Article 1 (Purpose and Basis)The present Procedures are formulated in accordance with the relevant laws and regulations and in the light of
the actual situations in Shanghai for the purposes of strengthening the administration of real estate mortgage, or safeguarding the
legal rights and interests of the parties concerned, and of keeping order of the real estate market.

   Article 2 (Scope of Application)

The present Procedures shall be applicable to the real estate mortgage in Shanghai.

   Article 3 (Definition of Following Terms Used in the Present Procedures)

1. “Real estate mortgage” means a civil juristic act in which the mortgagor supplies his/her legitimately owned real estate or real
estate property right (hereinafter both referred to as real estate), without transferring the mode of occupancy, to the mortgagee
as a guaranty for the performance of an obligation on time (including the repayment for a loan, similarly hereinafter), and the mortgagee
has the right to dispose of the collateral according to law and has the priority for repayment when the obligation can not be performed
on time;

2. “Mortgagor” means a legal person, other organization, or a citizen who supplies real estate to the mortgagee as a guaranty for
his/her or a third person’s performance of an obligation;

3. “Mortgagee” means a legal person, other organization, or a citizen who receives real estate mortgage as the debtor’s guaranty for
the performance of an obligation;

4. “House with limited property rights” means a house owned by an owner who has the full rights of occupancy and use, and limited
rights of disposal and proceeds;

5. “Future right of a house” means the right of the ownership of a house to be obtained at a certain future time agreed upon in a
buying and selling contract or the right of obtaining a house to be completed at a certain future time agreed upon in a construction
project contract.

   Article 4 (Basic Principles)

The real estate mortgage shall follow the principles of voluntariness, justice, equal compensation, honesty and trust.

The parties concerned who establish the relationship of real estate mortgage must abide by the relevant laws, rules and regulations
of the State and Shanghai Municipality.

The relationship of real estate mortgage established according to law shall be protected by the laws.

   Article 5 (Administrative Authorities)

Shanghai Municipal Real Estate Administration is the competent administrative authorities of the real estate mortgage in Shanghai.

The District/County Real Estate Administration, vocationally subordinating to the leadership of Shanghai Municipal Real Estate Administration,
is the competent administrative authorities of the real estate mortgage in its own region.

   Article 6 (Real Estate Eligible for Hypothec)

The following real estate may be hypothecated:

1. The granted land-use right obtained according to law;

2. The house with post_title and the land-use right within its dimensions obtained according to law;

3. The future right of a house obtained according to law;

4. Other real estate eligible for mortgage according to law.

   Article 7 (Real Estate Ineligible for Hypothec)

1. The land-use right obtained through administrative allotment and with no house and other annex built on the plot;

2. Buildings of historical relic and other memorable buildings;

3. The State-owned residential house that has been leased;

4. The house located within the removal compass or the requisition compass of collectively-owned land according to law;

5. The real estate in the custody of the government;

6. The real estate of a foreign-invested enterprise that has not yet been confirmed by a Chineses registered accountant to have paid
up its investment share;

7. The real estate that has not yet been registered for a post_title deed according to law;

8. The real estate of vague or disputable property right;

9. The real estate that has been sealed up according to an adjudication by a judicial organization or a decision by an administrative
organ, or has been restricted in other ways;

10. Other real estate that cannot be hypothecated according to law.

   Article 8 (Creation of Hypothec Relevant to the Land-Use Right Through Granting)

In respect of hypothecating the land-use right obtained through granting, the provisions of the State and Shanghai Municipality on
granting and transferring the land-use right and the terms stipulated in the granting contract must not be violated.

When the land-use right is hypothecated, the original house and other annex on the plot before the hypothecation shall be hypothecated
simultaneously.

When all the houses on the plot obtained through granting of land-use right are hypothecated, the land-use right of the space occupied
by those houses shall be hypothecated simultaneously.

When part of the houses on the plot obtained through granting of land- use right is hypothecated, the corresponding portion of the
land-use right of the space occupied by the hypothecated part shall be hypothecated simultaneously.

   Article 9 (Creation of Hypothec on the House of Limited Property Right)

In respect of a hypothec on a house of limited property right, the hypothec shall not go beyond the limit measured by the original
investment proportion of the owner, and shall conform to the provisions of the State and Shanghai Municipality on the control of
houses of limited property right.

   Article 10 (Creation of Hypothec on Future Right of a House)

A hypothec on the future right of a house shall conform to the relevant provisions on forward selling of houses and the management
of construction contract.

   Article 11 (Creation of Hypothec on the Leased Real Estate)

In respect of hypothecating the leased real estate, the mortgagor shall clearly state the fact to the prospective mortgagee that the
real estate concerned has been leased. The original tenancy relationship shall remain valid after a real estate mortgage contract
(hereinafter referred to as mortgage contract) has been signed.

   Article 12 (Creation of Hypothec on Real Estate with Time Limit)

If an enterprise with business time limit hypothecates its real estate, the created mortgage term must not exceed the business time
limit of the enterprise.

In respect of a hypothec on the real estate with land-use time limit, the created mortgage term must not exceed the land-use time
limit.

   Article 13 (Hypothec on the Jointly Owned Real Estate)

In respect of a hypothec on a house jointly owned by shares, the hypothec shall be limited within the shares that the mortgagor holds.

In respect of a hypothec on a jointly owned house, the hypothec shall be created with unanimous agreement of all the sharers, and
the mortgagor is the collective of all the sharers.

