CIRCULAR OF THE STATE COUNCIL CONCERNING APPROVING AND TRANSMITTING THE JOINT PROPOSALS OF THE SECURITIES COMMISSION OF THE STATE COUNCIL AND THE CHINA SECURITIES SUPERVISORY AND REGULATORY COMMISSION ON FURTHER STRENGTHENING SUPERVISION AND MANAGEMENT OF THE OPTION MARKET

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-02-23	Effective Date	1996-02-23

Circular of the State Council Concerning Approving and Transmitting the Joint Proposals of the Securities Commission of the State Council and the China Securities Supervisory and Regulatory Commission on Further Strengthening Supervision and Management of the Option Market

The Circular
Appendix: JOINT PROPOSALS ON FURTHER STRENGTHENING SUPERVISION AND

(February 23, 1996)

The Circular

The State Council has approved the Joint Proposals on Further
Strengthening Supervision and Management of the Option Market submitted by the
Securities Commission of the State council and the China Securities
Supervisory and Regulatory Commission, and hereby transmits them to you for
the earnest implementation thereof.
Appendix: JOINT PROPOSALS ON FURTHER STRENGTHENING SUPERVISION AND
MANAGEMENT OF THE OPTION MARKET

Complying with the overall strategy of the State Council, the Securities
Commission of the State Council and the China Securities Supervisory and
Regulatory Commission (hereinafter abbreviated to CSSRC) have strengthened the
management and restructuring of the option market. After two years’ effort,
the tendency of disorderly development of the option market has to certain
extent been restrained, the market actions have been gradually regulated, the
competence of supervision and management has been further improved and the
pilot projects have been progressed to the right path. However, the option
market still suffers from some problems that should not been neglected. The
protruding problems are as follows: a few big clients, relying on their
capital strength, conspire to rig the market for staggering profits; a few
people embezzle public funds to speculate in futures for private profit at the
public expense, utilize bank loans or call money or collect capital under
disguise for forward business; some individual clients even commit financial
crimes in forward exchanges in violation of relevant regulations purposely.
Those offences not only obstruct other enterprises in lawful business
activities such as arbitrage transactions for value maintenance but also
disrupt the normal order of the option market and obstruct its healthy
development. To further restrain excessive speculations and strengthen the
supervision and regulation of the option market, following proposals are put
forward:

1. Enterprises and institutions owned by the state or dominated by state
capital stocks (hereinafter referred to as state-owned enterprises and
institutions) shall be allowed to develop arbitrage transactions for value
maintenance only on futures commodities that are relevant to the production
and business of the enterprises and institutions in question and should not
conduct speculation or malicious manipulation in forward transactions.
State-owned enterprises and institutions who are to engage in arbitrage
transactions for value maintenance shall show the forward exchange or futures
agent institutions documents of approval obtained from relevant authority in
charge or from the board of directors. Those who fails to show the document of
approval may not be accepted by the forward exchange as an institutional
member or by futures agent institutions as a client. In case a forward
exchange or a futures agent institution violates the abovementioned
stipulations, the CSSRC shall, in addition to investigation into the
responsibilities of the persons in charge, order a correction, a fine, a stop
of business for futures exchange or disqualification from being a trial
forward exchange or a futures transaction agent in light of the seriousness of
the offence. State-owned enterprises or institutions who arbitrarily conduct
forward transactions without approval of the authority in charge or board of
directors or suffer a loss in speculation in forward business shall have the
persons in charge assessed in terms of responsibilities.

2. Different kinds of banking institutions may not for itself or on
commission of others engage in forward business. Those banking institutions
who have begun forward business for itself shall within 40 business days after
the date of March 4, 1996 square the cash account for the business. Those
banking institutions who have begun forward business on commission of others
may not accept new clients ever from the date of March 4, 1996 and shall
within 40 business days thereafter conclude all agent business by squaring the
cash accounts or by transfer of the clients cash to other futures agent
institutions. All forward exchanges who have banking institutions as business
members thereof shall perform supervisory function so that those institutions
could within the prescribed time conclude forward business whether operated
for themselves or on commission of others, and shall deprive them of the
membership after matters concerning credits and liabilities are settled.
Futures agent institutions who have banking institutions as clients shall
perform supervisory functions so that those institutions could within the
prescribed time bring their accounts to a balance and shall cancel the
accounts after matters concerning credit and liabilities are settled.

Any banking institution may not make out letter of security on capital
intended for forward transactions. It is rigorously prohibited to use bank
loans or call money for forward business. Banking institutions at all levels
shall strengthen supervision and management to guard against the flow of
credit funds into the option market.

3. Futures agent companies may not engage in forward transactions for
themselves. Those who have begun such business for themselves shall within 40
business days from the date of March 4, 1996 square the account with the cash
held for forward business. In case a futures agent company continues the
forward transactions for itself against this stipulation, the CSSRC shall, in
addition to investigation into the responsibilities of the persons in charge,
order a correction, a fine, a stop of business for rectification, or
disqualification from being a forward business agent in light of the
seriousness of the offence.

4. With a view to reinforcing the supervision and management of the option
market, effectively preventing from, investigating and dealing with market
manipulation cases, the CSSRC may in accordance with relevant procedures make
inquiries into the accounts opened at the commercial banks or other banking
institutions by forward exchanges, futures agent institutions and clients.

5. All forward exchanges shall in consideration of their own individual
circumstances establish a system of “banning entrance into the market”. Those
institutions or individuals who have proved to have rigged the market or
committed fraudulent conducts in forward transactions and have therefore
caused serious consequence shall be publicized as “the persons banned from
entrance into the market” and be reported to the CSSRC, who shall then
circulate a notice among all forward exchanges. In addition to issue of an
order for squaring the forward business accounts, all forward exchanges,
futures agent institutions shall immediately stop accepting new directions for
forward transaction from “the person banned from entrance into the market”. If
the criminal law is violated, the case shall be transferred to the judicial
organs for assessment of criminal responsibilities. For those who have been
notified by the CSSRC as “persons banned from entrance into the market”, no
forward exchange or futures agent institution may open accounts for their
forward business within three years. In case a forward exchange or a futures
agent institution accepts a person banned from entrance into the market, the
CSSRC shall, in addition to investigation into the responsibilities of the
concerned persons in charge, order a correction, confiscation of illicit
gains, a fine, a stop of business for rectification, disqualification from
being a trial forward exchange or from developing forward agent business.

6. With a view to bringing into full play the functioning of the option
market for value maintenance through futures and prices identification, to
preventing from a large amount of capital being utilized on small commodity
futures, and to ridding the option market of the vicious circle of more and
more rampant speculation in smaller and smaller commodities futures, certain
kinds of staple commodities futures which are maturely developed in the
international market and that can most effectively perform the function of
value maintenance through futures should be selected in due course for trial
marketing by a few much standardized forward exchanges subject to strict
supervision and control.

RULES FOR THE IMPLEMENTATION OF THE BUSINESSES OF SETTLEMENT AND SALE OF AND PAYMENT IN FOREIGN EXCHANGE OF FOREIGN-CAPITAL BANKS

The People’s Bank of China

Rules for the Implementation of the Businesses of Settlement and Sale of and Payment in Foreign Exchange of Foreign-capital Banks

the People’s Bank of China

June 18, 1996

Chapter I General Provisions

Article 1

These Rules are formulated in accordance with the Regulations of the People’s Republic of China on Administration of Financial Institutions
with Foreign Investment and the Provisions on Administration of Settlement and Sale of and Payment in Foreign Exchange for the purposes
of improving the system of foreign exchange settlements and sales and standardizing the activities of foreign exchange settlements,
sales and payments of banks with foreign investment.

Article 2

Foreign-capital banks mentioned in these Rules refer to foreign capital banks, branches of foreign banks and Chinese-foreign equity
joint banks within Chinese territory approved by the People’s Bank of China and issued with a Licence to Engage in Foreign Exchange
Business by the State Administration of Foreign Exchange.

Article 3

Renminbi special accounts for settlement and sale of foreign exchange mentioned in these Rules refer to Renminbi special accounts
opened by foreign-capital banks in local branches of the People’s Bank of China and used for conducting the business operations of
settlement and sale of foreign exchange.

Article 4

Foreign-capital banks shall only be allowed to conduct such business operations as settlement and sale of and payment in foreign exchange
of enterprises with foreign investment, settlements under loans of non enterprises with foreign investment and other business operations
of settlement and sale of and payment in foreign exchange approved by the State Administration of Foreign Exchange, and shall implement
the provisions of the Provisions on Administration of Settlement and Sale of and Payment in Foreign Exchange.

Chapter II Administration of Renminbi Special Accounts for Settlement and Sale of Foreign Exchange

Article 5

A foreign-capital bank may, upon the approval of a local branch of the People’s Bank of China, open a Renminbi special account for
settlement and sale of foreign exchange at the local branch of the People’s Bank of China which is to be used for receiving and paying
Renminbi in the business operations of settlement and sale of foreign exchange.

Article 6

A foreign-capital bank which is to open a Renminbi special account for settlement and sale of foreign exchange shall meet the following
requirements:

(1)

It is authorized by the State Administration of Foreign Exchange to conduct import and export settlement operations;

(2)

It is a member of the China Transaction Center of Foreign Exchange after being approved by the China Transaction Center of Foreign
Exchange and reported to the State Administration of Foreign Exchange for the record.

Article 7

A foreign-capital bank which is to open a Renminbi special account for settlement and sale of foreign exchange shall submit the following
documents:

(1)

an application for opening a Renminbi special account for settlement and sale of foreign exchange;

(2)

the Licence to Engage in Foreign Exchange Business Operations issued by the State Administration of Foreign Exchange;

(3)

documents certifying the approval of its status as a member of the Foreign Exchange Transaction Center of China.

Article 8

A foreign-capital bank which is authorized to open a Renminbi special account for settlement and sale of foreign exchange may, by
selling 20 per cent of its registered foreign exchange capital funds or operation funds through the foreign exchange transaction
market among banks, buy Renminbi and have it deposited into the Renminbi special account for settlement and sale of foreign exchange
as working capital funds.

Article 9

Foreign Exchange bureaus shall exercise balance control over Renminbi special accounts for settlement and sale of foreign exchange
of foreign-capital banks. The daily capital balance of a Renminbi special account for settlement and sale of foreign exchange shall
not exceed the verified amount without approval. The balance exceeding the verified amount shall be converted into foreign exchange
through foreign exchange transactions among banks and shall not be lent in Renminbi. The State Administration of Foreign Exchange
shall, depending on the conditions of the settlement and sale of foreign exchange of a foreign-capital bank, verify and adjust the
balance of its Renminbi special account for settlement and sale of foreign exchange.

Article 10

Where a Renminbi special account for settlement and sale of foreign exchange is not enough to be settled due to the failure of transference
of Renminbi funds, a Chinese-funded financial institution which signs a daily lending agreement on settlement and sale of foreign
exchange with this foreign-capital bank and opens an account at the local branch of the People’s Bank of China may, by asking a local
financing intermediate institution engaged in inter-bank lending business to act as its agent, provide daily lending funds to the
foreign-capital bank within a period of 48 hours so as to ensure the normal transactions.

