 5 The State shall encourage scientific research and technical development, popularize and apply the achievements made in science and technology, transform traditional industries, develop high-tech industries, and enhance activities employing science and technology to serve economic construction and social development. Article 6 The State shall disseminate scientific and technological knowledge to raise the scientific and cultural level of all the citizens. The State shall encourage government organs, enterprises, institutions, social organizations and citizens to participate in and support activities aimed at progress of science and technology. Article 7 The State Council shall formulate scientific and technological development programmes, determine major scientific and technological projects and other major projects closely related to science and technology, and secure the coordination of scientific and technological progress with economic construction and social development. Opinions from scientific and technical workers shall be fully solicited in the course of formulating scientific and technological development programmes and important policies and determining major scientific and technological projects and major projects closely related to science and technology, and a principle of scientific decision-making process shall be followed. Article 8 The administrative department in charge of science and technology under the State Council shall be responsible for the macroscopic management and overall coordination of the nation-wide work of science and technology. Other administrative departments concerned under the State Council shall be responsible for the relevant work of scientific and technological progress within the scope of their functions and responsibilities as prescribed by the State Council. Local people’s governments at various levels shall adopt effective measures to promote progress of science and technology. The State shall render assistance to minority nationality regions and remote and poor areas to accelerate the development of scientific and technological undertakings. Article 9 The Government of the People’s Republic of China shall actively promote scientific and technological cooperation and exchanges with foreign governments and international organizations, encourage research and development agencies, institutions of higher learning, social organizations and scientific and technical workers to establish cooperative relations of various forms with circles of science and technology in foreign countries. Chapter II Science and Technology in Economic Construction and Social Development Article 10 The State shall encourage research and development of new technologies, new products, new materials and new techniques, and promote activities of advancing rationalization proposals, and enhancing technological innovation and technical collaboration so as to steadily improve product quality, labour productivity and economic returns and develop social productive forces. Article 11 The State shall select projects of vital significance to economic construction and sponsor related scientific research and technological development so as to accelerate the popularization and application of scientific and technological achievements in production. Article 12 The State shall establish and develop technology market to promote the commercialization of scientific and technological achievements. Technological trading activities shall be conducted in accordance with the principles of voluntariness, equality, mutual benefit, non-gratuitous transaction, honesty and credibility. Article 13 The State shall rely on scientific and technological progress to advance economic construction and social development, control population growth, enhance population quality, rationally develop and utilize resources, defend against natural calamities, and protect living conditions and ecological environment. Article 14 The State shall rely on scientific and technological progress to invigorate rural economy, promote the popularization and application of agricultural scientific and technological achievements, and develop a modern agriculture with high yield, high quality, and high efficiency. Article 15 Local people’s governments at or above the county level shall adopt measures to ensure that research and development institutions as well as demonstration and dissemination bodies for agricultural science and technology shall have the right of independent management and use of their experimental bases and means of production for research, development, experimentation and popularization of new agricultural varieties and technologies. The application and popularization of agricultural scientific and technological achievements shall, in accordance with relevant legal provisions, practise a non-gratuitous service or a gratuitous service. Article 16 Local people’s governments at various levels shall encourage and support the development of mass science and technology organizations in rural areas, and render socialized scientific and technical services to plantation, forestry, animal husbandry and fishery before, during and after their production in a comprehensive and systematic way. Article 17 The State shall rely on scientific and technological progress to develop industry, communications and transportation, post and telecommunications, geological prospecting, construction and installation, commerce and other trades, so as to enhance their economic results and social benefit. Article 18 The State shall encourage enterprises to establish and improve their technology development organizations, and also encourage them to join forces or cooperate with research and development institutions, and institutions of higher learning, with a view to increasing their capabilities in research and development, intermediate experiment, and industrial experiment. Article 19 Enterprises shall, in response to the demands of international and domestic markets, carry out technological transformation and equipment renewal, upgrade their level of scientific management and assimilate and develop new technology so as to strengthen their market competitiveness. Enterprises shall seek consultation and assessment services and implement industrial and technological policies of the State when engaged in technological transformation and importation of advanced foreign technology and equipment. Enterprises which apply new techniques to develop and produce new products may enjoy preferential treatment in accordance with the provisions of the State. Article 20 The State shall rely on scientific and technological progress to develop the national defense science and technology, speed up the modernization of national defense and strengthen the national defense capabilities. Article 21 The State shall encourage the application of advanced science and technology to promote the development of education, culture, public health, sports and other undertakings. Chapter III High-tech Research and High-tech Industries Article 22 The State shall promote research on high technology and bring into play the leading role of high technology in scientific and technological progress; the State shall foster and promote the formation and development of high-tech industries, and apply high technology to transform traditional industries, and