PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON STRENGTHENING INSPECTION AND SUPERVISION OF LAW ENFORCEMENT

Provisions of the Standing Committee of the National People’s Congress on Strengthening Inspection and Supervision of Law Enforcement



	(Adopted at the Third Meeting of the Standing Committee of the Eighth National People’s Congress on September 2, 1993) For the purpose of upholding the dignity of the law, promoting law enforcement and enabling the Standing Committee of the National People’s Congress to inspect and supervise law enforcement with more practical results, the following provisions on the inspection and supervision of law enforcement (simplified as inspection of law enforcement) are formulated in accordance with Article 67 of the Constitution and the provisions of relevant laws and on the basis of summing up the experience gained in practice in recent years. 1. The Standing Committee and Special Committees of the National People’s Congress shall inspect and supervise the enforcement of laws, resolutions and decisions regarding the laws, which are formulated by the National People’s Congress or its Standing Committee. Concentrating on major problems in reform and opening up and in the socialist modernization drive and problems that the masses are most concerned, a focal point for the inspection of law enforcement in a certain period shall be determined. Special effort shall be made to inspect and supervise the enforcement of laws regarding the socialist market economy so as to safeguard and promote the development of the socialist market economy. 2. In inspecting law enforcement, the Standing Committee and Special Committees of the National People’s Congress shall chiefly inspect and supervise the law enforcement conducted by the competent organs in charge of the implementation of laws, and urge the State Council and the departments under it, the Supreme People’s Court and the Supreme People’s Procuratorate to promptly resolve the problems arising in the process of law enforcement. The team for inspection of law enforcement shall not directly handle problems. 3. The inspection of law enforcement shall be carried out in a planned way. The plan for the inspection of law enforcement shall include the contents, organizations, time, places, ways and requirements of inspection. The plan of the National People’s Congress Standing Committee for the inspection of law enforcement shall, after being drafted by the General Office of the Standing Committee within one month after the annual session of the Congress is closed, be reported to the Council of Chairmen for approval and printed for distribution at a meeting of the Standing Committee. The plans of the National People’s Congress Special Committees for the inspection of law enforcement shall, after being drafted within one month after the annual session of the Congress is closed, be coordinated by the Secretary-General of the National People’s Congress Standing Committee before they are reported to the Council of Chairmen for the record. The General Office of the National People’s Congress Standing Committee shall notify of the plans for the inspection of law enforcement the State Council and its departments concerned, the Supreme People’s Court, the Supreme People’s Procuratorate and the people’s congress standing committees of the relevant provinces, autonomous regions, and municipalities directly under the Central Government. 4. The team for inspection of law enforcement shall be organized in line with the principle that the members are picked and work with high efficiency and convenience. The inspection team of the National People’s Congress Standing Committee shall be composed of a head and certain number of members, all of whom are to be chosen by the Council of Chairmen from among the component members of the Standing Committee. The inspection team may be divided into several groups and manned with necessary working personnel. The team for inspection of law enforcement of a Special Committee shall be organized by the Special Committee itself. The inspection teams of both the Standing Committee and the Special Committees may enroll deputies to the National People’s Congress and experts concerned to participate in their work, and they may also invite responsible persons of the competent organs in charge of law enforcement and the standing committees of the local people’s congresses to take part in the work. 5. Component members and working personnel of the team for inspection of law enforcement shall familiarize themselves with and master the relevant laws, regulations and policies, collect material concerning law enforcement and hear reports of the competent organs in charge of law enforcement. 6. Members of the team for inspection of law enforcement shall go down to grass-roots units, go deep into the realities of life and go into the midst of the masses to learn and become well informed of the true conditions regarding law enforcement and study the problems in law enforcement by various means, such as hearing reports, holding informal discussions, paying private visits, making sample survey and conducting on-the-stop investigations. The departments and local authorities concerned shall support the work of the inspection team and provide it with true information and other necessary assistance. 7. After the inspection is over, a report on the inspection of law enforcement shall be prepared under the leadership of the head of the inspection team. The contents of the report shall include: an overall appraisal of the enforcement of the law under inspection; analysis of the problems in law enforcement and the causes for those problems; proposals for the improvement of law enforcement; and proposals for the amendment, supplementation and interpretation of the law where necessary. In the report the information must be true and objective, and no contradiction shall be evaded. 8. The report on the inspection of law enforcement prepared by the inspection team of the National People’s Congress Standing Committee shall be submitted by the Council of Chairmen to the Standing Committee for decision on whether to place it on the agenda of its meeting. As for the report on the inspection of law enforcement prepared by the inspection team of a Special Committee of the National People’s Congress, the Council of Chairmen shall decide whether or not to submit it to the Standing Committee for decision on placing it on the agenda of its meeting. The report placed on the agenda shall be delivered to a plenary meeting of the Standing Committee by the head of the inspection team and shall be deliberated at group meetings and at the plenary meeting. Leading members of the competent organs in charge of law enforcement shall attend the meetings to listen to comments and answer inquiries. Component members of the Standing Committee may address inquiries with regard to major problems in law enforcement. When necessary, the Standing Committee may make relevant resolutions. Reports on the inspection of law enforcement that are prepared by Special Committees but are not put on the agenda of the meeting of the Standing Committee may be deliberated by the Special Committees respectively. 9. The report on the inspection of law enforcement deliberated at the meeting of the Standing Committee of the National People’s Congress and the comments and suggestions thereon shall be referred to the competent organs in charge of law enforcement in writing by the Council of Chairmen. The organs concerned shall seriously improve the enforcement of law and within six months make a report in writing to the Standing Committee on the measures for improvement and the results achieved. When necessary, such report may be submitted by the Council of Chairmen to the Standing Committee for decision on placing it on the agenda of its meeting for deliberation. Reports on the inspection of law enforcement deliberated by the Special Committees of the National People’s Congress and the comments and suggestions thereon shall be referred to the competent organs in charge of law enforcement by the Special Committees respectively. The organs concerned shall report to the Special Committees on the measures for improvement of law enforcement and the results achieved. If a Special Committee is not satisfied with such a report, it may submit a relevant bill or proposal to the Standing Committee for deliberation. 10. With regard to major typical law-breaking cases discovered in the inspection of law enforcement, the Council of Chairmen may refer them to a Special Committee or a working body of the Standing Committee for investigation. The results of the investigation shall be reported to the Council of Chairmen, and the Council of Chairmen may, in light of the circumstances, demands the organs concerned to deal with the cases within a time limit. The organs concerned shall report the results of their disposition without delay. When necessary, the Council of Chairmen may submit the report to the meeting of the Standing Committee for deliberation. With regard to typical law-breaking cases of particularly grave nature, the Standing Committee may organize according to law a committee for the investigation of a specific problem. The Standing Committee shall not directly handle specific cases, which shall be handled by the competent organs in charge of law enforcement strictly in accordance with the procedures prescribed by law. 11. The mass media shall promptly report and publicize the inspection of law enforcement conducted by the Standing Committee of the National People’s Congress. The General Office of the Standing Committee of the National People’s Congress may hold news briefings on the inspection of law enforcement. Major typical law-breaking cases discovered in the inspection of law enforcement and their settlement may be made known to the public.

