2001

ADMINISTRATION OF THE URBAN REAL ESTATE LAW

Law of the People’s Republic of China on the Administration of the Urban Real Estate

(Adopted at the Eighth Meeting of the Standing Committee of the Eighth National People’s Congress on July 5, 1994
and promulgated by Order No.29 of the President of the People’s Republic of China on July 5, 1994) 

Contents 

Chapter I    General Provisions 

Chapter II   Land Used for Development of Real Estate 

  Section 1  Granting of the Land-use Right 

  Section 2  Allocation of the Land-use Right 

Chapter III  Development of Real Estate 

Chapter IV   Transaction of Real Estate 

  Section 1  General Conditions 

  Section 2  Transfer of  Real Estate 

  Section 3  Mortgage of  Real Estate 

  Section 4  Lease of Houses 

  Section 5  Intermediary Service Agencies 

Chapter V    Administration of Real Estate Ownership Registration 

Chapter VI   Legal Liability 

Chapter VII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is formulated in order to strengthen the administration of the urban real estate, maintain the order of 
real estate market, protect the legitimate rights and interests of real estate obligees and promote the sound development of real
estate business. 

Article 2  Obtaining the land-use right for development of real estate, engaging in development of  real estate and transaction
of real estate, and exercising administration of real estate in the State-owned land within a planned urban district in the People’s
Republic of China (hereinafter referred to as the State-owned land)   shall comply with this Law. 

“Houses” as used in this Law means buildings and structures such as houses on the land. 

“Development of real estate”  as used in this Law means acts of building infrastructure and houses on the  State-owned
land, the land-use right for which has been  obtained in accordance with this Law. 

“Transaction of real estate” as used in this Law includes transfer of real estate,  mortgage of real estate and lease of 
houses. 

Article 3  The State shall practise a compensatory and terminable system for the use of State-owned land in accordance with
the law, however, allocation of the land-use right by the State under this Law shall be excepted. 

Article 4  The State shall, based on the social and economic development, support the development of construction of  residential
houses so as to gradually improve the housing conditions of  residents. 

Article 5  Obligees of  real estate shall abide by the laws, administrative rules and regulations and pay taxes according
to law. The legitimate rights and interests of the obligees of real estate shall be protected by law and shall not be infringed by
any units or individuals. 

Article 6  The department  of construction administration and the department of land administration under the State Council
shall, in accordance with the division of functions and powers prescribed by the State Council, attend to their own duties, act in
close coordination and manage the work concerning real estate of the whole country. 

Institutional structures, and functions and powers of the departments of  housing administration and land administration under
the people’s governments at or above the county level shall be determined by the people’s governments of provinces, autonomous regions
or municipalities directly under the Central Government. 

Chapter II 

Land Used for Development of Real Estate 

Section 1 

Granting of the Land-use Right 

Article 7  Granting of the land-use right refers to acts that the State grants land users the right to use the State-owned land
(hereinafter referred to as the land-use right) for a certain number of years  and the users shall pay the State a granting
fee for the land-use right. 

Article 8  The land-use right for the collective-owned land within a planned urban district  may be granted with payment
only after it is requisitioned  in accordance with the law and turned into State-owned land. 

Article 9  Granting of the land-use right must conform to the overall planning for land utilization, urban planning and the
annual plan for land to be used for construction. 

Article 10  Where the local people’s governments at or above the county level grant land-use right for  development of 
real estate, they must, based on the quota set by the people’s governments at or above the provincial level, draw up plans for the
total area  for annual granting of the land-use right, which shall, according to the regulations of the State Council, 
be  reported to the State Council or the provincial people’s government for approval.  

Article 11  Granting of the land-use right shall be carried out by the people’s governments of the cities or counties in a planned
and step-by-step way. With regard to each lot granted, plans for its purposes, term of use, and other conditions  shall be worked
out by the departments of land administration under the people’s governments of the cities and counties in conjunction with the competent
departments of urban planning, construction and housing administration. Such plans shall, according to the regulations of the State
Council, be implemented by the departments of land administration under the people’s governments of the cities or counties after
their submission to and approval by  the people’s governments with due authority for approval. 

Limits of authority as provided in the preceding paragraph for the people’s governments and their departments concerned of the counties
under the municipalities directly under the Central Government shall be prescribed by the people’s governments of the municipalities
directly under the Central Government. 

Article 12  The land-use right may be granted by means of auction, bidding or agreement between the two parties. 

For Land used for commercial, tourism, recreation and luxury housing purposes, where conditions permit, the means of auction or bidding
shall be adopted; where conditions do not permit and it is impossible to adopt the means of auction or bidding, the means of agreement
between the two parties may be adopted. 

Fees for granting the land-use right by means of agreement between the two parties shall not be lower than the lowest price determined
in accordance with the regulations of the State. 

Article 13  The maximum term for the granting of the land-use right shall be prescribed by the State Council. 

Article 14  Granting of the land-use right shall be conducted through concluding a written granting contract. 

The contract for granting the land-use right shall be concluded between the departments of land administration under the people’s
governments of the cities or counties and the land users. 

Article 15  A land user must pay the fees for the granting of the land-use right as agreed upon in the granting contract. In
default of such payments, the   department of land administration shall have the power to rescind the contract and may
demand compensation for the breach of contract. 

Article 16  Where a land user has paid the fees for the granting of the land-use right as agreed upon in the granting contract, 
the department of land administration under the  people’s government of the city or county must provide the land granted 
as agreed upon in the granting contract; In default of such provision, the land user shall have the right to cancel the contract,
the  fees for granting the land-use right shall be returned by the department of land administration,  and the land user
may demand compensation for the breach of contract. 

Article 17  Where a land user who needs to modify the land-use purpose agreed upon in the contract for granting the land-use
right, he must obtain the consent of the granting party and the competent administrative department for urban planning under the
people’s government of the city or county, conclude an agreement on the modification of the granting contract or conclude a new contract
for granting the land-use right  and the fees for granting the land-use right shall be accordingly readjusted. 

Article 18  All the fees for granting the land-use right shall be turned over to the State Treasury and incorporated into the
budget so as to be used for the construction of urban infrastructure and for land development. Specific measures for the turning
over and use of the fees for granting the land-use right shall be formulated by the State Council. 

Article 19  Before the term for the use of land specified  in the contract for granting the land-use right expires, the
State is not to recover the land-use right obtained by the land user in accordance with the law. Under special circumstances as required
by public interests, the State may, in accordance with legal procedures, recover the land-use right before the expiration of the
term and shall make appropriate compensation based on the number of years of utilization and the actual development of the land by
the land user. 

Article 20  The land-use right shall be terminated with loss of the land. 

Article 21  Where the term for the use of land specified in the contract for granting the land-use right expires, and the land
user needs to continue  the use of the land, the land user shall apply for an extension of the term no later than one year ahead
of the expiration. Such an application shall be approved except for the land to be reclaimed as required by public interests. Upon
approval of the extension, the land user shall enter into a new contract for the granting of the land-use right and pay fees for
the granting in accordance with the relevant regulations. 

Where the term for the use of land specified in the contract for granting the land-use right expires, and the land user has not applied
for an extension of the term or his application therefore is not approved in accordance with the provisions in the preceding paragraph,
the land-use right shall be reclaimed by the State without compensation. 

     

Section 2 

Allocation of the Land-use Right 

Article 22  Allocation of the land-use right refers to acts that the people’s government at or above the county level, after
the land user has paid compensation and expenses for resettlement, etc., approves in accordance with the law to allocate the land
to the land user or gratuitously allocates the land-use right to the land user. 

Where the land-use right has been obtained by means of allocation in accordance with the provisions of this Law, except as otherwise
provided by laws, administrative rules and regulations, there shall be no restriction with respect to the term of use. 

Article 23  The land-use right for the following land used for construction may, if really necessary, be allocated upon approval
by the people’s government at or above the county level in accordance with the law: 

(1) Land used for State organs or military purposes; 

(2) Land used for urban infrastructure or public utilities; 

(3) Land used for projects of energy, communications or water conservancy, etc. which are selectively supported by the State; and 

(4) Land used for other purposes as provided by laws or administrative rules and regulations. 

Chapter III 

Development of Real Estate 

Article 24  The development of real estate must be strictly subjected to the urban planning and carried out in a manner of overall
planning, rational distribution, comprehensive development and construction with  supporting facilities, in line with the principle
of combining the economic, social and environmental benefits. 

Article 25  Where the land-use right has been obtained by means of granting for development of real estate, the land must be
developed according to the land-use  purpose and the time limit for starting the development as agreed upon in the contract
for granting the land-use right. Where  one year has elapsed from the date for starting the development as agreed upon in the
granting contract and the land is not yet developed, fees for idle land which is equivalent to twenty percent or less of the fees
for granting the land-use right shall be collected; where two years have elapsed and the land is still not developed, the land-use
right may be reclaimed without compensation, however, the circumstances wherein the delay in starting  the development is caused
by force majeure or acts of governments or their departments concerned or by the early preparations necessary for starting 
the development shall be excepted. 

Article 26  The design and construction of a project of real estate development must conform to the relevant standards and norm
of the State. 

A completed project of real estate development may be turned over for use only after it is checked and accepted. 

Article 27  The land-use right obtained pursuant to the law may, in accordance with the provisions of this Law and relevant
laws, administrative rules and regulations, be valued and contributed as shares in developing and operating real estate in the form
of joint ventures or contractual joint ventures. 

Article 28  The State shall adopt preferential measures in aspects such as taxation to encourage and support real estate development
enterprises to develop and construct residential houses. 

Article 29 A real estate development enterprise is an enterprise engaged in real estate development and operation for purpose of
profit. To establish  a real estate development enterprise, the  following conditions shall be met: 

(1) To have a name and institutional structure of its own; 

(2) To have fixed premises for business operation; 

(3) To have registered assets conforming to the regulations of the State Council; 

(4) To have sufficient professional and technical personnel; and 

(5) Other conditions as provided by laws, administrative rules and regulations. 

To establish a real estate development enterprise, an application for registration of establishment shall be made to the administrative
department for industry and commerce. Where conditions specified in this Law are met, the administrative department for industry
and commerce shall register the establishment and issue a business license. Registration shall not be made, where such conditions
are not met. 

To establish a limited liability company or a joint stock limited company engaged in real estate development and operation, relevant
provisions of the Company Law shall also be complied with. 

A real estate development enterprise shall, within one month after obtaining a business license, report its establishment for the
record to the department designated by the local people’s government at or above the county level in the place where the registration
authority is located. 

Article 30  The proportion of registered assets of a real estate development enterprise to its total investment shall comply
with the relevant regulations of the State. 

Where a real estate development enterprise develops real estate in phases, the amount of phased investment shall be commensurate
with the scale of the project and the capital shall be put into construction of the project on schedule as agreed upon in the contract
for granting the land-use right. 

Chapter IV 

Transaction of Real Estate 

Section 1 

General Conditions 

Article 31  In the transfer or mortgage of real estate, the ownership of the house and the land-use right to the house site
shall be transferred or mortgaged therewith. 

Article 32  The basic land price, standard land price and  replacement prices for houses of various types shall be determined
and made public regularly. Specific measures shall be formulated by the State Council. 

Article 33  The State shall practise an appraisal system for real estate prices. The appraisal of real estate prices shall adhere
to the principles of justice, fairness and openness, and be carried out according to the technical standard and appraisal procedures
prescribed by the State, based on the basic land price, standard land price and replacement prices for houses of various types and
in the light of local market prices. 

Article 34  The State shall practise a report system for real estate transaction prices. 

An obligee of real estate shall, in transfer of his real estate, truthfully report the transaction price to the department designated
by the local people’s government at or above the county level and shall not make a concealed or false report. 

Article 35  Where  real estate is transferred or mortgaged, the party concerned shall register the ownership of the real
estate pursuant to the provisions of Chapter V of this Law. 

Section 2 

Transfer of Real Estate 

Article 36  Transfer of  real estate refers to acts that an obligee of  real estate transfers his real estate to another
person through sale, donation or other legal means. 

Article 37  No following real estate shall be transferred: 

(1) The land-use right has been obtained by means of granting, however, not meeting conditions set forth in Article 38 of this Law; 

(2) The rights of real estate have been sealed up by order of the judicial organ or decision of the administrative organ pursuant
to law or limited by other ways; 

(3) The land-use right has been reclaimed in accordance with the law; 

(4) For jointly-owned real estate, written consent of other co-owners has not been obtained;  

(5) The ownership is under dispute; 

(6) The real estate has not been registered in accordance with the law and the certificate of the ownership has not been obtained;
or 

(7) Other circumstances under which transfer is prohibited by the provisions of laws, administrative rules and regulations. 

Article 38  Where the land-use right has been obtained by means of granting, transfer of the real estate shall meet the following
conditions: (1) Having paid all the fees for the granting of the land-use right as agreed upon in the granting contract and obtained
the certificate of the land-use right; and 

(2) Having invested for development as agreed upon in the granting contract and having fulfilled twenty-five percent or more of the
total investment for development in the case of housing projects, or having constituted conditions of land-use for industrial purposes
or other construction projects in the case of developing tracts of land. 

Where real estate is transferred with the construction of houses completed, the certificate of the house ownership shall be acquired. 

Article 39  Where the land-use right has been obtained by means  of allocation, the transfer of the real estate shall,
according to the regulations of the State Council, be reported for examination and approval to the people’s government that has the
authority for approval. Upon approval of the transfer by the people’s government with the authority for approval, the transferee
shall go through the formalities for the granting of the land-use right and pay the fees therefore according to the relevant regulations
of the State. 

Where the land-use right has been obtained by means of allocation and where, when the transfer of the real estate is reported for
approval, the people’s government that has the authority for approval decides in accordance with the regulations of the State Council
that the formalities for granting the land-use right need not be gone through, the transferor shall, pursuant to the regulations
of the State Council, turn over to the State the proceeds obtained from land in the transfer of the real estate or dispose of such
proceeds otherwise. 

Article 40  For the transfer of real estate, a written transfer contract shall be concluded in which the means of obtaining
the land-use right shall be stated. 

Article 41  When real estate is transferred, the rights and obligations stated in the contract for granting the land-use right
shall be transferred therewith. 

Article 42  Where the land-use right has been obtained by means of granting and after the real estate has been transferred,
the term for the use of the land-use right shall be the remaining years after subtracting the years of use by the former land user
from the original term agreed upon in the contract for granting the land-use right. 

Article 43  Where the land-use right has been obtained by means  of granting  and after the real estate has been transferred,
the transferee modifies the land-use purpose  agreed upon in the contract for granting the land-use right, the transferee must
obtain consent from the transferor and the administrative department in charge of  urban planning under the people’s government
of the relevant city or county, and conclude an agreement on the modification of the contract for granting the land-use right or
enter into a new contract for granting the land-use right and readjust the fees for granting the land-use right accordingly. 

Article 44  For the presale of commercial houses, the following conditions shall be met: 

(1) Having paid all the fees for the granting of the land-use right and obtained the certificate of the land-use right; 

(2) Having a permit for construction project planning; 

(3) The funds put into the development construction having reached twenty-five percent or more of the total investment for the construction
project, computed on the basis of the commercial houses provided for presale, and the schedule of construction and the date of completion
for delivery having been set; and 

(4) Having made registration for presale with the administrative department in charge of house property under the people’s government
at or above the county level and having obtained the certificate of permission for the presale of commercial houses. 

Pre-sellers of commercial houses shall, in accordance with the relevant regulations of the State, submit the presale contracts to
the departments of housing administration and departments of land administration under the people’s governments at or above the county
level for registration and record. 

The proceeds obtained from the presale of commercial houses must be used for the relevant construction projects. 

Article 45  In the case of presale of commercial houses, matters concerning the transfer of unfinished presale commercial houses
that  the buyers have purchased shall be prescribed by the State Council. 

Section 3 

Mortgage of Real Estate 

Article 46  Mortgage of real estate refers to acts that a mortgagor provides the mortgagee security  for the payment of
a debt with  his legal real estate in the manner that  the possession of  his real estate is not transferred. Where
a debtor fails to pay his debt, the mortgagee shall have the right in accordance with the law to enjoy the  priority in compensation
to  be paid with funds obtained from  auction  of the real estate mortgaged.  

Article 47  A mortgage may be created on the ownership of a house obtained according to law together with the land-use right
to the house site. 

A mortgage may be created on the land-use right obtained by means of granting. 

Article 48  The mortgage of real estate shall be dealt with on the strength of  the certificate of the land-use right and
the certificate of ownership of the house. 

Article 49  For the mortgage of real estate, the mortgagor and the mortgagee shall enter into a written mortgage contract. 

Article 50  Where the land-use right on which a mortgage is  created  has been obtained by means of  allocation, 
the mortgagee may enjoy the priority in compensation only after the amount equal to the fees for the granting of the land-use right 
has been paid from the funds obtained from auction of the real estate done in accordance with the law. 

Article 51  After a contract for the mortgage of the real estate has been concluded, newly-built houses on the land shall not
be regarded as the mortgaged asset. If the mortgaged real estate needs to be sold by auction, the newly-built houses on the land
may be auctioned off according to law together with the mortgaged assets. However, the mortgagee shall not have the priority in compensation
with respect to the funds obtained from auction of the newly-built houses. 

Section 4 

Lease of Houses 

Article 52  Lease of houses refers to acts that an owner of a house in the capacity of a leaser leases his house to a leasee
for use and the leasee pays  rent for the house to the leaser. 