bring into play the role of the high-tech industries in economic construction. Article 23 The administrative department in charge of science and technology under the State Council and other relevant administrative departments shall organize in the whole nation scientific and technological forces to carry out research on high technology and popularize the achievements thereof. Article 24 High and new technology industry development zones shall be established upon approval by the State Council in selected areas with appropriate conditions. Article 25 Preferential policies prescribed by the State shall be applied to the enterprises and the research and development institutions engaged in the development and production of high-tech products within and without the high and new technology industry development zones, and the specific measures shall be formulated by the State Council. Article 26 The State shall encourage and guide the enterprises engaged in development, production and operation of high-tech products to establish management systems conforming with the international norms, to produce high-tech products up to the international standards, and to participate in the global market competition, thereby promoting the internationalization of high-tech industries. Chapter IV Basic Research and Applied Basic Research Article 27 The State shall ensure the continuous and steady development of basic research and applied basic research, and consolidate the foundation for scientific and technological progress. Funds for basic research and applied basic research shall account for an appropriate proportion in the total funds for research and development. Article 28 The administrative department in charge of science and technology under the State Council shall organize in a planned way the implementation of major basic scientific research programmes in the frontier disciplines and in economic and social development. Research and development institutions, institutions of higher learning, other enterprises and institutions as well as citizens may select subjects on their own for basic research and applied basic research. Article 29 The State shall establish a Natural Science Fund to aid basic research and applied basic research in accordance with the principle of supporting only those with eligibility on the basis of appraisal and deliberation by experts. The State shall support scientific research activities conducted by outstanding youths, and establish a Science Fund for Youths within the Natural Science Fund. Article 30 The State shall support the build-up of key laboratories, and set up bases for basic research and applied basic research. The State-level key laboratories shall be open to both domestic and foreign researchers. Chapter V Research and Development Institutions Article 31 The State shall, in accordance with the demands of economic construction and scientific and technological progress, provide an overall planning and guidance for the layout of scientific and technological research and development institutions, and establish a modernized scientific and technological research and development system. Article 32 The State shall give support, in such aspects as financial expenses and experimental means, to research and development institutions and institutions of higher learning engaged in basic research and applied basic research, high-tech research, research for major construction projects, research concerning projects for tackling major scientific and technological problems, and research on science and technology for key social and public welfare undertakings. Article 33 The State shall encourage and guide research and development institutions engaged in technology development to develop their technological achievements independently or in collaboration with other enterprises and institutions, and carry out an integrated management of technology, industry and trade, or of technology, agriculture and trade. The State shall encourage and guide research and development institutions engaged in scientific and technical consultation, scientific and technical information services and social and public welfare undertakings to gradually carry out enterprise-style management or to provide services non-gratis. Article 34 Research and development institutions shall practise a system whereby the president or director takes the overall responsibility. Research and development institutions shall, in accordance with the relevant regulations of the State, enjoy decision-making power in research and development, production and operation, use of funds, institutional set-up and personnel recruitment. Article 35 The State shall encourage various social forces to establish research and development institutions on their own and shall protect their legitimate rights and interests against any encroachment. Article 36 Research and development institutions may, in conformity with the law, invest and establish branches abroad. Foreign organizations or individuals may, in accordance with the law, establish research and development institutions within the territory of China, and may also set up, together with Chinese research and development institutions or other organizations, Chinese-foreign equity or contractual research and development institutions. Chapter VI Scientific and Technical Workers Article 37 Scientific and technical workers constitute an important force in the socialist modernization drive. The State shall take various measures to raise the social status of scientific and technical workers, cultivate and bring up through various channels scientific and technical professionals of various specialties and create favourable environment and conditions to bring the role of scientific and technical workers into full play. Article 38 People’s governments at various levels, enterprises and institutions shall take measures to gradually improve the treatment given to scientific and technical workers, and better their working and living conditions; and special preferential treatment shall be granted to scientific and technical workers with outstanding contributions. Article 39 People’s governments at various levels, enterprises and institutions shall create environment and conditions for the rational mobility of scientific and technical workers so as to give full play of their specialties. Article 40 Subsidies shall be granted, according to the regulations of the State, to scientific and technical workers engaged in basic research and applied basic research, high-tech research, research for major construction projects, research for tackling key scientific and technological problems, and research on science and technology for major social and public welfare, and those who work in poverty-stricken rural areas and minority nationality areas or work under adverse and dangerous conditions. Article 41 The State practises the system of professional and technical post_titles. Scientific and technical workers may obtain corresponding post_titles on the strength of their academic levels, professional abilities and accomplishments in their work. Article 42 Scientific and technical workers shall have the right to establish or join, according to law, scientific and technical social organizations. Scientific and technical social organizations shall play an active role in advancing the