SAFETY IN MINES

Law of the People’s Republic of China on Safety in Mines

CHAPTER I GENERAL PROVISIONS

CHAPTER II GUARANTEES FOR SAFETY IN MINE CONSTRUCTION

CHAPTER III GUARANTEES FOR SAFETY IN EXPLOITATION OF MINES

CHAPTER IV SAFETY MANAGEMENT OF MINING ENTERPRISES

CHAPTER V SUPERVISION AND CONTROL OVER SAFETY IN MINES

CHAPTER VI DISPOSITION OF ACCIDENTS IN MINES

CHAPTER VII LEGAL RESPONSIBILITIES

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 1 This Law is formulated for the purpose of ensuring safety in production in mines, preventing accidents and protecting personal
safety of workers and staff at mines and promoting the development of mining industry.

Article 2 All activities relating to exploitation of mineral resources conducted within the boundaries of the People’s Republic of China,
as well as in other sea areas under its jurisdiction must comply with this Law.

Article 3 Mining enterprises must possess facilities that ensure safety in production, establish and perfect the system of safety management,
take effective measures to improve the working conditions for workers and staff and strengthen the work of safety control
in mines in order to ensure safe production.

Article 4 The competent departments of labour administration under the State Council shall exercise unified supervision over the work of
safety control throughout the country.

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

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

Article 5 The State shall encourage research in science and technology relating to safety in mines, popularize advanced technology,
improve safety facilities and enhance the level of safe production in mines.

Article 6 Units and individuals that have make outstanding achievements in persistent safe production in mines, prevention of accidents,
participation in rescue work at mines and scientific and technological research relating to safety in mines shall be awarded.

CHAPTER II GUARANTEES FOR SAFETY IN MINE CONSTRUCTION

Article 7 Safety facilities in mine construction projects must be designed, constructed and put into operation and use at the same
time with the principal parts of the projects.

Article 8 The design papers for mine construction projects must comply with the safety rules and technological standards for mining industry
and shall, according to regulations of the State, be subject to the approval of the authorities in charge of mining
enterprises; those failing to comply with the safety rules and technological standards for mining industry may not be approved.

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

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

Article 9 The following items in mining designs must comply with the safety rules and technological standards for mining industry:

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

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

(3) electricity supply system;

(4) hoisting and transportation systems;

(5) water control and drainage systems and fire control and fire- extinguishing systems;

(6) gas control system and dust control system;

(7) other items concerning safety in mines.

Article 10 Each underground mine must have at least two walkable safety outlets and the direct horizontal distance between such outlets
must comply with the safety rules and technological standards for mining industry.

Article 11 Mines must have transportation and communication facilities that link the mines with the outside and meet safety requirements.

Article 12 Mine construction projects must be constructed in accordance with the design papers approved by the authorities in charge of
mining enterprises.

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

CHAPTER III GUARANTEES FOR SAFETY IN EXPLOITATION OF MINES

Article 13 For exploitation of mines, requirements that ensure safe production must be met, and the safety rules and technological standards
for mining industry corresponding to the exploitation of different types of minerals must be observed.

Article 14 Mine pillars and rock pillars to be preserved as specified in the mining designs shall, within the prescribed period of time,
be protected and may not be exploited or damaged.

Article 15 Equipments, apparatus, protective appliances and safety testing instruments used in mines with special safety requirements
must comply with the national safety standards or safety standards of the mining industry; those failing to comply with
the national safety standards or safety standards of the mining industry shall not be put into use.

Article 16 Mining enterprises must regularly carry out inspection, maintenance and repair of mechanical and electrical equipments
and protective installations thereof, as well as safety testing instruments, so as to ensure safe operation.

Article 17 Mining enterprises inspect the poisonous and harmful substances at the work sites and the percentage of oxygen in underground
air to ensure that they meet safety requirements.

Article 18 Mining enterprises must adopt preventive measures against the following hidden dangers of accidents that jeopardize safety:

(1) roof falling, slabbing, slope sliding, and surface collapsing;

(2) gas blast and coal dust explosion;

(3) bumps, gas outburst and blowout;

(4) fire and flood on surface and underground;

(5) perils arising from demolition apparatus and demolition operations;

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

(7) other perils.

Article 19 Mining enterprises shall take preventive measures against perils that may arise out of using mechanical and electrical equipment,
soil tips, mine tips, dams and lagoons, as well as from disused mine pits.

CHAPTER IV SAFETY MANAGEMENT OF MINING ENTERPRISES

Article 20 Mining enterprises must establish and improve the safe production responsibility system.

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

Article 21 Managers of mines shall, on a regular basis, report their work on safe production to the corresponding congresses of workers
and staff or assemblies of workers and staff, thus bringing into play the supervisory role of the congresses of workers and
staff.

Article 22 Workers and staff of mining enterprises must observe the laws, regulations and enterprise rules concerning safety in mines.

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

Article 23 Trade unions of mining enterprises shall safeguard, in accordance with the law, the lawful rights and interests of the workers
and staff in relation to safe production, organize the workers and staff to carry out supervision over the safety work of the
mines.

Article 24 If a mining enterprise violates any laws or regulations concerning safety, the trade union is enpost_titled to demand that
the management of the enterprise or the department concerned deal with the case seriously.

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

Article 25 Where the management of an enterprise gives a command contrary to the established rules and compels workers to operate
under unsafe conditions, or, major hidden dangers of accidents and occupational hazards are found in the course
of production the trade union has the right to put forward proposals for a solution; where the life of the workers and
staff is in danger, the trade union has the right to propose to the management that the workers and staff be evacuated
from the dangerous site in an organized manner, and the management must make a decision without delay.

Article 26 Mining enterprises must give safety education and training to their workers and staff; those who have not received safety education
and training may not take up a post of duty.

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

Article 27 Managers of mines must prove, through examination, to have special knowledge of safety and the capability of leading
safe production and disposing of accidents in mines.

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

Article 28 Mining enterprises must distribute to their workers and staff labour protective gadgets necessary for guaranteeing safe production.

Article 29 Mining enterprises may not recruit adolescents to engage in underground work.

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

Article 30 Mining enterprises must adopt preventive measures against accidents in mines, and be responsible for their implementation.

Article 31 Mining enterprises shall establish rescue and first-aid groups composed of full-time or part-time personnel and equipped
with necessary equipment and medicine.

Article 32 Mining enterprises must, in accordance with regulations of the State, draw special funds for safety technical measures from
the amount of sales of their mineral products. The special funds for safety technical measures must be used exclusively to
improve conditions of safe production in mines and may not be diverted to any other purposes.