Article 53  In the lease of a house, the leaser and the leasee shall conclude a written lease contract defining such matters
as the term, purpose and price of the lease,  liability for repair, as well as other rights and obligations of both parties,
and shall register the lease  with the  department of housing administration for the record. 

Article 54  Lease of residential houses shall be carried out in accordance with policies on lease formulated by the State and
the people’s government of the city where the houses are located. Where houses are leased for activities of production and business
operation, the rent and other terms for the lease shall be determined by both parties through consultation. 

Article 55  Where an owner of a house, for profit-making purposes, leases the house built on the State-owned land, the land-use
right for which has been obtained by means of allocation, he shall turn over to the State the proceeds derived from the land and
contained in the rent. The specific measures shall be prescribed by the State Council. 

Section 5 

Intermediary Service Agencies 

Article 56  Intermediary service agencies for real estate include  real estate consultant agencies,  real estate price 
appraisal agencies and real estate broking agencies. 

Article 57  Intermediary service agencies for real estate shall meet the following conditions: 

(1) To have names and institutional structures of their own; 

(2) To have fixed premises to provide services; 

(3) To have necessary property and funds; 

(4) To have sufficient professional personnel; and 

(5) Other conditions provided by laws, administrative rules and regulations. 

For establishing an intermediary service agency for real estate, an application for registration of the establishment shall be submitted
to the administrative department for industry and commerce and a business licence shall be obtained, before it starts its business. 

Article 58  The State shall practise a qualification authentication system for  real estate price  appraisers. 

Chapter V 

Administration of Real Estate Ownership Registration 

Article 59  The State shall practise a system of registration and certification for land-use right and ownership of houses. 

Article 60  Where the land-use right is to be obtained by means of granting or allocation, an application for registration shall
be submitted to the department of land administration under the local people’s government at or above the county level. Upon verification
by the department of land administration under the local people’s government at or above the county level, the certificate of the
land-use right shall be issued by the people’s government at the corresponding level. 

Where a house has been built on the land for real estate development obtained pursuant to the law, an application for registration
shall, on the strength of the certificate of land-use right, be submitted to the department of housing administration under the local
people’s government at or above the county level. The department of housing administration under the local people’s government at
or above the country level shall issue a certificate of the ownership of the house after verification.  

Where transfer or modification of  real estate is to be made, an application for registration of the modification of house property
shall be submitted to the department of housing administration under the local people’s government at or above the county level and
on the strength of the certificate of the modified ownership of the house, an application for registration of the modification of
the land-use right shall be submitted to the  department of land administration under the people’s government at the corresponding
level. Upon verification by the department of land administration under the people’s government at the corresponding level, a new
or a modified certificate of the land-use right shall be issued by the people’s government at the corresponding level. 

Where provided otherwise by laws, the provisions of such laws shall apply. 

Article 61  Where  real estate is to be mortgaged, registration of mortgage shall be made with  the department designated 
by the local people’s government at or above the county level. Where the land-use right and the ownership of a house have been obtained
from disposal of mortgaged real estate, the change of ownership for the land-use right and the house shall be registered in accordance
with the provisions of this Chapter. 

Article 62  Where a department of the local people’s government at or above the county level is in charge of both  housing
administration and land administration  as determined by the people’s government of the relevant province, autonomous region
or municipality directly under the Central Government, such department may make and issue the uniform certificate of the owners

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON PREVENTION OF ENVIRONMENTAL POLLUTION CAUSED BY SOLID WASTE






The Standing Committee of the National People’s Congress

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

No.58

The Law of the People’s Republic of China on Prevention of Environmental Pollution Caused by Solid Waste, adopted by the 16th Meeting
of the Standing Committee of the Eighth National People’s Congress on October 30, 1995, is promulgated now and shall enter into force
as of April 1, 1996.

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

October 30, 1995

Law of the People’s Republic of China on Prevention of Environmental Pollution Caused by Solid Waste ContentsChapter I General Principles

Chapter II Supervision and Control over Prevention of Environmental

Pollution Caused by Solid Waste

Chapter III Prevention of Environmental Pollution Caused by Solid Waste

Section 1 General Stipulations

Section 2 Prevention of Environmental Pollution Caused by Industrial

Solid Waste

Section 3 Prevention of Environmental Pollution Caused by Urban Residential Refuse

Chapter IV Special Stipulations on the Prevention of Environmental Pollution Caused by Dangerous Waste

Chapter V Legal Responsibilities

Chapter VI Supplementary Articles

Chapter I General Principles

Article 1

To prevent the pollution of the environment by solid waste, ensure the good health of the public, and promote the development of socialist
modernization, the following law is hereby established.

Article 2

This law applies to the prevention of environmental pollution caused by solid waste within the boundaries of the People’s Republic
of China.

It does not apply to the prevention of marine environmental pollution caused by solid waste or of environmental pollution caused by
radioactive solid waste.

Article 3

To prevent pollution of the environment by solid waste, the state shall carry out a principle of reducing the production of solid
waste, making full and rational use of solid waste, and safely disposing of solid waste.

Article 4

The state shall encourage and support clean production to reduce the creation of solid waste.

The state shall encourage and support the comprehensive utilization of resources, the full recovery and rational usage of solid waste,
and the adoption of economic and technological policies and measures conducive to making comprehensive use of solid waste.

Article 5

The state shall encourage and support measures for the centralized disposal of solid waste that are conducive to environmental protection.

Article 6

The people’s governments at the county level or above shall coordinate the prevention of environmental pollution caused by solid waste
with environmental protection plans and shall adopt economic and technological policies and measures conducive to the prevention
of environmental pollution caused by solid waste.

Article 7

The state shall encourage and support scientific research and technological development for the prevention of environmental pollution
caused by solid waste, the promotion of advanced technologies for prevention, as well as the popularization of scientific knowledge
for the prevention of environmental pollution caused by solid waste.

Article 8

The people’s governments at different levels shall give awards to those units or individuals that make remarkable contributions to
the prevention of environmental pollution caused by solid waste as well as in the related activities of making comprehensive use
of solid waste.

Article 9

Every unit or individual has an obligation to protect the environment and has the right to report or bring charges against those units
or individuals that are responsible for environmental pollution caused by solid waste.

Article 10

The administrative department under the State Council in charge of environmental protection shall exercise unified supervision and
administration throughout the whole country over the prevention of environmental pollution caused by solid waste. The relevant departments
under the State Council shall be in charge of the supervision and administration of the prevention of environmental pollution caused
by solid waste within the limits of their own responsibilities.

The administrative departments under the local people’s governments at the county level or above shall exercise unified supervision
and administration over the prevention of environmental pollution caused by solid waste within the boundaries of the corresponding
administrative division. The departments concerned under the people’s governments at the county level or above shall be in charge
of the supervision and administration of the prevention of environmental pollution caused by solid waste within the limits of their
own responsibilities.

The administrative department under the State Council in charge of construction and the administrative departments in charge of the
environment and public health under the local people’s governments at the county level or above shall be in charge of the supervision
and administration of the cleaning, collection, storage, transportation, and disposal of urban residential refuse.

Chapter II Supervision and Administration of Prevention of Environmental Pollution Caused by Solid Waste

Article 11

The administrative department under the State Council in charge of environmental protection shall establish a monitoring system for
environmental pollution caused by solid waste, formulate unified monitoring standards, and organize a monitoring network in conjunction
with other relevant departments.

Article 12

In constructing those projects that may produce industrial solid waste as well as those for storage and disposal of solid waste, the
state administrative regulations for environmental protection in construction projects must be abided by.

Reports on the effects of a construction project on the environment shall include an estimation of the pollution and other effects
on the environment caused by the solid waste that is produced by the construction project, as well as the stipulation of measures
for the prevention of environmental pollution, and shall be submitted to the administrative department in charge of environmental
protection for approval in accordance with the procedures that are stipulated by the state. After the report on the environmental
effects is ratified, the department in charge of examining and approving construction projects shall approve a feasibility study
report or a design responsibility report for the project.

Article 13

A report on the effects of a construction project on the environment shall stipulate that the necessary facilities for the prevention
of environmental pollution caused by solid waste must be designed, constructed, and put into operation in coordination with the principal
part of the project. A construction project shall begin operation or use only after the facilities for the prevention of environmental
pollution caused by solid waste are inspected and approved by the same department that examined and approved the report on the environmental
effects. The facilities for the prevention of environmental pollution caused by solid waste shall be inspected and approved together
with the principal part of the project.

Article 14

The administrative departments under the people’s governments at the county level or above in charge of environmental protection and
other supervisory and administrative departments in charge of the prevention of environmental pollution caused by solid waste shall
have the right to conduct on-the-spot inspections of the units concerned with the prevention of environmental pollution caused by
solid waste within their jurisdiction in accordance with their own responsibilities. The inspected units shall report the situation
accurately and shall provide any necessary materials. The inspecting institutions shall maintain the technological and operational
secrecy of the inspected units.

The inspecting personnel shall show their credentials while conducting on-the-spot inspections.

Chapter III Prevention of Environmental Pollution Caused by Solid Waste

Section 1 General Stipulations

Article 15

The units and individuals that produce solid waste shall take measures to prevent or reduce the environmental pollution caused by
solid waste.

Article 16

The units and individuals that collect, store, transport, utilize, or dispose of solid waste shall take precautions against the spread,
loss, and leakage of the solid waste as well as other measures for preventing the solid waste from polluting the environment.

The abandonment or spread of solid waste during transportation is forbidden.

Article 17

Products shall use packing materials which are easily recycled, disposed of, or assimilated by the environment.

The product manufacturer, retailer, or consumer shall recycle those product packages and containers that can be recycled in accordance
with the relative regulations of the state.

Article 18

The state shall encourage scientific research institutions and production units to study and produce thin films for agricultural use
that are easily recycled, disposed of, or assimilated by the environment.

Those units and individuals that utilize thin films for agricultural use shall take measures such as recycling to prevent or reduce
environmental pollution caused by the thin films.

Article 19

The administration and maintenance of the facilities, equipment, and sites for the collection, storage, transportation and disposal
of solid waste shall be strengthened in order to guarantee their normal operation and use.

Article 20

It is forbidden to close, disuse, or dismantle without authorization the facilities and sites for preventing environmental pollution
caused by industrial solid waste. Those facilities and sites that require closure, disuse, or dismantling must be examined and approved
by the administrative departments in charge of environmental protection under the local people’s governments at the county level
or above, and measures shall be taken to prevent environmental pollution.

Article 21

Those enterprises and institutions that produce solid waste which causes serious environmental pollution shall be ordered to bring
their pollution under control within a specified period of time. Those subject to such an order shall accomplish the task on schedule.
The order shall be made by the people’s government at the county level or above according to the authority granted them by the State
Council.

Article 22

It shall be forbidden to construct facilities or sites for the centralized storage and disposal of industrial solid waste or burial
sites for residential refuse in nature preserves, scenic spots, historic sites, drinking water sources, and other places of special
protection designated by the State Council and the people’s governments at the provincial, municipal, or autonomous regional levels.

Article 23

In the event that solid waste is transferred to other provinces, municipalities, or autonomous regions for storage or disposal, a
report must be submitted to the administrative department in charge of environmental protection under the people’s government of
the province from which the solid waste will be transferred, and approval must be granted by the administrative department in charge
of environmental protection under the people’s government of the province to which the solid waste will be transferred.

Article 24

Within the territory of the People’s Republic of China, it is forbidden to dump, pile, or dispose of solid waste from outside the
People’s Republic of China.

Article 25

The state shall forbid the import of solid waste which cannot be used as a raw material and shall restrict the import of solid waste
that can be used as raw material.

The administrative department in charge of environmental protection, together with the department in charge of foreign trade and economic
cooperation under the State Council shall stipulate, adjust, and announce the list of solid wastes which can be imported for use
as raw materials; the import of those kinds of solid waste that are not listed shall be forbidden.

Those that require the import of solid wastes listed in the list stipulated in the preceding paragraph for use as raw materials must
acquire approval through examination by the administrative department in charge of environmental protection and the department in
charge of foreign trade and economic cooperation under the State Council.

Specific measures shall be formulated by the State Council.

Section 2 Prevention of Environmental Pollution Caused by Industrial Solid Waste

Article 26

The administrative department in charge of environmental protection together with the department in charge of comprehensive economic
affairs under the State Council and other departments concerned shall designate the environmental pollution caused by industrial
solid waste, formulate policies on technologies for the prevention of environmental pollution caused by industrial solid waste, and
organize the spread of advanced production technologies and equipment for the prevention of environmental pollution caused by industrial
solid waste.

Article 27

The department in charge of comprehensive economic affairs together with other departments concerned under the State Council shall
organize the research, development, and popularization of production technologies and equipment for reducing the amount of industrial
solid waste, and shall promulgate a catalogue of backward production technologies and equipment that are responsible for industrial
solid waste resulting in serious environmental pollution and that are to be eliminated within a specified time.

The manufacturer, retailer, importer, or consumer must stop respectively producing, marketing, importing, or utilizing the equipment
listed in the catalogue stipulated in the preceding paragraph within the specified time granted by the department in charge of comprehensive
economic affairs and other departments concerned under the State Council. The applier of production technologies must cease use of
those technologies listed in the catalogue stipulated in the preceding paragraph within the specified time granted by the department
in charge of comprehensive economic affairs and other departments concerned under the State Council.

Any equipment required to be eliminated in accordance with the stipulations in the two preceding paragraphs shall not be transferred
to others for use.

Article 28

The departments concerned under the people’s governments at the county level or above shall formulate a plan for the prevention of
environmental pollution caused by industrial solid waste, the popularization of advanced production technologies and equipment for
reducing the amount of industrial solid waste, and the promotion of work on the prevention of environmental pollution caused by industrial
solid waste.

Article 29

Those units that produce industrial solid waste shall establish and amplify a responsibility system for the prevention of environmental
pollution and take measures for preventing environmental pollution caused by industrial solid waste.

Article 30

Enterprises and institutions shall rationally choose and utilize raw materials, energy and other resources, apply advanced production
technologies and equipment, and reduce the amount of industrial solid waste.

Article 31

The state shall implement a reporting and registration system for industrial solid waste.

Those units which produce industrial solid waste shall present data concerning the volume of waste they produce, its direction of
flow, and the methods of storage and disposal to the administrative departments in charge of environmental protection under the people’s
governments at the county level or above in that locality, in accordance with the regulations of the administrative department in
charge of environmental protection under the State Council.

Article 32

All enterprises or institutions which produce industrial solid waste that cannot be utilized, whether at all or temporarily, must,
in accordance with the regulations of the administrative departments in charge of environmental protection under the State Council,
construct facilities or sites for its storage or disposal.

Article 33

Those who store smelting residue, chemical residue, coal ash residue, discarded ore, tail ore, or other industrial solid waste out-of-doors
shall construct special facilities or sites for its storage.

Article 34

Construction of the facilities and sites for the storage and disposal of industrial solid waste shall be in accordance with the environmental
protection standards that have been stipulated by the administrative department in charge of environmental protection under the State
Council.

As to those units which produce industrial solid waste before this Law is implemented, if they fail to construct facilities or sites
for the storage or disposal of industrial solid waste in accordance with the regulations of Article 32 of this Law, or if the facilities
or sites they have already constructed do not conform to environmental protection standards, they shall carry out such construction
or reconstruction within a specified period of time. During this time period, waste-discharge fees or other measures shall be implemented
for any newly-produced industrial solid waste from the above-mentioned units which pollutes the environment. Those units which complete
within the specified time period construction of the facilities or sites for storage or disposal of industrial solid waste, or make
them conform with the environmental protection standards through reconstruction, may cease payment of waste-discharge fees from the
day when the construction or reconstruction is completed. Those units which fail to complete construction before the deadline or
which still cannot meet the standards after reconstruction shall continue to pay waste-discharge fees until the construction is completed
or the standards are met through reconstruction. The relevant specific means shall be stipulated by the State Council. The waste-discharge
fees shall be reserved for the prevention and amelioration of environmental pollution and shall not be appropriated for any other
use.

Section 3 Prevention of Environmental Pollution Caused by Urban Residential Refuse

Article 35

All units and individuals shall obey the regulations of the administrative departments in charge of environment under urban people’s
governments by emptying and piling urban residential refuse at designated places. Throwing or piling rubbish outside these designated
places is forbidden.

Article 36

The storage, transport, and disposal of urban residential refuse shall, with the purpose of preventing environmental pollution, comply
with the regulations of the state concerning environmental protection and urban environment.

Article 37

Urban residential refuse shall be cleared and carried away without delay. Reasonable utilization and neutralization shall be actively
conducted.

The separate collection, storage, transport, and disposal of urban residential refuse of different classifications shall be gradually
implemented.

Article 38

The urban people’s governments shall make plans for improving the fuel structure and developing urban coal gas, natural gas, liquefied
petroleum gas, and other clean energy resources.

The relevant departments under the urban people’s governments shall arrange for clean vegetables to enter cities to reduce urban residential
refuse.

The relevant departments under the urban people’s governments shall make comprehensive plans to reasonably arrange a purchasing network
and promote the recycling of waste.

Article 39

The urban people’s governments shall construct supporting facilities for the cleaning, collection, storage, transport, and disposal
of urban residential refuse.