building of scientific disciplines, popularizing scientific and technical knowledge, training professional personnel, conducting consultation services, promoting academic exchanges, and safeguarding the legitimate rights and interests of scientific and technical workers. Article 43 The State shall encourage overseas scientific and technical workers to return to the motherland and take part in the socialist modernization drive, or serve the national construction in other ways. Article 44 Scientific and technical workers shall abide by the professional ethics, fulfill their duties and earnestly upgrade their own scientific and technical levels. Chapter VII Measures to Guarantee Progress of Science and Technology Article 45 The State shall steadily enhance the overall level of financial input to science and technology. The national research and development expenditure shall account for an appropriate proportion in the gross national product, and shall be gradually increased to keep pace with scientific and technological advance and economic and social development. The specific proportion of the national research and development expenditure to the gross national product shall be set by the State Council. The increase scale of the funding for science and technology allocated from the State’s financial budget shall exceed that of the regular financial revenue of the State. No unit or individual shall misappropriate, embezzle part of, or detain the funding for science and technology allocated from the State’s financial budget. Article 46 The State shall encourage enterprises to increase their investment in research and development and in technological innovation. The technological development expenditure of enterprises shall be entered into the account as cost in its actual amount. Article 47 The financial institutions of the State shall support the commercialization of scientific and technological achievements by means of credits and loans. Article 48 Research and development institutions engaged in technological development may, in accordance with relevant regulations of the State and through various forms, raise funds for research and development from society. Article 49 The State shall encourage domestic and foreign organizations or individuals to set up various science funds to finance scientific research and technological development. Article 50 The competent administrative departments under the State Council and local people’s governments at various levels shall take measures to promote scientific and technical information exchange and to establish modern scientific and technical information networks. Article 51 The State shall institute a security system with respect to science and technology to guard scientific and technological secrets involving national security and interests. The State strictly controls the exit of precious biological species resources from the territory of China. Chapter VIII Science and Technology Awards Article 52 The State shall set up an awarding system for science and technology to reward citizens and organizations that have made important contributions in their activities in relation to scientific and technological progress. Article 53 The State shall confer according to law national honorary post_titles on citizens who have made outstanding contributions to the development of science and technology. Article 54 The State Council shall set up Natural Science Prizes, Technological Invention Prizes, Scientific and Technological Progress Prizes, International Scientific and Technological Cooperation Prizes, and, if necessary, other types of scientific and technological prizes. The Natural Science Prizes shall be granted to citizens who have in basic research and applied basic research expounded certain natural phenomena, characteristics and laws and made important scientific discoveries. The Technological Invention Prizes shall be granted to citizens who have made important technological inventions in products, processes, materials or systems by applying scientific and technological knowledge. The Scientific and Technological Progress Prizes shall be granted to citizens or organizations that have made outstanding contributions in the application and popularization of advanced scientific and technological achievements, in the accomplishment of major scientific and technological projects, plans and programmes, and in the improvement of management in undertakings of science and technology. The International Scientific and Technological Cooperation Prizes shall be granted to foreign citizens or organizations that have made significant contributions to the cause of China’s science and technology. Article 55 Enterprises and institutions shall, in accordance with relevant regulations of the State, draw a certain percentage from the retained newly-added profit generated from the application of scientific and technological achievements to reward individuals who have accomplished the technological achievements. Article 56 Organizations or individuals at home or abroad may establish Scientific and Technological Fund to reward citizens or organizations that have made remarkable contributions in their activities in relation to scientific and technological progress. Chapter IX Legal Liability Article 57 Anyone who, in violation of the State’s administrative and financial systems, misappropriates, embezzles part of, or detains the funds for science and technology allocated from the State’s financial budget, shall be ordered by the competent authorities at higher levels to return within a specified period of time the funds misappropriated, embezzled, or detained; and if the circumstances are serious, the person who is held directly responsible shall be given administrative sanctions by the competent authorities at higher levels or by the unit to which he belongs. Article 58 In case of abusing power to suppress scientific and technological inventions or rationalization proposals, the person who is held directly responsible shall, if the circumstances are serious, be given administrative sanctions. Article 59 Anyone who obtains preferential treatment or awards by resorting to fraud in the development of new technologies and new products and in the declaration of scientific and technological achievements shall be deprived of the preferential treatment or awards and be concurrently given administrative penalties or sanctions. Anyone taking part in appraising scientific and technological achievements intentionally makes false appraisal shall be given administrative sanctions by the competent authorities concerned. Article 60 Anyone who encroaches upon another person’s copyright, patent right, right of discovery, right of invention or right of scientific and technological achievements by means of plagiarism, alteration, imitation or by other means, or who illegally usurps technical secrets, shall be dealt with in accordance with provisions of the relevant laws. Chapter X Supplementary Provisions Article 61 The administrative department in charge of science and technology under the State Council and other relevant administrative departments shall formulate implementing measures in accordance with this Law, and shall submit them to the State Council for approval prior to implementation. Article 62 This Law shall go into effect as of October 1, 1993.