CHAPTER V SUPERVISION AND CONTROL OVER SAFETY IN MINES

Article 33 Competent departments of labour administration of the people’s governments at or above the county level shall exercise
the following supervisory functions and responsibilities with respect to safety work in mines:

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

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

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

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

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

(6) to participate in and supervise investigation and disposition of accidents in mines;

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

Article 34 The authorities in charge of mining enterprises under the people’s governments at or above the county level shall exercise
the following functions and responsibilities with respect to the control of safety work in mines:

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

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

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

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

(5) to investigate and deal with serious accidents in mines; and

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

Article 35 The personnel in charge of mine safety supervision under the competent department of labour administration are enpost_titled to
enter mining enterprises and make on-the-spot inspections on the state of safety; when circumstances of emergency threatening
the safety of workers and staff are discovered, they shall demand a prompt action thereof by the mining enterprise involved.

CHAPTER VI DISPOSITION OF ACCIDENTS IN MINES

Article 36 In case an accident occurs in a mine, the mining enterprise concerned must organize rescue work immediately so as to prevent
the spreading of the accident and reduce casualties and property losses, and must immediately and truthfully report
any accident involving causalities to the competent department of labour administration and the authorities in charge of mining
enterprises.

Article 37 In the case of an ordinary mine accident, the mining enterprise concerned shall be responsible for the investigation and
the disposition thereof.

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

Article 38 Mining enterprises shall, in accordance with regulations of the State, give pensions or compensations for workers and staff members
who died or were injured in accidents in mines.

Article 39 After the occurrence of a mine accident, dangers at the scene shall immediately be eliminated, causes of the accident promptly
ascertained and preventive measures timely devised. Production may be resumed only after dangers at the scene have been eliminated.

CHAPTER VII LEGAL RESPONSIBILITIES

Article 40 Whoever commits any of the acts enumerated below in violation of this Law shall be ordered by the competent department of
labour administration to make a rectification and may concurrently be punished by a fine; if the circumstances are serious,
the case shall be submitted to the people’s government at or above the county level for a decision ordering the suspension
of production for a cleaning up; the person in charge and the person directly responsible shall be subjected to administrative
sanctions by the unit to which they belong or by the competent authorities at higher levels:

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

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

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

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

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

Article 41 Mine mangers without special knowledge of safety, or specialized operators in charge of safe production taking up a post
of duty without certificates of operation qualifications shall be ordered by the competent department of labour administration
to make a rectification within a fixed period of time; where rectifications are not made upon expiration of the period,
the matter shall be submitted to the relevant people’s government at or above the county level for a decision ordering
the suspension of production, and production may not be resumed until qualified personnel are assigned to such posts after
readjustment.

Article 42 Where a mine construction project is started without having the designs of its safety facilities approved, the mining enterprise
concerned shall be ordered by the authorities in charge of mining enterprises to stop the construction; with respect
to the mining enterprise refusing to carry out the order, the matter shall be submitted by the authorities in charge
of mining enterprises to the relevant people’s government at or above the county level for a decision on the rescission
of its mining permit and business license by the competent authorities.

Article 43 Where the safety facilities in a mine construction project are put into operation without having been inspected for acceptance
or without having passed inspection for acceptance, the mining enterprise concerned shall be ordered to stop production
by the competent department of labour administration in conjunction with the authorities in charge of mining enterprises,
and shall also be fined by the competent department of labour administration; with respect to the mining enterprise
refusing to stop production, the matter shall be submitted by the competent department of labour administration to the
relevant people’s government at or above the county level for a decision on the rescission of its mining permit and business
license by the competent authorities.

Article 44 Where a mining enterprise already put into operation but without the due conditions for safe production insists on
forced exploitation, it shall be ordered by the competent authorities of labour administration in conjunction with the authorities
in charge of mining enterprises to make improvement within a fixed period of time; with respect to the mining enterprise
that still fails to meet the conditions for safe production upon expiration of the period, the matter shall be submitted by
the competent department of labour administration to the relevant people’s government at or above the county level for a decision
on the suspension of production for the purpose of readjustment or on the rescission of its mining permit and business
license by the competent authorities.

Article 45 If any party is not satisfied with the decision on administrative sanctions, it may, within 15 days from receiving
the notification of the decision, apply for reconsideration to the higher authorities next to the one that has made
the decision; the party also may directly bring a suit before a people’s court within 15 days from receiving the notification
of the decision.

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

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

Article 46 Any responsible person of a mining enterprise who gives command in violation to established regulations and compels workers
to carry out operations at risks, thus causing accidents involving serious causalities, shall be investigated for criminal
responsibilities in accordance with the provisions of Article 114 of the Criminal Law.

Article 47 Any responsible person who fails to take measures with respect to hidden dangers of accidents in a mine, thereby causing
accidents involving serious causalities, shall be investigated for criminal responsibilities by applying mutatis mutandis
the provisions of Article 187 of the Criminal Law.

Article 48 Where any person in charge of safety supervision or safety control in a mine abuses his power, neglects his duty, or practises
favouritism and irregularities, and if the act constitutes a crime, the person concerned shall be investigated for criminal
responsibilities in accordance with the law; if the act does not constitute a crime, administrative sanctions shall
be given.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 49 Regulations for implementation shall be formulated by the competent department of labour administration under the State Council
in accordance with this Law, and the regulations formulated shall be submitted to the State Council for approval before
implementation.

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

Article 50 This Law shall go into effect as of May 1,1993.

REGULATIONS FOR COMPONENT MEMBERS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS

Regulations for Component Members of the Standing Committee of the National People’s Congress



	(Adopted at the Second Meeting of the Standing Committee of the Eighth National People’s Congress on July 2, 1993) Article 1 These Regulations are formulated in accordance with the relevant provisions of the Constitution and other laws for the purpose of strengthening the organizational and institutional construction of the Standing Committee and facilitating better performance of duties by component members of the Standing Committee. Article 2 Component members of the Standing Committee must safeguard the fundamental interests and common will of the whole people, adhere to the system of the people’s congresses, devote to the building of socialist democracy and legal system, observe the Constitution and laws in an exemplary way, serve the people whole-heartedly and conscientiously accept the supervision of deputies to the National People’s Congress and the masses. Article 3 Component members of the Standing Committee shall study hard the theory of building socialism with Chinese characteristics, familiarize themselves with the Constitution and other laws and master the knowledge necessary for the exercise of their functions and powers. Article 4 Component members of the Standing Committee must earnestly perform their duties and work hard; their other public activities shall be subordinated to the need of the work of the Standing Committee. Article 5 Component members of the Standing Committee must attend the meetings of the Standing Committee. Whoever cannot attend the plenary meeting of the Standing Committee shall, through the General Office of the Standing Committee, ask the Chairman for leave; whoever cannot attend the group meeting of the Standing Committee shall ask the convener of the group meeting for leave. The General Office shall, at each meeting, print out the attendance information and distribute it to component members of the Standing Committee. Article 6 Component members of the Standing Committee shall not be held legally liable for their speeches or votes at various meetings of the Standing Committee. Component members of the Standing Committee shall abide by the rules of procedure and other relevant procedural provisions at various meetings of the Standing Committee. Article 7 Component members of the Standing Committee shall, before the holding of the Standing Committee meeting, be well prepared for the deliberation of subjects under discussion. Component members’ speeches at group meetings of the Standing Committee shall focus on the subjects of the meetings. Article 8 Component members of the Standing Committee must participate in the vote of bills or proposals and accept the results of vote conducted according to law. As soon as the convener of a meeting announces that a bill is put to vote, component members of the Standing Committee shall voice no more opinions on the bill, except those on the procedures related to the vote. Article 9 Component members of the Standing Committee shall, in accordance with the relevant provisions, take part in inspections organized by the Standing Committee. During such inspections, they shall not directly handle problems, and the working personnel accompanying them shall be small in number but highly capable. Article 10 Component members of the Standing Committee shall maintain close contacts with the people, regularly carry out investigations and studies, heed opinions and demands of the people and convey such information to the Standing Committee of the National People’s Congress. Article 11 Component members who are also members of a Special Committee shall actively engage in the work of the Special Committee and comply with the rules and regulations of the Special Committee. Article 12 Component members of the Standing Committee shall be free from corruption and shall not pursue any improper gains. Article 13 Component members of the Standing Committee shall strictly guard state secrets. Whatever shall not be made known to the public according to relevant provisions shall not be disseminated in any manner. Article 14 Component members of the Standing Committee shall, in foreign-related activities, observe in an exemplary way the disciplines in foreign affairs and uphold the dignity and interests of the State. Article 15 Component members of the Standing Committee who violate these Regulations in a grave manner shall make a self-criticism to the Council of Chairmen. Article 16 These Regulations shall come into force as of the date of adoption.