   Article 14 (Creation of One Hypothec on More Than Two Pieces of Real Estate)

In respect of one hypothec on more than two pieces of real estate, the interested real estate shall be regarded as one piece of collateral.
During the hypothec period, the joint guarantee obligations are inseparable. If there has been other agreement between the parties
of the mortgage, the agreement shall be observed.

   Article 15 (Creation of More Than One Hypothecs on the Same One Piece of Real Estate)

When the real estate that has been hypothecated is remortgaged, the mortgagor shall inform the prospective second mortgagee of the
existing mortgage status beforehand.

In respect of the creation of more than two hypothecs on the same one piece of real estate, the deadline for performing the obligation
guaranteed by the latter hypothec shall not precede the deadline for performing the obligation guaranteed by the former hypothec.

   Article 16 (House Built After Signing of Mortgage Contract)

The house built on the plot after the signing of the real estate mortgage contract does not pertain to the collateral.

   Article 17 (Form of Mortgage Contract)

A mortgage contract that establishes real estate mortgage relationship must be made in writing.

   Article 18 (Place of Signing a Mortgage Contract)

A mortgage contract must not be signed in a country that has not established diplomatic relations with China (PRC) or in a country
or region that has not set up trade representative’s office in China (PRC).

   Article 19 (Main Contents of Mortgage Contract)

The following shall be specified in a mortgage contract:

1. Parties to the mortgage;

2. Location, type, structure, area, value, post_title, right of use, and post_title number of the collateral;

3. Amount and time limit of the liabilities guaranteed by the mortgage;

4. Custodian, custody form of the collateral, responsibilities for the custody and responsibilities for unexpected damage or loss;

5. Responsibilities for the breach of the contract;

6. Conditions of abolishing the mortgage;

7. Ways of settling disputes;

8. Other items agreed upon by both parties to the mortgage;

9. Time and place of signing the mortgage contract.

If a party to the mortgage is a citizen, his/her name, nationality and address shall be specified in the mortgage contract. If a party
to the mortgage contract is a legal person or other organization, the name of the legal person or the name of the organization and
the name, nationality and address of its legal representative shall be specified in the mortgage contract.

   Article 20 (Language of Mortgage Contract)

A mortgage contract shall be written in Chinese. In case of other language used simultaneously, the Chinese version is considered
as the standard.

   Article 21 (Notarization and Attestation of Mortgage Contract)

A mortgage contract signed between citizens or between a legal person or other organization and a citizen must be notarized by a notary
office. A mortgage between a legal person and other organization, between legal persons, or between other organizations must be notarized
by a notary office if it is signed out of China (PRC); however, if it is signed inside China (PRC), the parties to the mortgage may
decide by themselves as whether to have it notarized or not.

A mortgage contract signed inside China (PRC) may be notarized by the notary office at the place where the mortgage contract is signed
or where the collateral is located. If a mortgage contract is signed in Hong Kong, Macao or Taiwan regions, it shall be notarized
by a notary office officially recognized by the relevant departments of the State Council of the P.R. China. If a mortgage contract
is signed in a foreign country, it shall be notarized by a notary office of that country and attested by the embassy (or consulate)
or trade representative’s office of the P.R. China in the country.

   Article 22 (Validity of Mortgage Contract)

A mortgage contract signed in a foreign country becomes effective as of the date it is attested. A mortgage contract signed in Hong
Kong, Macao or Taiwan regions, or a mortgage contract signed inside China (PRC) that must be notarized according to law or according
to an agreement reached by the parties to the mortgage, becomes effective as of the date it is notarized. A mortgage contract signed
inside China (PRC) that is not notarized according to an agreement reached by the parties to the mortgage becomes effective as of
the date it is signed.

   Article 23 (Appraisal of Collateral)

The collateral shall be appraised for the purpose of establishing real estate mortgage relationship, and the appraised value shall
be specified in the mortgage contract. The value of the collateral may be determined through consultation by the parties to the mortgage.

   Article 24 (Insurance of Collateral)

If the parties concerned agree to have the collateral insured, the mortgagor shall have the collateral insured at an insurance company.

   Article 25 (Lease of Collateral)

When the real estate that has been created hypothec is leased, the lessor must clearly inform the prospective lessee of the fact that
the real estate has been mortgaged.

   Article 26 (Agreement on the Restriction of Collateral)

If the mortgagee wants to restrain the mortgagor from leasing, lending, subletting the collateral, or from changing the nature of
use of the collateral after the real estate has been mortgaged, they shall reach such an agreement in the mortgage contract.

   Article 27 (Invalid Contract)

The following mortgage contracts are invalid contracts:

1. A mortgage contract signed in violation of Article 7 of the present Procedures;

2. A contract guaranteed by a mortgage contract is invalid;

3. Other mortgage contracts signed in violation of the law.

   Article 28 (Custody of Collateral and Custodian’s Responsibility)

A collateral is in the mortgagor’s custody.

The custodian shall keep the collateral safe and intact during the custody period.

   Article 29 (Appointed Inspection of Mortgagee)

The mortgagee shall, pursuant to the agreement in the mortgage contract, have the right to inspect the collateral in the mortgagor’s
custody.

   Article 30 (Restrictions on Transfer, Demolition or Remodel of Collateral)

Without a written consent from the mortgagee the mortgagor must not sell, exchange, donate, demolish, or remodel the real estate that
has been hypothecated unless it is required to be demolished by a construction project of the State.

The mortgagor shall promptly inform the mortgagee in writing if the real estate that has-been hypothecated has been included within
the removal compass due to construction project of the State.