Article 40

The construction of the facilities and sites for the disposal of urban residential refuse shall be in accordance with the standards
of environmental protection and urban environment stipulated by the administrative department in charge of environmental protection
and the department in charge of construction under the State Council.

Unauthorized closure, disuse, or dismantling of the facilities or sites for the disposal of urban residential refuse is forbidden;
for those that require closure, disuse, or dismantling, inspection and approval must be made by the administrative department in
charge of environmental sanitation as well as the department in charge of environmental protection under the people’s governments
at the county level or above in that locality; meanwhile, other measures shall be adopted to prevent environmental pollution.

Article 41

Those units carrying out construction shall, without delay, remove and dispose of refuse and shall adopt some measures to prevent
environmental pollution.

Chapter IV Special Stipulations on the Prevention of Environmental Pollution Caused by Dangerous Waste

Article 42

The regulations in this Chapter apply to the prevention and cure of environmental pollution caused by dangerous waste. Those not mentioned
in this Chapter shall accord with the other regulations of this Law.

Article 43

The administrative department in charge of environmental protection under the State Council shall draw up a national list of dangerous
waste in conjunction with relevant departments under the State Council, and stipulate unified differentiating standards, methods,
and identification marks for dangerous waste.

Article 44

Identification marks shall be placed on the containers and packing materials for dangerous waste and posted at the facilities and
sites for the collection, storage, transport, and disposal of dangerous waste.

Article 45

Those units which produce dangerous waste shall report and register in accordance with the relevant regulations of the state.

Article 46

Those units which produce dangerous waste shall dispose of them in accordance with the relevant regulations of the state. Those who
fail to properly dispose of the waste will be required to make rectifications within a specified time period by the administrative
department in charge of environmental protection under the people’s governments at the county level or above in that locality; as
to those units which fail to dispose of the waste before the deadline or which do not carry out disposal in accordance with the relevant
regulations of the state, designated units of the administrative department in charge of environmental protection under the people’s
government at the county level or above in that locality shall undertake to dispose of the waste for them, and all expenses for disposal
shall be born by those units which have produced the dangerous waste.

Article 47

The urban people’s governments shall organize the construction of the facilities for the centralized disposal of dangerous waste.

Article 48

Those who adopt the disposal method of burying dangerous waste but fail to conform to the regulations of the administrative department
in charge of environmental protection under the State Council shall pay waste-discharge fees for dangerous waste. The specific means
for levying the discharge fees for dangerous waste shall be stipulated by the State Council.

The discharge fees for dangerous waste shall be reserved for the prevention and amelioration of environmental pollution caused by
dangerous waste and shall not be appropriated for any other use.

Article 49

Those units which engage in operational activities concerning the collection, storage, and disposal of dangerous waste shall submit
applications for operational licenses to the administrative department in charge of environmental protection under the people’s government
at the county level or above. The specific means for doing this shall be stipulated by the State Council.

No unit may engage in operational activities concerning collection, storage, and disposal of dangerous waste without a operational
license or fail to be in accordance with the regulations of the license.

No unit may supply or consign dangerous waste to those units without operational licenses to engage in any operational activities
concerning collecting, storage, and disposal of dangerous waste.

Article 50

Dangerous waste of different classifications shall be collected and stored separately according to their properties. Mixed collection,
storage, transport, and disposal shall be forbidden for different dangerous waste materials which are not compatible and which have
not undergone safety processing.

Mixed storage of dangerous waste with non-dangerous waste is forbidden.

Article 51

Those who require the transfer of dangerous waste shall fill in forms for the transference of dangerous waste in accordance with relevant
state regulations and shall report to the administrative departments in charge of environmental protection under the local people’s
governments at the county level or above in the area from which the waste is being transferred and in the area which is receiving
the waste.

Article 52

Measures for the prevention of environmental pollution shall be adopted during transport of dangerous waste; meanwhile, the state
regulations concerning management of the transport of dangerous waste shall be obeyed.

Transport of dangerous waste in a passenger vehicle is forbidden.

Article 53

The sites, facilities, equipment, containers, packagings, and other items used for the collection, storage, transport, or disposal
of dangerous waste shall be treated to eliminate pollution before they are diverted for other use.

Article 54

Those workers who will engage in the collection, storage, transport, recycling, and disposal of dangerous waste shall undergo professional
training and testing before being assigned such posts.

Article 55

Those units which produce, collect, store, transport, recycle, and dispose of dangerous waste shall draw up emergency measures and
preventive measures in the event of accidents, and shall report to the administrative department in charge of environmental protection
under the people’s governments at the county level or above in that locality, for a relevant examination to be conducted by that
department.

Article 56

Those units that cause serious environmental pollution due to accidents or emergencies involving dangerous waste shall without delay
take measures to eliminate or decrease the environmental pollution, inform the units or residents that may suffer from the pollution,
and report to the administrative department in charge of environmental protection and other relevant departments under the people’s
governments at the county level or above in that locality and await investigation and handling.

Article 57

The administrative departments in charge of environmental protection under the local people’s governments at the county level or above
shall report without delay to the people’s governments at their own level in the event that dangerous waste seriously pollutes the
environment or imperils the security of residents’ lives or property. The people’s governments shall adopt effective measures to
eliminate or decrease the harm.

Article 58

Transit of dangerous waste passing through the territory of the People’s Republic of China is forbidden.

Chapter V Legal Responsibilities

Article 59

Those who violate the regulations of this Law by engaging in any one of the following actions shall be required to make rectifications
within a specified period of time by the administrative department in charge of environmental protection under the local people’s
governments at the county level or above and shall be subject to a fine.

(1)

failure to report and register industrial solid waste or dangerous waste in accordance with state regulations, or guilt of fraud in
reporting or registration;

(2)

refusing an on-the-spot inspection by the administrative department in charge of environmental protection, or guilt of fraud in the
course of inspection;

(3)

failure to pay waste-discharge fees in accordance with state regulations;

(4)

transferring to others equipment which has been included in the list of equipment to be eliminated within a definite time;

(5)

unauthorized closure, disuse, or dismantling of the facilities or sites for prevention and amelioration of environmental pollution
caused by solid waste;

(6)

constructing facilities or sites for the centralized storage or disposal of industrial solid waste or the burial sites for residential
refuse in nature preserves, scenic spots, historic sites, drinking water sources, or other places which require special protection;
or

(7)

unauthorized transference of solid waste for storage and disposal out of the administrative territories of their own provinces, autonomous
regions, or municipalities directly under the Central Government.

Those who engage in actions mentioned in Items 1 or 2 of the preceding paragraph shall be subject to a fine of up to 10,000 yuan;
those engaging in actions mentioned in Item 3 of the preceding paragraph shall be subject to a fine of up to 50 percent of the amount
of the waste-discharge fees paid; those engaging in actions mentioned in Items 4, 5, 6, or 7 of the preceding paragraph shall be
subject to a fine of up to 50,000 yuan.

Article 60

Those who violate the regulations in this Law by producing, selling, importing, or using outmoded equitment or by applying outmoded
productive technology shall be required to make rectifications by the department in charge of comprehensive economic affairs under
the people’s government at the county level or above; if the case is serious, the said department shall submit an opinion to the
people’s government at the same level and order to terminate business or shut down according to the powers granted by the State Council.

Article 61

For construction projects needing supplementary construction for the prevention and amelioration of solid waste pollution, if the
supplementary construction is put into operation or use before being completed or before passing the acceptance inspection, the administrative
department in charge of environmental protection which examined the report of the effects of said construction project on the environment
shall order production or operation to cease, and may levy a fine of up to 10,000 yuan.

Article 62

If those enterprises and institutions which have been ordered to bring their pollution under control within a specified period of
time, do not accomplish the task within the time limit, they shall be subject to a fine of up to 100,000 yuan, to be determined according
to the detrimental effects they have caused; or they shall be ordered to terminate business or shut down.

The fine in the preceding paragraph shall be determined by the administrative department in charge of environmental protection, and
the order to terminate business and shut down shall be made by the people’s government at the county level or above according to
the authority granted them by the State Council.

Article 63

Those who violate the regulations of this Law during the storage, transport, or disposal of urban residential refuse shall be penalized
according to the State Council’s regulations on environmental protection and urban sanitation.

Article 64

Those who violate the regulations in this Law concerning the prevention of dangerous waste pollution, if engaged in any one of the
following actions, the administrative department in charge of environmental protection under the people’s government at the county
level or above shall order to cease said actions and make rectifications within a limited time, and a fine of up to 50,000 yuan s

RULES FOR THE IMPLEMENTATION OF THE CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-09-04 Effective Date  1995-09-04  


Rules for the Implementation of the Law of the People’s Republic of China on Chinese-foreign Contractual Joint Ventures

Chapter I  General Provisions
Chapter II  Establishment of Contractual Joint Ventures
Chapter III  Organizational Forms and Registered Capital
Chapter IV  Investment or Conditions for Cooperation
Chapter V  Organizational Structure
Chapter VI  Buying Goods and Materials and Selling Products
Chapter VII  Distribution of Earnings and Recovery of Investments
Chapter VIII  Period of Operation and Dissolution
Chapter IX  Special Provisions for Contractual Joint Ventures which have
Chapter X  Supplementary Provisions

(Approved by the State Council on August 7, 1995, promulgated by Decree

No.6 of the Ministry of Foreign Trade and Economic Cooperation on September
4, 1995)
Chapter I  General Provisions

    Article 1  These Rules are enacted in accordance with the Law of the
People’s Republic of China on Chinese-Foreign Contractual Joint Ventures.

    Article 2  The establishment of Chinese-foreign contractual joint ventures
(hereinafter referred to as contractual joint ventures) within the territory
of China shall meet the development policies and industrial policies of the
state and shall abide by the state provisions on the direction of investment
of foreign funded enterprises.

    Article 3  Contractual joint ventures shall develop their own business
freely in accordance with the law and conduct operational and managerial
activities within the scope of the approved agreements, contracts and articles
of association of the contractual joint ventures without any interference from
any organizations or individuals.

    Article 4  Contractual joint ventures include those having attained the
status of Chinese legal persons and those not having attained the status of
Chinese legal persons in accordance with the law.

    Where special provisions are provided for in Chapter IX of these Rules,
such provisions shall apply to the contractual joint ventures which do not
have the status of legal persons.

    Article 5  The competent department of the Chinese party of the
contractual joint venture is also that of the contractual joint venture. Where
there are two or more Chinese parties, the authority for examination and
approval shall consult with the relevant departments to determine one
department to be the competent one, with the exceptions of those provided for
by law or administrative regulations.

    The department responsible for the contractual joint venture shall
coordinate the relevant matters concerning the contractual joint venture and
provide assistance in accordance with law.
Chapter II  Establishment of Contractual Joint Ventures

    Article 6  The establishment of contractual joint ventures shall be
examined and approved either by the Ministry of Foreign Trade and Economic
Cooperation or by the department or local people’s government authorized by
the State Council.

    Where a contractual joint venture is established under one of the
following circumstances, the contractual joint venture shall be examined and
approved by the department or the local people’s government authorized by the
State Council:

    (1) Where the total investment amount is within the limit of the amount
stipulated by the State Council which can be examined and approved by the
department or the local people’s government authorized by the State Council;

    (2) Where the capital is raised by the contractual joint venture, and the
construction or production conditions are not required to be balanced by the
state;

    (3) Where the export of products does not require to receive the export
quota or permit as granted by the relevant state departments responsible, or
although such a quota or permit is required, the relevant state departments
responsible have agreed to grant them before the project proposal is submitted;

    (4) Where there are other cases examined and approved by the department
or the local people’s government authorized by the State Council as stipulated
by law or by administrative regulations.

    Article 7  Where a contractual joint venture is established, the following
documents must be submitted to the examination and approval authority by the
Chinese party:

    (1) The project proposal for establishing a contractual joint venture,
together with any documents which have been examined and approved by the
department responsible;

    (2) The feasibility study report jointly conducted by all parties to the
contractual joint venture, together with any documents which have been
examined and approved by the department responsible;

    (3) The agreement, contract and articles of association of the contractual
joint venture signed by the legal representatives or authorized
representatives of the parties to the contractual joint venture;

    (4) The business licenses or registration certificates of the
parties to the contractual joint venture, and their credit certificates and
the valid documents of their legal representatives; where the foreign party
is a natural person, valid certifying documents showing his or her identity,
his or her personal details and credit information should be provided;

    (5) The name list of the chairman, vice-chairman and directors of the
board of directors or the director, vice-director and members of the joint
management committee as decided in consultation by the parties to the
contractual joint venture;

    (6) Other documents whose submission is required by the examination and
approval authority.

    The documents listed in the preceding paragraph shall be submitted in
Chinese with the exception of the documents listed in Item (4) provided by the
foreign party; the documents listed in Items (2), (3) and (5) may be
simultaneously submitted in a foreign language, as decided in consultation by
the parties to the contractual joint venture.

    The examination and approval authority shall decide whether to grant
approval within 45 days of receiving all the documents stipulated; in cases
where the examination and approval authority thinks that the documents
submitted are incomplete or unsuitable, it has the right to demand the parties
to the contractual joint venture to complete or amend them within the
appointed time limit.

    Article 8  The Ministry of Foreign Trade and Economic Cooperation shall
issue certificate of approval to a contractual joint venture whose
establishment has been approved by the Ministry of Foreign Trade and Economic
Cooperation and the department authorized by the State Council.

    The local people’s government shall issue certificate of approval to a
contractual joint venture whose establishment has been approved by the
relevant local people’s government as authorized by the State Council, and
these documents of approval shall within 30 days as from the date of approval
be submitted to the Ministry of Foreign Trade and Economic Cooperation for the
record.

    A contractual joint venture whose establishment has been approved shall
apply to the authority for the administration of industry and commerce for
registration and to obtain a business licence in accordance with the law.

    Article 9  Under any of the following circumstances, approval will not be
granted to an applicant for establishment of a contractual joint venture:

    (1) Harming state sovereignty or social public interests;

    (2) Endangering state safety;

    (3) Causing pollution to the environment;

    (4) Other circumstances which violate the law, administrative regulations
or state industrial policies.

    Article 10  The term “agreement of the contractual joint venture” as
stipulated in these Rules refers to the written document drawn up by the
parties to the contractual joint venture after they have come to an agreement
on the principles for establishing the venture and major projects.

    The term “contract of the contractual joint venture” as stipulated in
these Rules refers to the written document drawn up by the parties to the
contractual joint venture after they have come to an agreement upon the rights
and obligations of the parties for the establishment of the venture.

    The term “articles of association of the contractual joint venture” as
stipulated in these Rules refers to the written document drawn up by the
parties to the contractual joint venture according to the agreements made in
the contract of the contractual joint venture and agreed upon by all parties
to the contractual joint venture, agreeing on such matters as the
organizational principles and the methods of management and operation.

    In cases where discrepancies exist between the agreement or articles of
association of the contractual joint venture and the contract of the
contractual joint venture, the contract of the contractual joint venture
shall prevail.

    The parties to the contractual joint venture also have the right not to
conclude the agreement of the contractual joint venture.

    Article 11  The agreement, the contract and the articles of association of
the contractual joint venture shall enter into force as of the day when the
certificate of approval is issued by the examination and approval authority.
During the period of cooperation, any major changes to the agreement, the
contract or articles of association of the contractual joint venture must be
approved by the examination and approval authority.

    Article 12  The contract of the contractual joint venture shall clearly
state the following:

    (1) The name, place of registration, domicile of and the name, position
and nationality of the legal representatives of each party to the contractual
joint venture (where the foreign party is a natural person, his or her name,
nationality, and domicile);

    (2) The name, domicile and scope of business of the contractual joint
venture;

    (3) The total investment sum and the registered capital of the contractual
joint venture, the manner and time limit of the investment or conditions for
cooperation provided by each party to the contractual joint venture;

    (4) The transfer of investments or conditions provided by the parties to
the contractual joint venture;

    (5) The distribution of earnings or products and the sharing of risks and
losses among each party to the contractual joint venture;

    (6) The composition of the board of directors or the joint management
committee of the contractual joint venture and the number of people assigned
to be directors or committee members, the powers, and the measures for the
appointment and dismissal of the general manager and other high-ranking
managers;

    (7) The major equipment used for production, the productive technology and
their source;

    (8) Marketing arrangements for products sold inside and outside Chinese
territory;

    (9) Plans for revenue and expenditure regarding foreign currency;

    (10) The period of operation, dissolution and liquidation of the
contractual joint venture;

    (11) Other obligations of the parties to the contractual joint venture and
responsibilities for breach of the contract;

    (12) The operational principles for finance, accounting and auditing;

    (13) The settlement of disputes between the parties to the contractual
joint venture;

    (14) The procedures for amending the contract of the contractual joint
venture.