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE LEVY OF CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX IN ACCORD WITH INTEREST DIFFERENCE ON INTEREST INCOMES FROM FOREIGN EXCHANGE LOANS OF FOREIGN-CAPITAL AND CHINESE-FOREIGN EQUITY JOINT FINANCIAL INSTITUTIONS

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning the Levy of Consolidated Industrial and Commercial Tax in Accord with
Interest Difference on Interest Incomes from Foreign Exchange Loans of Foreign-capital and Chinese-foreign Equity Joint Financial
Institutions

GuoShuiFa [1993] No.011

January 20,1993

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

In order to further promote opening to the outside world and facilitate the attraction of foreign capitals, with approval from the
State Council, stipulations are hereby laid down as follows on the levy of consolidated industrial and commercial tax on the incomes
gained by foreign-capital and Chinese-foreign equity joint financial institutions (including financial companies):

Consolidated industrial and commercial tax is levied at a 5 percent rate on interest incomes from foreign-exchange loan business by
calculating the balance after subtracting interest expenditure.

II.

Consolidated industrial and commercial tax is levied in full amount of the incomes from other financial businesses than foreign exchange
loan business at a 5 percent tax rate; consolidated industrial and commercial tax is levied on the incomes from the above-mentioned
business gained by foreign-capital and Chinese-foreign equity joint financial institutions set up in special economic zones at a
3 percent tax rate.

III.

Accounts must be kept separately for interest on which tax is calculated on the basis of interest balance, if the division is unclear,
consolidated industrial and commercial tax shall be levied by calculating business income in full amount.

IV.

For foreign-capital and Chinese-foreign equity joint financial institutions set up in special economic zones which need to be granted
preferential treatment of tax reduction and exemption for a period of five years beginning from the day of starting business, the
matter shall be decided by the people’s government of the special economic zone; if the period exceeds five years, the matter shall
be reported to the State Administration of Taxation for examination and approval. For those who are previously granted the preferential
treatment of tax reduction and exemption with the approval of the people’s government of the special economic zone, no readjustment
may be made to their period of tax reduction and exemption.

The stipulations shall enter into force on January 1, 1993.

The State Administration of Taxation
1993-01-20

INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON RESOURCE TAX

The State Council

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

No.139

Interim Regulations of the People’s Republic of China on Resource Tax adopted by the 12th Executive Meeting of the State Council on
November 26, 1993 are hereby promulgated and shall be come into force as of the day of Jan I, 1994.

Premier of the State Council, Li Peng

December 25, 1993

Interim Regulations of the People’s Republic of China on Resource Tax

Article 1

All units and individuals engaged in the exploitation of mineral products as prescribed in these Regulations or production of salt
within the territory of the People’s Republic of China (hereinafter referred to as “exploiting or producing taxable products”) are
taxpayers of Resource Tax (hereinafter referred to as “taxpayers”) and shall pay Resource Tax in accordance with these Regulations.

Article 2

The taxable items and tax amounts of Resource Tax shall be determined in accordance with the “Table on the Range of the Tax Items
and Tax Amount on Resource Tax” attached to these Regulations as well as the relevant stipulations of the Ministry of Finance.

Any adjustments to the taxable items and tax amount range shall be determined by the State Council.

Article 3

The specific tax amount applicable to taxpayers shall be determined, within a prescribed tax amount range, by the Ministry of Finance
in consultation with the relevant departments of the State Council in accordance with the resource situation of the taxable products
exploited or produced by taxpayers.

Article 4

For taxpayers exploiting or producing taxable products under different taxable items, the assessable volume of the taxable products
under different taxable items shall be accounted for separately. If the assessable volume of the taxable products under different
taxable items has not been accounted for separately or cannot be accurately provided, the higher tax amount shall apply.

Article 5

The tax payable for Resource Tax shall be computed in accordance with the assessable volume of the taxable products and the prescribed
unit tax amount. The formula for computing the tax payable is as follows:

tax payable = assessable volume * unit tax

Article 6

The assessable volume of Resource Tax is as follows:

(1)

For taxpayers exploiting or producing taxable products for sale, the sales volume shall be the assessable volume.

(2)

For taxpayers exploiting or producing taxable products for own use, the self-used volume shall be the assessable volume.

Article 7

Resource Tax shall be reduced or exempt under any one of the following circumstances:

(1)

Crude oil used for heating or repairing wells in the course of exploiting crude oil shall be exempt.

(2)

For taxpayers sustaining huge losses due to such reasons as accidents or natural disasters in the course of exploiting or producing
taxable products, tax reduction or exemption shall be determined at the discretion of the people’s governments of the provinces,
autonomous regions or municipalities directly under the Central Government.

(3)

Other tax reduction or exemption items as stipulated by the State Council.

Article 8

The assessable volume of the tax reduced or exempt items of the taxpayer shall be accounted for separately. If the assessable volume
has not been accounted for separately or cannot be accurately provided, no reduction or exemption shall be granted.

Article 9

For taxpayers selling taxable products, the time at which the tax liability arises shall be the day on which the sales sum is received
or documented evidence of right to collect the sales sum is obtained. For self-produced taxable products for own use, the time at
which the tax liability arises shall be the day on which the products are removed for use.

Article 10

Resource Tax shall be collected by the tax authorities.

Article 11

The units purchasing untaxed mineral products shall be the Resource Tax withholding agents.

Article 12

The Resource Tax payable by taxpayers shall be paid to the local competent tax authorities where the taxable products are exploited
or produced. For taxpayers exploiting or producing taxable products within the boundaries of their own provinces, autonomous regions
and municipalities directly under the Central Government, any adjustments in the tax payment location shall be determined by the
tax authorities of the provinces, autonomous regions and municipalities directly under the Central Government.