Article 11

The scopes of revenues and expenditures of a Renminbi special account for settlement and sale of foreign exchange of a foreign-capital
bank shall be as follows: Revenues: money in Renminbi derived from selling its foreign exchange capital funds or operation funds;
money in Renminbi allocated into the account by clients for buying foreign exchange; money in Renminbi derived from the sale of foreign
exchange through the foreign exchange market among banks. Expenditures: money in Renminbi due to clients for the settlement of foreign
exchange; money in Renminbi for buying foreign exchange through the foreign exchange market among banks.

Article 12

Foreign-capital banks conducting the business operations of settlement and sale of foreign exchange shall participate in the “Renminbi
bills clearance system in the same city” of the People’s Bank of China so as to establish a network of allocation of Renminbi between
foreign-capital banks and their clients and to conduct clearance of Renminbi funds.

Article 13

A foreign-capital bank participating in the “Renminbi bills clearance system in the same city” shall meet the following requirements:

(1) possessing staff members passing the examination of “Renminbi bills clearance in the same city”;

(2) possessing an agreement on daily lending RMB for settlement and sale of foreign exchange signed with a Chinese-funded financial
institution.

Article 14

Foreign-capital banks shall use Renminbi special payment vouchers of settlement and sale of foreign exchange uniformly printed and
produced by the People’s Bank of China to undertake the receipts and payments of funds in Renminbi special accounts of settlement
and sale of foreign exchange, and shall not have the special vouchers used in any other businesses.

Article 15

Foreign-capital Banks shall use their Renminbi special accounts of settlement and sale of foreign exchange in accordance with the
Measures for Administration of Bank Accounts (promulgated by the People’s Bank of China on October 9,1994), and shall not use them
for receiving or paying, depositing or transferring Renminbi for any other unit or individual, and shall not lease, lend or exchange
these Renminbi special accounts.

Chapter III Supplementary Provisions

Article 16

Foreign-capital banks shall, in accordance with the Interim Measures for Administration of Verification of Import Payment of Foreign
Exchange and other relevant provisions, undergo the relevant formalities of verification of import payment of foreign exchange for
their clients and render cooperation in the work in relation to the verification of export collection of foreign exchange.

Article 17

For the purpose of avoiding the risks of foreign exchange rates by clients with forward trade contracts, foreign-capital banks may,
upon approval, conduct the businesses of forward transactions between Renminbi and foreign exchange and other value-preservation
business in accordance with the relevant provisions.

Article 18

Foreign-capital banks shall every day submit their Daily Statement of Renminbi Special Accounts Balance for Settlement and Sale of
foreign exchange of Banks with Foreign Investment to the local branches of the State Administration of Foreign Exchange and the statements
required by the State Administration of Foreign Exchange. When the daily balance of account funds exceeds the amount of a special
account for settlement and sale of foreign exchange verified by the State Administration of Foreign Exchange, the bank shall report
the matter to the foreign exchange bureau on its initial.

Article 19

The foreign exchange bureaus shall, in accordance with the provisions, supervise and examine the business operations of settlement
and sale of and payment in foreign exchange and the uses of Renminbi special accounts for settlement and sale of foreign exchange
by foreign-capital banks with foreign investment.

Article 20

Where the relevant provisions of these Rules are violated, the foreign exchange bureau may, in accordance with the Regulations of
the People’s Republic of China on Foreign Exchange Control, give a warning, issue a notice of criticism, impose a fine or have the
business operations of settlement and sale of and payment in foreign exchange suspended.

Article 21

The State Administration of Foreign Exchange shall be responsible for the interpretation of these Rules.

Article 22

These Rules shall enter into force as of July 1, 1996. The Interim Provisions on Renminbi Special Accounts of Foreign-capital Banks
shall be repealed simultaneously.

The People’s Bank of China
1996-06-18

MEASURES FOR ADMINISTRATION OF GUARANTEES OVERSEAS BY INSTITUTIONS WITHIN THE CHINESE TERRITORY

The People’s Bank of China

Decree of the People’s Bank of China

No.3

According to the Guarantee Law of the People’s Republic of China and other relevant State administrative regulations governing foreign
exchange, the People’ bank of China has drew the Measures for Administration of Guarantees Overseas by Institutions within the Chinese
Territory, it is hereby promulgated and shall enter into force as of October 1,1996.

President of the People’s Bank of China: Dai Xianglong

September 25, 1996

Measures for Administration of Guarantees Overseas by Institutions within the Chinese Territory

Article 1

These Measures are formulated with a view to promoting foreign economic and technological cooperation, supporting the development
of foreign trade, promoting labour export, and import of foreign advanced technology, equipment and funds, smoothly carrying foreign
financial activities, standardizing activities of and improving the administration of guarantees to overseas entities in line with
“The Guarantee Law of the People’s Republic of China” and relevant State administrative regulations governing foreign exchange.

Article 2

Guarantees made overseas referred to in these Measures are guarantees in the forms of guarantee letters, stand-by letters of credit,
cashiers’ checks and drafts, mortgages by properties stipulated in Article 34 of the “Guarantee Law of the People’s Republic of
China”, hypothecation by moving properties stipulated in Section 1 of Chapter 4 of the “Guarantee Law of PRC” or by rights stipulated
in Article 75 of the above-mentioned “Guarantee Law” provided by institutions within Chinese territory (excluding financial institutions
with foreign investment inside China, hereinafter referred to as the guarantors) to institutions outside China or financial institutions
with foreign investment inside China (creditors or beneficiaries, hereinafter referred to as the creditors) with the pledges that
when the debtors (hereinafter referred to as the guaranteed) fail to repay the debts in line with the contracts, the guarantors shall
perform the obligation of repayment. Such guarantees include:

(1)

call money guarantee;

(2)

guarantees for the lease of call money;

(3)

guarantees for accounts under compensation trade;

(4)

guarantees for the contracted engineering projects outside China; and

(5)

guarantees for others with the nature of foreign debts

Guarantors should not provide such guarantees in the form of lien or deposits.

The guarantees provided to the financial institutions with foreign investment inside China is regarded as made overseas.

Article 3

The People’s Bank of China empowers the State Administration for Exchange Control and its subdivisions (hereinafter referred to as
the SAEC) to be responsible for the examination, approval, administration and registration of guarantees made overseas.

Article 4

Guarantors as stipulated in these Measures are:

(1)

financial institutions which have been empowered of making guarantees overseas (excluding financial institutions with foreign investment);
and

(2)

non-financial enterprise legal persons that have the capacity to pay off the debts, including Chinese enterprises and enterprises
with foreign investment.

State organs and institutions cannot provide guarantees overseas except for sub-lending of loans provided for by foreign governments
or international economic organizations.

Article 5

The combined balances of guarantees made overseas, forex guarantees within Chinese territory and foreign exchange debts of a financial
institution cannot exceed 20 times their forex funds.

The balance of guarantees made overseas provided by a non-financial institution legal person cannot exceed 50% of its net assets or
its forex revenue in the preceding year.

Article 6

Chinese enterprises can only provide such guarantees for the sub-divisions directly subordinate to it or for the foreign debts of
the investment of the Chinese side of a stock enterprise.

For providing guarantees overseas, the ratio between the net assets and total assets of a Chinese trade enterprise cannot be lower
than 15% in principle.

For providing guarantees overseas the ratio between the net assets and total assets of a Chinese non-trade enterprise cannot be lower
than 30% in principle.

Article 7

Guarantors should not provide guarantee for money-losing overseas enterprises.

Article 8

When providing guarantees for enterprises with foreign investment (excluding solely foreign-owned enterprises), the guarantors should
adhere to the principle of jointly undertaking risks and sharing profits, and at the same time, the use of foreign loans of the guaranteed
should accord with the State industrial policy, and the loans cannot be converted into Renminbi for use without approval.

Guarantors should not provide guarantees for registered capital of enterprises with foreign investment.

Apart from the enterprises with foreign investment, guarantors should not provide guarantees for the foreign debts of investment by
the foreign side of a enterprise with foreign investment.

Article 9

While examining and approving the guarantee provided to a trade enterprise outside China by a guarantor, the SAEC shall examine the
trade scope, the ratio between assets and debts, losses and benefits of the guaranteed, and then appraise and decide the ceiling
of guarantee the guaranteed shall receive.

While examining and approving a guarantee provided to a project contractor outside China by a guarantor, the SAEC shall examine the
amount and risks of the contracted project, the ratio between the assets and debts, losses and benefits of the guaranteed, and then
appraise and decide the ceiling of guarantee the guaranteed shall receive.

Article 10

Terms of reference for examining and approving guarantees overseas:

(1)

In providing guarantee overseas for Chinese enterprises and such guarantees within one year (including one year) for enterprises with
foreign investment, guarantors should report to the SAEC of its province, autonomous region, municipality directly under the Central
Government, municipality separately listed on the State plan or of the special economic zone for examination and approval; and

(2)

In providing guarantees of more than one year (excluding one year) to enterprises with foreign investment and to institutions outside
China, guarantors should report to the SAEC of its province, autonomous region, municipality directly under the Central Government,
municipality separately listed on the State plan or of the special economic zone for initial examination and then to the country’s
SAEC for examination and approval.

Article 11

Guarantors should provide part or all of the following materials to the SAEC in going through the formalities of reporting its deal
for approval:

(1)

the approved feasibility study report of the project to be guaranteed and other approved related documents;

(2)

the balance sheets (consolidated balance sheets if the guaranteed is a group company) as audited by certified accountants;

(3)

the profit and loss report of the guaranteed which has been audited by the certified accountants;

(4)

the letter of intent of the guarantee contract;

(5)

the major debt contract or letter of intent under the guaranteed project and other related documents;

(6)

relevant materials as stipulated in Articles 8 and 9 of these Measures; and

(7)

other materials as required by the SAEC.

Article 12

Guarantors can only provide guarantees overseas upon approvals by SAEC.

Article 13

In providing guarantee overseas, guarantors should conclude written contracts with the creditors and the guaranteed, agreeing on the
following rights and obligations of each party:

(1)

Guarantors have the right to supervise the funds and properties of the guaranteed;

(2)

After provision of guarantees, creditors and guaranteed should have the agreement of guarantors if they need to revise the guarantee
contract and the guarantors should report the revision to the SAEC for examination and approval; otherwise the guarantors should
automatically be relieved of their obligations;

(3)

After their providing guarantee overseas, the guarantors should, within the terms of validity of the contracts, perform their obligations
as stipulated in the contracts. Guarantors that have performed their obligations have the right to seek compensations from the guaranteed;

(4)

After providing guarantee overseas, guarantors concerned should automatically be relieved of their obligations if the creditors fail
to perform their obligations as set in the debt contracts within the term of validity of the guarantee contracts;

(5)

Guarantors have the right to ask the guaranteed to carry out the counter-guarantee measures or provide corresponding mortgages; and

(6)

Guarantors have the right to collect the agreed guarantee charges.

Article 14

After providing guarantee overseas, guarantors should go to the local SAEC to go through the formalities of guarantee registration.

After providing guarantee overseas, non-financial institutions should, within 15 days beginning from dates when guarantee contracts
are concluded, go to the local SAEC to fill out the “Guarantee Overseas Registration Form”; collect the “Guarantee Overseas Registration
Book”; draw and remit the forex needed by the guarantee contracts upon the check and approval of the local SAEC, and correspondingly
reduce the balances of the guarantee and debts.

Financial institutions should fill out the “Guarantee Overseas Feedback Form” within 15 days following the end of each month and report
the debt of preceding month every month.