If the collateral is inherited or split up, the successor shall promptly inform the mortgagee in writing.

   Article 31 (Obligations After the Transfer of Collateral)

If a collateral is transferred, the obligations guaranteed by the collateral remain unchanged.

When, as a citizen, the mortgagor dies or is declared dead, his/her legal inheritor/inheritress or devisee shall assume corresponding
mortgage obligations secured by the actual value of the secured property that has been inherited or devised.

   Article 32 (Remedies for Loss of or Damage to Collateral)

The mortgagor shall promptly inform the mortgagee of the loss of or damage to the collateral except for natural deterioration and
shall take effective measures to prevent the loss or damage from aggravation.

When the collateral cannot or is not sufficient to perform the obligation as a guaranty because of the loss of or damage to the collateral
resulting from the mortgagor’s fault, the mortgagor shall resupply or increase secured property so as to remedy the loss in the value
of the original collateral.

   Article 33 (Compensation and Indemnity)

The compensation and indemnity obtained for the loss of or damage to the collateral not attributable to the mortgagor’s fault, or
obtained because the collateral has been legally included within the removal compass shall be notarized and treated as secured property.

   Article 34 (Modification of Mortgage Contract)

If the real estate that has been hypothecated has been remodeled or included within the removal compass according to law, and if it
is compensated for in the form of exchanging real estate post_title, the parties to the mortgage shall hypothecate the newly-obtained
real estate anew and modify the mortgage contract accordingly; if it is compensated for in cash, the mortgagor shall have the compensation
notarized, and shall treat the compensation as secured property, or the parties to the mortgage may select another real estate of
the same value as the original collateral to recreate the hypothec and shall modify the mortgage contract accordingly.

If, according to Section 2, Article 32 of the present Procedures, the mortgagor resupplies or increase the collateral, the mortgage
contract shall be modified accordingly.

Unless provided in Section 1 and Section 2 of this Article, modification of the mortgage contract must be subject to the consensus
from the parties concerned through consultation.

The parties concerned shall sign a mortgage modification contract if the mortgage contract is modified.

   Article 35 (Cancellation of Mortgage Contract)

If the hypothecated real estate that has been included within the removal compass due to a construction project of the State has been
compensated for by cash, and if the compensation has paid off the debt guaranteed by the collateral, the mortgage contract shall
be cancelled.

A mortgage cancellation contract must be signed subject to the consensus from the parties concerned through consultation except the
case pursuant to the provisions stipulated in the previous paragraph.

   Article 36 (Termination of Mortgage Contract)

A mortgage contract shall terminate if the mortgagor clears of his/her debt, or the mortgagee abandons the claim to the obligation
during the contract term.

   Article 37 (Validity of Mortgage Registration)

A mortgage registration must be transacted with the real estate registration office upon the establishment of the mortgage relationship.
The parties concerned who do not have their real estate mortgage relationship registered shall not claim against a third party.

   Article 38 (Time and Agency for Mortgage Registration)

The parties to a real estate mortgage shall register with the municipal or district/county real estate registration office according
to each office’s extent of authority over the administration of real estate registration within the following stipulated time.

1. A mortgage shall, if the contract is signed inside China, be registered within 30 days from the date when it becomes effective;

2. A mortgage shall, if the contract is signed in Hong Kong, Macao or Taiwan regions or in a foreign country, be registered within
60 days from the date when it becomes effective.

In respect of a mortgage on the future right to a house, if the house is completed during the mortgage term, the mortgage registration
shall be transacted anew within 30 days from the date when the mortgagor has obtained the post_title to the house.

   Article 39 (Documents Required for Mortgage Registration)

When going through the mortgage registration,the parties to the mortgage must produce the mortgage contract, identity cards, and must
complete application forms for real estate mortgage registration. In addition, the mortgagor shall submit the following documents:

1. Construction land planning license and certificate of land-use right of State-owned land in respect of a mortgage on the granted
land-use right;

2. post_title to the house and certification of the land-use right in respect of a mortgage on the house and the land-use right within
its occupation limits;

3. Legally valid forward selling (buying) contract of the house in respect of a mortgage on the future right to a house bought in
advance; documents listed under Item 2 of this section if mortgage registration is transacted anew when the house is completed during
the mortgage term;

4. Legally valid construction project contract and certification of land-use right in respect of a mortgage on the future right to
a house under a construction project contract; documents listed in Item 2 of this section if mortgage registration is transacted
anew when the house is completed during the mortgage term.

If the parties to the mortgage entrust an agent with real estate mortgage registration, a letter of authorization and the agent’s
identity card must be submitted.

   Article 40 (Registration of Mortgage Modification)

If a mortgage contract is modified, the parties to the mortgage shall have the mortgage modification registered with the original
mortgage registration office within 30 days from the date when the modification contract becomes effective.

   Article 41 (Registration of Mortgage Cancellation)

If a mortgage contract is cancelled or terminated, the parties to the mortgage shall have the mortgage cancellation registered with
the original mortgage registration office within 30 days from the date when the contract is cancelled or terminated.

   Article 42 (Production of Registration Certificate)

A real estate mortgage registration office shall produce registration certificate to the registrant within 15 days from the date when
it receives the application for mortgage registration, mortgage modification registration, or mortgage cancellation registration.

   Article 43 (Registration Fee)

The parties to the mortgage shall pay the registration fee to the registration office for mortgage registration, mortgage modification
registration, or mortgage cancellation registration.