Article 13

The assessable period for taxpayers shall be one day, three days, five days, ten days, fifteen days or one month to be determined
by the competent tax authorities according to the actual circumstances; tax that cannot be assessed in regular periods may be assessed
on a transaction-by-transaction basis.

Taxpayers that adopt one month as an assessable period shall report and pay tax within ten days following the end of the period. If
an assessable period of one day, three days, five days, ten days or fifteen days is adopted, the tax shall be prepaid within five
days following the end of the period and a monthly return shall be filed with any balance of tax due settled within ten days from
the first day of the following month.

The tax payment deadlines for withholding agents shall be determined with reference to the stipulations of the above two paragraphs.

Article 14

The collection and administration of Resource Tax shall be conducted in accordance with the relevant provisions of the Law of the
People’s Republic of China on Administration of Tax Collection and relevant provisions of these Regulations.

Article 15

The Ministry of Finance shall be responsible for the interpretation of these Regulations and for the formulation of the rules for
the implementation of these Regulations.

Article 16

These Regulations shall enter into force as of January 1, 1994. The Regulations (Draft) of the People’s Republic of China on Resource
Tax and the Regulations (Draft) of the People’s Republic of China on Salt Tax promulgated by the State Council on September 18, 1984
shall be repealed simultaneously.

Attachment:Resource Tax Taxable Items and Tax Amount Range Table

Taxable Items Tax Amount Range

1. Crude oil 8-30 Yuan/ton

2. Natural gas 2-15 yuan/1,000 m3

3. Coal 0.3-5 Yuan/ton

4. Other non-metal ores 0.5-20 Yuan/ton or ml

5. Ferrous metal ores 2-30 Yuan/ton

6. Non-ferrous metal ores 0.4-30 Yuan/ton

7. Salt Solid salt 10-60 Yuan/ton Liquid salt 2-10 Yuan/ton

The State Council
1993-12-25

CIRCULAR OF THE STATE COUNCIL CONCERNING STRENGTHENING THE COLLECTION AND ADMINISTRATION OF INCOME FROM THE COMPENSATED ASSIGNMENT OF RIGHTS TO USE STATE-OWNED LAND

Category	LAND ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1993-10-26	Effective Date	1993-10-26

Circular of the State Council Concerning Strengthening the Collection and Administration of Income From the Compensated Assignment of Rights to Use State-owned Land

(Promulgated by the State Council on October 26, 1993)

In 1989, the State Council and the Ministry of Finance promulgated the
“Circular of the State Council Concerning Strengthening the Collection and
Administration of Income From the Compensated Assignment of Rights to Use
State-owned Land” and the “Interim Measures for the Administration of Income
From the Compensated Assignment of Rights to Use State-owned Land.” The
documents stipulated contained detailed regulations concerning the collection
and administration of related income. Implementation of the regulations
indicates that the vast majority of areas throughout the country have carried
out the policy conscientiously, promoted the compensated use of land resources
and accelerated local economic construction. However, collection and
administration in a small number of areas has been rather weak, thereby
creating a serious drainage of potential income from the compensated
assignment and transfer of State-owned land. Various areas have violated the
regulations by proceeding without due permission to entrust non-financial
institutions with the responsibility for “temporary collections and
payments” of income and expenditures related the compensated use of said land.
The procedural violations in question have led to a substantial outflow of
related funds. In order to implement the policy of the Central Committee of
the Communist Party of China and the State Council, this Circular is hereby
issued concerning strengthening the collection and administration of income
from the compensated use of rights to use State-owned land.

1. Income from compensated rights to use State-owned land received by
people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government shall be remitted directly to financial
budgetary administrations at related levels in accordance with the existing
financial system. Administration of income should be handled by relevant
financial departments, with all income being remitted to the State treasury.

2. Related income from the compensated rights to use State-owned land
received at different levels prior to December 31, 1992, shall, in accordance
with related regulations adopted by the State Council and the Ministry of
Finance in 1989, be accurately settled and remitted to relevant financial
departments, with a retroactive date prior to the end of 1993. Failure to
remit payments prior to the prescribed date will be considered as concealment
of income, and the amount will be confiscated. Local financial departments
shall remit the income to the Central fiscal department in accordance with
the regulated rate. Those failing to remit income at the stipulated rate in
a timely manner will be ordered to pay the retroactive amount. In addition,
they will be subject to the imposition of a late fee of 0.2% of the amount
due for each day the amount is overdue, commencing from the first day on which
the amount of income is delinquent.

3. Income for compensated rights to the use State-owned land received
after January 1 1993 shall be handled in strict accordance with the “Interim
Measures Concerning the Collection and Administration of Income From the
Compensated Assignment of Rights to Use State-owned Land” and the “Interim
Provisions Concerning Certain Financial Issues Related to Income From the
Compensated Assignment of Rights to Use State-owned Land.” Those who fail to
remit income in accordance with the regulations will be subject to action
outlined in Article 2 of this Circular. Regions which have failed to adopt
required rules should do so at the earliest possible date and report related
action to the Ministry of Finance for the record.

4. Income from compensated assignment of rights to use State-owned land
collected by the State shall be mainly used for municipal construction and
land development, as well as for special purpose funds.

5. People’s governments of provinces, autonomous regions and
municipalities directly under the Central Government should strengthen
leadership regarding the collection and administration of income from the
compensated assignment of right to use State-owned land, and should adopt
regularly scheduled special audits. No unit or department is permitted to
reduce, withhold remittances, or otherwise alter income from the compensated
assignment of rights to use State-owned land, nor can such funds be used for
any other purpose.

PRODUCT QUALITY LAW

Product Quality Law of the People’s Republic of China

CHAPTER ONE GENERAL PROVISIONS

CHAPTER TWO SUPERVISION AND CONTROL OF PRODUCT QUALITY

CHAPTER THREE RESPONSIBILITIES AND OBLIGATIONS OF PRODUCERS AND SELLERS CHAPTER FOUR COMPENSATION FOR DAMAGE

CHAPTER FIVE PENALTY PROVISIONS

CHAPTER SIX SUPPLEMENTARY PROVISIONS

CHAPTER ONE GENERAL PROVISIONS

Article 1. The law has been formulated with a view to protecting the legitimate rights and interests of endusers and consumers and safeguarding
the social and economic order by strengthening the supervision and control of the quality of products and clarifying the responsibilities
of product quality.

Article 2. The law applies to all production and marketing activities within the territory of the People’s Republic of China.

Products mentioned in the law are referred to products processed and manufactured for the purpose of marketing.

The law does not apply to construction projects.

Article 3. Producers and sellers are responsible for the product quality according to the provisions of the law.

Article 4. It is forbidden to forge or infringe upon quality marks such as certification marks and marks for fine quality products; it is forbidden
to forge the place of origin, forge or infringe upon the factory names, factory addresses; it is forbidden to produce or market adulterated
products or to use fake goods as genuine or sub-standard products as standard.

Article 5. The State encourages the use of scientific quality control methods and adoption of advanced science and technology by enterprises
to make their products surpass the standards set by the various trades, the State standards and even international standards in their
product quality and awards units and individuals who have made outstanding achievements in quality control and in bringing the product
quality up to the advanced international levels.