    Article 13  The articles of association of the contractual joint venture
shall clearly state the following:

    (1) The name and domicile of the contractual joint venture;

    (2) The business scope and the period of cooperation of the contractual
joint venture;

    (3) The name, place of registration, domicile of and the name, position
and nationality of the legal representatives of each party to the contractual
joint venture (where the foreign party is a natural person, his or her name,
nationality and domicile);

    (4) The total investment sum and the registered capital of the contractual
joint venture, the manner and time limit of the investment or the conditions
for cooperation provided by each party to the contractual joint venture;

    (5) The distribution of earnings or products and the sharing of risks and
losses among each party of the contractual joint venture;

    (6) The composition, powers and rules of procedure of the board of
directors or the joint management committee, the terms of office of directors
of the board of directors or members of the joint management committee, the
powers of the chairman and vice-chairman of the board of directors, and the
director and vice-director of the joint management committee;

    (7) The establishment, powers and working procedures of management
organs, the powers, the measures for appointment and dismissal of the
general manager and other high-ranking managers;

    (8) Provisions relating to such labour management as recruitment,
training, work contracts, wages, social insurance, welfare, on-the-job safety
and hygiene of the staff members;

    (9) Systems of finance, accounting and auditing of the contractual joint
venture;

    (10) The procedures for the dissolution and liquidation of the contractual
joint venture;

    (11) The procedures for amending the articles of association of the
contractual joint venture.
Chapter III  Organizational Forms and Registered Capital

    Article 14  A contractual joint venture which has attained the status in
accordance with the law shall be a limited liability company. The parties to
the venture shall be liable to the contractual joint venture within the extent
of their investment or within their extent of the conditions for cooperation
contributed, with the exception of those cases otherwise agreed in the
contract.

    The contractual joint venture is liable for covering the debts of the
venture with all its assets.

    Article 15  The total investment sum in the contractual joint venture
means the investment total which need be contributed according to the scale of
production and management as stipulated in the contract and the articles of
association of the contractual joint venture.

    Article 16  The registered capital of the contractual joint venture means
the total capital contributed by the parties to the contractual joint venture
as registered in the administrative organs for industry and commerce for the
purpose of establishing the contractual joint venture. The registered capital
may be expressed in Renminbi Yuan or in another convertible foreign currency
as agreed by the parties to the contractual joint venture.

    The registered capital of the contractual joint venture may not decrease
in the period of cooperation. However, in cases where changes occurring in
the total investment sum and the scale of production or operation mean that
there is a real need to reduce the registered capital, approval must be
granted by the authority for examination and approval.
Chapter IV  Investment or Conditions for Cooperation

    Article 17  The parties to the contractual joint venture shall provide
investment for the venture or conditions for cooperation in accordance with
the provisions of the relevant laws or administrative regulations and the
agreement in the contract of the contractual joint venture.

    Article 18  The investment or conditions for cooperation contributed by
the parties to the contractual joint venture may be provided in cash or in
kind, including industrial property rights, specialized technology, the right
to the use of land or other property rights.

    In cases where the investment or conditions for cooperation contributed by
the Chinese parties are part of the state assets, they shall be valued
according to the provisions of the relevant laws and administrative
regulations.

    In cases where the contractual joint venture has attained the status of
Chinese legal person in accordance with the law, the investment contributed by
foreign parties shall usually not be less than 25% of the registered capital
of the contractual joint venture. In cases where the contractual joint venture
has not attained the status of Chinese legal person, the specific requirements
as to the investment or conditions contributed by the parties to the
contractual joint venture shall be stipulated by the Ministry of Foreign Trade
and Economic Cooperation.

    Article 19  The parties to the contractual joint venture may contribute
their own property or property rights as investment or conditions for
cooperation, and may not raise mortgages or other forms of guarantee on the
contributed investment or conditions for cooperation.

    Article 20  The parties to the contractual joint venture shall, according
to the production and management needs of the contractual joint venture and in
accordance with the provisions of the relevant laws or administrative
regulations, agree upon within the contract of the contractual joint venture a
deadline before which each party shall provide investment or conditions for
cooperation in the contractual joint venture.

    In cases where each party to the contractual joint venture has not
provided the investment or conditions for cooperation in the agreement in the
contractual joint venture’s contract, the administrative authority for
industry and commerce shall prescribe a time limit for him to provide; in
cases where investment has not been made before the time limit, the authority
for examination and approval shall revoke the certificate of approval of the
contractual joint venture, and the administrative authority for industry and
commerce shall revoke the business licence of the contractual joint venture
and shall publicly announce this decision.

    Article 21  In cases where one party to the contractual joint venture has
not provided investment or conditions for cooperation in accordance with the
contract of the contractual joint venture, he shall be liable for violating
the contract to the other party who has provided investment and conditions for
cooperation in accordance with the contract of the contractual joint venture.

    Article 22  The investments or conditions for cooperation provided by the
parties to the contractual joint venture shall be verified by a Chinese
certified public accountant who shall provide a verification report. The
contractual joint venture shall issue certificates of investment to the
parties to the venture on the basis of the report. The certificates of
investment shall clearly state the following:

    (1) The name of the contractual joint venture;

    (2) The date of establishment of the contractual joint venture;

    (3) The designation or name of each party to the contractual joint venture;

    (4) The contents of the investment or conditions for cooperation
contributed by the parties to the contractual joint venture;

    (5) The date on which the parties to the contractual joint venture
provided the investment or conditions for cooperation;

    (6) The serial number and the date of issue of the investment certificate.

    Copies of the investment certificate shall be submitted to the
examination and approval authority and the administrative authority for
industry and commerce.

    Article 23  If the parties to the contractual joint venture transfer all
or some of the rights stipulated in the contract of the contractual joint
venture to each other, or if one party to the venture transfers all or some of
the rights stipulated in the contract to a party other than the other party to
the venture, the written consent of the other party must be obtained and
submitted to the examination and approval authority for approval.

    The examination and approval authority shall decide whether or not to
grant approval within 30 days of receiving the document regarding the transfer.
Chapter V  Organizational Structure

    Article 24  The contractual joint venture shall establish a board of
directors or a joint management committee. The board of directors or the joint
management committee is the authoritative organization of the contractual
joint venture, deciding the major issues of the contractual joint venture
according to the provisions of the articles of association of the contractual
joint venture.

    Article 25  The board of directors or the joint management committee shall
be composed of not less than three members, and their distribution shall be
determined through consultation by the Chinese and foreign parties with
reference to the investment or conditions for cooperation contributed by each
party.

    Article 26  The members of the board of directors or the joint management
committee shall be appointed or dismissed by the Chinese and the foreign party
respectively. The method of the selection of the chairman and vice-chairman of
the board of directors or the director and vice-director of the joint
management committee shall be stipulated in the articles of association of the
contractual joint venture. Where the Chinese or the foreign party assumes the
chairmanship of the board of directors or the directorship of the joint
management committee, the other party shall assume the vice-chairmanship or
the vice-directorship.

    Article 27  The term of office of the members of the board of directors or
the joint management committee shall be specified in the articles of
association of the contractual joint venture; however, each term may not be
longer than three years. At the expiration of a director’s or a committee
member’s term, he may serve another term if re-appointed.

    Article 28  Meetings of the board of directors or the joint management
committee shall be convened at least once a year and shall be convened and
presided over by the chairman or the director. When the chairman or the
director is unable to perform his duties due to special reasons, the
vice-chairman, the vice-director or another board or committee member as
designated by the chairman or the director shall convene and presided over the
meeting. A meeting of the board of directors or the joint management committee
may be convened upon proposal made by one-third or more of the directors or
committee members.

    Meetings of the board of directors or the joint management committee may
be held only if two-thirds or more of the directors or committee members are
present. Directors or committee members who are unable to attend the meetings
of the board of directors or the joint management committee shall entrust a
representative in writing to attend and to vote. A resolution made at a
meeting of the board of directors or joint management committee requires the
approval of half or more of all the directors or committee members before it
passes. A director or a committee member who does not attend the meeting of
the board of directors or the joint management committee without any just
cause, and does not entrust a representative to attend on his behalf is deemed
to have been present at the meeting of the board of directors or joint
management committee and to have abstained from voting.

    All directors or committee members shall be notified ten days before a
meeting of the board of directors or joint management committee is convened.

    The meetings of the board of directors or the joint management committee
may use means of communication to pass a resolution.

    Article 29  A resolution on the following matters must be adopted
unanimously by all directors or committee members attending the meeting of the
board of the directors or the joint management committee:

    (1) An amendment of the articles of association of the contractual joint
venture;

    (2) An increase or decrease in the registered capital of the contractual
joint venture;

    (3) The dissolution of the contractual joint venture;

    (4) The mortgage of the assets of the contractual joint venture;

    (5) A merger, division or change in the corporate form of the contractual
joint venture;

    (6) Other matters agreed by the parties to the contractual joint venture
which must be adopted unanimously by all directors or committee members
present at the meeting of the board of the directors or joint management
committee.

    Article 30  Except as otherwise stipulated in these Rules, the methods of
discussion and voting procedures used in the meetings of the board of
directors or the joint management committee shall be stipulated in the
articles of association of the contractual joint venture.

    Article 31  The chairman or the director is the legal representative of
the contractual joint venture. In cases when the chairman or the director is
unable to perform his duties due to special reasons, he must authorize the
vice-chairman, the vice-director or another director or committee member to
represent the contractual joint venture in its external relations.

    Article 32  The contractual joint venture shall have one general manager
who shall be responsible for the day-to-day operation and management of the
contractual joint venture and shall be responsible to the board of directors
or the joint management committee.

    The general manager of the contractual joint venture shall be appointed
and dismissed by the board of directors or the joint management committee.

    Article 33  The general manager and the other high-ranking managers may
be either Chinese or foreign citizens.

    Directors or committee members, as appointed by the board of directors or
the joint management committee, may concurrently hold the position of general
manager or other high-ranking managers of the contractual joint venture.

    Article 34  When the general manager or other high-ranking managers are
not competent at their jobs, neglect their duties seriously or engage in
fraudulent practices or embezzlement, they may be dismissed through a
resolution adopted by the board of directors or the joint management
committee; in cases where damage is done to the contractual joint venture, the
liability for the damages shall be awarded in accordance with law.

    Article 35  When a contractual joint venture, after its establishment,
entrusts a third party with its operation and management, unanimous consent
must be obtained from the board of the directors or the joint management
committee, and a contract entrusting the operation and management shall be
signed with the person thus entrusted.

    The contractual joint venture shall submit such documents as the
resolution of the board of directors or joint management committee, the signed
contract entrusting the operation and management and the credit certificate of
the person thus entrusted to the examination and approval authority for
approval. The examination and approval authority shall decide whether or not
to grant approval within 30 days of receiving the relevant documents.
Chapter VI  Buying Goods and Materials a

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE FURTHER STRENGTHENING OF ADMINISTRATION OF TOURIST VESSLES FOR THE RECEPTION OF FOREIGNERS TO TRAVEL THE THREE GORGES ON THE YANGTZE RIVER

Category  TOURISM Organ of Promulgation  The State Council Status of Effect  In force
Date of Promulgation  1995-02-27 Effective Date  1995-02-27  


Circular of the General Office of the State Council Concerning the Further Strengthening of Administration of Tourist Vessles for
the Reception of Foreigners to Travel the Three Gorges on the Yangtze River



(February 27, 1995)

    The Three Gorges on the Yangtze River are important tourist resources in
our country. The tourist industry in the Three Gorges on the Yangtze River has
made great progress in recent years. As a result
of lack of unified
administration and blind competition among some enterprises for building
tourist vessels, such problems as the confusion of operating order, the
imperfection of safety measures and a decline of service quality have surfaced
in the tourist transport carrying foreigners in the Three Gorges on the
Yangtze River. For the purpose of the safe navigation of tourist vessels and
the advancement of service quality, so as to promote the healthy development
of the tourist industry in the Three Gorges on the Yangtze River, and with the
approval of the State Council, the relevant matters are hereby notified as
follows:

    1.In accordance with the relevant provisions of the Regulations of the
People’s Republic of China for the Administration of Water Transport, the
establishment of any enterprise intended to engage in the inter-provincial
tourist transport carrying foreigners in the Three Gorges on the Yangtze River
shall be subject to the approval of the Ministry of Communications; the
establishment of any enterprise intended to engage in the transport within a
province shall be subject to the approval of the communications department of
the province where the said enterprise is to be established.

    With regard to the establishment of a Chinese-foreign equity joint venture
or a Chinese-foreign contractual joint venture intended to engage in the
tourist transport carrying foreigners in the Three Gorges on the Yangtze
River, where the amount of investment exceeds the statutory quota, the project
proposal and the feasibility study report thereof shall be examined and
approved by the State Planning Commission in consultation with the Ministry of
Communications and other competent departments, and the contract and the
articles of association thereof shall be examined and approved by the Ministry
of Foreign Economic Relations and Trade; where the amount of investment is not
more than the statutory quota, the project proposal and the feasibility study
report thereof shall be examined and approved by the Ministry of
Communications, and the contract and articles of association thereof shall be
examined and approved by the Ministry of Foreign Economic Relations and Trade.
The Chinese party to a Chinese-foreign equity or a contractual joint venture
shall invest an amount of not less than 50% of the total amount of investment
and one of the parties to the said venture shall be a professional water
transport enterprise. From now on, any enterprise failing to complete the
formalities in accordance to the above-mentioned provisions shall not engage
in the tourist transport carrying foreigners in the Three Gorges on the
Yangtze River.

    2.Vessels engaged in the tourist transport carrying foreigners in the
Three Gorges on the Yangtze River must conform to the technical standards
provided by the Register of Shipping of the People’s Republic of China and
must possess the valid certificates of vessel survey issued by the Register of
Shipping of the People’s Republic of China or its authorized organizations.
After the date of issuance of this Circular, anyone who builds vessels to be
engaged in the tourist transport carrying foreigners in the Three Gorges on
the Yangtze River shall apply to the Register of Shipping of the People’s
Republic of China or its authorized organizations for a survey under
construction.  For vessels that were surveyed and certificated by the local
survey organizations, new applications for survey shall, within one month from
the issuance of this Circular, be made to the Register of Shipping of the
People’s Republic of China or its authorized organizations and valid
certificates of vessel survey will be issued to those of them which are
surveyed up to standards.

    3.Vessels engaged in the tourist transport carrying foreigners in the
Three Gorges on the Yangtze River must obtain the registration of vessels and
port entry and departure visas from the state harbour superintendencies
authorized by the Bureau of Harbour Superintendency of the People’s Republic
of China. No harbour superintendencies without such authorization shall accept
registration and issue port entry and departure visas to vessels engaged in
the tourist transport carrying foreigners in the Three Gorges on the Yangtze
River.

    4.Crew members in charge of technical work on board tourist vessels
receiving foreigners to travel the Three Gorges on the Yangtze River, must
pass the unified examination organized by the Bureau of Harbour
Superintendency of the People’s Republic of China. The Yangtze Bureau of
Harbour Superintendency of the People’s Republic of China shall be responsible
for the implementation of the specific affairs related to the examination. All
crew members taking up their posts must hold the competency certificates of
crew of the People’s Republic of China.

    5.It is necessary to strengthen conscientiously the administration of
public security. The Bureau of Public Security of Navigation in the Yangtze
River under the Ministry of Communications shall, in accordance with relevant
provisions promulgated by the Ministry of Communications or the Ministry of
Public Security, be responsible for the unified administration of safety
protection, supervision of fire fighting, lodging registration of persons from
abroad, public security of berthing ports and handling of various cases
related to tourist vessels receiving foreigners to travel the Three Gorges on
the Yangtze River. In case where especially serious accidents take place, the
Interim Provisions on Investigation Procedures for Especially Serious
Accidents promulgated by the State Council in 1989 shall apply to deal with
the cases.

    6.It is necessary to strengthen the administration of service quality in
tourist vessels receiving foreigners to travel the Three Gorges on the Yangtze
River. The National Tourism Administration shall formulate the rules on
reception and service, standards and methods for star-rating in conjunction
with the Ministry of Communications and other departments concerned and shall
enforce the inspection and supervision on the service quality.

    7.The Ministry of Communications shall strengthen the planning,
construction and administration of ports and stations as well as tourist
vessels receiving foreigners to travel the Three Gorges on the Yangtze River
so as to alter the situation of the lagging construction and disorderly
administration of ports and stations as early as possible and achieve
coordinated development.

    8.The Ministry of Communications shall, in accordance with the relevant
provisions of the State and the requirements of this Circular, and in
conjunction with the National Tourism Administration, the Ministry of Public
Security and other departments concerned, check up and rectify vessels engaged
in tourist transport business in the Three Gorges on the Yangtze River within
the period of time before the end of June, 1995. The aforesaid departments
shall process new registration and reissue certificates to those which meet
the statutory requirements, set a time limit for those which fail to meet the
requirements to make rectification and correction and revoke the operating
status if requirements have not been met after such rectification and
correction.

    9.A system of holding joint meetings on the coordination in tourism in
the Three Gorges on the Yangtze River shall be instituted. The Ministry of
Communications shall convene the meeting, call together the National Tourism
Administraion, the Ministry of Public Security and other relevant departments
and invite the local departments concerned in Sichuan, Hubei and other
provinces to be present. The meeting shall nonperiodically be held every year
to co-ordinate the relevant work and study and resolve the emerging problems
with a view to advancing service quality and ensuring the normal operating
order of tourist industry carrying foreigners in the Three Gorges on the
Yangtze River.

    10.Enterprises engaging in tourist transport carrying foreigners in the
course of the Yangtze River other than the Three Gorges on the Yangtze River
shall do business with reference to this Circular.

    11.This Circular shall be implemented from the date of its issuance. If
any provisions in the relevant documents issued previously conflict with this
Circular, this Circular shall prevail.