Article 15

If an extension is needed upon the expiration of a guarantee, the guarantor should go to the local SAEC to go through the formalities
of extension 30 days prior to the expiration of the debts and the SAEC shall examine and approve according to the terms of reference
set in Article 10 of these Measures.

Article 16

Non-financial institution guarantors should return the “Foreign Guarantee Registration Book” to the original issuing SAEC and handle
the writing-off formalities within 15 days beginning from the date when the debts under the guarantee account are due, the guarantee
obligations are completed or other cases that lead to the suspension of the guarantee contracts. Financial institution guarantors
should go through the writing-off formalities.

Article 17

If a guarantor provides guarantee overseas without approval, foreign guarantee contract it concludes is invalid.

If a guarantor provides guarantee overseas without approval or without registration after it has done so, the SAEC shall, according
to the cases, issue a warning, or a criticism by way of issuing a notice, suspend or cancel the guarantee business of the guarantor.

Article 18

These Measures apply to the counter-guarantees overseas.

Article 19

These Measures shall enter into force as of October 1, 1996. “Measures for the Administration of Foreign Exchange Guarantees by Resident
Institutions In China” promulgated on September 26, 1991 are nullified at the same time. The SAEC is enpost_titled to interpret these
Measures.

The People’s Bank of China
1996-09-25

CRIMINAL PROCEDURE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

Criminal Procedure Law of the People’s Republic of China

March 17, 1996

(Adopted at the Second Session of the Fifth National People’s Congress on July 1, 1979, Revised in according with the Decision on
Revising the Criminal Procedure Law of the People’s Republic of China adopted at the Forth Session of the Eighth National People’s
Congress on March 17, 1996)

ContentsPart One General Provisions

Chapter I Aim and Basic Principles

Chapter II Jurisdiction

Chapter III Withdrawal

Chapter IV Defence and Representation

Chapter V Evidence

Chapter VI Compulsory Measures

Chapter VII Incidental Civil Actions

Chapter VIII Time Periods and Service

Chapter IX Other Provisions

Part Two Filing a Case, Investigation, and Initiation of Public Prosecution

Chapter I Filing a Case

Chapter II Investigation

Section 1 General Provisions

Section 2 Interrogation of the Criminal Suspect

Section 3 Questioning of the Witnesses

Section 4 Inquest and Examination

Section 5 Search

Section 6 Seizure of Material Evidence and Documentary Evidence

Section 7 Expert Evaluation

Section 8 Wanted Orders

Section 9 Conclusion of Investigation

Section 10 Investigation of Cases Directly Accepted by the People’s Procuratorates

Chapter III Initiation of Public Prosecution

Part Three Trial

Chapter I Trial Organizations

Chapter II Procedure of First Instance

Section 1 Cases of Public Prosecution

Section 2 Cases of Private Prosecution

Section 3 Summary Procedure

Chapter III Procedure of Second Instance

Chapter IV Procedure for Review of Death Sentences

Chapter V Procedure for Trial Supervision

Part Four Execution

Supplementary Provisions

Part One General Provisions

Chapter I Aim and Basic Principles

Article 1

This Law is enacted in accordance with the Constitution and for the purpose of ensuring correct enforcement of the Criminal Law, punishing
crimes, protecting the people, safeguarding State and public security and maintaining socialist public order.

Article 2

The aim of the Criminal Procedure Law of the People’s Republic of China is: to ensure accurate and timely ascertainment of facts about
crimes, correct application of law, punishment of criminals and protection of the innocent against being investigated for criminal
responsibility; to enhance the citizens’ awareness of the need to abide by law and to fight vigorously against criminal acts in order
to safeguard the socialist legal system, to protect the citizens’ personal rights; their property rights, democratic rights and other
rights; and to guarantee smooth progress of the cause of socialist development.

Article 3

The public security organs shall be responsible for investigation, detention, execution of arrests and preliminary inquiry in criminal
cases. The People’s Procuratorates shall be responsible for procuratorial work, authorizing approval of arrests, conducting investigation
and initiating public prosecution of cases directly accepted by the procuratorial organs. The People’s Courts shall be responsible
for adjudication. Except as otherwise provided by law, no other organs, organizations or individuals shall have the authority to
exercise such powers.

In conducting criminal proceedings, the People’s Courts, the People’s Procuratorates and the public security organs must strictly
observe this Law and any relevant stipulations of other laws.

Article 4

State security organs shall, in accordance with law, handle cases of crimes that endanger State security, performing the same functions
and powers as the public security organs.

Article 5

The People’s Courts shall exercise judicial power independently in accordance with law and the People’s Procuratorates shall exercise
procuratorial power independently in accordance with law, and they shall be free from interference by any administrative organ, public
organization or individual.

Article 6

In conducting criminal proceedings, the People’s Courts, the People’s Procuratorates and the public security organs must rely on the
masses, base themselves on facts and take law as the criterion. The law applies equally to all citizens and no privilege whatsoever
is permissible before law.

Article 7

In conducting criminal proceedings, the People’s Courts, the People’s Procuratorates and the public security organs shall divide responsibilities,
coordinate their efforts and check each other to ensure the correct and effective enforcement of law.

Article 8

The People’s Procuratorates shall, in accordance with law, exercise legal supervision over criminal proceedings.

Article 9

Citizens of all nationalities shall have the right to use their native spoken and written languages in court proceedings. The People’s
Courts, the People’s Procuratorates and the public security organs shall provide translations for any party to the court proceedings
who is not familiar with the spoken or written language commonly used in the locality.

Where people of a minority nationality live in a concentrated community or where a number of nationalities live together in one area,
court hearings shall be conducted in the spoken language commonly used in the locality, and judgments, notices and other documents
shall be issued in the written language commonly used in the locality.

Article 10

In trying cases, the People’s Courts shall apply the system whereby the second instance is final.

Article 11

Cases in the People’s Courts shall be heard in public, unless otherwise provided by this Law. A defendant shall have the right to
defence, and the People’s Courts shall have the duty to guarantee his defence.

Article 12

No person shall be found guilty without being judged as such by a People’s Court according to law.

Article 13

In trying cases, the People’s Courts shall apply the system of people’s assessors taking part in trials in accordance with this Law.

Article 14

The People’s Courts, the People’s Procuratorates and the public security organs shall safeguard the procedural rights to which participants
in proceedings are enpost_titled according to law.

In cases where a minor under the age of 18 commits a crime, the criminal suspect and the legal representative of the defendant may
be notified to be present at the time of interrogation and trial.

Participants in proceedings shall have the right to file charges against judges, procurators and investigators whose acts infringe
on their citizen’s procedural rights or subject their persons to indignities.

Article 15

In any of the following circumstances, no criminal responsibility shall be investigated; if investigation has already been undertaken,
the case shall be dismissed, or prosecution shall not be initiated, or the handling shall be terminated, or innocence shall be declared:

(1)

if an act is obviously minor, causing no serious harm, and is therefore not deemed a crime;

(2)

if the limitation period for criminal prosecution has expired;

(3)

if an exemption of criminal punishment has been granted in a special amnesty decree;

(4)

if the crime is to be handled only upon complaint according to the Criminal Law, but there has been no complaint or the complaint
has been withdrawn;

(5)

if the criminal suspect or defendant is deceased; or

(6)

if other laws provide an exemption from investigation of criminal responsibility.

Article 16

Provisions of this Law shall apply to foreigners who commit crimes for which criminal responsibility should be investigated.

If foreigners with diplomatic privileges and immunities commit crimes for which criminal responsibility should be investigated, those
cases shall be resolved through diplomatic channels.

Article 17

In accordance with the international treaties which the People’s Republic of China has concluded or acceded to or on the principle
of reciprocity, the judicial organs of China and that of other countries may request judicial assistance from each other in criminal
affairs.

Chapter II Jurisdiction

Article 18

Investigation in criminal cases shall be conducted by the public security organs, except as otherwise provided by law.

Crimes of embezzlement and bribery, crimes of dereliction of duty committed by State functionaries, and crimes involving violations
of a citizen’s personal rights such as illegal detention, extortion of confessions by torture, retaliation, frame-up and illegal
search and crimes involving infringement of a citizen’s democratic rights — committed by State functionaries by taking advantage
of their functions and powers — shall be placed on file for investigation by the People’s Procuratorates. If cases involving other
grave crimes committed by State functionaries by taking advantage of their functions and powers need be handled directly by the People’s
Procuratorates, they may be placed on file for investigation by the People’s Procuratorates upon decision by the People’s Procuratorates
at or above the provincial level.

Cases of private prosecution shall be handled directly by the People’s Courts.

Article 19

The Primary People’s Courts shall have jurisdiction as courts of first instance over ordinary criminal cases; however, those cases
which fall under the jurisdiction of the People’s Courts at higher levels as stipulated by this Law shall be exceptions.

Article 20

The Intermediate People’s Courts shall have jurisdiction as courts of first instance over the following criminal cases:

(1)

counterrevolutionary cases and cases endangering State security;

(2)

ordinary criminal cases punishable by life imprisonment or the death penalty; and

(3)

criminal cases in which the offenders are foreigners.

Article 21

The Higher People’s Courts shall have jurisdiction as courts of first instance over major criminal cases that pertain to an entire
province (or autonomous region, or municipality directly under the Central Government).

Article 22

The Supreme People’s Court shall have jurisdiction as the court of first instance over major criminal cases that pertain to the whole
nation.

Article 23

When necessary, People’s Courts at higher levels may try criminal cases over which People’s Courts at lower levels have jurisdiction
as courts of first instance; If a People’s Court at a lower level considers the circumstances of a criminal case in the first instance
to be major or complex and to necessitate a trial by a People’s Court at a higher level, it may request that the case be transferred
to the People’s Court at the next higher level for trial.

Article 24

A criminal case shall be under the jurisdiction of the People’s Court in the place where the crime was committed. If it is more appropriate
for the case to be tried by the People’s Court in the place where the defendant resides, then that court may have jurisdiction over
the case.

Article 25

When two or more People’s Courts at the same level have jurisdiction over a case, it shall be tried by the People’s Court that first
accepted it. When necessary the case may be transferred for trial to the People’s Court in the principal place where the crime was
committed.

Article 26

A People’s Court at a higher level may instruct a People’s Court at a lower level to try a case over which jurisdiction is unclear
and may also instruct a People’s Court at a lower level to transfer the case to another People’s Court for trial.

Article 27

The jurisdiction over cases in special People’s Courts shall be stipulated separately.

Chapter III Withdrawal

Article 28

In any of the following situations, a member of the judicial, procuratorial or investigatory personnel shall voluntarily withdraw,
and the parties to the case and their legal representatives shall have the right to demand his withdrawal:

(1)

if he is a party or a near relative of a party to the case;

(2)

if he or a near relative of his has an interest in the case;

(3)

if he has served as a witness, expert witness, defender or agent ad litem in the current case; or

(4)

if he has any other relations with a party to the case that could affect the impartial handling of the case.

Article 29

Judges, procurators or investigators shall not accept invitations to dinner or presents from the parties to a case or the persons
entrusted by the parties and shall not in violation of regulations meet with the parties to a case or the persons entrusted by the
parties.

Any judge, procurator or investigator who violates the provisions in the preceding paragraph shall be investigated for legal responsibility.
The parties to the case and their legal representatives shall have the right to request him to withdraw.