REGULATIONS ON SETTLEMENT OF LABOUR DISPUTES IN ENTERPRISES

Category	LABOUR ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1993-07-06	Effective Date	1993-08-01

Regulations of the People’s Republic of China on Settlement of Labour Disputes in Enterprises

Chapter I  General Provisions
Chapter II  Mediation in Enterprises
Chapter III  Arbitration
Chapter IV  Rules of Punishment
Chapter V  Supplementary Provisions

(Adopted by the State Council at the 5th

Executive Meeting on June 11, 1993 and promulgated
by Decree No.117 of the State Council of the
People’s Republic of China on July 6, 1993 and
effective as of August 1, 1993)
Chapter I  General Provisions

Article 1 The present Regulations are formulated
to properly handle labour disputes in enterprises,
protect the legitimate rights and interests of the
enterprise and the workers and employees, maintain
the order of normal production and management,
develop sound labour relations, and promote the
smooth progress of the reform and the implementation
of the open policy.

Article 2 The Regulations are applicable to the
following labour disputes between the enterprise and
the workers and employees within the territory of
the People’s Republic of China:

(1) Disputes arising out of dismissal, discharge
or lay-off of workers and employees by enterprises,
or resignation by workers and employees or leaving
their jobs of their own volition;

(2) Disputes concerning implementation of
relevant State regulations on wages, insurance,
welfare, training and labour protection;

(3) Disputes regarding execution of the labour
contract;

(4) Disputes that other laws and regulations
stipulate should be handled with reference to these
Regulations.

Article 3 The enterprise and the worker(s) and
employee(s) involved shall be the parties to a case
of labour dispute.

Article 4 Settlement of labour disputes shall
observe the following principles:

(1) Emphasis is given to mediation and prompt
handling;

(2) Labour disputes shall be dealt with in
accordance with law on a fact-finding basis;

(3) The parties involved are equal before
applicable laws.

Article 5 When there are more than three
workers and employees in a labour dispute with the same grievances as
one of the parties, the workers and employees
involved shall nominate their representative to
participate in the work of mediation and arbitration.

Article 6 In case of a labour dispute, the
parties shall first find solution through
negotiations. If the parties are unwilling to go for
negotiations or negotiations fail, the case may be
referred to the labour dispute mediation committee of the
enterprise in which the dispute has occurred; if
mediation fails , the case may be referred to the
labour dispute arbitration committee for
arbitration. The parties may also petition directly
to the labour dispute arbitration committee for
arbitration. When one of the parties or both parties
refuse to accept the arbitration award, he or they
may bring a lawsuit before the people’s court.