Article 6. The product quality supervision and control departments of the State Council are responsible for the supervision and control of
the quality of products with each department to be responsible for the products within its scope of control.

The product quality supervision departments of the local governments at and above the county level are responsible for the supervision
and control of product quality within their jurisdiction with each department concerned to be responsible for the products within
its scope of control.

CHAPTER TWO SUPERVISION AND CONTROL OF PRODUCT QUALITY

Article 7. Quality of products shall pass standard examinations and no sub-standard products shall be used as standard ones.

Article 8. Industrial products which may be hazardous to the health of the people and the safety of lives and property shall conform to the
State and trade standards for ensuring the health of the human body and safety of lives and property. In absence of such State or
trade standards, the products shall conform to the minimum requirements for ensuring the health of the human body and the safety
of lives and property.

Article 9. The State shall institute the system for certifying quality control system of enterprises according to the quality control standards
commonly accepted internationally. Enterprises may apply voluntarily for certification of their quality control systems with the
product quality supervision and control departments under the State Council or quality certification organizations recognized by
the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for the quality control systems.

The State shall institute the system for certifying the product quality in reference to the internationally advanced product quality
standards and technical requirements. Enterprises may apply voluntarily for certification of the quality of their products with
the product quality supervision and control departments under the State Council or quality certification organizations recognized
by the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for product quality and are allowed to use quality certification marks on the products or on
the packages of their products.

Article 10. The State shall institute a system of supervision and chiefly random examination to check randomly samples of major industrial products
which may be hazardous to the health of the human body and the safety of lives and property, important products which have a major
impact on the national economy and the livelihood of the people, and products claimed by endusers, consumers or other relevant organizations
as having quality problems. The supervision and random examination concerned shall be planned and organized by the product quality
supervision and control departments under the State Council. The product quality supervision and control departments under the local
governments at and above the county level can also organize the supervision and random examination of product quality, but duplicated
examination shall be avoided. The results of the random examinations shall be made public. If there are separate provisions in other
laws or administrative decrees about product quality supervision and examination, the relevant laws or administrative decrees shall
apply.

Quality testing may be carried out according to the requirements of the supervision and random examination, but no testing fees shall
be collected from enterprises. The testing fees required by the random examination shall be listed as expenses according to relevant
provision of the State Council.

Article 11. Product quality testing organizations shall have the corresponding testing facilities and capabilities and shall conduct product
quality testing only after the examination and approval of the quality supervision and control departments under the people’s governments
at and above the provincial level or of the organizations they have authorized. If there are separate provisions by other laws or
administrative decrees, the relevant laws or administrative decrees shall apply.

Article 12. Endusers and consumers have the right to inquire about the quality problems of products with producers or sellers of the products.
They also have the right to complain about product quality with the product quality supervision and control departments or administrations
for industry and commerce or other relevant departments and the relevant departments shall be responsible for handling the matters.

Article 13. Social organizations for protecting the rights and interests of consumers may propose to relevant departments to handle matters
concerning the complaints by consumers about product quality and give aid to consumers to sue producers whose products have caused
damages.

CHAPTER THREE RESPONSIBILITIES AND OBLIGATIONS OF PRODUCERS AND SELLERS

Responsibilities and obligations of producers for the quality of their products

Article 14. Producers shall be responsible for the quality of products they produce.

Quality of products shall meet the following requirements:

1. Products shall be free from any irrational dangers threatening the safety of people and property. If there are State standards
or trade standards for ensuring the health of the human body and safety of lives and property, the products shall conform to such
standards.

2. Products shall have the property they are due to have, except cases in which there are explanations about the defects of the property
of the products.

3. Products shall tally with the standards prescribed or specified on the packages and with the quality specified in the instructions
for use or shown in the providing samples.

Article 15. The marks on the packages of products shall conform to the following requirements:

1. There shall be certificates for quality inspection;

2. There shall be the names of products and the names and addresses of producers in the Chinese language;

3. If, according to the characteristics and requirements for use, the specification, grades or the names and contents of major elements
are required to be specified, there shall be specified clearly;

4. Products which have a time limit for use, the date of production or the period for safe use of date of losing effect shall be
specified;

5. Products which may cause harm to the human body or likely to threaten the safety of lives and property if improperly used shall
have warning marks or warnings written in Chinese.

Nonpacked food or other products which are hard to be packed according to the characteristics of products may not have marks attached.

Article 16. Products which are highly toxic, dangerous, easy to break or cannot be handled upside down in the process of storage or transportation
or have other special requirements shall have packages meeting the corresponding requirements, warning marks or warnings written
in Chinese specifying the points for attention in handling.

Article 17. Producers are forbidden to produce products eliminated according to State laws or decrees.

Article 18. Producers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 19. Producers are not allowed to fake or use the quality marks such as certification marks and fine quality product marks.

Article 20. Producers shall not adulterate their products or pose fake products as genuine or shoddy products as good or non-standard products
as standard.

Responsibilities and obligations of sellers with regard to product quality.

Article 21. Sellers shall implement the system of examination and acceptance of goods procured, verifying the product quality certificates and
other marks.

Article 22. Sellers shall adopt measures to maintain the quality of products for sale.

Article 23. Sellers are not allowed to sell products which have lost effect or have deteriorated.

Article 24. The marks of products for sale by sellers shall conform to the provisions of Article 15 of this law.

Article 25. Sellers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 26. Sellers are not allowed to fake or use quality marks such as certification marks and fine quality marks.

Article 27. Sellers are not allowed to adulterate the products for sale or pose fake ones as genuine or shoddy ones as good or sub-standard
ones as standard.

CHAPTER FOUR COMPENSATION FOR DAMAGE

Article 28. Sellers shall be responsible for repair, replacement or return and compensate for the damages done to endusers or consumers if one
of the following cases occurs:

1. Products do not have the property for use it should have and there is no advance explanations;

2. The quality of products does not conform to the standards or to the standards specified in the packages;

3. The quality of products does not tally with the quality specified in the instruction for use or with the quality of samples provided.

After the sellers undertake the repairs, replacement, return or compensation for damages according to the provisions of the preceding
paragraph, the sellers have the right to recover the losses from producers or suppliers if the responsibility rests with the producers
or other marketers that provide the products.

If the sellers fail to perform the duty of repairing, replacing, returning or compensating for damages as provided in the first paragraph
of this articles, the quality supervision and control departments or administrations for industry and commerce shall order them to
correct.

If there are relevant provisions in the contracts for marketing or processing between producers, marketers or between producers and
marketers, the parties to the contracts shall implement the provisions of the contracts.

Article 29. Producers shall be responsible for compensating for damages done to the person or property except the defective products themselves
(hereinafter referred to as “property of others”) due to the defects of products.

Producers shall not be held responsible if they can prove one of the following cases:

1. The products have not been put into circulation;

2. The defects are non-existent when the products are put into circulation;

3. The defects cannot be found at the time of circulation due to scientific and technological reasons.

Article 30. Sellers shall be responsible for compensation if the damages caused to the property of others are caused by defects resulting from
the fault on the part of sellers.