Article 30

The withdrawal of a judge, procurator and investigator shall be determined respectively by the president of the court, the chief procurator,
and the head of a public security organ; the withdrawal of the president of the court shall be determined by the court’s judicial
committee; and the withdrawal of the chief procurator or the head of a public security organ shall be determined by the procuratorial
committee of the People’s Procuratorate at the corresponding level.

An investigator may not suspend investigation of a case before a decision is made on his withdrawal.

If a decision has been made to reject his application for withdrawal, the party or his legal representative may apply for reconsideration
once.

Article 31

The provisions of Articles 28, 29 and 30 of this Law shall also apply to court clerks, interpreters and expert witnesses.

Chapter IV Defence and Representation

Article 32

In addition to exercising the right to defend himself, a criminal suspect or a defendant may entrust one or two persons as his defenders.
The following persons may be entrusted as defenders:

(1)

lawyers;

(2)

persons recommended by a public organization or the unit to which the criminal suspect or the defendant belongs; and

(3)

guardians or relatives and friends of the criminal suspect or the defendant.

Persons who are under criminal punishment or whose personal freedom is deprived of or restricted according to law shall not serve
as defenders.

Article 33

A criminal suspect in a case of public prosecution shall have the right to entrust persons as his defenders from the date on which
the case is transferred for examination before prosecution. A defendant in a case of private prosecution shall have the right to
entrust persons as his defenders at any time.

A People’s Procuratorate shall, within three days from the date of receiving the file record of a case transferred for examination
before prosecution, inform the criminal suspect that he has the right to entrust persons as his defenders. A People’s Court shall,
within three days from the date of accepting a case of private prosecution, inform the defendant that he has the right to entrust
persons as his defenders.

Article 34

If a case is to be brought in court by a public prosecutor and the defendant involved has not entrusted anyone to be his defender
due to financial difficulties or other reasons, the People’s Court may designate a lawyer that is obligated to provide legal aid
to serve as a defender.

If the defendant is blind, deaf or mute, or if he is a minor, and thus has not entrusted anyone to be his defender, the People’s Court
shall designate a lawyer that is obligated to provide legal aid to serve as a defender.

If there is the possibility that the defendant may be sentenced to death and yet he has not entrusted anyone to be his defender, the
People’s Court shall designate a lawyer that is obligated to provide legal aid to serve as a defender.

Article 35

The responsibility of a defender shall be to present, according to the facts and law, materials and opinions proving the innocence
of the criminal suspect or defendant, the pettiness of his crime and the need for a mitigated punishment or exemption from criminal
responsibility, thus safeguarding the lawful rights and interests of the criminal suspect or the defendant.

Article 36

Defence lawyers may, from the date on which the People’s Procuratorate begins to examine a case for prosecution, consult, extract
and duplicate the judicial documents pertaining to the current case and the technical verification material, and may meet and correspond
with the criminal suspect in custody. Other defenders, with permission of the People’s Procuratorate, may also consult, extract and
duplicate the above-mentioned material, meet and correspond with the criminal suspect in custody.

Defence lawyers may, from the date on which the People’s Court accepts a case, consult, extract and duplicate the material of the
facts of the crime accused in the current case, and may meet and correspond with the defendant in custody. Other defenders, with
permission of the People’s Court, may also consult, extract and duplicate the above-mentioned material, and may meet and correspond
with the defendant in custody.

Article 37

Defence lawyers may, with the consent of the witnesses or other units and individuals concerned, collect information pertaining to
the current case from them and they may also apply to the People’s Procuratorate or the People’s Court for the collection and obtaining
of evidence, or request the People’s Court to inform the witnesses to appear in court and give testimony.

With permission of the People’s Procuratorate or the People’s Court and with the consent of the victim, his near relatives or the
witnesses provided by the victim, defence lawyers may collect information pertaining to the current case from them.

Article 38

Defense lawyers and other defenders shall not help the criminal suspects or defendants to conceal, destroy or falsify evidence or
to tally their confessions, and shall not intimidate or induce the witnesses to modify their testimony or give false testimony or
conduct other acts to interfere with the proceedings of the judicial organs.

Whoever violates the provisions of the preceding paragraph shall be investigated for legal responsibility according to law.

Article 39

During a trial, the defendant may refuse to have his defendant continue to defend him and may entrust his defence to another defender.

Article 40

A victim in a case of public prosecution, his legal representatives or near relatives, and a party in an incidental civil action and
his legal representatives shall, from the date on which the case is transferred for examination before prosecution, have the right
to entrust agents ad litem. A private prosecutor in a case of private prosecution and his legal representatives, and a party in an
incidental civil action and his legal representatives shall have the right to entrust agents ad litem at any time.

The People’s Procuratorate shall, within three days from the date of receiving the file record of a case transferred for examination
before prosecution, notify the victim and his legal representatives or near relatives and the party in an incidental civil action
and his legal representatives that they have the right to entrust agents ad litem. The People’s Court shall, within three days from
the date of accepting a case of private prosecution, notify the private prosecutor and his legal representatives and the party in
an incidental civil action and his legal representatives that they have the right to entrust agents ad litem.

Article 41

With regard to entrusting of agents ad litem, the provisions of Article 32 of this Law shall be applied mutatis mutandis.

Chapter V Evidence

Article 42

All facts that prove the true circumstances of a case shall be evidence.

There shall be the following seven categories of evidence:

(1)

material evidence and documentary evidence;

(2)

testimony of witnesses;

(3)

statements of victims;

(4)

statements and exculpations of criminal suspects or defendants;

(5)

expert conclusions;

(6)

records of inquests and examination; and

(7)

audio-visual materials.

Any of the above evidence must be verified before it can be used as the basis for deciding cases.

Article 43

Judges, procurators and investigators must, in accordance with the legally prescribed process, collect various kinds of evidence that
can prove the criminal suspect’s or defendant’s guilt or innocence and the gravity of his crime. It shall be strictly forbidden to
extort confessions by torture and to collect evidence by threat, enticement, deceit or other unlawful means. Conditions must be guaranteed
for all citizens who are involved in a case or who have information about the circumstances of a case to objectively and fully furnish
evidence and, except in special circumstances, they may be brought in to help the investigation.

Article 44

The public security organ’s requests for approval of arrest, the People’s Procuratorate’s bills of prosecution and the People’s Court’s
written judgments must be faithful to the facts. The responsibility of anyone who intentionally conceals the facts shall be investigated.

Article 45

The People’s Courts, the People’s Procuratorates and the public security organs shall have the authority to collect or obtain evidence
from the units and individuals concerned. The units and individuals concerned shall provide truthful evidence.

Evidence involving State secrets shall be kept confidential.

Anyone that falsifies, conceals or destroys evidence, regardless of which side of a case he belongs to, must be investigated under
law.

Article 46

In the decision of all cases, stress shall be laid on evidence, investigation and study; credence shall not be readily given to oral
statements. A defendant cannot be found guilty and sentenced to a criminal punishment if there is only his statement but no evidence;
the defendant may be found guilty and sentenced to a criminal punishment if evidence is sufficient and reliable, even without his
statement.

Article 47

The testimony of a witness may be used as a basis in deciding a case only after the witness has been questioned and cross-examined
in the courtroom by both sides, that is, the public prosecutor and victim as well as the defendant and defenders, and after the testimonies
of the witnesses on all sides have been heard and verified. If a court discovers through investigation that a witness has intentionally
given false testimony or concealed criminal evidence, it shall handle the matter in accordance with law.

Article 48

All those who have information about a case shall have the duty to testify.

Physically or mentally handicapped persons or minors who cannot distinguish right from wrong or cannot properly express themselves
shall not be qualified as witnesses.

Article 49

The People’s Courts, the People’s Procuratorates and the public security organs shall insure the safety of witnesses and their near
relatives.

Anyone who intimidates, humiliates, beats or retaliates against a witness or his near relatives, if his act constitutes a crime, shall
be investigated for criminal responsibility according to law; if the case is not serious enough for criminal punishment, he shall
be punished for violation of public security in accordance with law.

Chapter VI Compulsory Measures

Article 50

The People’s Courts, the People’s Procuratorates and the public security organs may, according to the circumstances of a case, issue
a warrant to compel the appearance of the criminal suspect or defendant, order him to obtain a guarantor pending trial or subject
him to residential surveillance.

Article 51

The People’s Courts, the People’s Procuratorates and the public security organs may allow criminal suspects or defendants under any
of the following conditions to obtain a guarantor pending trial or subject them to residential surveillance:

(1)

They may be sentenced to public surveillance, criminal detention or simply imposed with supplementary punishments; or

(2)

They may be imposed with a punishment of fixed-term imprisonment at least and would not endanger society if they are allowed to obtain
a guarantor pending trial or are placed under residential surveillance.

The public security organs shall execute the decision on allowing a criminal suspect or defendant to obtain a guarantor pending trial
or on subjecting him to residential surveillance.

Article 52

A criminal suspect or defendant in custody and his legal representatives or near relatives shall have the right to apply for obtaining
a guarantor pending trial.

Article 53

If the People’s Courts, the People’s Procuratorates or the public security organs decide to allow a criminal suspect or defendant
to obtain a guarantor pending trial, they shall order the criminal suspect or defendant to provide a guarantor or pay guaranty money.

Article 54

A guarantor must be a person who meets the following conditions:

(1)

to be not involved in the current case;

(2)

to be able to perform a guarantor’s duties;

(3)

to be enpost_titled to political rights and not subjected to restriction of personal freedom; and

(4)

to have a fixed domicile and steady income.

Article 55

A guarantor shall perform the following duties:

(1)

to see to it that the person under his guarantee observes the provisions of Article 56 of this Law; and

(2)

to promptly report to the executing organ when finding that the person under his guarantee may commit or has already committed acts
in violation of the provisions of Article 56 of this Law.

If the guarantor fails to report promptly when the person under his guarantee has committed an act in violation of the provisions
of Article 56 of this Law, he shall be fined. If the case constitutes a crime, criminal responsibility shall be investigated according
to law.

Article 56

A criminal suspect or defendant who has obtained a guarantor pending trial shall observe the following provisions:

(1)

not to leave the city or county where he resides without permission of the executing organ;

(2)

to be present in time at a court when summoned;

(3)

not to interfere in any form with the witness when the latter gives testimony; and

(4)

not to destroy or falsify evidence or tally confessions.

If a criminal suspect or defendant who has obtained a guarantor pending trial violates the provisions of the preceding paragraph,
the guaranty money paid shall be confiscated. In addition, in light of specific circumstances, the criminal suspect or defendant
shall be ordered to write a statement of repentance, pay guaranty money or provide a guarantor again, or shall be subjected to residential
surveillance or arrested. If a criminal suspect or defendant is found not to have violated the provisions in the preceding paragraph
during the period when he has obtained a guarantor pending trial, the guaranty money shall be returned to him at the end of the period.

Article 57

A criminal suspect or defendant under residential surveillance shall observe the following provisions:

(1)

not to leave his domicile without permission of the executing organ or, if he has no fixed domicile, not to leave the designated residence
without permission;

(2)

not to meet with others without permission of the executing organ;

(3)

to be present in time at a court when summoned;

(4)

not to interfere in any form with the witness when the latter gives testimony; and

(5)

not to destroy or falsify evidence or tally confessions.

If a criminal suspect or defendant under residential surveillance violates the provisions of the preceding paragraph and if the case
is serious, he shall be arrested.