In the course of handling a labour dispute,
neither party shall take any action that may aggravate the dispute.
Chapter II Mediation in Enterprises

Article 7 An enterprise may set up a labour
dispute mediatian committee (hereinafter referred to
as mediation committee) to be responsible for
mediation of labour disputes within the enterprise.
The mediation committee shall be composed of the
following persons:

(1) Representative(s) of workers and employee(s);

(2) Representative(s) of the enterprise;

(3) Representative(s) of the enterprise trade
union.

The workers’ and employees’ representative(s) shall be
nominated by the congress of workers’ and employees’
representatives or the workers’ and employees’ congress, the
enterprise representative(s) appointed by the
enterprise director or manager, and the enterprise
trade union representative(s) appointed by the
enterprise trade union committee.

The number of members to the mediation committee
shall be determined through negotiations between
workers’ and employees’ congress and the enterprise director or
manager, at the proposal of the former. The number
of enterprise representative(s) shall not exceed one
third of the total.

Article 8 The post of chairman of the mediation
committee shall be taken up by a representative of
the enterprise trade union.

The mediation committee shall set up its office
at the enterprise trade union committee.

Article 9 In an enterprise without any trade
union organization, the establishment and
composition of the mediation committee shall be
determined through negotiations between the workers’ and employees’
representatives and the enterprise representatives.

Article 10 Disputes taken up by the mediation
committee shall wind up within 30 days starting from
the date of application by the parties; otherwise,
mediation shall be considered unsuccessful.

Article 11 The mediation committee shall
observe the principle of voluntariness for both parties
during mediation. Agreement reached through
mediation shall be written in a mediation note for
conscious execution by the two parties; if mediation
fails, the case may be referred to the labour
dispute arbitration committee by the parties for arbitration within a set time
limit.
Chapter III Arbitration

Article 12 Counties, cities and city districts
shall set up labour dispute arbitration committees
(hereinafter referred to as arbitration committees).

Article 13 The arbitration committee shall be
composed of the following persons:

(1) Representatives of the department in charge
of labour administration;

(2) Representatives of the trade union council;

(3) Representatives of the department of overall
economic administration appointed by the government.

The members to the arbitration committee must be
in odd numbers, and the post of chairman is to be
taken up by an official in charge of the department
of labour administration.

The office of the arbitration committee shall be
located at the labour dispute settlement section of the
department of labour administration, and be responsible
for dealing with its day-to-day routine.

The arbitration committee shall follow the
principle of decision by a majority vote.

Article 14 The system of arbitrators and
arbitration tribunals shall be adopted by the
arbitration committee in the settlement of labour
disputes.

Article 15 The arbitration committee may engage
personnel from the department in charge of labour
administration or from other relevant government
departments, trade union officials, experts,
scholars, and lawyers as full-time or part-time
arbitrators.

Part-time and full-time arbitrators shall enjoy
equal rights in discharging their duties of
arbitration.

In executing their duties of arbitration,
part-time arbitrators shall receive the support of
their own work units.

Article 16 In handling a labour dispute, the
arbitration committee shall form an arbitration
tribunal which shall be composed of three
arbitrators.

A simple labour dispute may be handled by a
single arbitrator appointed by the arbitration
committee.

The arbitration tribunal may submit major or
complicated labour dispute cases to the arbitration
committee for deliberation and decision. The
arbitration tribunal must implement the decisions of
the arbitration committee.

Article 17 The arbitration committees set up in
counties, cities and city districts shall be in
charge of handling labour disputes in their
respective administrative areas.

The scope of jurisdiction of the arbitration
committees in cities with districts and in such
districts in handling labour disputes shall be
decided by the people’s governments of the provinces
and autonomous regions.

Article 18 When the enterprise and the
worker(s) or employee(s) involved in a dispute are not located in
areas under the jurisdiction of the same arbitration
committee, the dispute shall be handled by the
arbitration committee located at the place where the
worker(s) or employee(s) in question has wage relations.

Article 19 Any party may mandate one to two
lawyers or other agents to act for him in
arbitration. The party that mandates others to act
for him in arbitration shall submit to the
arbitration committee a Power of Attorney bearing
his signature or seal. The Power of Attorney shall
specify clearly the terms and powers of the mandate.

Article 20 A worker with limited capacity to
take part in civil cases or without such capacity,
or a deceased worker, may be represented in
arbitration proceedings by his legal representative.
The arbitration committee may appoint an agent for a
worker without a legal representative.