CIRCULAR OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUES CONCERNING ESTABLISHMENT OF BRANCHES OF ADVERTISING AGENCIES WITH FOREIGN INVESTMENT

The State Administration for Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation

Circular of the State Administration for Industry and Commerce and the Ministry of Foreign Trade and Economic Cooperation on Issues
Concerning Establishment of Branches of Advertising Agencies with Foreign Investment

GongShangGuangZi [1995] No.28

May 17, 1995

In accordance with Paragraph 2 of Item 3 of Article 5 of the Provisions of the State Administration for Industry and Commerce and
the Ministry of Foreign Trade and Economic Cooperation on the Establishment of Advertising Agencies with Foreign Investment (GongShangGuangZi
[1994] No.304), specific measures for the establishment of branches of advertising agencies with foreign investment are hereby notified
as follows:

1.

Locally registered advertising agencies with foreign investment, when applying for the establishment of branches, should submit the
application materials and related documents to commissions (departments) of foreign trade and economic cooperation and administrations
for industry and commerce of various provinces, autonomous regions, and municipalities directly under the Central Government and
municipalities separately listed on the State plan. The commissions (departments) of foreign trade and economic cooperation of various
provinces, autonomous regions, and municipalities directly under the Central Government and municipalities separately listed on the
State plan, after seeking opinions from administrations for industry and commerce of the same level, submit all the documents to
the Department of Foreign Investment of the Ministry of Foreign Trade and Economic Cooperation and send a copy to the Department
of Advertising Supervision and Administration of the State Administration for Industry and Commerce.

2.

Advertising agencies with foreign investment registered at the State Administration for Industry and Commerce, when applying for the
establishment of branches, should, upon the approval of competent Chinese authorities, submit the application materials and related
documents to the Department of Foreign Investment of the Ministry of Foreign Trade and Economic Cooperation and send a copy to the
Department of Advertising Supervision and Administration of the State Administration for Industry and Commerce.

3.

The Department of Foreign Investment of the Ministry of Foreign Trade and Economic Cooperation will, after seeking written opinions
from the Department of Advertising Supervision and Administration of the State Administration for Industry and Commerce and commissions
(departments) of foreign trade and economic cooperation of the provinces and cities where the branches will be set up, decide whether
or not to grant the approval.

 
The State Administration for Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation
1995-05-17

 




ORGANIC LAW OF THE LOCAL PEOPLE’S CONGRESSES AND LOCAL PEOPLE’S GOVERMENTS

Organic Law of the Local People’s Congresses and Local People’s Goverments of the PRC

    

(Effective Date 1995.02.28)

CHAPTER I GENERAL PROVISIONS

CHAPTER II LOCAL PEOPLE’S CONGRESSES AT VARIOUS LEVELS

CHAPTER III THE STANDING COMMITTEES OF LOCAL PEOPLE’S CONGRESSES AT AND

ABOVE THE COUNTY LEVEL

CHAPTER IV LOCAL PEOPLE’S GOVERNMENTS AT VARIOUS LEVELS

CHAPTER V SUPPLEMENTARY PROVISIONS

   Article 1 People’s congresses and people’s governments shall be established in provinces, autonomous regions, municipalities directly under
the Central Government, autonomous prefectures, counties, autonomous counties, cities, municipal districts, townships, nationality
townships, and towns.

   Article 2 Standing committees shall be established by local people’s congresses at and above the county level.

   Article 3 The organs of self-government of autonomous regions, autonomous prefectures and autonomous counties shall, in addition to exercising
the functions and powers specified in this Law, exercise the power of autonomy within the limits of their authority as prescribed
by the Constitution, the Law on Regional National Autonomy and other laws.

CHAPTER II LOCAL PEOPLE’S CONGRESSES AT VARIOUS LEVELS

   Article 4 Local people’s congresses at various levels shall be local organs of state power.

autonomous regions, municipalities directly under the Central Government, autonomous prefectures and cities divided into districts
shall be elected by the people’s congresses at the next lower level; deputies to the people’s congresses of counties, autonomous
counties, cities not divided into districts, municipal districts, townships, nationality townships, and towns shall be elected directly
by their constituencies.

The number of deputies to the local people’s congresses at various levels and the manner of their election shall be prescribed by
the electoral law. There shall be an appropriate number of deputies elected from the minority nationalities in each administrative
area.

   Article 6 The term of office of the people’s congresses of provinces, autonomous regions, municipalities directly under the Central Government,
autonomous prefectures, counties, autonomous counties, cities and municipal districts shall be five years. The term of office of
the people’s congresses of townships, nationality townships and towns shall be three years; The term of office of the people’s congresses
of provinces, autonomous regions, municipalities directly under the Central Government, autonomous prefectures, counties, autonomous
counties, cities and municipal districts shall be five years. The term of office of the people’s congresses of townships, nationality
townships and towns shall be three years.

   Article 7 The people’s congresses of provinces, autonomous regions, and municipalities directly under the Central Government may, in the light
of the specific conditions and actual needs of their respective administrative areas, formulate and promulgate local regulations,
which must not contravene the Constitution, the law and administrative rules and regulations; they shall report such local regulations
to the Standing Committee of the National People’s Congress and the State Council for the record.

The people’s congresses of cities where provincial and autonomous regional people’s governments are located and the people’s congresses
of relatively large cities with the approval of the State Council may, in the light of the specific conditions and actual needs of
their respective cities, formulate local regulations, which must not contravene the Constitution, the law, administrative rules and
regulations, and the local regulations of their respective provinces and autonomous regions; they shall report such local regulations
to the standing committees of the people’s congresses of the respective provinces and autonomous regions for approval before implementation
and for submission to the Standing Committee of the National People’s Congress and the State Council for the record.

   Article 8 Local people’s congresses at and above the county level shall exercise the following functions and powers:

(1) to ensure the observance and execution, in their respective administrative areas, of the Constitution, the law, administrative
rules and regulations and the resolutions of the people’s congresses and their standing committees at higher levels, and to ensure
the implementation of the state plan and the state budget;

(2) to examine and approve the plans for national economic and social development and budgets of their respective administrative areas
and the reports on the implementation of such plans and budgets;

(3) to discuss and decide on major issues in political, economic, educational, scientific, cultural, public health, protection of
the environment and natural resources and civil and nationality affairs in their respective administrative areas;

(4) to elect the members of their respective standing committees;

(5) to elect governors and deputy governors, chairmen and vice-chairmen of autonomous regions, mayors and deputy mayors, prefects
and deputy prefects, and heads and deputy heads of counties and districts;

(6) to elect the presidents of the people’s courts and the chief procurators of the people’s procuratorates at the corresponding levels;
the election of the chief procurator of a people’s procuratorate shall be reported to the chief procurator of the people’s procuratorate
at the next higher level, who shall submit it to the standing committee of the people’s congress at that same level for approval;

(7) to elect deputies to the people’s congresses at the next higher level;

(8) to hear and examine reports on the work of the standing committees of the people’s congresses at the corresponding levels;

(9) to hear and examine reports on the work of the people’s governments, the people’s courts and the people’s procuratorates at the
corresponding levels;

(10) to alter or annul inappropriate resolutions of the standing committees of the people’s congresses at the corresponding levels;

(11) to annul inappropriate decisions and orders of the people’s governments at the corresponding levels;

(12) to protect the socialist property owned by the whole people, property owned collectively by working people and citizens’ legitimate
private property, maintain public order and safeguard citizens rights of the person and their democratic and other rights;

(13) to protect the legitimate rights and interests of various economic organizations;

(14) to safeguard the rights of minority nationalities; and

(15) to safeguard women’s rights as endowed by the Constitution and the law, such as equality with men, equal pay for equal work and
freedom of marriage.

   Article 9 The people’s congresses of townships, nationality townships, and towns shall exercise the following functions and powers:

(1) to ensure the observance and execution, in their respective administrative areas, of the Constitution, the law, administrative
rules and regulations, and the resolutions of the people’s congresses and their standing committees at higher levels;

(2) to adopt and promulgate resolutions within the scope of their functions and powers;

(3) to decide, in accordance with state plans, on plans for the development of the economy, cultural affairs and public services in
their respective administrative areas;

(4) to examine and approve the budgets of their respective administrative areas as well as the reports on the implementation of the
budgets;

(5) to decide on plans for civil affairs in their respective administrative areas;

(6) to elect the chairman and vice-chairmen of the people’s congress at the corresponding level;

(7) to elect heads and deputy heads of townships and towns;

(8) to hear and examine reports on the work of the people’s governments of townships, nationality townships, and towns;

(9) to annul inappropriate decisions and orders of the people’s governments of townships, nationality townships, and towns;

(10) to protect the socialist property owned by the whole people, property owned collectively by working people and citizens’ legitimate
private property, to maintain public order and safeguard citizens’ rights of the person and their democratic and other rights;

(11) to protect the legitimate rights and interests of various economic organizations;

(12) to safeguard the rights of minority nationalities; and

(13) to safeguard women’s rights as endowed by the Constitution and the law, such as equality with men, equal pay for equal work and
freedom of marriage.

In exercising their functions and powers, the people’s congresses of townships, nationality townships, and towns in which minority
nationalities live in concentrated communities shall adopt specific measures appropriate to the characteristics of the nationalities
concerned.

   Article 10 Local people’s congresses at various levels shall have the power to remove from office members of the people’s governments at the
corresponding levels. Local people’s congresses at or above the county level shall have the power to remove from office members of
their standing committees and the presidents of the people’s courts and the chief procurators of the people’s procuratorates elected
by those standing committees. The removal of the chief procurator of a people’s procuratorate shall be reported to the chief procurator
of the people’s procuratorate at the next higher level, who shall submit the matter to the standing committee of the people’s congress
at that same level for approval.

   Article 11 Local people’s congresses at various levels shall meet in session at least once a year.

A session of a local people’s congress may be convened at any time upon the proposal of one-fifth of its deputies.

   Article 12 Sessions of local people’s congresses at or above the county level shall be convened by their standing committees.

   Article 13 A preliminary meeting shall be held for each session of a local people’s congress at or above the county level to elect the presidium
and secretary-general of that session, adopt the agenda for the session and decide on other preparations.

The preliminary meeting shall be presided over by the standing committee of the people’s congress. The preliminary meeting for the
first session of a people’s congress shall be presided over by the standing committee of the preceding people’s congress at the corresponding
level.

When a local people’s congress at or above the county level meets, its session shall be conducted by the presidium.

When a local people’s congress at or above the county level meets, it shall propose a number of deputy secretaries-general; the choice
of deputy secretaries-general shall be decided by the presidium.

   Article 14 The people’s congress of a township, nationality township or town shall have a chairman, and may have one or two vice-chairmen.
The chairman and vice-chairmen shall be elected from among the deputies to the people’s congress at the corresponding level, and
their term of office shall be the same as that of each people’s congress at that level.

The chairman or vice-chairmen of the people’s congress of a township, nationality township or town shall not concurrently hold office
in an administrative organ of the State; if they hold office in an administrative organ of the State, they must resign from the post
of the chairman or vice-chairmen of the people’s congress at that level.

The chairman or vice-chairmen of the people’s congress of a township, nationality township or town shall, during the period when the
people’s congress at the corresponding level is not in session, be responsible for keeping in touch with the deputies to the people’s
congress at that level, organizing the deputies to conduct activities, and conveying the suggestions, criticisms and opinions of
the deputies and the masses regarding the work of the people’s government at the same level.

   Article 15 When the people’s congress of a township, nationality township, or town holds a session, it shall elect a presidium, which shall
preside over the session and be responsible for convening the next session of that people’s congress. The chairman and vice-chairmen
of the people’s congress of a township, nationality township or town shall be the members of the presidium. The chairman and vice-chairmen
of the people’s congress of a township, nationality township or town shall be the members of the presidium.

   Article 16 The first session of each local people’s congress at any level shall be convened, within two months after the election of its deputies,
by the standing committee of the preceding people’s congress at the corresponding level or by the presidium of the preceding session
of the people’s congress of the township, nationality township, or town.

   Article 17 Members of the local people’s governments at or above the county level, the presidents of the People’s Courts, the chief procurators
of the People’s Procuratorates, and the leading persons of the people’s governments at the township level shall attend sessions of
the people’s congresses at the corresponding levels as nonvoting delegates; leading members of the other relevant government departments
and public organizations at or above the county level may, by decision of the standing committees of the people’s congresses at the
corresponding levels, attend sessions of the people’s congresses at the corresponding levels as nonvoting delegates.

   Article 18 When a local people’s congress holds its sessions, its presidium, standing committee and special committees and the people’s government
at the corresponding level may submit bills and proposals to that people’s congress within the scope of its functions and powers.
The presidium shall decide to refer such bills and proposals to a session of the people’s congress for deliberation, or to simultaneously
refer them to relevant special committees for deliberation and reports before the presidium decides, upon examination of such reports,
to submit them to the people’s congress for a vote.

Ten or more deputies to a local people’s congress at or above the county level, or five or more deputies to the people’s congress
of a township, nationality township, or town may jointly submit a bill or proposal to the people’s congress at the corresponding
level within the scope of its functions and powers. The presidium shall decide whether to place the bill or proposal on the agenda
of the people’s congress or to first refer it to a relevant special committee for deliberation and a recommendation on whether to
place it on the agenda before the presidium makes such a decision.

With agreement of the presidium, deliberation shall be terminated on a bill or proposal placed on the agenda of a session, if the
party that submitted the bill or proposal requests its withdrawal before it is referred to the congress for a vote.

   Article 19 Suggestions, criticisms and complaints on any aspect of work put forward by deputies to a local people’s congress at or above the
county level to that people’s congress and its standing committee shall be referred by the administrative office of the standing
committee to the departments and organizations concerned for consideration, disposition and reply.

Suggestions, criticisms and complaints on any aspect of work put forward by deputies to the people’s congress of a township, nationality
township, or town to that people’s congress shall be referred by its presidium to the departments and organizations concerned for
consideration, disposition and reply.

   Article 20 When a local people’s congress conducts an election or adopts a resolution, a majority vote of all the deputies shall be required.

   Article 21 Members of the standing committee of local people’s congresses at or above the county level, choices for chairmen and vice- chairmen
of the people’s congresses of townships, nationality townships or towns, governors and deputy governors, chairmen and vice-chairmen
of autonomous regions, mayors and deputy mayors, heads and deputy heads of prefectures, heads and deputy heads of counties, districts,
townships and towns, presidents of the People’s Courts and chief procurators of the People’s Procuratorates shall be nominated by
the presidiums of the people’s congresses at the corresponding levels or jointly nominated by deputies in accordance with the provisions
of this Law.

Thirty or more deputies to the people’s congress of a province, autonomous regions or municipality directly under the Central Government,
or twenty or more deputies to the people’s congress of a city divided into districts or of an autonomous prefecture, or ten or more
deputies to the people’s congress at the county level may nominate, with joint signatures, the candidates for members of the standing
committee of the people’s congress at the corresponding level, leading persons of the people’s government, the president of the People’s
Court and the chief procurator of the People’s Procuratorate at the same level. Ten or more deputies to the people’s congress of
a township, nationality township or town may nominate, with joint signatures, candidates for the chairman and vice-chairmen of the
people’s congress at the corresponding level and leading persons of the people’s government at the same level. Deputies elected from
different electoral districts or electoral units may deliberate on and jointly nominate candidates.

The number of candidates nominated by a presidium or jointly nominated by each deputy together with other deputies shall not exceed
the number of persons to be elected.

Nominators shall make a trustful introduction of their nominees.

   Article 22 In elections for chairmen and secretaries-general of the standing committees of the people’s congresses, chairmen of the people’s
congresses of townships, nationality townships or towns, heads of people’s governments, presidents of the People’s Courts and chief
procurators of the People’s Procuratorates, there shall generally be one more candidate than the number of persons to be elected,
and a competitive election shall be conducted. If only one candidate is nominated, a non-competitive election may be conducted. In
elections for vice-chairmen of the standing committees of the people’s congresses, deputy chairmen of the people’s congresses of
townships, nationality townships or towns, and deputy heads of the people’s governments, there shall be one to three more candidates
than the number of persons to be elected; in elections for members of the standing committees of the people’s congresses, there shall
be one-tenth to one-fifth more candidates than the number of persons to be elected. The specific differential number shall be prescribed
by the people’s congresses at the corresponding levels in the electoral measures on the basis of the number of persons to be elected.
And the competitive election shall be conducted. If the number of candidates nominated is the same as the differential number prescribed
in the electoral measures, the presidium of a people’s congress shall submit the list of candidates to the deputies for deliberation
and discussion, before election is conducted. If the number of candidates nominated exceeds the differential number prescribed in
the electoral measures, a preliminary election shall be conducted after the deputies deliberate and discuss the list of candidates
submitted by the presidium, and an official list of candidates shall, in accordance with the differential number prescribed in the
electoral measures, be determined by order of the votes that the candidates obtain in the preliminary election, and then election
shall be conducted.

When leading persons of State organs at the corresponding levels are to be elected by local people’s congresses at or above the county
level, the time for nomination and consideration of candidates shall be not less than two days.

   Article 23 Elections shall be conducted by secret ballot. The deputies may vote for or against any of the candidates that have been determined,
or may instead elect any other deputies or voters or abstain from voting.

   Article 24 In elections for leading persons of State organs conducted by local people’s congresses at the corresponding levels, when the number
of candidates who obtain more than half of the votes exceeds the number of leading persons to be elected, those who obtain more votes
shall be elected. If the number of votes for some candidates is tied, thus making it impossible to determine the elected, another
balloting shall be conducted for those candidates to resolve the tie, and those who obtain more votes shall be elected.