   Article 44 (Reference to Registration Documents)

The relevant documents concerning mortgage registration, mortgage modification registration or mortgage cancellation registration
may be open to public for reference. The person who refers to the documents shall pay reference fee.

   Article 45 (Conditions of Disposal)

The mortgagee has the right to demand the disposal of the collateral under any one of the following conditions:

1. The debtor fails to perform his/her obligation on the due date according to the agreement;

2. If the debtor, as a citizen, dies or is claimed dead and nobody performs the due obligation on his/her behalf,

3. The legitimate inheritor/inheritress or devisee of the mortgagor refuses to perform the due obligation;

4. The mortgagor is declared disbanded or bankrupt;

5. The mortgagor disposes the collateral at liberty in violation of the stipulations under Article 30;

6. The performance of the mortgage contract is or may be affected when capital reduction or split-up, etc. happen to the mortgagor,
whether as a legal person or as an organization;

7. Other conditions agreed upon in the mortgage contract.

   Article 46 (Ways of Disposal)

Under any one of the conditions stipulated in Article 45 of the present Procedures, the parties to the mortgage may, through consultation,
dispose the collateral in the following ways:

1. Assignment based on an evaluated price;

2. Auction.

When the parties to the mortgage cannot reach an agreement on assigning the collateral based on an evaluated price, the collateral
shall be disposed through auction.

   Article 47 (Notice Before Disposal)

The mortgagee shall inform the mortgagor in writing before the disposal of the collateral; and shall, at the same time, inform the
co-owners or the lessee in writing if the collateral is co-owned or leased.

   Article 48 (Preemption)

When the collateral is disposed according to the present Procedures, except through auction, the following legal person, other organization
or citizen shall, under the same condition, have the preemption:

1. The lessee of the leased collateral;

2. The co-owner with shares in the co-owned collateral;

3. The co-owner of the real estate that does not fit to be divided or that shares a common set of facilities with the collateral.

Before the disposal of the collateral through auction, the mortgagee shall inform in writing the interested parties who have the preemption
as listed in the above stipulation of this Article.

   Article 49 (Priority to Repayment)

When a real estate with more than two hypothecs is disposed, the priority to repayment shall be determined by the following order:

1. The registrant who registers the mortgage within the time limit shall have the priority over the one who registers the mortgage
after the deadline for registration;

2. In respect of the registrants who register the mortgage within the time limit, the one with a mortgage contract of an earlier effective
date shall have the priority;

3. In respect of the registrants who register the mortgage after the deadline for registration, the one who has an earlier registration
time record with the real estate registration office shall have the priority.

When the real estate that has been hypothecated is disposed, the newly- built house on the land may, according to law, be disposed
together with the collateral, however, the mortgagee has no priority to repayment from the proceeds out of the newly-built house.

   Article 50 (Treatment of Tenancy Relationship Concerning Disposal)

After the collateral within the lease term has been disposed, the original tenancy relationship shall remain valid if the collateral
has been leased before the creation of the hypothec; however, the original tenancy relationship shall terminate automatically if
the collateral has been leased after the creation of the hypothec.

   Article 51 (Treatment of Proceeds out of Allocated Land-use Right at Disposal of Collateral)

If the land-use right that creates the hypothec has been obtained in the form of allocation, and after it is disposed according to
law, the mortgagee may have the priority to repayment only after the amount equal to the money for the land-use right is deducted
from the proceeds out of the disposal.

   Article 52 (Collateral After Bankruptcy)

The real estate that creats the hypothec before bankruptcy is excluded from the bankrupt property after the mortgagor becomes bankrupt.
However, if the proceeds out of the disposal of the collateral exceed the amount due for performing the obligation, the balance is
included in the bankrupt property.

   Article 53 (Suspension of Auction)

When the parties to the mortgage chose to dispose the collateral through auction, the auction may be suspended under any one of the
following conditions that occurs before the auction procedure starts:

1. There is a dispute over the post_title to the collateral;

2. The mortgagee demands to suspend the auction;

3. The mortgagor applies for suspending the auction if he/she is willing to perform the obligation instantly, or provides the mortgagee
with the proof that he/she is able to perform the obligation;

4. Other conditions due for suspending the auction.

   Article 54 (Regulations Governing Ways of Disposal)

If the parties to the mortgage choose to dispose the collateral through auction, the disposal shall be made according to the relevant
regulations concerning the auction of house in Shanghai.

If the parties to the mortgage choose to dispose the collateral by assignment based on an evaluated price, the disposal shall be made
according to the relevant regulations concerning the management of real estate transaction in Shanghai.

   Article 55 (Distribution of Proceeds From Disposal)

The distribution of the proceeds from the disposal of the collateral shall comply with the following order and principle:

1. To pay the expenses required for the disposal of the collateral;

2. To pay the due taxes after the disposal of the collateral;

3. To pay the debt and the penalty for breaking the contract;

4. To return the balance to the mortgagor.

If the proceeds from the disposal of the collateral are insufficient to perform the obligation and pay the penalty, the mortgagee
has the right to recover the insufficiency.

   Article 56 (Shift of Allocated Land-use Right)

When the future right to the hypothecated house on the land plot with allocated land-use right is disposed, the corresponding allocated
land- use right shall be shifted at the same time.

   Article 57 (Liability for Breaking Contract)

Once the mortgage contract becomes effective, the parties to the mortgage shall fulfil the contract; if any party does not fulfil
or partially fulfil the contract, he/she shall bear the liabilities for breaking the contract and shall compensate the other party
for economic losses sustained therefrom.