Article 21 The two parties in dispute may reach
a compromise on their own.

Article 22 A third party whose personal
interest will be affected by the outcome of the settlement of a labour
dispute may file a petition to participate in the
proceedings or may participate when so notified by
the arbitration committee.

Article 23 A party to a labour dispute should
petition for arbitration to the arbitration
committee in writing within 6 months from the date
when he knows or should know that his rights have
been infringed upon.

The arbitration committee shall accept a
petition when a party fails to observe the time
limit stipulated in the aforesaid clause due to
force majeure or other justifiable reasons.

Article 24 When a party petitions for
arbitration to the arbitration committee, the
petition shall be submitted to the arbitration
committee, and copies of the petition shall also be
submitted in accordance with the number of
respondents. The petition shall specify the
following:

(1) the name, occupation, address and work unit
of a worker or employee who is a party to the case, or, if the
party is an enterprise, its name, address and legal
representative’s name and position;

(2) the claim of arbitration and the facts and
grounds on which it is based; and

(3) any evidence as well as the names and
addresses of witnesses.

Article 25 Within seven days from the date of
receipt of a petition, the arbitration committee
shall decide whether to accept it or not. If the
decision is in the affirmative, the arbitration
committee shall send a copy of the petition to the
respondent and form an arbitration tribunal. If it
is in the negative, the committee shall make the
reasons clear.

The respondent shall within 15 days on
receipt of the copy of the petition file a bill of
defence with related evidence. Delay or failure by
the respondent to file a bill of defence shall not
prevent the case from being heard by the committee.

The arbitration committee shall have the
authority to request the parties to provide or
supplement their evidence.

Article 26 The arbitration tribunal shall
notify the parties in dispute four days in advance
and in writing the start of its time and place of
hearing. If a party has received the notice in
writing but refuses to appear at the hearing without
justifiable reasons or walks out in the course of
deliberations without permission of the arbitration
tribunal, and if he is the claimant, the arbitration
tribunal may decide that the case is withdrawn; and
if it is the respondent, the arbitration tribunal
may make an award by default.

Article 27 In handling labour disputes, the tribunal
shall firstly mediate and try to bring the two
parties involved together to reach an agreement on
their own on a fact-finding basis. The contents of
the agreement shall not contradict existing laws and
regulations.

Article 28 In case an agreement is reached
through mediation, the arbitration tribunal shall
produce a mediation note in accordance with the
contents of the agreement. The note is legally
binding as from the date of receipt by the parties.

If no agreement is reached through mediation or
if one party retracts before the note is delivered,
the arbitration tribunal shall proceed promptly with
a ruling.

Acticle 29 The arbitration tribunal shall hand
out its rulings over labour disputes under the principle of the minority
of its members submitting to the majority. Differing
views shall be placed on record.

After the tribunal has made a ruling, an
arbitration award shall be produced and sent to the
parties in dispute.

Article 30 If a party refuses to accept the
arbitration award, he may bring a lawsuit before the
people’s court within 15 days from receiving the
arbitration award. Otherwise, the arbitration award
shall come into force legally.

Article 31 The legally effective mediation note
and arbitration award shall be implemented within
the set time limit by both parties. In case one
party fails to implement the note or the award upon
expiration of the time limit, the other party may
petition with the people’s court for enforcement of
the note or the award.

Article 32 All labour disputes handled by an
arbitration tribunal shall be concluded within 60
days from the date of its setting up. If a case is
complicated requiring an extension of its mandate,
it shall be submitted to the arbitration committee
for approval, and the extension shall not exceed 30
days.

Acticle 33 In the course of handling a labour
dispute, the arbitration committee has the authority
to consult files, documents and other evidences
pertaining to the case from the units concerned, and
also to investigate insiders. Such units and persons
shall not refuse.

The arbitration committees may entrust each
other with the work of investigation.

If in investigating labour disputes certain
information involves secrets or personal privacy, the
arbitration committee and its personnel shall keep
them confidential.

Article 34 When a party involved in a labour
dispute applies for arbitration, he shall pay
arbitration fees according to the relevant rules set
by the State.