If the number of the elected persons who obtain more than half of the votes is less than the number of persons needed to be elected,
another election shall be held to make up the difference, the candidates for another election may be determined by order of the votes
they obtain in the first balloting, or may be nominated and determined in accordance with the procedures provided by this Law. Another
election for making up the difference may be held at the current session or the next session of the people’s congress upon decision
by the people’s congress at the corresponding level.

When another election is held to elect the vice-chairmen and members of the standing committee of a people’s congress, the vice-chairmen
of the people’s congress of a township, nationality township or town, and the deputy heads of a people’s government, competitive
election shall be conducted after the differential number is determined in accordance with the provisions in the first paragraph
of Article 22 of this Law.

   Article 25 When by-elections are held by the local people’s congresses at various levels for chairmen, vice-chairmen, secretaries-general and
members of their standing committees, chairmen, and vice-chairmen of the people’s congresses of townships, nationality townships
or towns, governors, deputy governors, chairmen and vice-chairmen of autonomous regions, mayors, deputy mayors, prefects, deputy
prefects, heads and deputy heads of counties, districts, townships and towns, presidents of people’s courts, and chief procurators
of people’s procuratorates, the number of candidates may exceed or equal the number of vacancies, and the election procedures and
methods shall be decided by the people’s congresses at the corresponding levels.

   Article 26 When a local people’s congress at or above the county level is in session, its presidium, its standing committee, or a joint group
of at least one tenth of its deputies may submit a proposal to remove from office members of its standing committee or members of
the people’s government, the president of the people’s court or the chief procurator of the people’s procuratorate at the corresponding
level; the presidium shall refer such proposals to the congress for deliberation.

When the people’s congress of a township, nationality township or town is in session, the presidium or a group of at least one-fifth
of the deputies may submit a proposal to remove from office the chairman or vice-chairmen of the people’s congress, the head or deputy
heads of the township or town; the presidium shall refer the proposal to the congress for deliberation.

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

Persons proposed to be removed from office shall have the right to defend themselves at a meeting of the presidium or at the plenary
meeting of a session, or to submit their written defence. The defence made at the meeting of the presidium or the written defence
shall be printed and distributed to participants of the session by the presidium.

The proposal for removal from office submitted to a local people’s congress at or above the county level shall, after being distributed
by the presidium to the participants for deliberation, be submitted to the plenary meeting of the session for voting; or the presidium
shall, subject to decision of the plenary meeting of the session, propose to organize an investigation committee, and the proposal
for removal from office shall be deliberated and decided at the next session of the people’s congress at the corresponding level
on the basis of the report prepared by the investigation committee.

   Article 27 A component member of the standing committee of a local people’s congress at or above the county level, a leading person of a local
people’s government, the president of a People’s Court or the chief procurator of a People’s Procuratorate at or above the county
level may submit the resignation to the people’s congress at the corresponding level, which shall decide whether or not to accept
the resignation; if the people’s congress is not in session, such resignations may be submitted to its standing committee, which
shall decide whether or not to accept the resignations. If the standing committee decides to accept a resignation, it shall report
it to its people’s congress for the record. A resignation of the chief procurator of a people’s procuratorate must be reported to
the chief procurator of the people’s procuratorate at the next higher level, who shall refer it to the standing committee of the
people’s congress at the corresponding level for approval.

The chairman or vice-chairman of the people’s congress of a township, nationality township or town, the head or deputy head of a township
or town may submit his resignation to the people’s congress at the corresponding level, which shall decide whether or not to accept
the resignation.”

   Article 28 When a local people’s congress at any level is in session, a group of at least ten of the deputies may submit a written proposal
for addressing questions to the people’s government or any of its departments, the People’s Court or the People’s Procuratorate at
the corresponding level. In the proposal shall clearly be stated to whom the questions are addressed and the specific questions themselves.

The presidium shall decide whether to refer the proposal to the organ addressed for an oral reply at the meeting of the presidium,
or at the plenary meeting of a session, or at the meeting of a relevant special committee, or for a written reply. Where a reply
is made at a meeting of the presidium or of the special committee, the deputies who submit the proposal shall have the right to attend
the meeting as nonvoting delegates and express their opinions; when the presidium considers it necessary, it may have the report
on the reply printed and distributed to the session.

If the reply is to be made orally, the leading person of the organ addressed shall be present at the meeting to give the reply; if
the reply is to be made in writing, it shall be signed by the leading person of the organ addressed, and the presidium shall have
it printed and distributed to the session or to the deputies who address the questions.

   Article 29 When a local people’s congress at any level examines a bill or proposal, its deputies may address questions to the local state organs
concerned, which shall send their personnel to the congress to give explanations.

   Article 30 The people’s congresses of provinces, autonomous regions, municipalities directly under the Central Government, autonomous prefectures
and cities divided into districts may, where necessary, establish special committees such as legislative (political and law) committees,
finance and economic committees, and education, science, culture and public health committees. The special committees shall work
under the direction of the respective people’s congresses; when the people’s congresses are not in session, they shall work under
the direction of the standing committees of the people’s congresses.

Nominations for the chairman, vice-chairmen and members of a special committee shall be made by the presidium from among the deputies
and approved by the people’s congress. When the people’s congress is not in session, its standing committee may appoint additional
individual vice- chairmen and some members of the special committees through nomination by its council of chairmen and approval by
a meeting of the standing committee.

The special committees shall discuss, examine and draw up relevant bills and draft resolutions under the direction of the people’s
congresses and their standing committees at the corresponding levels; they shall make investigations and studies of, and put forward
proposals on matters related to those committees and within the scope of functions and powers of the respective people’s congresses
and their standing committees.

   Article 31 A local people’s congress at or above the county level may appoint an investigation committee on specific questions.

The presidium or a group of at least one-tenth of the deputies may submit to the session of the people’s congress a proposal for organizing
an investigation committee on specific questions, which shall be submitted by the presidium to the plenary meeting for decision.

An investigation committee shall be composed of a chairman, vice- chairmen and members, who shall be nominated by the presidium from
among the deputies and be submitted to the plenary meeting for approval.

An investigation committee shall present an investigation report to the people’s congress at the corresponding level. And the people’s
congress may make an appropriate resolution on the basis of the report presented by the investigation committee. The people’s congress
may authorize its standing committee to listen to the investigation report of the investigation committee, and the standing committee
may make an appropriate resolution and report to the next session of the people’s congress for the record.

   Article 32 The credentials committee established at the first session of each people’s congress of a township, nationality township, and town
shall exercise its functions and powers until the term of office of that people’s congress expires.

   Article 33 The term of office of the deputies to a local people’s congress at any level shall begin with the first session of that people’s
congress and shall expire at the first session of the succeeding people’s congress at the same level.

   Article 34 Deputies to local people’s congresses at various levels and members of their standing committees may not be legally liable for their
speeches and voting at sessions of the people’s congresses or meetings of their standing committees.

   Article 35 No deputy to a local people’s congress at or above the county level may be arrested or placed on criminal trial without the consent
of the presidium of that people’s congress or, when the people’s congress is not in session, without the consent of its standing
committee. If a deputy is caught in the act of crime and detained, the public security organ executing the detention shall immediately
report the matter to the presidium or the standing committee of that people’s congress.

   Article 36 When deputies to local people’s congresses at various levels attend people’s

CIRCULAR OF THE STATE COUNCIL CONCERNING THE STANDARDIZATION OF EXISTING LIMITED LIABILITY COMPANIES AND COMPANIES LIMITED BY SHARES IN ACCORDANCE WITH THE COMPANY LAW

Category  LEGAL PERSONS AND ECONOMIC ORGANIZATIONS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-07-03 Effective Date  1995-07-03  


Circular of the State Council Concerning the Standardization of Existing Limited Liability Companies and Companies Limited by Shares
in Accordance With the Company Law of the People’s Republic of China



(July 3, 1995)

     Prior to the Company Law of the People’s Republic of China (hereinafter
referred to as the Company Law), limited liability companies and companies
limited by shares which were registered according to the relevant laws,
administrative regulations, local regulations and “Standard Notes on Limited
Liability Companies” and “Standard Notes on Companies Limited by Shares” as
promulgated by the relevant departments of the State Council, are hereinafter
referred to as existing limited liability companies and companies limited by
shares, these companies have played an active part in the economic
construction of our country. However, in certain aspects they do not fully
conform with the conditions set out in the Company Law, thus according to the
provisions of the Company Law the existing limited liability companies and
companies limited by shares must be standardized in accordance with the
Company Law. The following problems with regard to standardization are hereby
notified:

    1. Requirements and Time Limit

    Existing limited liability companies and companies limited by shares
must be standardized in strict accordance with the provisions of the Company
Law and the accompanying laws and regulations. Companies which have undergone
internal checking procedures and which already fully conform to the stipulated
conditions may directly apply to the company registration authority for
re-registration; existing companies limited by shares which have been approved
for trading on a stock exchange by the securities management department of the
State Council may apply directly to the company registration authority for
re-registration and the company registration authority shall re-register them.
Companies which have undergone internal checking procedures and which do not
fully conform to the stipulated conditions shall standardize themselves, all
companies which fully conform to the stipulated conditions within the
stipulated time limit (before December 31, 1996) may apply to the company
registration authority for re-registration; if they have not fully conformed
to the stipulated conditions within the stipulated time limit, they cannot
apply for re-registration and according to law they shall change their
registration to become another type of enterprise, thus they may not use the
words “limited liability company” or “company limited by shares” in their
names.

    Close attention should be paid to standardization, this should not be a
mere formality. During the process of standardization, the production and
management activities of existing limited liability companies and companies
limited by shares shall carry on as usual.

    2. Main Contents

    (1) The number of shareholders and promoters of a company shall comply
with the statutory requirements. The number of promoters of an existing
company limited by shares may maintain the status quo; in cases where the
number of shareholders of a former limited liability company does not comply
with the provisions of the Company Law, it shall be changed to comply with
these requirements within the stipulated time limit.

    (2) The registered capital of the companies shall comply with the minimum
amount required by the law, this being the capital actually contributed. The
company’s balance sheet at the end of last year shall be the criterion whereby
capital is verified. In cases where the minimum amount is not met, shortfalls
shall be supplemented within the stipulated time limit.

    (3) The formulation of the rules and regulations of a company and the
matters clearly set out therein must comply with the provisions of the Company
Law, anything that does not comply shall be amended and corrected within the
stipulated time limit.

    (4) The establishment of the management structure of a company, the
production procedures and the conditions of office of the directors, the
chairmen of the board of directors, the supervisors and the convenors of the
supervisory committees shall comply with the provisions of the Company Law,  
anything that does not comply shall be rectified within the stipulated time
limit.

    (5) A company’s system of financial affairs and accounting shall comply
with the provisions of the Company Law, anything that does not comply with
the provisions shall be changed to comply with these requirements within the
stipulated time limit.

    (6) The valuation and verification of company assets shall comply with the
provisions of the Company Law, anything that does not comply shall be
rectified within the stipulated time limit.

    In addition, after re-registration existing companies limited by shares
which were approved for trading on a stock exchange by the securities
management department of the State Council shall improve their organization
and standardize their behavior.

    3. Re-registration and Organizational Guidance

    (1) Re-registration

    Existing limited liability companies and companies limited by shares
shall apply to the company registration authority with which they originally
registered for re-registration, these existing companies shall provide all the
documentation required for re-registration; after re-registration the
existing companies limited by shares shall report to the original company
examination and inspection authority for the record. The specific requirements
for re-registration shall be stipulated by the State Administration for
Industry and Commerce together with other relevant departments.

    Company registration authorities at every level shall conscientiously
exercise their functions and powers in strict accordance with the provisions
of the Company Law and the accompanying laws and regulations, they shall
earnestly carry out the work of re-registering the existing limited liability
companies and companies limited by shares, as well as providing the
departments responsible for organizational or guidance work with information
concerning re-registration.

    If no items in the registration are altered when re-registering, the
company registration authority shall charge the relevant fees according to the
provisions; if any items in the registration are altered, the company
registration authority shall charge a fee for altering the registration in
accordance with the provisions for altering the registration. No other fees
may be charged.

    (2) Organizational Guidance

    Work at state level on organizational guidance shall be carried out by the
State Economic and Trade Commission, the State Commission for Restructuring
the economy, the Ministry of Foreign Trade and Economic Cooperation, the
People’s Bank of China, the State Administration for Industry and Commerce,
the State Administration of State Property, the Securities Commission of
the State Council and other departments; organizational guidance work in each
province shall be carried out by the people’s government of each province,
autonomous region or municipality directly under the Central Government.

    The people’s government of each province, autonomous region or
municipality directly under the Central Government and the relevant
departments of the State Council shall enforce organizational guidance work,
taking charge of its implementation, guaranteeing its quality, coordinating
and settling any relevant problems, and creating good external conditions for
the standardization of existing limited liability companies and companies
limited by shares in accordance with the Company Law.






FOOD HYGIENE LAW OF THE PEOPLE’S REPUBLIC OF CHINA






The Standing Committee of the National People’s Congress

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

No.59

The Food Hygiene Law of the People’s Republic of China, adopted at the 16th Meeting of the Standing Committee of the Eighth National
People’s Congress on October 30, 1995, is promulgated now, and shall enter into force as of the date of promulgation.

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

October 3, 1995

Food Hygiene Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Food Hygiene

Chapter III Hygiene of Food Additives

Chapter IV Hygiene of Food Containers, Packaging, Utensils and Equipment Used for Food

Chapter V Formulation of Food Hygiene Standards and Regulations for Food Hygiene Management

Chapter VI Food Hygiene Management

Chapter VII Food Hygiene Supervision

Chapter VIII Legal Responsibility

Chapter IX Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted for the purpose of ensuring food hygiene and preventing food contamination and harmful substances from causing
injury to human health in order to safeguard the health of the people and improve their physical fitness.

Article 2

The state shall practice a system of food hygiene supervision.

Article 3

The health department of the State Council shall be responsible for the nationwide supervision and administration of food hygiene.

Relevant departments of the State Council shall, within their relevant scope of duties, be responsible for the administration of food
hygiene.

Article 4

Whoever engages in food production or marketing within the territory of the People’s Republic of China must observe this Law.

This Law applies to all foods and food additives as well as containers, packaging, utensils and equipment used for food, detergents
and disinfectants; it also applies to the premises, facilities and environment associated with food production or marketing.

Article 5

The state shall encourage and protect the social supervision of food hygiene by social organizations and individuals.

Any person shall have the right to inform the authorities or lodge a complaint about violations of this Law.

Chapter II Food Hygiene

Article 6

Food shall be nontoxic and harmless, conform to proper nutritive requirements and have appropriate sensory properties such as color,
fragrance and taste.

Article 7

Principal and supplementary foods intended especially for infants and preschool children shall conform to the nutritive and hygienic
standards promulgated by the health department of the State Council.

Article 8

The processes by which food is produced or marketed shall conform to the requirements for hygiene stated below.

(1)

The environment inside and outside any food production or marketing establishment shall be kept clean and tidy; measures shall be
taken to eliminate flies, rodents, cockroaches and other harmful insects and to remove conditions for their propagation; and a prescribed
distance shall be kept from any toxic or harmful site.

(2)

An enterprise engaged in food production or marketing shall have workshops or other premises for the preparation of raw materials
and for processing, packing and storage that are commensurate with the varieties and quantities of the products handled.

(3)

Appropriate facilities shall be made available for disinfection, changing clothes, washing, natural and artificial light, ventilation,
prevention of spoilage, protection against dust, elimination of flies and rodents, washing of equipment, sewage discharge and the
containment of garbage and other wastes.

(4)

The layout of installations and the application of technological processes shall be rational in order to prevent cross-contamination
between unprocessed foods and ready-to-eat foods and between raw materials and finished products; food must not be placed in contact
with any toxic substance or filth.

(5)

Tableware, drinking sets and containers for ready-to-eat foods must be cleaned and disinfected prior to use; cooking utensils and
other utensils must be washed after use and kept clean.

(6)

Any containers and equipment used for the storage, transportation, loading and unloading of food as well as the conditions under which
these operations are carried out must be safe and harmless and kept clean in order to prevent food contamination.

(7)

Ready-to-eat foods shall be kept in small packets or in clean, nontoxic packaging materials.

(8)

All persons involved in food production or marketing shall maintain a constant standard of personal hygiene, taking care to wash their
hands thoroughly and wear clean work clothes and headgear while preparing or selling food; also, proper utensils must be used when
selling ready-to-eat foods.

(9)

Any water used must conform to the national hygiene standards for drinking-water in urban and rural areas.

(10)

Any detergents and disinfectants used must be safe and harmless to human health.

Specific provisions on the hygiene requirements for food production or marketing undertaken by food street peddlers and persons engaged
in the food business in urban and rural free markets shall be formulated in accordance with this Law by the standing committees of
the people’s congresses in the provinces, autonomous regions, and municipalities directly under the central government.