If the mortgage contract cannot be fulfilled due to the fault made by any party to the mortgage, the faulty party shall compensate
the other party for economic losses sustained therefrom.

   Article 58 (Compensation for Third Party’s Loss)

The mortgagor shall compensate the third party for a loss resulting from the mortgagor’s unauthorized lease, lending, transfer, selling,
exchange, donation or other form of treatment or disposal of the collateral.

   Article 59 (Liability for Concealing Circumstance of Collateral)

The mortgagor shall compensate for other person’s loss resulting from the mortgagor’s concealment of the circumstances that the collateral
has been sealed up, distrained or has already been hypothecated or leased, etc.

   Article 60 (Release From Liability)

The mortgagor shall promptly inform the mortgagee of the complete or partial loss, damage or devaluation of the collateral due to
force majeure. After obtaining relevant proof, the mortgagor may be released from the liability of resupplying or increasing the
collateral.

   Article 61 (Settlement of Dispute)

Any dispute between the parties to the mortgage arising in the performance of the mortgage contract or in the disposal of the collateral
shall be settled through consulation, the parties to the mortgage may, according to the laws, apply to an arbitral authority for
arbitration, or bring a suit to the people’s court.

   Article 62 (Formulation of Appraisal, Registration and Reference Fee Standard)

The fee standard for appraising a collateral, registering a mortgage and referencing to registration documents, which are set by the
Municipal Real Estate Administration, shall be implemented after being verified and approved by the Municipal Bureau of Price Control
and the Municipal Finance Bureau.

   Article 63 (The Supplementary Mortgage Registration)

In respect of the

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON REVISING THE THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION (ATTACHED WITH THE FIRST REVISION OF THE LAW ON THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION)

Category	ENVIRONMENTAL PROTECTION	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1995-08-29	Effective Date	1995-08-29

Decision of the Standing Committee of the National People’s Congress on Revising the Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution (Attached With the First Revision of the Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution)

Decision
Appendix: Law of the People’s Republic of China on the Prevention
Contents
Chapter I  General Provisions
Chapter II  Supervision and Management of the Prevention and Control of
Chapter III  Prevention and Control of Pollution from Burning Coal
Chapter IV  Prevention and Control of Pollution by Waste Gas, Dust and
Chapter V  Legal Liability
Chapter VI  Supplementary Provisions

(Adopted at the 15th Meeting of the Standing Committee of the

Eighth National People’s Congress on August 29, 1995, and promulgated
by Order No.54 of the President of the People’s Republic of China on
August 29, 1995)
Decision

    The 15th Meeting of the Standing Committee of the Eighth National
People’s Congress has resolved to make the following amendments to the
Law of the People’s Republic of China on Prevention and Control of
Atmospheric Pollution:

    1. One paragraph shall be added to Article 8 as the first
paragraph: “The state shall adopt economic and technological policies
and measures which are advantageous to the prevention and control of
atmospheric pollution and to relevant comprehensive utilization
activities.”

    2. One article shall be added as Article 9: “The people’s
governments at various levels shall strengthen the work of tree
planting and urban afforestation, and try to improve the quality of
the atmospheric environment.”

    3. One article shall be added as Article 15: “Enterprises shall
give priority to the adoption of clean production technology with
which a relatively high utilization ratio of energy can be realized
and the discharged pollutants can be decreased so as to reduce the
production of atmospheric pollutants.

    “The state shall adopt an elimination system towards those
backward productive technologies and equipment which may cause serious
atmospheric pollution.

    “The competent department of economy under the State Council, in
conjunction with other relevant departments under the State Council,
shall publish a list of technologies which may cause serious
atmospheric pollution and the adoption of which must be halted within
a specified time limit, and a list of equipment which may cause
serious atmospheric pollution and the production, sale, import and use
of which must be halted within a specified time limit.

    “The producers, sellers, importers and users must, within the
time limit prescribed by the competent department of economy under the
State Council in conjunction with other relevant departments under the
State Council, stop the production, sale, import or use of any
equipment placed on the list mentioned in the preceding paragraph. The
user of such productive technology must, within the time limit
prescribed by the competent department of economy under the State
Council in conjunction with other relevant departments under the State
Council, stop the adoption of the productive technology placed on the
list mentioned in the preceding paragraph.

    “The equipment eliminated under the two preceding paragraphs
shall not be transferred to others for use.”

    4. One article shall be added as Article 24: “The state shall
pursue coal washing processing so as to reduce the sulfur content and
ash content of coal, and shall restrict the mining of coal with high
sulfur content and high ash content. With regard to newly developed
coal mines of coal with high sulfur content and high ash content,
appropriate coal washing facilities must be installed so as to make
the coal meet the statutory standards with respect to the sulfur
content and ash content.

    “With regard to those already established coal mines of coal with
high sulfur content and high ash content, appropriate coal washing
facilities must be installed within a time limit according to the
program approved by the State Council.

    “The mining of coal containing poisonous and harmful substances
such as radioactive matter and arsenic in excess of the limits
prescribed by the statutory standards shall be prohibited.”

    5. One article shall be added as Article 25: “The people’s
governments of large and medium cities shall work out a plan which
shall set a time limit within which raw coal shall progressively be
substituted by sulfur-solidified coal or other clean fuels for urban
residents’ kitchen ranges.”

    6. One article shall be added as Article 26: “With regard to
newly built thermal power plants in urban areas, in the light of needs
and conditions, the production of heating power and the production of
electric power shall be combined, and the heating system shall be
constructed, checked and put into operation in pace with the principal
part of the project.”