Arbitration fees include an acceptance fee and a
fee for dealing with the case. The rates and
procedures for charging arbitration fees shall be
determined by the department in charge of labour
administration under the State Council jointly with
the departments in charge of finance administration
and commodity prices administration under the State
Council.

Article 35 Any member of the arbitration
committee and any arbitrator shall himself request
withdrawal from his office, and the parties to the
dispute also have the right to request, orally or in
writing, that he be withdrawn from his office, in
any one of the following circumstances:

(1) if he is one of the parties, or a close
relative of a party to the dispute;

(2) if he has a personal stake in the labour
dispute; or

(3) if he has some other relations with a party
to the labour dispute that might affect the
impartial handling of the case.

Article 36 The arbitration committee shall make
a prompt decision on a request of withdrawal, and
notify the parties orally or in writing.
Chapter IV Rules of Punishment

Article 37 If in the course of handling a
labour dispute a party or any related person commits
any of the following acts, the arbitration committee
may criticize and admonish him, or order him to
correct his mistakes; if the case is serious, he
shall be punished according to relevant provisions
of the Regulations of the People’s Republic of China
on Administrative Penalties for Public Security; in
case of a crime, he shall be dealt with for his
criminal liabilities according to law:

(1) if he interferes with mediation and
arbitration, and hinders the arbitration personnel
from performing their duties;

(2) if he provides false information;

(3) if he refuses to provide relevant documents,
materials and other evidences; or

(4) if he retaliates against the arbitration
personnel, assistants, witnesses or assistant
executive personnel.

Article 38 If any of the arbitration personnel
in the course of handling a labour dispute bends the
law for his own benefit, takes bribes, abuses his
powers, or reveals secrets and private affairs of
individuals, he shall be dealt disciplinary sanction
by his work unit or its superior organ; if he is an
arbitrator, he shall be discharged by the
arbitration committee; in case of a crime, he shall
be dealt with for his criminal liabilities according
to law.
Chapter V Supplementary Provisions

Article 39 Labour disputes between state
organs, institutions and social organizations and
their workers, or disputes between individual
businesses of industry and commerce and their assistants or apprentices shall
be handled with reference to the present Regulations.

Article 40 The Rules of Organization and the
Procedure Rules of the arbitration committee shall
be formulated by the department in charge of labour
administration under the State Council jointly with
relevant departments.

Article 41 The people’s governments of the
provinces, autonomous regions and municipalities directly under the Central
Government may formulate their own measures of application in
accordance with the present Regulations.

Article 42 The department in charge of labour
administration under the State Council shall be
responsible for the interpretation of the
Regulations.

Article 43 The present Regulations shall come
into force from August 1, 1993. The Provisional
Regulations on Settlement of Labour Disputes in
State-owned Enterprises promulgated by the State
Council on July 31, 1987 shall be simultaneously
superseded.

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME ISSUES CONCERNING TAX REIMBURSEMENT FOR REINVESTMENT MADE BY FOREIGN INVESTORS OF ENTERPRISE WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on Some Issues Concerning Tax Reimbursement for Reinvestment Made by Foreign Investors
of Enterprise with Foreign Investment

GuoShuiFa [1993] No.9

June 15, 1993

The tax bureaus of various provinces, autonomous regions and municipalities directly under Central Government, the tax bureaus of
various municipalities separately listed on the State plan, and various sub-bureaus of Offshore Oil Tax Administration:

In accordance with the stipulations of Article 10 of the Income Tax Law of the People’s Republic of China on Enterprise with Foreign
Investment and Foreign Enterprises (hereinafter referred to as Tax Law) and Article 80 , 81 and 82 of the Rules for Implementation
of the Tax Law (hereinafter referred to Rules), related questions concerning foreign investors of enterprise with foreign investment
enjoying tax reimbursement for reinvestment are hereby made clear as follows:

The “operational period” referred to in Article 10 of the Tax Law should be calculated in accordance with the following principles:
For the foreign investor of an enterprise with foreign investment who reinvests the profits gained from the enterprise directly in
the same enterprise or in other enterprise with foreign investment which have started production and operation (including trial production
and trial business), the operational period shall be calculated from the day of the actual input of funds for reinvestment; for those
who reinvest in newly established enterprise with foreign investment, the operational period shall be calculated from the day the
newly established enterprise starts production and operation (including trial production and trial business).

II.