Sellers shall be responsible if they cannot identify the producers or suppliers of the defective products.

Article 31. If damages are done to the person or properties of others due to the defects of products, the victims may claim for compensation
either from the producers or sellers. If the responsibility rests with the producers and the compensation is paid by the sellers,
the sellers have the right to recover their losses from the producers. If the responsibility rests with the sellers and the compensation
is paid by the producers, the producers have the right to recover their losses.

Article 32. If bodily injury is caused by the defect of products, the party responsible shall pay the medical fees, the income reduced for work
missed and living allowances for handicapped cases. If the defect of products causes death, the party responsible shall pay the funeral
fees, pension cost and the living expenses for dependents supported by the dead.

If the defect of product causes losses in property of the victims, the party shall be responsible for restoring or compensating for
it. If the victims sustain other major losses, the party responsible shall compensate for the losses.

Article 33. The validity period for claiming for compensation for damages due to defects of products is two years, starting from the date when
the parties concerned is notified or should have known the matter.

The right of request for compensation claim for damages done due to defects of products shall lose effect after the tenth year after
the products shall lose effect after the tenth year after the products with defects that cause damages was first delivered to the
users or consumers. However, cases in which the specified safe use period has not been exceeded are exceptions.

Article 34. Defects mentioned in the law are referred to the irrational dangers existing in the products that threaten the safety of person
or properties or products that do not conform to the standards set by the State or the specific trade if there is any.

Article 35. If civil disputes occur from product quality, the parties concerned may settle their disputes through consultation or mediation.
If any party concerned refuses to settle the disputes through consultation or mediation or consultation and mediation fail to settle
the disputes, parties concerned may, according to their agreement, apply for arbitration with arbitration organizations. If the
parties concerned fail to reach agreement on arbitration, the cases may be brought before the people’s courts.

Article 36. Arbitration organizations or the people’s courts may entrust the product quality supervision and control organizations provided
for in Article 11 of this law to test the quality of products concerned.

CHAPTER FIVE PENALTY PROVISIONS

Article 37. An enterprise producing products that do not conform to the State and the specific trade standards for ensuring the health of the
human body and the safety of lives and property shall be ordered to stop production and the products and illegal proceeds shall be
confiscated, with a fine amounting to over one time and less than five times the value of the illegal proceeds be imposed and if
necessary, the production license may be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall
be affixed.

A seller which sells products that do not conform to the State and trade standards for ensuring the health of the human body and the
safety of lives and property shall be ordered to stop the selling. If the seller is fully aware that the products it sells do not
conform to the State or trade standards for ensuring the health of the human body and the safety of lives and property, the products
and the illegal proceeds shall be confiscated and a fine amounting to over one time and less than five times the value of the illegal
proceeds shall be imposed on the seller and if necessary, the business license may be revoked. If the case is serious enough to
constitute a crime, criminal responsibility shall be affixed.

Article 38. If a producer or a seller is found adulterating their products or posing fake ones as genuine, inferior ones as superior or sub-standard
ones as standard, it shall be ordered to stop production or selling and its illegal proceeds shall be confiscated and a fine amounting
to over one time and less than five times the illegal proceeds shall be imposed and, if necessary, the production or business license
may be revoked. If the case is serious enough to constitute a crime, criminal responsibilities shall be affixed.

Article 39. If an enterprise produces products clearly provided as being eliminated by the State, it shall be ordered to stop production and
its products and illegal proceeds shall be confiscated and a fine amounting to over one time and less than five time the total amount
of proceeds shall be imposed and, if necessary, the production license may be revoked.

Article 40. If a seller sells products that have lost effect or deteriorated, it shall be ordered to stop the selling and the products for sale
and its illegal proceeds shall be confiscated and fine amounting to over one time and less than five times the total value of the
proceeds shall be imposed on the seller and, if necessary, the business license may be revoked. If the case is serious enough to
constitute a crime, criminal responsibility shall be affixed.

Article 41. If a producer or a seller is found to have faked the place of origin, faked or used the names and addresses of other producers,
faked or used quality marks such as certification marks and fine quality product marks, it shall be ordered to correct and the illegal
proceeds shall be confiscated with a fine.

Article 42. If the marketing or procurement of products listed in articles 37 to 40 of this law by offering or accepting bribes or other illegal
means and the case is serious enough to constitute a crime, criminal responsibility shall be affixed.

Article 43. If the product marks of a producer do not conform to the provisions of Article 15, it shall be ordered to correct; If the product
marks on the packages of products do not conform to the provisions of items 4 and 5 of Article 15 and the case is serious enough,
it shall be ordered to stop production or selling and a fine amounting to 15 percent or 20 percent of the illegal proceeds may be
imposed.

Article 44. If a producer or seller is found to have forged the testing data or testing conclusions, it shall be ordered to correct and a fine
amounting to over one time and less than three times the value of the testing fees may be imposed. If the case is serious enough,
the business or production license may be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall
be affixed on the person directly responsible according to the provisions of Article 167 of the criminal law.

Article 45. The penalty on stopping production or revoking of business license as provided in the law shall be determined by the industrial
and commercial administrative departments. Other penalties shall be determined by the product quality supervision and control departments
or administrations for industry and commerce within their terms of reference. If there are separate provisions in other laws or
administrative decrees about departments for exercising administrative penalties, the other laws or administrative decrees shall
apply.

Article 46. If parties concerned refuse to accept the administrative penalties, they may apply for review with the government department at
a next higher level within 15 days starting from the date of receipt of the penalty decisions. The parties concerned may also bring
the case directly before the people’s courts within 15 days starting from the date of receipt of the penalty decisions.

Departments for review shall produce review decisions within 60 days starting from the date of receipt of the review application.
If the parties concerned still refuse to accept the review decisions, they may bring the cases before the people’s courts within
15 days after the receipt of the review decisions. If the departments for review fail to produce review decisions within the prescribed
time limit, the parties concerned may bring the cases before the people’s court within 15 days starting from the date of the expiry
period for review. If the parties concerned fail to bring the cases before the people’s courts and yet refuse to abide by the penalty
decisions, the departments which have made the decisions may apply for compulsory implementation with the people’s courts.

Article 47. If a government official engaging in product quality supervision and control is found to have abused his/her power or neglected
his/her duties or sought personal gains and the case is serious enough to constitute a crime, criminal responsibility shall be affixed.
If the case does not constitute a crime, administrative penalties shall be meted out.

Article 48. If a government official is found to have tried to cover up enterprises, institutions or individuals with the full knowledge that
they have committed crimes according to the provisions of the law, he/she shall be punished according to the criminal law.

Article 49. If force or threat is used to obstruct the government officials engaging in product quality supervision and control in performing
their duties, criminal responsibility shall be affixed according to the provisions of Article 157 of the criminal law. If force
or threat is not used to refuse or obstruct the government officials engaging in product quality supervision and control in performing
their duties, the public security organs shall mete out punishments according to the provisions on the control of public order.