    7. One article shall be added as Article 27: “The competent
department of environmental protection under the State Council may, in
conjunction with other departments concerned under the State Council,
in the light of natural conditions such as meteorological phenomena,
topography, soil, etc., and after approval by the State Council,
designate areas where acid rain has appeared or is likely to appear or
other areas where sulfurous anhydride pollution is serious, as acid
rain control areas or sulfurous anhydride pollution control areas.

    “With regard to a thermal power plant or other large or medium
plants discharging sulfurous anhydride in acid rain control areas or
sulfurous anhydride pollution control areas, if it is a new
construction project and using coal with a low sulfur content is
impossible, it shall install the appropriate desulfurization and
cleaning facilities or adopt other measures to control the discharge
of sulfurous anhydride and make the coal clean; if it is an old plant
and does not use coal with a low sulfur content, it shall adopt
measures to control the discharge of sulfurous anhydride and make the
coal clean. The state shall encourage enterprises to adopt advanced
desulfurization and cleaning technology.

    “Enterprises shall progressively adopt measures to control
nitrogen oxide produced by burning coal.”

    8. One article shall be added as Article 36: “Operators of
catering businesses in urban areas must comply with provisions of the
State Council concerning environmental protection with respect to the
catering trade, and take measures to protect the neighboring
residents’ living environment from lampblack pollution.”

    9. One article shall be added as Article 38: “The state shall
encourage and support the production and use of high-grade lead-free
gasoline, and restrict the production and use of leaded gasoline.

    “The competent department concerned under the State Council shall
work out a program, reducing step by step the output of leaded
gasoline till stopping the production and use of leaded gasoline.”

    10. One article shall be added as Article 40: “Where anyone, in
violation of provisions of Article 15 of this Law, produces, sells,
imports or uses equipment which is prohibited from production, sale,
importation and uses or adopts technology the adoption of which is
prohibited, the competent department of economy of the people’s
government at or above the county level shall order the offender to
make corrections; in serious cases, the competent department of
economy of the people’s government at or above the county level shall
submit suggestions for the suspension of operations or closure of the
offender to the people’s government at the same level, and the latter
shall make a decision thereon within the limit of their function and
power set by the State Council.”

    11. The post_title of Chapter III shall be revised as: “Prevention and
Control of Pollution from Burning Coal.”

    This Decision shall go into effect as of the date of promulgation.

    The Law of the People’s Republic of China on Prevention and
Control of Atmospheric Pollution shall be revised according to this
Decision and re-promulgated.

Appendix: Law of the People’s Republic of China on the Prevention
and Control of Atmospheric Pollution (Adopted at the 22nd Meeting of the
Standing Committee of the Sixth National People’s Congress on September
5, 1987, and amended according to the Decision of the Standing Committee
of the National People’s Congress on Revising the Law of the People’s
Republic of China on the Prevention and Control of Atmonpheric Pollution
promulgated on August 29, 1995)
Contents
Chapter I    General Provisions
Chapter II   Supervision and Management of the Prevention and Control of

             Atmopheric Pollution
Chapter III  Prevention and Control of Pollution from Burning Coal
Chapter IV   Prevention and Control of Pollution by Waste Gas, Dust and

             Malodorous Substances
Chapter V    Legal Liability
Chapter VI   Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is formulated for the purpose of preventing and
controlling atmospheric pollution, protecting and improving people’s
environment and the ecological environment, safeguarding human health, and
promoting the development of socialist modernization.

    Article 2  The State Council and the local people’s governments at various
levels must incorporate the protection of the atmospheric environment into the
national economic and social development plans, make rational plans for the
distribution of industry, strengthen scientific research on the prevention and
and control of atmospheric pollution, adopt preventive and curative measures
against atmospheric pollution, and protect and improve the atmospheric
environment.

    Article 3  The environmental protection departments of the people’s
governments at various levels shall be the organs conducting unified
supervision and management of the prevention and control of atmospheric
pollution.

    The administrative departments of public security, transportation,
railways and fishery at various levels shall, by performing their respective
functions, conduct supervision and management of the atmospheric pollution
caused by motorized vehicles and vessels.

    Article 4  Units that discharge atmospheric pollutants must comply with
the relevant state provisions and take measures to prevent and control
pollution.

    Article 5  All units and individuals shall have the obligation to protect
the atmospheric environment and shall have the right to report on or file
charges against units or individuals that cause pollution to the atmospheric
environment.

    Article 6  The environmental protection department under the State Council
shall establish the national standards for atmospheric environment quality.

    The people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government may establish their local
standards for items not specified in the national standards for atmospheric
environment quality and report the same to the environmental protection
department under the State Council for the record.

    Article 7  The environmental protection department under the State Council
shall, in accordance with the national standards for atmospheric environment
quality and the country’s economic and technological conditions, establish the
national standards for the discharge of atmospheric pollutants.

    The people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government may establish their local
discharge standards for items not specified in the national standards for the
discharge of atmospheric pollutants; with regard to items already specified in
the national standards for the discharge of atmospheric pollutants, they may
set local discharge standards which are more stringent than the national
discharge standards and report the same to the environmental protection
department under the State Council for the record.

    Units that discharge atmospheric pollutants in areas where the local
discharge standards have been established shall observe such local standards.

    Article 8  The state shall adopt economic and technological policies and
measures which are advantagious to the prevention and control of atmospheric
pollution and to relevant comprehensive utilization activities.