Article 58

The period granted by a People’s Court, People’s Procuratorate or public security organ to a criminal suspect or defendant for awaiting
trial after obtaining a guarantor shall not exceed twelve months; the period for residential surveillance shall not exceed six months.

During the period when the criminal suspect or defendant is awaiting trial after obtaining a guarantor or when he is under residential
surveillance, investigation, prosecution and handling of the case shall not be suspended. If it is discovered that the criminal suspect
or the defendant should not be investigated for criminal responsibility or when the period for awaiting trial after obtaining a guarantor
or the period of residential surveillance has expired, such period shall be terminated without delay. The person who has obtained
a guarantor pending trial or who is under residential surveillance and the units concerned shall be notified of the termination immediately.

Article 59

Arrests of criminal suspects or defendants shall be subject to approval by a People’s Procuratorate or decision by a People’s Court
and shall be executed by a public security organ.

Article 60

When there is evidence to support the facts of a crime and the criminal suspect or defendant could be sentenced to a punishment of
not less than imprisonment, and if such measures as allowing him to obtain a guarantor pending trial or placing him under residential
surveillance would be insufficient to prevent the occurrence of danger to society, thus necessitating his arrest, the criminal suspect
or defendant shall be immediately arrested according to law.

If a criminal suspect or defendant who should be arrested is seriously ill or is a pregnant woman or a woman breast-feeding her own
baby, he or she may be allowed to obtain a guarantor pending trial or be placed under residential surveillance.

Article 61

Public security organs may initially detain an active criminal or a major suspect under any of the following conditions:

(1)

if he is preparing to commit a crime, is in the process of committing a crime or is discovered immediately after committing a crime;

(2)

if he is identified as having committed a crime by a victim or an eyewitness;

(3)

if criminal evidence is found on his body or at his residence;

(4)

if he attempts to commit suicide or escape after committing a crime, or he is a fugitive;

(5)

if there is likelihood of his destroying or falsifying evidence or tallying confessions;

(6)

if he does not tell his true name and address and his identity is unknown; and

(7)

if he is strongly suspected of committing crimes from one place to another, repeatedly, or in a gang.

Article 62

When a public security organ is to detain or arrest a person in another place, it shall inform the public security organ in the place
where the person to be detained or arrested stays, and the public security organ there shall cooperate in the action.

Article 63

The persons listed below may be seized outright by any citizen and delivered to a public security organ, a Peopl

CRIMINAL PROCEDURE LAW

Category	LITIGATION	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-03-17	Effective Date	1997-01-01

Criminal Procedure Law of the People’s Republic of China [1996]

Contents
Chapter I  Aim and Basic Principles
Chapter II  Jurisdiction
Chapter III  Withdrawal
Chapter IV  Defense and Procuration
Chapter V  Evidence
Chapter VI  Compulsory Measures
Chapter VII  Incidental Civil Actions
Chapter VIII  Time Periods and Service
Chapter IX  Other Provisions
Chapter I  Filing a Case
Chapter II  Investigation
Chapter III  Initiation of Public Prosecution
Chapter I  Trial Organizations
Chapter II  Procedure of First Instance
Chapter III  Procedure of Second Instance
Chapter IV  Procedure for Review of Death Sentences
Chapter V  Procedure for Trial Supervision
Supplementary Provisions

(Adopted at the Second Session of the Fifth National People’s Congress on

July 1, 1979, revised in accordance with the Decision on Amendments of the
Criminal Procedure Law of the People’s Republic of China adopted at the
Fourth Session of the Eighth National People’s Congress on March 17, 1996)
Contents

Part One General Provisions

Chapter I Aim and Basic Principles

Chapter II Jurisdiction

Chapter III Withdrawal

Chapter IV Defense and Procuration

Chapter V Evidence

Chapter VI Compulsory Measures

Chapter VII Incidental Civil Actions

Chapter VIII Time Periods and Service

Chapter IX Other Provisions

Part Two Filing a Case, Investigation and Initiation of Public Prosecution

Chapter I Filing a Case

Chapter II Investigation

Section 1 General Provisions

Section 2 Interrogation of the Criminal Suspect

Section 3 Questioning of the Witnesses

Section 4 Inquest and Examination

Section 5 Search

Section 6 Seizure of Material Evidence and Documentary Evidence

Section 7 Expert Evaluation

Section 8 Wanted Orders

Section 9 Conclusion of Investigation

Section 10 Investigation of Cases Directly Accepted by People’s

Procuratorates

Chapter III Initiation of Public Prosecution

Part Three Trial

Chapter I Trial Organizations

Chapter II Procedure of First Instance

Section 1 Cases of Public Prosecution

Section 2 Cases of Private Prosecution

Section 3 Summary Procedure

Chapter III Procedure of Second Instance

Chapter IV Procedure for Review of Death Sentences

Chapter V Procedure for Trial Supervision

Part Four Execution

Supplementary Provisions

Part One General Provisions
Chapter I Aim and Basic Principles

Article 1 This Law is enacted in accordance with the Constitution to
guarantee the correct implementation of the Criminal Law, punish crimes,
protect the people, ensure the national security and social public security
and maintain the social order of the socialist society.

Article 2 The Criminal Procedure Law makes it the objective to ensure
the accurate and timely ascertainment through investigation of the criminal
facts, the proper application of the law and punishments of criminals, to
protect innocent people from undergoing criminal prosecution, to educate
citizens to observe law voluntarily and take an active part in the struggle
against criminal acts, to uphold the socialist legal system, to protect the
personal rights, property rights, democratic rights and other rights of
citizens, and to ensure the smooth progress of socialist construction.

Article 3 The public security organs are responsible for investigation,
detention, execution of arrests and preliminary examination. The people’s
procuratorates are responsible for conducting procuratorial work, approving
arrests, investigating cases directly accepted by the procuratorates and
initiating public prosecutions. The people’s courts are responsible for
adjudication. Any other organs, organizations and individuals have no right
to exercise such power, unless otherwise provided by law.

In conducting criminal proceedings, the people’s courts, the people’s
procuratorates and the public security organs must strictly observe this Law
and any relevant stipulations of other laws.

Article 4 The state security organs shall, according to the stipulations
of the law, handle criminal cases endangering the state security and
exercise the functions and power identical with those of the public security
organs.

Article 5 The people’s courts shall, according to the stipulations of the
law, exercise independently judicial power and the people’s procuratorates
shall, according to the stipulations of the law, exercise independently
procuratorial power, both of which shall be free of any interference by
administrative organs, social organizations and individuals.

Article 6 In conducting criminal proceedings, the people’s courts, the
people’s procuratorates and the public security organs must rely on the
masses, base themselves on facts and take the law as the criterion. The law
applies equally to all citizens and no privilege whatsoever is permissible
before the law.

Article 7 In conducting criminal proceedings, the people’s courts, the
people’s procuratorates and the public security organs shall divide the
responsibilities, coordinate their efforts and check each other to ensure the
correct and effective enforcement of the law.

Article 8 The people’s procuratorates shall, according to law, exercise
legal supervision over criminal lawsuits.

Article 9 Citizens of all nationalities shall have the right to use
their native spoken and written languages in court proceedings. The people’s
courts, the people’s procuratorates and the public security organs shall
provide interpretations or translations for any party to the court proceedings
who is not familiar with the spoken or written language commonly used in the
locality.

Where people of a minority nationality live in a concentrated community
or where a number of nationalities live together in one area, court hearings
shall be conducted in the spoken language commonly used in the locality, and
judgments, notices and other documents shall be issued in the written
language commonly used in the locality.

Article 10 In trying cases, the people’s courts shall apply the system
whereby the second instance is final.

Article 11 Cases in the people’s courts shall be heard in public, unless
otherwise provided by this Law. The accused shall have the right to defense,
and the people’s courts shall have the duty to guarantee his/her defense.

Article 12 No person shall be held guilty in absence of a judgment
rendered by the people’s court according to law.

Article 13 In trying cases, the people’s courts shall apply the system
of people’s assessors taking part in trials in accordance with this Law.

Article 14 The people’s courts, the people’s procuratorates and the
public security organs shall safeguard the procedural rights to which
participants in proceedings are enpost_titled according to law.

In cases where a minor under the age of 18 commits a crime, the legal
representative of the criminal suspect or the accused may be notified to be
present at the time of interrogation and trial.

Participants in proceedings shall have the right to file charges against
judicial, procuratorial and investigatory personnel whose acts infringe on
their citizens’ procedural rights or subject their persons to indignities.

Article 15 Subject to one of the following instances, no criminal
responsibility shall be investigated, and if investigation has been
undertaken, the case shall be dismissed, or prosecution shall not be
initiated, or the hearing shall be terminated, or innocence shall be
declared:

(1) If an act is obviously of minor importance, causing no serious harm,
and is therefore not deemed a crime;

(2) If the limitation period for criminal prosecution has expired;

(3) If an exemption of criminal punishment has been granted in a special
amnesty decree;

(4) If the crime is to be handled only upon complaint according to the
Criminal Law, but there has been no complaint or the complaint has been
withdrawn;

(5) If the criminal suspect or the accused is deceased; or

(6) Other instances for which laws provide an exemption from
investigation of criminal responsibility.

Article 16 Provisions of this Law shall apply to foreigners who commit
crimes for which criminal responsibility should be investigated.

If foreigners with diplomatic privileges and immunities commit crimes for
which criminal responsibility should be investigated, those cases shall be
resolved through diplomatic channels.

Article 17 The judicial organs of the country and their counterparts of
foreign countries may mutually request judicial assistance in criminal cases,
in accordance with the international treaties concluded or acceded to by the
People’s Republic of China, or according to reciprocal principle.
Chapter II Jurisdiction

Article 18 Public security organs shall conduct investigations into
criminal cases unless otherwise stipulated by law.

People’s procuratorates shall file cases and conduct investigations into
crimes regarding corruption, crimes regarding dereliction of duty committed
by public employees of the state, crimes regarding infringement on the
personal rights of, and on the democratic rights of, citizens committed by
staff personnel of state organizations by abusing their authority in respect
of illegal detention, extortion by torture of confession, retaliation and
false charges, and illegal rummage. Other cases involving serious crimes
committed by staff personnel of state organizations by abusing their
authority, may be filed with and investigated by people’s procuratorates,
subject to the decision made by the people’s procuratorate at provincial
level or above, when the people’s procuratorate concerned is required to
directly accept the case.

Cases of private prosecution shall be accepted directly by the people’s
courts.

Article 19 The basic people’s courts shall have jurisdiction as courts
of first instance over ordinary criminal cases; however, those cases which
fall under the jurisdiction of the people’s courts at higher levels as
stipulated by this Law shall be exceptions.

Article 20 The intermediate people’s courts shall have jurisdiction as
courts of first instance over the following criminal cases:

(1) Counter-revolutionary cases and cases endangering the national
security;

(2) Ordinary criminal cases possibly resulting in a judgment of life
imprisonment or death penalty; and

(3) Criminal cases involving crimes committed by foreigners.

Article 21 The higher people’s courts shall have jurisdiction as courts
of first instance over major criminal cases that pertain to an entire
province (or municipality directly under the Central Government, or
autonomous region).

Article 22 The Supreme People’s Court shall have jurisdiction as the
court of first instance over major criminal cases that pertain to the whole
nation.