In line with the stipulations of Paragraph 2 of Article 80 of the Rules, the foreign investor, while applying for tax reimbursement
for reinvestment, should provide certificates which can confirm the year in which the profits are used for reinvestment, For those
who fail to provide certificates, tax authorities can, on the basis of the payable dividend recorded in the book of the enterprise
before the reinvestment is made by the foreign investor, or of that part of undistributed profits which is due to the foreign investor,
calculate from the earliest year sequentially up to the subsequent year in which the profits are used for the reinvestment, thereby
calculating the income tax to be returned to the enterprise.

III.

Foreign investor, who uses the liquidation income gained from the enterprise with foreign investment for reinvestment, shall not enjoy
the preferential treatment of tax reimbursement for reinvestment.

IV.

In accordance with the stipulations of Clause 3 of article 81 of the Rules, those who meet the following situations shall repay 60
percent of the tax already refunded:

Export-oriented enterprise set up or expanded with reinvestment by foreign investor which fails to reach the standard for export-oriented
enterprise in three years beginning from the day the enterprise starts production and operation, or within three years after the
funds for reinvestment are put in;

Technically advanced enterprise set up or expanded with reinvestment made by foreign investor which proves not up to the required
standard through check and has thus had its post_title as a technically advanced enterprise cancelled within three years beginning from
the day the enterprise starts production and operation or after the funds are put in.

For foreign investor who reinvests in another place, the tax authorities in the original tax payment place, while handling tax reimbursement
in accordance with the stipulations of Paragraph 3 of Article 80 of the Rules, should simultaneously send the Advice Note on the
Already Refunded Tax for the Reinvestment Made by the Foreign Investor in Other Regions to the tax authorities which accept the reinvestment
enterprise in its location. When the foreign investor is examined and confirmed by tax authorities in the location of the accepted
reinvestment enterprise that he withdraws from the locality before the five-year operational period expires after reinvestment as
stated in Article 10 of the Tax Law, or he meets the situation as stated in Paragraph 3 of Article 81 of the Rules, the foreign
investor should perform the formalities for repaying all or part of the already refunded tax with the tax authorities in the location
of the reinvestment enterprise.

VI.

This Circular shall enter into force as of the day of the receipt of the document. If past stipulations are inconsistent with this
Circular, the matter should be handled in accordance with this Circular.

Attachment: Advice Note on the Already Refunded Tax for the Reinvestment Made by the Foreign Investor in Other Regions (omitted)

The State Administration of Taxation
1993-06-15

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1999

REGULATIONS FOR THE IMPLEMENTATION OF WILD AQUATIC ANIMAL PROTECTION

SUPPLEMENTARY PROVISIONS CONCERNING THE PUNISHMENT OF CRIMES OFCOUNTERFEITING REGISTERED TRADEMARKS MADE BY THE STANDING COMMITTEE NATIONAL PEOPLE’S CONGRESS

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON REVISING THE TRADEMARK LAW (ATTACHED WITH THE FIRST REVISION OF THE TRADEMARK LAW )

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON RELATED MATTERS CONCERNING THE ESTABLISHMENT OF DUTY-FREE STORES (MARKETS)

PROVISIONS ON THE ADMINISTRATION OF GROUND RECERIVING FACILITIES FOR SATELLITE TELEVISION TRANSMISSIONS

INTERIM PROCEDURES ON THE MANAGEMENT OF STOCK EXCHANGES

CATALOGUE OF FOREIGN-RELATED REGULATIONS PROMULGATED BEFORE THE END OF AND ANNULLED BY THE STATE COUNCIL (NOTE)

RESOLUTIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE APPLICATION OF PROVISIONAL REGULATIONS ON VALUE-ADDED TAX, CONSUMPTION TAX, BUSINESS TAX, ETC., TO ENTERPRISES WITH FOREIGN INVESTENT AND FOREIGN ENTERPRISES

INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON LAND VALUE- ADDED TAXES

PROGRESS OF SCIENCE AND TECHNOLOGY LAW

REGULATIONS ON SETTLEMENT OF LABOUR DISPUTES IN ENTERPRISES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME ISSUES CONCERNING TAX REIMBURSEMENT FOR REINVESTMENT MADE BY FOREIGN INVESTORS OF ENTERPRISE WITH FOREIGN INVESTMENT

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7