    Units or individuals that have made outstanding achievements in
the prevention and control of atmospheric pollution or in the protection and
improvement of the atmospheric environment shall be rewarded by the people’s
governments at various levels.

    Article 9  The people’s governments at various levels shall strengthen
the work of tree planting and urban afforestation, and try to improve the
quality of the atmospheric environment.
Chapter II  Supervision and Management of the Prevention and Control of
Atmopheric Pollution

    Article 10  New construction projects, extensions or reconstruction
projects which discharge atmospheric pollutants shall be governed by the state
provisions concerning environmental protection for such projects.

    The environmental impact statement on a construction project must assess
the atmospheric pollution the project is likely to produce and its impact on
the ecosystem and stipulate the preventive and curative measures; the
statement shall be submitted, according to the specified procedure, to the
environmental protection department concerned for examination and approval.

    When a construction project is to be put into operation or to use, its
facilities for the prevention of atmospheric pollution must be inspected by
the environmental protection department; construction projects that do not
fulfill the requirements specified in the state provisions concerning
environmental protection for such construction projects shall not be permitted
to be put into operation or to use.

    Article 11  Units that discharge atmospheric pollutants must, pursuant to
the provisions of the environmental protection department under the State
Council, report to the local environmental protection department its existing
discharge and treatment facilities for pollutants and the categories,
quantities and concentrations of pollutants discharged under normal operation
conditions and submit to the same department the relevant technical data
concerning the prevention and control of atmospheric pollutants.

    Units shall report in time on any substantial change in the categories,
quantities or concentrations of the pollutants discharged. When pollutant
treatment facilities are to be dismantled or left idle, permission from the
local environmental protection department must be obtained.

    Article 12  If the discharge of pollutants by a unit exceeds the
prescribed standards, it shall take effective measures to control the
pollution and pay a fee for excessive discharge according to state provisions.
The fee thus levied must be used for the prevention and control of pollution.

    If an enterprise or institution causes severe atmospheric pollution, it
shall be ordered to eliminate and control the pollutants within a certain
period of time.

    Article 13  Within the scenic or historic sites, nature reserves and other
zones that need special protection, as designated by the State Council and the
people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government, no industrial production installations
that cause environmental pollution shall be built; other installations to be
built in these areas must not exceed the prescribed standards for pollutant
discharge. Enterprises and institutions which, before the enforcement of this
Law, have built installations discharging more pollutants than those specified
by the prescribed discharge standards shall be ordered to eliminate and
control such pollution within a certain period of time.

    Article 14  For enterprises or institutions under the jurisdiction of a
people’s government at or below the city or county level, a deadline for the
elimination or control of pollution shall be proposed by the environmental
protection department of the people’s government at the city or county level
and shall be reported to the people’s government at the corresponding level
for decision. For enterprises and institutions directly under the jurisdiction
of the Central Government or the people’s government of a province, an
autonomous region or a municipality directly under the Central Government,
such a deadline shall be proposed by the environmental protection department
of the people’s government of a province, an autonomous region or a
municipality directly under the Central Government and shall be reported to
the people’s government at the corresponding level for decision.

    Article 15  Enterprises shall give priority to the adoption of clean
production technology with which a relatively high utilization ratio of
energy can be realized and the discharged pollutants can be decreased so as
to reduce the production of atmospheric pollutants.

    The state shall adopt an elimination system towards those backward
productive technologies and equipment which may cause serious atmospheric
pollution.

    The competent department of economy under the State Council, in
conjunction with other relevant departments under the State Council, shall
publish a list of technologies which may cause serious atmospheric pollution
and the adoption of which must be halted within a specified time limit, and a
list of equipment which may cause serious atmospheric pollution and the
production, sale, import and use of which must be halted within a specified
time limit.

    The producers, sellers, importers and users must, within the time limit
prescribed by the competent department of economy under the State Council in
conjunction with other relevant departments under the State Council, stop the
production, sale, import or use of any equipment placed on the list mentioned
in the preceding paragraph. The user of such productive technology must,
within the time limit prescribed by the competent department of economy under
the State Council in conjunction with other relevant departments under the
State Council, stop the adoption of the productive technology placed on the
list mentioned in the preceding paragraph.

    The equipment eliminated under the two preceding paragraphs shall not be
transferred to others for use.

    Article 16  Any unit that, as a result of an accident or any other
exigency, discharges or leaks toxic or harmful gas or radioactive substances,
thereby causing or threatening to cause an accident of atmospheric pollution
and jeopardize human health, must promptly take emergency measures to prevent
and control the atmospheric pollution hazards, make the situation known to
such units and inhabitants as are likely to be endangered by the atmospheric
pollution hazards, report the case to the local environmental protection
department and accept its investigation and disposal.

    Under the urgent circumstances of a severe atmospheric pollution that
jeopardizes human health and safety, the local people’s government must take
compulsory emergency measures, including ordering the pollutant discharging
units concerned to stop the discharge of pollutants.

    Article 17  The environmental protection departments and other supervisory
and management departments shall be empowered to make on-site inspections of
units under their jurisdiction that discharge pollutants. The units being
inspected must truthfully report the situation to them and provide them with
the necessary information. The inspecting authorities shall have the
obligation to keep confidential the technological know-how and business
secrets of the units inspected.

    Article l8  The environmental protection department under the State
Council shall set up a monitoring system for atmospheric pollution, organize
a monitoring network and work out unified monitoring measures.
Chapter III  Prevention and Control of Pollution from Burning Coal

    Article 19  The competent department concerned under the State Council
shall, pursuant to the standards for boiler soot discharge prescribed by the
state, stipulate corresponding requirements in the boiler quality standards;
boilers that do not meet the prescribed requirements shall not be permitted to
be manufactured, sold or imported.