Article 23 When necessary, people’s courts at higher levels may try
criminal cases over which people’s courts at lower levels have jurisdiction
as courts of first instance. If a people’s court at a lower level considers
the circumstances of a criminal case in the first instance to be major or
complex and to necessitate a trial by a people’s court at a higher level, it
may request that the case be transferred to the people’s court at the next
higher level for trial.

Article 24 A criminal case shall be under the jurisdiction of the
people’s court in the place where the crime was committed. If it is more
appropriate for the case to be tried by the people’s court in the place where
the accused resides, then that court may have jurisdiction over the case.

Article 25 When two or more people’s courts at the same level have
jurisdiction over a case, it shall be tried by the people’s court that first
accepted it. When necessary the case may be transferred for trial to the
people’s court in the principal place where the crime was committed.

Article 26 A people’s court at a higher level may instruct a people’s
court at a lower level to try a case over which jurisdiction is unclear and
may also instruct a people’s court at a lower level to transfer the case to
another people’s court for trial.

Article 27 The jurisdiction over cases in special people’s courts shall
be stipulated separately.
Chapter III Withdrawal

Article 28 In any of the following situations, a member of the judicial,
procuratorial or investigatory personnel shall voluntarily withdraw, and the
parties to the case and their legal representatives shall have the right to
demand his withdrawal:

(1) If he/she is a party or a near relative of a party to the case;

(2) If he/she or a near relative of his/her has an interest in the case;

(3) If he/she has served as a witness, expert witness or defender in the
current case or has represented a party in an incidental civil action; or

(4) If he/she has any other relations with a party to the case that could
affect the impartial handling of the case.

Article 29 Judicial, procuratorial and investigatory personnel shall not
be allowed to accept invitation to entertainment or gifts by the party and
the persons entrusted by him/her, or shall not be allowed to meet, in
violation of stipulations, the party and the persons entrusted by him/her.

Judicial personnel, procuratorial personnel and investigatory personnel
who have violated the provisions in the preceding paragraph, shall according
to law be investigated into the legal responsibility. The party and his/her
legal representative have the right to apply for the withdrawal of the
personnel concerned.

Article 30 The withdrawal of judicial, procuratorial and investigatory
personnel shall be determined respectively by the president of the court, the
chief procurator, and the head of a public security organ; the withdrawal of
the president of the court shall be determined by the court’s judicial
committee; and the withdrawal of the chief procurator or the head of a public
security organ shall be determined by the procuratorial committee of the
people’s procuratorate at the corresponding level.

A member of the investigatory personnel may not suspend investigation of
a case before a decision is made on his/her withdrawal.

In response to the decision on rejection of a party’s application for
withdrawal, the party and his/her legal representative may apply for a final
reconsideration.

Article 31 The provisions of Articles 28, 29 and 30 of this Law shall
also apply to court clerks, interpreters and expert witnesses.
Chapter IV Defense and Procuration

Article 32 In addition to the exercise by himself/herself of the right to
defense, the criminal suspect or the accused may entrust one or two persons
as his/her defenders, and following persons may be entrusted to be defenders:

(1) Lawyers;

(2) Persons recommended by a people’s organization or the unit by which
the criminal suspect or the accused is employed; and

(3) Guardians, relatives and friends of the criminal suspect or the
accused.

The persons undergoing criminal punishments or being deprived of or
restrained from personal liberty according to law shall not act as defenders.

Article 33 The right of a criminal suspect to entrust defenders in
public prosecution accrues on the day when the case is submitted for
examination and prosecution. The accused in a private prosecution has the
right to entrust defenders at any time.

The people’s procuratorate shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the criminal suspect of the right to entrust defenders. The people’s
court shall, within three days from the day of accepting the private
prosecution, inform the accused of the right to entrust defenders.

Article 34 In case a public prosecutor appears in court to conduct a
public prosecution while the accused has not entrusted his/her defenders on
account of economic difficulty or for other reasons, the people’s court may
designate a lawyer duty-bound to provide legal assistance to defend him/her.

In case the accused who is blind, deaf or mute or who is a minor, does
not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

In case the accused who may possibly be sentenced to death penalty
does not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

Article 35 The responsibility of a defender shall be to present,
according to the facts and the law, materials and opinions proving the
innocence of the criminal suspect or the accused, the pettiness of his/her
crime and the need for a mitigated punishment or exemption from criminal
responsibility, thus safeguarding the lawful rights and interests of the
criminal suspect or the accused.

Article 36 The defense lawyer may, from the day of the examination by
the people’s procuratorate of the prosecution case, consult, make extracts
from and reproduce the litigation documents, documents of technical
examination, and may meet and correspond with the criminal suspect in custody.
Other defenders with the permission of the people’s procuratorate may consult,
make extracts from and reproduce the afore-said file documents, and may meet
and correspond with the criminal suspect in custody.

The defense lawyer may, from the day of accepting the case by the people’s
court, consult, make extracts from and reproduce the file documents on
criminal facts accused of, and may meet and correspond with the accused in
custody. Other defenders with the permission of the people’s court may
consult, make extracts from and reproduce the afore-said file documents, and
meet and correspond with the accused in custody.

Article 37 The defense lawyer may, with the consent of the witnesses
or other relevant units and individuals, acquire information related to the
case from them, or may apply to the people’s procuratorate, or the people’s
court for collecting or obtaining by order the evidence, or apply to the
people’s court for notifying witnesses to testify in the court.

The defense lawyer, with the permission of the people’s procuratorate or
people’s court, may with the consent of the victim, his/her near relatives
or the witnesses provided by the victim, acquire information related to the
case from them.

Article 38 The defense lawyer and other defenders shall not assist
the criminal suspects or the accused to conceal, destroy, frame up evidence
or act to collude with each other’s confessions, and shall not threaten,
entice witnesses to make alterations in testimony or give false testimony, and
shall not commit any acts which may cause interference in prosecution
activities conducted by judicial organs.

Legal responsibility shall be investigated into for violating the
provisions of the preceding paragraph.

Article 39 During a trial, the accused may refuse to have his/her
defender continue to defend him/her and may entrust his/her defense to
another defender.

Article 40 The victim and his/her legal representative or near relatives
in public prosecution, the parties and their legal representatives in an
incidental civil action, have the right to entrust agents ad litem from the
day when the case is submitted for examination and prosecution. The
prosecutor and his/her legal representative in private prosecution, the
parties and their legal representatives in an incidental civil action have
the right to entrust agents ad litem at any time.

The people’s procuratorates shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the victim and his/her legal representative or near relatives, the
parties and their legal representatives in an incidental civil action of the
right to entrust agents ad litem. The people’s courts shall, within three
days from the day of accepting a private prosecution, inform the prosecutor
and his/her legal representative, the parties and their legal representatives
in an incidental civil action of the right to entrust agents ad litem.

Article 41 Agents ad litem shall be entrusted by reference to the
stipulations of Article 32 of this Law.
Chapter V Evidence

Article 42 All facts that prove the true circumstances of a case shall
be evidence.

There shall be the following six categories of evidences:

(1) material evidence and documentary evidence;

(2) testimony of witnesses;

(3) statements of victims;

(4) statements and exculpation of criminal suspects or the accused;

(5) expert conclusions;

(6) records of inquests and examination; and

(7) video and audio materials.

Any of the above evidence must be verified before it can be used as the
basis for deciding cases.

Article 43 Judicial, procuratorial and investigatory personnel must, in
accordance with the legally prescribed process, collect various kinds of
evidence that can prove the guilt or innocence of the criminal suspect or the
accused and the gravity of his/her crime. It shall be strictly forbidden to
extort confessions by torture and to collect evidence by threat, enticement,
deceit or other unlawful means. Conditions must be guaranteed for all
citizens who are involved in a case or who have information about the
circumstances of a case to objectively and fully furnish evidence and, except
in special circumstances, they may be brought in to help the investigation.

Article 44 The public security organ’s request for approval of arrest,
the people’s procuratorate’s bills of prosecution and the people’s court’s
written judgments must be faithful to the facts. The responsibility of anyone
who intentionally conceals the facts shall be investigated.

Article 45 The people’s courts, the people’s procuratorates and the
public security organs are empowered to collect, obtain by order evidence
from relevant units and individuals. The relevant units and individuals shall
furnish the true evidence.

Evidence involving state secrets shall be kept confidential.

Anyone that falsifies, conceals or destroys evidence, regardless of which
side of a case he/she belongs to, must be investigated under the law.

Article 46 In the decision of all cases, stress shall be laid on
evidence, investigation and study; credence shall not be readily given to
oral statements. The accused cannot be found guilty and sentenced to a
criminal punishment if there is only his/her statement but no evidence; the
accused may be found guilty and sentenced to a criminal punishment if
evidence is sufficient and reliable, even without his/her statement.

Article 47 The testimony of a witness may be used as a basis in deciding
a case only after the witness has been questioned and cross-examined in the
courtroom by both sides, that is, the public prosecutor and victim as well as
the accused and defenders, and after the testimonies of the witnesses on
all sides have been heard and verified. If a court discovers through
investigation that a witness has intentionally given false testimony or
concealed criminal evidence, it shall handle the matter in accordance with
the law.

Article 48 All those who have information about a case shall have the
duty to testify.

Physically or mentally handicapped persons or minors who cannot
distinguish right from wrong or cannot properly express themselves shall not
be qualified as witnesses.

Article 49 The people’s courts, people’s procuratorates and public
security organs shall guarantee the safety of witnesses and their near
relatives.

Criminal responsibility shall be investigated according to law for
menace, humiliation, beating, retaliation done to witnesses and their near
relatives in case of a crime established; and if the seriousness is not
enough for criminal punishments, an administrative penalty for public
security shall be imposed according to law.
Chapter VI Compulsory Measures

Article 50 The people’s courts, the people’s procuratorates and the
public security organs may, according to the circumstances of a case, summon
by warrant the criminal suspect or the accused, or order him/her to be bailed
out for summons or reside under surveillance.

Article 51 The people’s courts, people’s procuratorates and public
security organs may allow a criminal suspect or the accused to be bailed out
for summons or reside under surveillance, who is subjected to one of the
following conditions:

(1) Being possibly sentenced to surveillance, criminal detention or
incidental punishment independently applicable; or

(2) Being possibly sentenced to a punishment not less than fixed-term
imprisonment, but allowing him/her to be out on bail or reside under
surveillance may not possibly cause danger to the society.

Bail out for summons and reside under surveillance

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SOME ISSUES CONCERNING FOREIGN EXCHANGE MARKET AFTER ENTERPRISES WITH FOREIGN INVESTMENT IMPLEMENTED BANKING FOREIGN EXCHANGE SETTLEMENT AND SALE

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Some Issues Concerning Foreign Exchange Market After Enterprises with
Foreign Investment Implemented Banking Foreign Exchange Settlement and Sale

HuiGuoHanZi [1996] No.183

June 28, 1996

Branches of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, municipalities directly under
the Central Government, municipalities separately listed on the State plan and special economic zones, and the head offices of all
designated Chinese-capital foreign exchange banks, and Foreign Exchange Transaction Center of China:

In order to ensure the smooth operation of the settlement and sale of foreign exchange of enterprises with foreign investment with
the banks, we hereby make some rules concerning foreign exchange market as follows:

The issues concerning the foreign exchange swap business:

(1)

Enterprises with foreign investment can buy or sell foreign exchange through the designated foreign exchange banks or through local
foreign exchange swap centers. All levels of foreign exchange swap centers can continue to conduct foreign exchange transactions
for the enterprises with foreign investment.