Article 9

The production and marketing of foods in the following categories shall be prohibited:

(1)

foods that may be injurious to human health because they are putrid or deteriorated, spoiled by rancid oil or fat, moldy, infested
with insects or worms, contaminated, contain foreign matter or manifest other sensory abnormalities;

(2)

foods that contain or are contaminated by toxic or deleterious substances and can thus be injurious to human health;

(3)

foods that contain pathogenic parasites, microorganisms or an amount of microbial toxin exceeding the limits prescribed by the state;

(4)

meat or meat products that have not been inspected by the veterinary health service or have failed to pass such inspection;

(5)

poultry, livestock, game and aquatic animals that have died from disease, poisoning or some unknown cause, as well as products made
from them;

(6)

foods contaminated by use of filthy or seriously damaged containers or packages, or filthy means of conveyance;

(7)

foods that affect nutrition or health because they have been adulterated, mixed up or mislabeled;

(8)

foods prepared from inedible raw materials or containing inedible chemical substances, or inedible materials but falsely claimed to
be foods;

(9)

foods for which the quality guarantee time limit has expired;

(10)

foods of which the sale has been specifically prohibited for the prevention of diseases or other special reasons by the health department
of the State Council or by the people’s governments of the provinces, autonomous regions, or municipalities directly under the central
government;

(11)

foods that contain additives that have not been approved for use by the health department of the State Council, or contain residues
of pesticides in excess of the limits prescribed by the state; and

(12)

other foods that do not conform to the standards and requirements for food hygiene.

Article 10

Food must not contain medicinal substances, with the exception of those products which have traditionally served as both foods and
medications using medicinal substances as raw materials, flavorings or nutritional fortifiers.

Chapter III Hygiene of Food Additives

Article 11

The production, marketing and use of food additives must conform to the hygiene standards for use of food additives and the hygiene
management regulations. The marketing or use of food additives that do not conform to hygiene standards and management regulations
shall be prohibited.

Chapter IV Hygiene of Containers, Packaging, Utensils and Equipment Used for Food

Article 12

Containers, packaging, utensils and equipment used for food must conform to the hygiene standards and the hygiene management regulations.

Article 13

Raw or processed materials for making containers, packaging, utensils and equipment used for food must meet hygiene requirements.
The finished products should be easy to clean and disinfect.

Chapter V Formulation of Food Hygiene Standards and Regulations for Food Hygiene Management

Article 14

The health department of the State Council shall formulate or approve and promulgate national hygiene standards, hygiene management
regulations and inspection procedures for food, food additives, the containers, packaging, utensils and equipment used for food,
the detergents and disinfectants used for washing food or utensils and equipment used for food, and the prescribed limits for contaminants
and radioactive substances in food.

Article 15

If the state has not formulated hygiene standards for a certain food, the people’s governments of the provinces, autonomous regions,
and municipalities directly under the central government may establish local hygiene standards for that food and report them to the
health department of the State Council and the department of the State Council in charge of standardization for filing.

Article 16

Quotas with hygienic significance within the national quality standards for food additives must be examined and approved by the health
department of the State Council.

Appraisals of the safe use of agricultural chemicals, such as pesticides and chemical fertilizers, shall be examined and approved
by the health department of the State Council.

Veterinary hygiene inspection procedures for slaughtered livestock and poultry shall be jointly formulated by the relevant administrative
departments and the health department of the State Council.

Chapter VI Food Hygiene Management

Article 17

The administrative department for food production and marketing of the people’s governments at various levels should strengthen the
administration of food hygiene and should supervise the implementation of this Law.

The people’s governments at various levels should encourage and support the improvement of food processing technology and promote
the advance of food hygiene quality.

Article 18

Enterprises engaged in food production or marketing shall improve food hygiene management systems within their units, appoint full-time
or part-time personnel to manage food hygiene and strengthen the inspection of food produced or marketed.

Article 19

The selection of sites and designs for the construction, extension or renovation of enterprises engaged in food production or marketing
shall meet hygiene requirements, and the administrative departments for health must participate in the examination of those designs
and in the inspection and acceptance of finished projects.

Article 20

Before beginning production of new types of foods or food additives using new resources, the enterprises engaged in their production
or marketing must submit the data necessary for the evaluation of the hygiene and nutrition of such products; before beginning production
of new types of containers, packaging, utensils, or equipment used for foods, which use new raw or processed materials, the enterprises
engaged in their production or marketing must submit the data necessary for the evaluation of the hygiene of such products. Before
beginning production of the above new products, it shall also be necessary to provide samples of the products for examination and
approval, in accordance with the specified procedures for examining and approving food hygiene standards.

Article 21

The product description or packaging labels for any standardized packaged food or food additive must, according to the category of
product and its requirements, indicate the name of the product, the place of origin, the name of the factory, the date of manufacture,
the batch number or code number, the specifications of the product, the composition or principal ingredients, the time limit for
quality guarantee, the method of consumption or use, and other such information. The product description for any food or food additive
shall not contain exaggerated or fraudulent advertising.

The packaging labels for any food or food additive must be clean and easy to identify. Any food on the domestic market must have a
label in Chinese.

Article 22

If any food is declared to have special effectiveness in health care, the product itself and the product description must be submitted
to the health department of the State Council for examination and approval. The health department of the State Council shall formulate
the hygiene standards and regulations concerning the production and marketing of said product.

Article 23

Any food declared to have special effectiveness in health care must not be harmful to human health. The contents of the product description
must be truthful and the functions and ingredients of the product must conform thereto and must not be fraudulent.

Article 24

Before the delivery or sale of food, food additives, and containers, packaging and utensils used for food, any person engaged in their
production must, in accordance with hygiene standards and regulations on hygiene management, carry out inspection to ensure that
said products are up to standards.

Article 25

Whenever producers or marketers of food procure supplies of food and food raw materials, they shall, in accordance with the relevant
state regulations, request inspection certificates or laboratory test reports, which must be provided by the supplier. The scopes
and types of certificates required shall be specified by the health authorities of the provinces, autonomous regions, and municipalities
directly under the central government.

Article 26

All persons engaged in food production or marketing must undergo an annual medical examination; persons newly employed or serving
temporarily in this field must also undergo a medical examination and may not start work until they have obtained a health certificate.

Persons suffering from dysentery, typhoid, viral hepatitis and other infectious diseases of the digestive tract (including pathogen
carriers), active tuberculosis, suppurative or exudative dermatosis or any other disease incompatible with food hygiene, must not
be engaged in any work involving contact with ready-to-eat foods.

Article 27

Enterprises engaged in food production or marketing as well as street food peddlers must obtain a hygiene license issued by the administrative
department for health before they shall be permitted to apply for registration with the administrative departments for industry and
commerce. Any person without a hygiene license may not be engaged in food production or marketing.

Persons engaged in food production or marketing must not forge, alter or lend out the hygiene license.

The procedures for the issuance and administration of hygiene licenses shall be specified by the health authorities of the people’s
governments of the provinces, autonomous regions, and municipalities directly under the central government.

Article 28

The sponsors of all kinds of food markets shall be responsible for the management of food hygiene in their respective markets and
shall establish the public hygiene facilities necessary to maintain good hygienic conditions.

Article 29

The administrative departments for industry and commerce shall be responsible for the management of food hygiene in urban and rural
free markets; the administrative departments for health shall be responsible for the supervision and inspection of food hygiene.

Article 30

Imported foods, food additives and the containers, packaging, utensils and equipment used for food must comply with national hygiene
standards and hygiene management regulations.

The imports listed in the preceding paragraph shall be subject to hygiene supervision and inspection by the port agencies for imported
food hygiene supervision and inspection. The goods must undergo inspection and prove to be up to standards before being permitted
to be imported. The customs authorities shall grant clearance of goods based on the certificates of inspection.

When declaring such products for inspection, the importer shall submit the relevant data and inspection reports on the pesticides,
additives, fumigants and other such substances used by the exporting country (region).

The imports listed in the first paragraph shall be inspected in accordance with national hygiene standards. In the event that no national
hygiene standards exist, the importer must submit data on the hygiene appraisal issued by the health departments or organizations
of the exporting country (region). The import agencies for imported food hygiene supervision and inspection shall examine and inspect
these data and submit them to the health department of the State Council for approval.

Article 31

Foods for export shall be subject to hygiene supervision and inspection by state inspection agencies for import and export goods.

The customs authorities shall grant clearance for export goods based on the certificates issued by the state inspection agencies for
import and export goods.

Chapter VII Food Hygiene Supervision

Article 32

The health authorities of the local people’s governments at the county level or above shall fulfill the functions of food hygiene
supervision within the scope of their jurisdiction.

Agencies for food hygiene supervision established by the departments in charge of administration of railways and other transportation
shall fulfill the functions of food hygiene supervision as stipulated by the health department in consultation with other relevant
departments of the State Council.

Article 33

The functions of food hygiene supervision shall be as follows:

(1)

to provide monitoring of, inspection of and technical guidance for food hygiene;

(2)

to contribute to the training of personnel for food production and marketing and to supervise the medical examinations of such personnel;

(3)

to spread knowledge of food hygiene and nutrition, provide appraisals of food hygiene and publicize the existing condition of food
hygiene;

(4)

to conduct hygiene inspections of sites and designs for the construction, extension or renovation of enterprises engaged in food production
or marketing and participate in the inspection and acceptance of finished projects;

(5)

to investigate accidents involving food poisoning or food contamination and take appropriate measures of control;

(6)

to make rounds of inspection and supervision concerning acts in violation of this Law;

(7)

to determine the responsibility of persons who violate this Law and impose administrative penalties on them according to law; and

(8)

to take charge of other matters that concern food hygiene supervision.

Article 34

The health authorities of the people’s governments at the county level or above shall appoint food hygiene supervisors. The supervisors
shall be qualified specialists certified by the health authorities at the corresponding level.

The food hygiene supervisors of railways and other transportation agencies shall be certified by the relevant authorities at a higher
level.

Article 35

Food hygiene supervisors shall carry out the tasks assigned to them by the administrative departments for health.

Food hygiene supervisors must enforce laws impartially, be devoted to their duties and shall not take advantage of their positions
for their own benefit.

While carrying out their tasks, food hygiene supervisors may obtain information from the producers or marketers of food, request any
necessary data, enter the production or marketing premises for purposes of inspection, and obtain free samples in accordance with
regulations. The producers or marketers of food may not turn down such requests nor hold back any information.

The food hygiene supervisors shall be obliged to keep confidential any technical data provided by the producers or marketers.

Article 36

The health department of the State Council and the health authorities of the people’s governments of the various provinces, autonomous
regions, and municipalities directly under the central government may, if the need arises, assign competent units as units for the
inspection of food hygiene; these units shall carry out food hygiene inspection and provide inspection reports.

Article 37

The health authorities of the local people’s governments at the county level or above may take any of the following provisional measures
of control towards a producer or marketer of food who is responsible for a food poisoning accident which has already occurred or
for which there is evidence of the possibility of occurring.

(1)

to seal up the food and its raw materials which has caused or which may possibly cause a food poisoning accident or;

(2)

to seal up contaminated utensils or equipment used for food, and order a washing and disinfection.

Upon inspection, food proved to be contaminated shall be destroyed; food which is not contaminated shall not be sealed up.

Article 38

Units where food poisoning accidents have occurred as well as units where the victims have been admitted for hospitalization shall,
in addition to taking rescue measures, submit prompt reports to the local health authorities in accordance with relevant state provisions.

The health authorities of the local people’s governments at the county level or above shall, upon receiving the above-mentioned report,
investigate and handle the case promptly, and shall take appropriate measures of control.

Chapter VIII Legal Responsibility

Article 39

Whoever, in violation of the provisions of this Law, produces or markets food which does not conform to hygiene standards and thereby
causes a food poisoning accident or transmission of a disease caused by food-borne bacteria shall be ordered to stop production or
marketing and destroy the food which is the cause of the accident or disease; moreover, they shall have any illegal gains confiscated
and be subject to a fine of from one to five times the amount of any illegal gains; if there are no illegal gains, a fine of between
1,000 yuan and 50,000 yuan shall be imposed.

Whoever, in violation of the provisions of this Law, produces or markets food which does not conform to hygiene standards, and thereby
causes a serious accident of food poisoning or transmission of a serious disease caused by food-borne bacteria, resulting in great
harm to human health, or who puts poisonous or harmful inedible raw materials in manufactured or marketed food, shall be investigated
for criminal responsibility in accordance with the law.

Anyone who commits one of the acts listed in this Article shall have his hygiene license revoked.

Article 40

Whoever, in violation of the provisions of this Law, engages in food production or marketing without a hygiene license or with a forged
hygiene license shall be banned, have any illegal gains confiscated and be subject to a fine of from one to five times the amount
of any illegal gains; if there are no illegal gains, a fine of between 500 yuan and 30,000 yuan shall be imposed. Anyone who alters
or lends out a hygiene license shall have the hygiene license revoked, shall have any illegal gains confiscated and shall be subject
to a fine of from one to three times the amount of any illegal gains; if there are no illegal gains, a fine of between 500 yuan and
10,000 yuan shall be imposed.

Article 41

Whoever, in violation of the provisions of this Law, fails to comply with hygiene requirements in the process of food production or
marketing shall be ordered to make corrections, be given a warning and may also be fined an amount of up to 5,000 yuan; if the offender
refuses to make such corrections or if the other circumstances are serious, the hygiene license shall be revoked.

Article 42

Whoever, in violation of the provisions of this Law, produces or markets food of which the production or marketing has been prohibited
shall be ordered to stop its production or marketing, promptly issue an announcement calling for the withdrawal of food already sold
and shall proceed to destroy such food; moreover, any illegal gains shall be confiscated, and a fine of from one to five times the
amount of any illegal gains shall be imposed; if there are no illegal gains, a fine of from 1,000 yuan to 50,000 yuan shall be imposed.
If the circumstances are serious, the hygiene license shall be revoked.

Article 43

Whoever, in violation of the provisions of this Law, produces or markets principal or supplementary foods intended especially for
infants or preschool children which do not conform to nutritive and hygienic standards shall be ordered to stop production or marketing,
promptly issue an announcement calling for the withdrawal of foods already sold and proceed to destroy such foods; moreover, any
illegal gains shall be confiscated and a fine of from one to five times the amount of any illegal gains shall be imposed; if there
are no illegal gains, a fine of between 1,000 yuan and 50,000 yuan shall be imposed. If the circumstances are serious, the hygiene
license shall be revoked.

Article 44

Whoever, in violation of the provisions of this Law, produces, markets or uses food additives, containers, packaging, utensils or
equipment used for food, or detergents and disinfectants which do not conform to hygiene standards and hygiene management regulations
shall be ordered to stop their production, marketing or use, have any illegal gains confiscated, and be subject to a fine from one
to three times the amount of any illegal gains; if there are no illegal gains, a fine of up to 5,000 yuan shall be imposed.

Article 45

Whoever, in violation of the provisions of this Law, produces or markets foods described as possessing special effectiveness in health
care without examination by and approval of the health department of the State Council, or produces or markets such food with its
product description containing fraudulent claims shall be ordered to stop production or marketing, have any illegal gains confiscated,
and be subject to a fine from one to five times the amount of any illegal gains; if there are no illegal gains, a fine of between
1,000 yuan and 50,000 yuan shall be imposed. If the circumstances are serious, the hygiene lance shall be revoked.

Article 46

Whoever, in violation of the provisions of this Law, fails to provide or fraudulently indicates such items as the date of manufacture,
the time limit for quality guarantee, etc., in the product description or packaging label for any standardized packaged food or food
additive, or who, in violation of the provisions of this Law, fails to provide packaging labels in Chinese, shall be ordered to make
corrections and may also be subject to a fine of between 500 yuan and 10,000 yuan.

Article 47

Whoever, in violation of the provisions of this Law, engages in food production or marketing without a health certificate, or does
not transfer from work involving food production or marketing an employee who suffers from a disease for which, according to regulations,
contact with ready-to-eat foods should be prohibited shall be ordered to make corrections and may also be subject to a fine of up
to 5,000 yuan.

Article 48

Whoever, in violation of the provisions of this Law, is responsible for a food poisoning accident or transmission of a disease caused
by food-borne bacteria, or commits other acts in violation of this Law which results in harm to others, shall assume civil responsibility
for compensation in accordance with the law.

Article 49

The administrative penalties stipulated in this Law shall be determined by the health authorities of the local people’s governments
at the county level and above. Other agencies stipulated in this law for the exercise of food hygiene supervision shall, within the
scope of their respective powers, make decisions on administrative penalties in accordance with the provisions of this Law.

Article 50

If a party refuses to accept an administrative penalty decision, it may apply for reconsideration to the agency at the level next
higher than the one that made the decision within 15 days from the date of receiving notification of the penalty; it may also directly
file a suit in a people’s court within 15 days from the date of receiving notification of the penalty.

The agency making the reconsideration shall produce a decision within 15 days from the date of receiving the application for reconsideration.
If the party refuses to accept the reconsideration decision, it may file a suit in a people’s court within 15 days from the date
of receiving the reconsideration decision.

If a party neither applies for consideration, nor files a suit in a people’s court, nor complies with the penalty decision within
the specified time limit, the agency that made the penalty decision may apply to a people’s court for compulsory enforcement.

Article 51

Where the administrative departments for health, in violation of the provisions of this Law, issue a hygiene license to producers
or marketers who do not meet the requirements, the personnel directly responsible shall be subject to disciplinary sanctions; if
a bribe has been accepted and the act constitutes a crime, criminal responsibility shall be investigated according to law.

Article 52

Where personnel in charge of food hygiene supervision and management abuse authority, neglect duties or engages in fraud for selfish
ends, and thereby cause a serious accident, if the act constitutes a crime, criminal responsibility shall be investigated according
to law; if the act does not constitute a crime, disciplinary sanctions shall be imposed.