    Article 20  The soot discharge of newly built industrial kilns and
newly installed boilers shall not exceed the prescribed discharge standards.

    Article 21  Urban construction shall be conducted on the basis of overall
planning, the unified provision of heat sources and the development of
central heating.

    Article 22  The relevant departments under the State Council and the local
people’s governments at various levels shall adopt measures to improve the
urban fuel structure, develop urban gas supply, and popularize the production
and utilization of shaped coal.

    Article 23  When coal, gangue, coal cinder, coal ashes or lime is stored
in densely inhabited areas, fire and dust prevention measures must be taken
in order to prevent atmospheric pollution.

    Article 24  The state shall pursue coal washing processing so as to reduce
the sulfur content and ash content of coal, and shall restrict the mining of
coal with high sulfur content and high ash content. With regard to newly
developed coal mines of coal with high sulfur content and high ash content,
appropriate coal washing facilities must be installed so as to make the coal
meet the statutory standards with respect to the sulfur content and ash
content.

    With regard to those already established coal mines of coal with high
sulfur content and high ash content, appropriate coal washing facilities must
be installed within a time limit according to the program approved by the
State Council.

    The mining of coal containing poisonous and harmful substances such as
radioactive matter and arsenic in excess of the limits prescribed by the
statutory standards shall be prohibited.

    Article 25  The people’s governments of large and medium cities shall
work out a plan which shall set a time limit within which raw coal shall
progressively be substituted by sulfur-solidified coal or other clean fuels
for urban residents’ kitchen ranges.

    Article 26  With regard to newly built thermal power plants in urban
areas, in the light of needs and conditions, the production of heating power
and the production of electric power shall be combined, and the heating
system shall be constructed, checked and put into operation in pace with the
principal part of the project.

    Article 27  The competent department of environmental protection under
the State Council may, in conjunction with other departments concerned under
the State Council, in the light of natural conditions such as meteorological
phenomena, topography, soil, etc., and after approval by the State Council,
designate areas where acid rain has appeared or is likely to appear or other
areas where sulfurous anhydride pollution is serious, as acid rain control
areas or sulfurous anhydride pollution control areas.

    With regard to a thermal power plant or other large or medium plants
discharging sulfurous anhydride in acid rain control areas or sulfurous
anhydride pollution control areas, if it is a new construction project and
using coal with a low sulfur content is impossible, it shall install the
appropriate desulfurization and cleaning facilities or adopt other measures
to control the discharge of sulfurous anhydride and make the coal clean; if
it is an old plant and does not use coal with a low sulfur content, it shall
adopt measures to control the discharge of sulfurous anhydride and make the
coal clean. The state shall encourage enterprises to adopt advanced
desulfurization and cleaning technology.

    Enterprises shall progressively adopt measures to control nitrogen oxide
produced by burning coal.
Chapter IV  Prevention and Control of Pollution by Waste Gas, Dust and
Malodorous Substances

    Article 28  The discharge of toxic waste gas and dust into the atmosphere
shall be strictly restricted. When such discharge is really necessary, the
discharged gas or dust shall undergo purification treatment and shall not
exceed the prescribed discharge standards.

    Article 29  Inflammable gas engendered during industrial production shall
be recovered for utilization; if such gas is discharged into the atmosphere
due to the absence of the means of recovery for utilization, it shall undergo
treatment for the prevention and control of pollution.

    The discharge into the atmosphere of converter gas, acetylene, yellow
phosphoric tail gas engendered by the electric furnace process, and organic
hydrocarbon tail gas must be reported to the local environmental protecttion
department for approval.

    When the discharge of inflammable gas is really necessary because of the
malfunctioning of the recovery and re-use installations, the inflammable gas
discharged shall be fully burnt, or other measures shall be taken, to reduce
atmo atmospheric pollution.

    Article 30  Units that discharge sulphide-bearing gas in the process of
refining petroleum, producing synthetic ammonia or coal gas, cooking fuel coal
and smelting non-ferrous metal shall be equipped with desulfurizing
installations or shall adopt other measures for desulfurization.

    Article 31  The discharge of gases and aerosols containing radioactive
substances into the atmosphere must comply with state provisions on
radioactivity protection and must not exceed the prescribed discharge
standards.

    Article 32  Units that discharge malodorous gases into the atmosphere must
take measures to prevent the pollution of neighboring residential areas.

    Article 33  Units that discharge dust into the atmosphere must adopt
measures to remove such dust.

    Article 34  The burning of asphalt, asphalt felt, rubber, plastics,
leather and other materials that may produce toxic or harmful smoke or dust or
malodorous gases in densely inhabited areas shall be prohibited; when, under
special circumstances, such burning is really necessary, it must be reported
to the local environmental protection department for approval.

    Article 35  In the transportation, loading and unloading, and storage of
substances that may diffuse toxic or harmful gases or dust, sealing or other
protective measures must be taken.

    Article 36  Operators of catering businesses in urban areas must comply
with provisions of the State Council concerning environmental protection
with respect to the catering trade, and take measures to protect the
neighboring residents’ living environment from lampblack pollution.

    Article 37  Motorized vehicles and vessels shall not be permitted to
discharge atmospheric pollutants in excess of the prescribed discharge
standards; measures shall be taken to deal with motorized vehicles and vessels
that discharge atmospheric pollutants in excess of

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