(2)

All levels of foreign exchange swap centers or the financial institutions as the members of China Foreign Exchange Trading System
(including branches) that adopts membership system, must check the valid documents and commercial invoices in strict accordance with
the Provisions on Administration of Settlement, Sale of and Payment in Foreign Exchange (Yinfa [1996] No.210 of the People’s Bank
of China) (hereinafter referred to as Provisions). The details are as follows:

For the foreign exchange sale application, it should be differentiated between the foreign exchange settlement account and the foreign
exchange special account first. As for the foreign exchange special account, it should be conducted with the approval of the SAFE.

For the foreign exchange purchase application, it should be conducted according to the following rules:

For the current account foreign exchange demand, the enterprises should hold corresponding valid documents and commercial invoices
respectively according to Article 13 , 14, 15, 16, 18, 21, and 22 of the Regulations. The foreign exchange swap centers or entrusted
financial institutions shall transfer the foreign exchange to the enterprises’ foreign exchange settlement account. But it should
be conducted within 7 working days, and be subject to the foreign exchange settlement account balance limit.

For the capital account foreign exchange demand, the enterprises should hold corresponding documents and approval of the SAFE respectively
according to Article 29 , 30, 31, of the Regulations. The foreign exchange swap centers or entrusted financial institutions shall
transfer the foreign exchange to the enterprises’ foreign exchange special account.

When the swap centers or entrusted financial institutions conduct foreign exchange transactions, they should indicate the trade volume
and date on the original valid documents submitted by the enterprises and stamp, and keep the copy of the valid documents and commercial
invoices for further check. The original valid documents and commercial invoices should be kept by the financial institutions that
conduct foreign exchange transactions for the enterprises.

The settlement time of the foreign exchange market

The settlement time of foreign exchange transactions on the national inter-bank foreign exchange market adopts the T+1 matter. According
to international standard, the settlement time of the settlement and sale of foreign exchange with the designated foreign exchange
banks also adopts the T+1 matter, which is uniform with the inter-bank foreign exchange market.

The band of the inter-bank foreign exchange market and the bank quoted rate

The People’s Bank of China shall continue to announce the daily middle exchange rate for the Renminbi against the U.S. dollar, the
Hong Kong Dollar, and the Japanese yen that is the trading currency on the inter-bank foreign exchange market.

(1)

The movement of the exchange rate of the Renminbi against the U.S. dollar in the inter-bank foreign exchange market is limited to
0.3% on either side of the middle exchange rate as announced by the PBC. The buying and selling rates of the Renminbi against the
Hong Kong dollar and the Japanese yen may not deviate more than 1% from the reference rate.

(2)

When the designated foreign exchange banks formulate the quoted exchange rate of the Renminbi against the U.S. dollar, the buying
and selling rates could not exceed 0.15% of the reference rate announced by the PBC. The deviation of their quoted buying and selling
rate of Renminbi against the Hong Kong dollar and the Japanese yen must not exceed 1% of the reference rate. Otherwise, it must be
reported to the SAFE timely for record. The margin between the buying and selling rate of other currencies may not exceed 0.5%. The
selling price for cash transactions is the same as the spot selling rate for all quoted currencies, and the buying price for cash
should not exceed 2.5% of its spot rate. All levels of SAFE must strengthen the supervision on the bank quoted rates according to
the above band.

The circular shall entr into force as of the issuing date.

The State Administration of Foreign Exchange
1996-06-28

DECISION OF THE NATIONAL PEOPLE’S CONGRESS ON VESTING THE PEOPLE’S CONGRESSES AND THEIR STANDING COMMITTEES AND THE PEOPLE’S GOVERNMENTS OF SHANTOU CITY AND ZHUHAI CITY THE POWER TO MAKE REGULATIONS AND RULES RESPECTIVELY FOR IMPLEMENTATION WITHIN THEIR SPECIAL ECONOMIC ZONES

Category	SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-03-17	Effective Date	1996-03-17

Decision of the National People’s Congress on Vesting the People’s Congresses and Their Standing Committees and the People’s Governments of Shantou City and Zhuhai City the Power to Make Regulations and Rules Respectively for Implementation Within Their Special Economic Zones

(Adopted at the Fourth Session of the Eighth National People’s Congress on

March 17, 1996)

The Fourth Session of the Eighth National People’s Congress hereby decides
that the people’s congresses and their standing committees of Shantou City and
Zhuhai City be vested with the power to, in light of the individual
circumstances and practical needs of their special economic zones and in
accordance with stipulations of the Constitution and the basic principles of
the laws and regulations, make regulations which are to be implemented within
the respective special economic zones of Shantou City and Zhuhai City and
submitted to the Standing Committee of the National People’s Congress, the
State Council and the Standing Committee of the People’s Congress of Guangdong
Province for the record; that the people’s governments of Shantou City and
Zhuhai City be vested with the power to make rules for implementation within
the special economic zones of Shantou City and Zhuhai City respectively.

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON ADMINISTRATIVE PUNISHMENTS

The National People’s Congress

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

No.63

The Law of the People’s Republic of China on Administrative Punishments, adopted at the Fourth Session of the Eighth National People’s
Congress on March 17, 1996, is promulgated now, and shall enter into force as of October 17, 1996

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

March 17, 1996

Law of the People’s Republic of China on Administrative Punishments ContentsChapter I General Provisions

Chapter II Classification and Establishment of Administrative Punishments

Chapter III Organs for Implementing Administrative Punishments

Chapter IV Jurisdiction and Application of Administrative Punishments

Chapter V Decision on Administrative Punishments

Section 1 Summary Procedure

Section 2 General Procedure

Section 3 Hearing Procedure

Chapter VI Execution of Administrative Punishments

Chapter VII Legal Responsibility

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted in pursuance of the Constitution to regulate the establishment and implementation of administrative punishments,
to ensure and supervise the effective exercise of administration by the administrative organs, to safeguard public interests and
social order, to protect lawful rights and interests of the citizens, legal persons or other organizations.

Article 2

This Law applies to the establishment and implementation of administrative punishments.

Article 3

Administrative punishments which shall be imposed on citizens, legal persons or other organizations for the acts committed in violation
of administrative order shall be stipulated by laws, regulations or rules in accordance with this law, and shall be implemented by
administrative organs in accordance with the procedure stipulated by this Law.

Administrative punishments shall be null and void, if they are inflicted without legal basis or without the observation of the legal
procedure.

Article 4

Administrative punishments shall abide by the principles of being fair and just and open to the public.

The establishment and implementation of administrative punishments must take facts as the base and correspond to the facts, nature
and seriousness of the illegal acts as well as to the extent of the harm thereby caused to the society.

Stipulations on imposing administrative punishments for illegal acts must be promulgated and if not, shall not serve as the legal
basis for administrative punishments.

Article 5

Implementing administrative punishments and checking illegal acts shall adhere to the combination of punishments and education, in
order to educate citizens, legal persons or other organizations to observe the law of their own accord.

Article 6

Citizens, legal persons or other organizations have the right to state their cases and defend themselves in respect of the administrative
punishments imposed on them , and if they refuse to accept the administrative punishments, shall have the right, according to law,
to apply for administrative reconsideration or institute an administrative law suit.

Citizens, legal persons or other organizations who have sustained damage on account of administrative punishments imposed on them
in violation of law, have the right to lodge their claims.

Article 7

Citizens, legal persons or other organizations, being imposed on administrative punishments for illegal acts, who have thereby caused
damage to other people, shall bear civil responsibility according to law.

In case illegal act has constituted a crime, criminal responsibility shall be investigated according to law, and criminal punishment
shall not be substituted by administrative punishments.

Chapter II Classification and Establishment of Administrative Punishments

Article 8

Classification of Administrative Punishments:

(1)

Warning;

(2)

Fine;

(3)

Forfeiture of illegal earnings, forfeiture of illegal property;

(4)

Order to stop production and business;

(5)

Suspension or withdrawal of permits, suspension or withdrawal of licenses;

(6)

Administrative detention; and

(7)

Other administrative punishments as stipulated by law or administrative regulations.

Article 9

Various administrative punishments can be established by law.

Administrative punishment which restrains personal liberty can only be established by law.

Article 10

Administrative regulations can establish whatever administrative punishments except those restraining personal liberty.

Where stipulations are already formulated by law on administrative punishments for illegal acts, specific stipulations to be formulated
by administrative regulations must come within the scope of acts, classification and extent stipulated by law for imposing administrative
punishments.

Article 11

Local regulations can establish administrative punishments except those restraining personal liberty and withdrawing enterprises’
business licenses.

Where stipulations are already formulated by law or administrative regulations on administrative punishments for illegal acts, specific
stipulations to be formulated by local regulations must come within the scope of acts, classification and extent stipulated by law
or administrative regulations on imposing administrative punishments.

Article 12

Rules formulated by Ministries and Commissions under the State Council may incorporate specific stipulations on administrative punishments
within the scope of acts, classification and extent stipulated by law or administrative regulations.

Where law and administrative regulations have not been formulated, the rules formulated by the Ministries and Commissions under the
State Council referred to in the preceding paragraph, may establish administrative punishments as warning and fine for acts violating
administrative order. And the limits of fines shall be stipulated by the State Council.

The State Council may authorize the organs directly under the State Council charged with the right to inflict administrative punishments
to stipulate administrative punishments in accordance with the stipulations of the preceding paragraphs 1 and 2 of this Article.

Article 13

Rules formulated by the people’s governments of provinces, autonomous regions and municipalities directly under the central government,
the people’s governments of the cities where the people’s governments of provinces and autonomous regions are seated, and the people’s
governments of large cities approved by the State Council, can incorporate specific stipulations on administrative punishments within
the scope of acts, classification and extent stipulated by law or regulations.

Where law and regulations have not been formulated, the rules formulated by the people’s governments referred to in the preceding
paragraph may establish administrative punishments as warning and fine for acts violating administrative order. And the limits for
fines shall be stipulated by the standing committees of the People’s Congress of the provinces, autonomous regions and municipalities
directly under the central government.

Article 14

Any other documents of a regulative character other than those provided in Articles 9, 10, 11, 12 and 13 shall not establish administrative
punishments.

Chapter III The Organs for Implementing Administrative Punishments

Article 15

Administrative punishments shall be implemented by the authorized administrative organs within the scope of their functions and powers.

Article 16

The State Council or the people’s governments of provinces, autonomous regions and municipalities directly under the central government
authorized by the State Council may determine whether an administrative organ has the right to exercise relevant administrative punishments,
but the right to exercise administrative punishments restraining personal liberty can only be performed by the public security organs.

Article 17

Functional organizations empowered by law or regulations in charge of the administration over public affairs may implement administrative
punishments within the scope of the lawful authorization.

Article 18

Administrative organs may, according to law, regulations and rules and within their lawful authorization, entrust the organizations
qualified for the conditions stipulated in Article 19 of this Law to implement administrative punishments, and the administrative
organs shall not entrust another organization or person to implement the administrative punishments.

The entrusting administrative organ shall be responsible for the supervision over the acts of the entrusted organization to implement
the administrative punishments, and shall bear legal responsibilities consequent upon such acts.