Article 53

Whoever, by restoring to violence or threats, obstructs personnel in charge of food hygiene supervision and management who are legally
carrying out their functions shall be investigated for criminal responsibility; if anyone, without resorting to violence or threats,
refuses or obstructs personnel in charge of food hygiene supervision and management who are legally carrying out their functions,
the public security authorities shall impose punishment in accordance with the Regulations on Administrative Penalties for Public
Security.

Chapter IX Supplementary Provisions

Article 54

The meaning of the following terms used in this Law:

“Food” refers to any finished product or raw material intended for people to eat or drink, as well as any product that has traditionally
served as both food and medication, with the exception of products used solely for medical purposes.

“Food additive” refers to any synthetic compound or natural substance put into food to improve its quality, color, fragrance or taste,
or for the sake of preservation or processing.

“Nutrition fortifier” refers to any natural or artificial food additive belonging to the category of natural nutrients that is put
into food to increase its nutritive value.

“Containers and packaging used for food” refers to products of various materials i

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING ISSUES OF APPLICATION OF TAXATION PREFERENCE TO INVESTMENT AND OPERATION OF SPECIFIED PROJECTS SUCH AS PORT, QUAY, ETC. ENGAGED BY ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning Issues of Application of Taxation Preference to Investment and Operation
of Specified Projects such as Port, Quay, etc. Engaged by Enterprises with Foreign Investment

GuoShuiFa [1995] No.151

August 4, 1995

The state tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan:

The provisions of the Subparagraph 1,2,4 of Paragraph 1 of Article 73 , the Subparagraphs 1,2,3 of Paragraph 1 of Article 75 of the
Rules for the Implementation of the Law of Income Tax of the People’s Republic of China on Enterprises with Foreign Investment and
Foreign Enterprises: where the enterprises with foreign investment, which are engaged in energy sources, transportation and infrastructure
projects of port, quay, air port, railway, highway, electricity station, coal mine and water conservancy etc. and agriculture development
and operation project (hereafter as specified projects integrally), accord with the terms and conditions of enterprise types and
project locations and so on, they may enjoy the relevant preferential treatments of reduced tax rates or periodical reduction and
exemption of tax. The relevant issues of carrying out the foregoing tax preference policies is specified hereby as follows:

1.

The enterprises that may enjoy the tax preference of specified projects shall be the enterprises with foreign investment which invest
directly to built up and operate the specified projects, and not include the enterprises which contract with the construction of
the projects stated above.

2.

Where enterprises with foreign investment which invest to operate in specified projects operate in other common projects concurrently,
shall adjust account respectively and declare the income, cost expense of specified projects and common projects and respective taxable
amount of income, and the business income tax shall be calculated and paid in accordance with applicable tax rates and regulations
on periodical reduction and exemption of tax of specified projects and common projects respectively. Where enterprises can’t adjust
account and declare respectively and accurately, or the local competent taxation authorities think they are unreasonable, the local
competent taxation authorities shall calculate the taxable amount of income based on the total taxable amount of income and the proportion
of business income of specified projects to common projects or partition by other rational rates.

 
The State Administration of Taxation
1995-08-04

 




REGULATIONS CONCERNING CERTIFIED PUBLIC ARCHITECTS

Category  URBAN AND RURAL CONSTRUCTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-09-23 Effective Date  1995-09-23  


Regulations of the People’s Republic of China Concerning Certified Public Architects

Chapter I  General Provisions
Chapter II  Examination and Registration
Chapter III  Professional Practice
Chapter IV  Rights and Duties of Certified Public Architects
Chapter V  Legal Responsibility
Chapter VI  Supplementary Provisions

(Promulgated by Decree No.184 of the State Council of the

People’s Republic of China on September 23, 1995)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose
of strengthening the administration of certified public
architects, improving the quality and level of architectural
design, protecting the public interest, and ensuring the
safety of the life and property of citizens.

    Article 2  “Certified public architect” with regards to
these Regulations, refers to one who has lawfully acquired the
certificates of a certified public architect and is engaged in
the architectural design of buildings or other related
businesses.

    Certified public architects are divided into Grade-1 and
Grade-2 certified public architects.

    Article 3  These Regulations shall apply to the examination,
registration, and practice of certified public architects.

    Article 4  The construction administration and personnel
administration of the State Council, as well as the construction
administration and personnel administration of the local people’s
governments of the various provinces, autonomous regions, and
municipalities directly under the central government, shall comply
with the provisions stipulated in these Regulations to direct and
supervise the examination, registration, and practice of certified
public architects.

    Article 5  The National Administration Committee of Certified
Public Architects and the administration committees of certified
public architects in various provinces, autonomous regions, and
municipalities directly under the central government shall, in
accordance with the provisions prescribed in these Regulations,
be responsible for the concrete work of the examination and
registration of certified public architects.

    The National Administration Committee of Certified Public
Architects shall be organized from among representatives of the
construction administration, personnel administration and other
relevant administrative departments of the State Council, and
architectural design experts.

    The administration committees of certified public architects
of the various provinces, autonomous regions, and municipalities
directly under the central government shall be organized from
among representatives of the construction administrations,
personnel administrations and other relevant administrative
departments of the various provinces, autonomous regions, and
municipalities directly under the central government, and
architectural design experts.

    Article 6  Certified public architects may establish
professional associations of certified public architects to
protect their legitimate rights and interests.
Chapter II  Examination and Registration

    Article 7  The state shall carry out a policy of unified
nationwide qualification examination for certified public
architects. The measures of unified nationwide qualification
examination for certified public architects shall be formulated
by the construction administration of the State Council in
cooperation with the personnel administration of the State Council
after consultation with other relevant administrative departments
of the State Council, and shall be implemented by the National
Administration Committee of Certified Public Architects.

    Article 8  Those who meet one of the following conditions may
apply for permission to take part in the qualification
examination for Grade-1 certified public architect:

    (1) Possession of a Master’s degree or higher in
Architecture, or a Doctorate of Engineering in closely related
specialties, in addition to at least two years’ work experience
in architectural design or other related businesses;

    (2) Possession of a Bachelor’s degree in Architecture or a
Master’s degree in Engineering in closely related specialties, in
addition to at least three years’ work experience in architectural
design or other related businesses;

    (3) Graduate experience in Architecture in addition to at
least five years’ work experience in architectural design or in
other related businesses; or, graduate experience in specialties
closely related to architecture and with at least seven years’
work experience in architectural design or other related
businesses;

    (4) Possession of the technical post_title of senior engineer in
addition to at least three years’ work experience in architectural
design or other related businesses; or possession of the technical
post_title of engineer in addition to at least five years’ work
experience in architectural design or other related businesses; or

    (5) Outstanding achievements in architectural design and
recognition by the National Administration Committee of Certified
Public Architects as having attained the same professional level
as prescribed in the aforesaid four items, though not meeting any
of the aforesaid four conditions.

    Article 9  Those who meet one of the following conditions may
apply for permission to take part in the qualification
examination for Grade-2 certified public architect:

    (1) Graduate or higher experience majoring in Architecture or
in closely related specialties, in addition to at least two
years’ work experience in architectural design or other related
businesses;

    (2) Graduate or higher experience of a junior college
majoring in architectural design technology or in other related
specialties, in addition to at least three years’ work experience
in architectural design or other related businesses;

    (3) Graduate experience from a 4-year secondary specialized
school majoring in architectural design technology, in addition
at least five years’ work experience in architectural design or
other related businesses.

    (4) Graduate experience from a secondary specialized school
in a major closely related to architectural design technology,
in addition to at least seven years’ work experience in
architectural design or other related businesses; or

    (5) Possession of a technical post_title of or higher than
assistant engineer, in addition to at least three years’ work
experience in architectural design or other related businesses.

    Article 10  After being recommended by the unit in which he
is working, an architectural designer who has achieved a
technical post_title of senior engineer or middle-rank engineer before
the implementation of these Regulations may, in accordance with
the provisions stipulated in the measures governing the unified
nationwide qualification examination for certified public
architects, be excused from examinations in certain subjects.

    Article 11  Those candidates who have passed the
qualification examination and attained the corresponding
professional status of a certified public architect may apply for
registration.

    Article 12  The National Administration Committee of
Certified Public Architects shall be responsible for the
registration of Grade-1 certified public architects; the
administration committees of certified public architects of the
various provinces, autonomous regions, and municipalities
directly under the central government shall be responsible for
the registration of Grade-2 certified public architects.

    Article 13  An application for registration shall be
rejected under any one of the following circumstances:

    (1) The applicant has no full capacity for civil conduct;

    (2) The applicant has been punished for criminal activity and
has filed an application for registration within five years after
serving punishment;

    (3) The applicant has received an administrative penalty or
disciplinary sanction resulting in dismissal from office or more
as a result of an error the applicant had made in an architectural
design or other related professional business, and it is less
than two years from the day the administrative penalty or the
desciplinary sanction was decided upon to the day of applying for
registration;

    (4) The applicant has received an administrative penalty
resulting in revoking the certificate of certified public
architect, and it is less than five years from the day the
penalty was decided upon to the day of applying for
registration; or

    (5) Other circumstances prescribed by the State Council in
which the application shall be rejected.

    Article 14  For applications that have been rejected under
Article 13 of these Regulations, the National Administration
Committee of Certified Public Architects, as well as the
administration committees of certified public architects of the
various provinces, autonomous regions, and municipalities directly
under the central government, shall notify the applicant in writing
within 15 days from the day of making such a decision of rejection.
An applicant who wishes to contest the rejection may, within 15 days
from the day of receiving the notification, file an application for
reconsideration to the department of construction administration of
the State Council or the construction administration of the local
people’s government of the respective province, autonomous region,
or municipality directly under the central government.

    Article 15  The National Administration Committee of
Certified Public Architects shall report the list of approved
Grade-1 certified public architects to the construction
administration of the State Council for the record; the
administration committees of certified public architects of the
various provinces, autonomous regions, and municipalities
directly under the central government shall report the list of
approved Grade-2 certified public architects to the construction
administrations of the local people’s governments of the
various provinces, autonomous regions, and municipalities
directly under the central government for the record.

    If the construction administration of the State Council or
the construction administrations of the local people’s
governments of the various provinces, autonomous regions, and
municipalities directly under the central government discover
that a registration approved by the an administration committee
of certified public architects does not meet the requirements
stipulated in these Regulations, they shall inform that
administration committee of certified public architects to cancel
the registration and revoke the certified public architect
certificate.

    Article 16  For an applicant whose registration has been
approved, the National Administration Committee of Certified
Public Architects and the administration committees of certified
public architects of the various provinces, autonomous regions,
and municipalities directly under the central government shall
respectively examine and issue a registration certificate, which
shall be processed by the construction administration of the
State Council as either a Grade-1 or Grade-2 certified public
architect certificate.

    Article 17  The registration of a certified public architect
is valid for two years. Where there is the need to maintain
registration after the expiration of the term of validity, the
applicant shall go through registration procedures within 30 days
before the term of validity expires.

    Article 18  Under any one of the following circumstances,
excepting those stipulated in Paragraph 2 of Article 15 of these
Regulations, a person who has already abtained a certified public
architect certificate may be subject to cancellation of the
registration and shall have the certificate of certified public
architect revoked by the National Administration Committee of
Certified Public Architects or the administration committee of
certified public architects of the province, autonomous region,
or municipality directly under the central government which made
the original approval:

    (1) The person has completely lost the capacity for
civil conduct;

    (2) The person is penalized pursuant to criminal laws;

    (3) The person is dealt an administrative penalty or
disciplinary sanction that is more serious than that of
dismissal from office for a mistake made in the work of
architectural design or in other related professional
business; or

    (4) The person refrains from professional work as a
certified public architect for two or more years.

    If a person whose registration has been canceled raises an
objection to the cancellation of his registration and the
revocation of his certified public architect certificate, he may,
within 15 days from being notified of the cancellation of
registration and of having the certified public architect
certificate revoked, file an application for reconsideration
to the construction administration of the State Council or the
construction administration of the local people’s governments
of the various provinces, autonomous regions, and municipalities
directly under the central government.

    Article 19  A person who had his registration canceled may
file another application for registration as provided for in
these Regulations.
Chapter III  Professional Practice

    Article 20  The professional services of certified public
architects are as follows:

    (1) Architectural design;

    (2) Consultation on architectural design technology;

    (3) Investigation and appraisal of buildings;

    (4) Direction and supervision of construction projects
of which he has headed design; and

    (5) Other professional services prescribed by the
construction administration of the State Council.

    Article 21  A certified public architect shall enroll
as a member of an architectural design unit when practicing.

    The qualification standards and grade of the architectural
design unit and its scope of service shall be prescribed by the
construction administration of the State Council.

    Article 22  There is no limitation on the construction scale
and complexity of the scope of professional service on Grade-1
certified public architects. The scope of professional service of
Grade-2 certified public architects may not exceed the
construction scale and complexity limited by the State.

    Article 23  The mandates for certified public architects to
practice professions shall be accepted and service fees collected
exclusively by the architectural design unit.

    Article 24  The architectural design unit shall be liable for
compensation for economic losses arising from the quality of an
architectural design, and the aforesaid unit shall have the right
to claim compensation from the certified public architect whose
name is signed to the design drawing.
Chapter IV  Rights and Duties of Certified Public Architects

    Article 25  Certified public architects have the right to
practice their profession under the post_title of “certified public
architect.”

    No architect who is not registered may practice under the
post_title of “certified public architect.” No Grade-2 certified
public architects may practice professionally under the post_title of
“Grade-1 certified public architect,” nor may exceed the
professional scope prescribed by the State.

    Article 26  Housing buildings which will exceed state
regulations concerning span, span diameter, or height, shall be
designed by a certified public architect.

    Article 27  Any unit or individual who wishes to revise a
design drawing made by a certified public architect shall obtain
his consent, except in special circumstances in which consent is
unable to be obtained from the certified public architect.

    Article 28  Certified public architects shall carry out the
following duties:

    (1) To observe laws, regulations, and professional ethics,
and to protect public interests;

    (2) To assure the quality of architectural design, and to
sign his name on the design drawings for which he is responsible;

    (3) To preserve any secrets of units or individuals learned
during professional practice;

    (4) Not to accept simultaneous employment in two or more
architectural design units;

    (5) Not to allow others to perform professionally in the name
of himself.
Chapter V  Legal Responsibility

    Article 29  In cases where a person passed the qualification
examination for certified public architects or obtained a
certified public architect certificate by illegal means, the
National Administration Committee of Certified Public Architects
or the administration committees of certified public architects
of the various provinces, autonomous regions, and municipalities
directly under the central government shall cancel said
qualification or revoke said certificate. Disciplinary
sanctions shall be imposed on the chief persons directly
responsible and other persons bearing direct responsibility
according to laws and regulations.

    Article 30  Persons who, not having obtained registration,
illegally engage in the professional activities of a certified
public architect under the post_title of “certified public architect,”
shall have their illegal activities suspended, shall have any
illegal income confiscated, and may be subject to a fine of up to
five times the amount of illegal income, to be carried out by the
construction administration of the local people’s governments
at or above the county level; in addition, they shall be held
liable for compensation for any losses caused.

    Article 31  Certified public architects who violate these
Regulations by committing one of the following acts shall be
ordered by the construction administration of the local
people’s governments at or above the county level to suspend all
unlawful activity, shall have any illegal income confiscated,
and may be subject to a fine of up to five times the amount of
illegal income; if the circumstances are serious, the aforesaid
administration may suspend the architect’s professional activity,
or the National Administration Committee of Certified Public
Architects or the administration committees of certified public
architects of the various provinces, autonomous regions, and
municipalities directly under the central government may revoke
the certified public architect certificate:

    (1) Privately accepting work of a certified public architect
and collecting fees thereof;

    (2) Accepting simultaneously professional employment in two
or more architectural design units;

    (3) Violating the legal rights of other persons in
architectural design or other related professional activities;

    (4) Permitting others to carry out professional activities
in the name of himself; or

    (5) A Grade-2 certified public architect engages in
professional activities under the post_title of “Grade-1 certified
public architect,” or that are beyond the scope of service as
stipulated by the state.

    Article 32  In the event that a substandard architectural
design by a certified public architect results in a serious
accident or heavy losses, the architect directly responsible
shall have all professional activities suspended by the
construction administration of the local people’s government
at or above the county level; if the circumstances are serious,
the architect shall have the certified public architect
certificate revoked by the National Administration Committee of
Certified Public Architects or the administration committees of
certified public architects of the various provinces, autonomous
regions, and municipalities directly under the central
government.

    Article 33  Those who, in violation of the provisions of
these Regulations, have the design of a certified public
architect drawing revised without his consent shall be ordered
to make the necessary corrections by the construction
administration of the local people’s government at or above
the county level; in addition, such person(s) shall be held
liable for any losses caused.

    Article 34  Those whose violation of these Regulations
constitutes a crime shall be subject to investigation for
criminal responsibility in accordance with the law.
Chapter VI  Supplementary Provisions

    Article 35  The “architectural design unit” mentioned in
these Regulations refers to both the construction project design
units which specialize in architectural design, and other
construction project design units which engage in architectural
design.

    Article 36  The filing of applications by foreign nationals
for participation in the unified nationwide qualification
examination for certified public architects, and registration and
practice of the profession of certified public architect in China
shall be conducted by following the principle of reciprocity.

    Article 37  These Regulations shall go into effect as of the
date of promulgation.






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...