CHAPTER SIX SUPPLEMENTARY PROVISIONS

Article 50. The provisions on the supervision and control of the quality of military products shall be formulated separately by the State Council
and the Central Military Commission.

Article 51. The law shall come into effect as of September 1, 1993.

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON SCIENCE AND TECHNOLOGY PROGRESS

The Standing Committee of the National People’s Congress

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

No.4

The Law of the People’s Republic of China on Science and Technology Progress, adopted at the Second Meeting of the Standing Committee
of the Eighth National People’s Congress on July 2, 1993, is promulgated now, ande shall enter into force as of October 1, 1993.

President of the People’s Republic of China: Jiang Zemin

July 2, 1993

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

Technology Progress

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 science and technology progress, 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 shall practise a basic guideline of basing economic construction and social development on science and technology and orienting
science and technology undertakings to economic construction and social development.

Article 3

The State shall protect 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 technological personnel,
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 science and technology system,and establish a mechanism capable of effectively integrating science and technology
with economy.

Article 5

The State shall encourage scientific research and technology 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 science and technology progress.

Article 7

The State Council shall formulate science and technology development programmes, determine major science and technology projects and
other major projects closely related to science and technology, and secure the coordination of science and technology progress with
economic construction and social development.

Opinions from scientific and technological workers shall be fully solicited in the course of formulating science and technology development
programmes and important policies and determining major science and technology 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 science and technology work. Other administrative departments concerned under
the State Council shall be responsible for the relevant science and technology progress work 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 science and technology progress.

The State shall render assistance to minority nationality regions and remote and poor areas to accelerate the development of science
and technology thereof.

Article 9

The Government of the People’s Republic of China shall actively promote science and technology 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 foreign science and technology
circles.

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 thereby 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 the production.

Article 12

The State shall establish and develop technology market to promote the commercialization of scientific and technological achievements.
Technology trading activities shall be conducted in accordance with the principles of free will, equality,mutual benefit, transaction
non-gratis, 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, defense against natural calamities, and protect living
conditions and ecological environment.

Article 14

The State shall rely on scientific and technological progress to vitalize rural economy, promote the popularization and application
of agricultural scientific and technological achievements, and develop a modern agriculture of 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 agricultural science and technology research
and development organizations as well as demonstration and dissemination bodies shall have the right of independent management and
use of their experimental bases and means of production in research, development, testing and popularization of new varieties and
new technologies in agriculture.

The application and popularization of agricultural scientific and technological achievements shall be a service gratis or non-gratis
in compliance with relevant laws and regulations.

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 institutes, and institutions of higher learning, with a view to increasing
their capabilities in research and development, pilot trial, and industrial test.

Article 19

Enterprises shall, in response to the demands of international and domestic markets, carry out technological transformation and equipment
renewal, upgrade their scientific management level 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 industrial development zones shall be established upon approval by the State Council in selected areas with
appropriate conditions.

Article 25

Preferential policies stipulated 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 industrial 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 transaction of high-tech products to establish
management systems in conformity with international norms, produce high-tech products up to international standards, and participate
in global market competition so as to advance 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 manner the implementation
of major basic scientific research programmes in the frontier disciplines and in economic and social development.

Research and development entities, 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 management or to
provide services non-gratis.

Article 34

Research and development institutions shall practise a system whereby the president or director takes responsibility.

Research and development institutions shall, in accordance with the relevant regulations of the State, enjoy decision-making power
in their conduct of research and development, production management, 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 specialities and create favourable environments and conditions to bring the role of scientific
and technical workers into full play.

Article 38

People’s governments at all 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 all levels, enterprises and institutions shall create environments and conditions for the rational mobility
of scientific and technical workers so as to give full play of their specialities.

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 shall practise 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 participate in, according to law, scientific and technical social
bodies.

Scientific and technical social bodies shall play an active role in advancing the construction 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 Science and Technology Progress

Article 45

The State shall steadily increase 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 meet the
needs of scientific and technological advances and economic and social development. The specific ratio of the national research and
development expenditure in 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 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
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,
raise funds for research and development from society by various ways.

Article 49

The State shall encourage domestic and foreign organizations or individuals to set up science funds of various kinds to finance scientific
research and technological development.

Article 50

The competent administrative departments under the State Council and local people’s governments at all 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 science and technology security system to guard scientific and technological secrets concerning national
security and interests.

The State shall strictly control the exit from the territory of precious biological species resources.

Chapter VIII Science and Technology Awards

Article 52

The State shall set up a science and technology awarding system to reward citizens and organizations that have made important contributions
in their activities of science and technology 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, Science and Technology Progress Prizes, International
Science and Technology Cooperation Prizes, and, if necessary, other types of science and technology prizes.

The Natural Science Prizes shall be granted to citizens who have expounded certain phenomena, traits and laws of nature and made important
scientific discoveries in basic research and applied basic research.

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 the citizens or organizations that have made outstanding contributions
in the application and popularization of advanced scientific and technological achievements, the accomplishment of major scientific
and technological projects, plans and programmes,and the improvement of science and technology management.

The International Science and Technology 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 set aside, in accordance with relevant regulations of the State, a certain percentage of the 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 science and technology award funds to reward citizens or organizations
that have made remarkable contributions in their activities of scientific and technological progress.

Chapter IX Legal Liability

Article 57

Anyone who, in violation of the State public finance administration and financial management system,misappropriates, embezzles part
of, or detains the funds for science and technology allocated from the State 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 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 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.

Persons who, taking part in appraising scientific and technological achievements, deliberately made 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 or imitation, or who illegally usurps technical secrets, shall
be dealt with in accordance with relevant provisions of the law.

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 enter into force as of October 1,1993.

The Standing Committee of the National People’s Congress
1993-07-02

CONSTITUTION ACT, 1982 – page 22

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

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

PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON STRENGTHENING INSPECTION AND SUPERVISION OF LAW ENFORCEMENT

SAFETY IN MINES

REGULATIONS FOR COMPONENT MEMBERS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS

PROVISIONAL REGULATIONS ON ENTERPRISE INCOME TAX

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE LEVY OF CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX IN ACCORD WITH INTEREST DIFFERENCE ON INTEREST INCOMES FROM FOREIGN EXCHANGE LOANS OF FOREIGN-CAPITAL AND CHINESE-FOREIGN EQUITY JOINT FINANCIAL INSTITUTIONS

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE APPLICATION OF PROVISIONAL REGULATIONS ON SUCH TAXES AS VALUE-ADDED TAX, CONSUMPTION TAX AND BUSINESS TAX TO FOREIGN INVESTMENT ENTERPRISES AND FOREIGN ENTERPRISES

INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON RESOURCE TAX

CIRCULAR OF THE STATE COUNCIL CONCERNING STRENGTHENING THE COLLECTION AND ADMINISTRATION OF INCOME FROM THE COMPENSATED ASSIGNMENT OF RIGHTS TO USE STATE-OWNED LAND

PRODUCT QUALITY LAW

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON SCIENCE AND TECHNOLOGY PROGRESS

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CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

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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

Category	TAXATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1993-12-13	Effective Date	1994-01-01