The entrusted organization shall, within its authorization, implement administrative punishments in the name of the entrusting administrative
organ, and shall not entrust another organization or person to implement same administrative punishments.

Article 19

The entrusted organization must be qualified for the following conditions:

(1)

Organizations formed according to law and in charge of public affairs;

(2)

Manned with personnels well-informed of related law, regulations, rules and business; and

(3)

Where technical tests or technical appraisal are required, shall have the means to conduct such tests and appraisal.

Chapter IV Jurisdiction and Application of Administrative Punishments

Article 20

Administrative punishments come under the jurisdiction of the administrative organs with the right to make administrative punishments
of the people’s governments at county level and above in the place where illegal acts have taken place, unless otherwise provided
by law or administrative regulations.

Article 21

Dispute over jurisdiction shall be referred to an administrative organ common to the disputing organs at a higher level which will
determine the jurisdiction.

Article 22

Where the illegal acts constitute crimes, the administrative organs must transfer the case to judicial organs for investigation of
criminal responsibility according to law.

Article 23

Administrative organs, when implementing administrative punishments, shall order the parties to make, or within a specified period
of time to make corrections to their illegal acts.

Article 24

A party shall be subjected to no more than one fine for the same illegal act as administrative punishment.

Article 25

Persons under the age of 14, having committed illegal acts, shall not be imposed on administrative punishments, but their guardians
shall be ordered to discipline them; persons at the age of 14 but under 18 committing illegal acts shall be imposed on either light
or mitigated administrative punishments.

Article 26

Mental patients committing illegal acts when unable to determine or control their acts, shall not be imposed on administrative punishments,
but the guardians shall be ordered to look after them. Patients suffering intermittent mental disorder committing illegal acts when
in normal mental order, shall be imposed on administrative punishments.

Article 27

Parties shall be imposed on administrative punishments, either light or mitigated, subject to one of the following instances:

(1)

Take initiative in removing or minimizing the consequential damage;

(2)

Commit illegal acts on account of being coerced by others;

(3)

Contribute in cooperation with administrative organs to investigation into and handling with illegal acts; or

(4)

Any other instances for which administrative punishments can be light or mitigated according to law.

No administrative punishment shall be imposed for trifle illegal acts which have been timely checked without causing consequent damage.

Article 28

Where the illegal acts constitute an offense for which criminal detention or fixed-term imprisonment has been rendered by the people’s
court, the administrative detention imposed on the party by the administrative organ shall, according to law, be deducted from the
period of criminal detention or imprisonment.

Where the illegal acts constitute an offense for which fine is imposed by the people’s court, the fine inflicted on the party by the
administrative organ shall be set off.

Article 29

No administrative punishment shall be given for illegal acts which have not been discovered within two years, unless otherwise provided
by law.

The time limit in the preceding paragraph shall be computed from the day of the occurrence of the illegal acts, or from the day of
the termination of continuous or consecutive illegal acts.

Chapter V Decision on Administrative Punishments

Article 30

Where citizens, legal persons or other organizations shall according to law be given administrative punishments for acts violating
administrative order, the administrative organ must ascertain the facts; no administrative punishments shall be imposed if facts
about the illegal acts remain unclear.

Article 31

Administrative organs, before making a decision on administrative punishments, shall inform the party of the facts, causes and legal
basis for making such a decision, and advise the party of the rights which the law confers on him.

Article 32

The party has the right to state the case and defend himself. The administrative organ must hear in full the party’s opinions, and
shall review and examine the facts, causes and evidence submitted by the party. The administrative organ shall adopt the facts, causes
and evidence submitted by the party if they are sustainable.

The administrative organ shall not aggravate punishments on account of the party’s statements or defense.

Section 1 Summary Procedure

Article 33

A decision on administrative punishments of a fine less than fifty renminbi yuan on citizens or less than a thousand renminbi yuan
on legal persons or other organizations, or a warning, can be made on the spot for confirmed illegal acts with sound legal basis,
and the party shall execute said administrative punishments according to Articles 46, 47 and 48 of this Law.

Article 34

Law administering personnels making a decision on administrative punishments on the spot, shall show to the party the identification
certificates for administering law, and fill in the official printed form and the statement of decision on administrative punishments
with serial number on it. The statement of decision on administrative punishment shall be given to the party on the spot.

The statement of decision on administrative punishment in the preceding paragraph shall carry the illegal acts done by the party,
legal basis for the administrative punishment, sum of the fine, time and place, name of the administrative organ, and shall be signed
or stamped by the law administering personnels.

The decision on administrative punishment, made by the law administering personnels on the spot, must be filed with their administrative
organ.

Article 35

The party who refuses to accept the decision on administrative punishment made on the spot, may according to law apply for administrative
reconsideration or lodge an administrative law suit.

Section 2 General Procedure

Article 36

Except the case, stipulated in Article 33 , where the administrative punishment may be given on spot, the administrative organ, finding
that administrative punishment shall according to law be inflicted on a citizen, legal person or other organization for their acts,
must conduct an overall, objective, fair and just investigation, collect relevant evidence, or may conduct, when necessary, an inspection
according to law or regulations.

Article 37

No less than two law administering personnels shall be present on the scene when the administrative organ conducts investigation or
inspection, and shall show their certificates to the party or related persons who should give truthful reply to inquiries and cooperate
in the investigation or inspection, without obstructing the process. Written records shall be made of the inquiries or inspection.

The administrative organ, when collecting evidence, may take evidence by random sampling and, when evidence may possibly be lost or
collected with difficulty at a later time, may preserve them with registrations being made, subject to the approval by the responsible
person of the administrative organ. Decision on the disposal shall be timely made within seven days during which period the party
or related persons shall not destroy or transfer such evidence.

Law administering personnels, having direct concern therein with the party concerned, shall withdraw.

Article 38

Following the conclusion of the investigation, responsible persons of the administrative organ shall examine the findings of the investigation
and according to various circumstances of the case, make the following decisions respectively:

(1)

Decision on administrative punishment shall be made according to the seriousness and particulars of the case if there are illegal
acts for which administrative punishment should be imposed;

(2)

Administrative punishment shall not be inflicted if illegal acts are minor ones for which administrative punishments may not be inflicted
according to law;

(3)

No administrative punishment shall be imposed if illegal acts are not sustainable; and

(4)

Illegal acts which constitute a crime shall be transferred to the judicial organ.

Where serious administrative punishment shall be imposed for complicated or major illegal acts, the decision shall be made through
collective consideration by the responsible persons of the administrative organ.

Article 39

The administrative organ, inflicting administrative punishment according to Article 38 of this Law, shall draw up a statement of
decision on administrative punishment. The statement of decision on the administrative punishment shall carry the following items:

(1)

The name or post_title of the party and address;

(2)

The facts and evidence concerning the violation of law, regulations or rules;

(3)

Classification and legal basis of the administrative punishment;

(4)

Method and time limit for executing the administrative punishment;

(5)

Avenue and time limit for application for administrative reconsideration and for the institution of an administrative law suit, if
the party refuses to accept the administrative punishment; and

(6)

The name of the administrative organ making such punishment and the date of the decision.

Decision on administrative punishment must carry the official stamp of the administrative organ making the administrative punishment.

Article 40

The statement of decision on administrative punishment shall be delivered to the party on spot after pronouncement, and in absence
of the party, the administrative organ shall, according to Civil Procedure Law, serve within seven days the statement of the decision
to the party.

Article 41

In case the administrative organ and its law administering personnels fail, before making the decision on administrative punishment,
to inform the party of the facts, causes and legal basis for making such a decision, or refuse to hear the party’s presentation of
the case and defense, as stipulated in Articles 31 and 32 of this Law, the administrative punishment can not be established, unless
the party has waived his right to the presentation and defense.

Section 3 Hearing Procedure

Article 42

The administrative organ before making a decision on the administrative punishment such as ordering to stop production and business,
withdrawing the permit or license, or large sum of fine, shall advise the party of the right to hearing. And the administrative organ
at the request of the party shall organize hearing, and the party shall not bear the expenses for the hearing. Hearing shall be organized
in the following manner:

(1)

The party shall, within 3 days after being informed by the administrative organ, notify them of the party’s request for hearing;

(2)

The administrative organ shall notify the party of the time and place of the hearing seven days before it;

(3)

Hearing shall be held in public, with the exception that the state’s or commercial secret or personal privacy is involved;

(4)

Hearing shall be presided over by the personnel appointed by the administrative organ other than the investigators of the case and
the party, submitting that the presider has direct interest in the case, have the right to apply for the withdrawal;

(5)

The party may attend in person or appoint one or two agents to the hearing;

(6)

At hearing the investigators state the facts of the illegal acts done by the party, present the evidence and make suggestion on administrative
punishment; the party may make defense and question the evidence; and

(7)

Written records on the hearing shall be made which shall be examined to see no error with it, and signed or stamped by the party.

The party who takes objection to administrative punishment on restraint of personal liberty, shall act according to the Regulations
on Administrative Penalties for Public Security.

Article 43

Following the hearing, the administrative organ shall make the decision in accordance with the provisions of Article 38 of this Law.

Chapter VI Execution of Administrative Punishment

Article 44

After the decision on administrative punishment is made in accordance with law, the party shall execute the decision within the time
limit prescribed in the decision.

Article 45

The execution of the administrative punishment shall not be suspended when the party refuses to accept the decision and applies for
administrative reconsideration or lodge an administrative law suit, unless otherwise provided by law.

Article 46

The administrative organ making the decision on fine shall be separated from the collecting agency of the fine.

The administrative organ making the decision on administrative punishments and its law administering personnels shall not collect
fines on their own authority, with the exception of the fines collected on spot in accordance with Articles 47 and 48.

The party shall, within fifteen days from the day of receiving the statement of decision on administrative punishment, pay the fines
to the appointed bank. The bank shall, after receipt of the fines, hand them directly to the state treasury.

Article 47

In case a decision is made on administrative punishment on spot in accordance with the provisions of Article 33 of this Law, the
law administering personnels may collect fines on spot, subject to one of the following instances:

(1)

A fine less than twenty renminbi yuan imposed according to law; or

(2)

Fines, if not collected on spot, shall be hardly executed.

Article 48

Administrative organs and their law administering personnels, having made the decisions on fines in accordance with Articles 33 and
38, may collect them on spot at the request of the parties, provided the parties in remote border areas, or on waters, or in area’s
with inconvenient traffic, have difficulties when paying the fines to the appointed banks.

Article 49

Administrative organs and their law administering personnels collecting fines on spot, must issue to the parties the uniform receipt
for fines printed and issued by the financial departments of provinces, autonomous regions and municipalities directly under the
central government, and without issuing the uniform receipts for fines printed and issued by the financial departments, parties have
the right to refuse the payment of fines.

Article 50

Law administering personnels collecting fines on spot shall, within two days from the day of fine, hand the fines over to the administrative
organs; fines collected on spot on waters shall be handed over to the administrative organs within two days from the day of disembarkation.
Administrative organs shall within two days hand the fines over to the appointed banks.

Article 51

In case of failure by the party to execute the decision on administrative punishment within the prescribed time limit, the administrative
organ making the decision on the punishment may take the following measures:

(1)

In case of failure to pay the fine in time, an additional fine shall be imposed amounting to three per cent of the original fine on
a daily rate basis;

(2)

In accordance with law, the sealed up or seized property can be put to auction to pay, or appropriation of the frozen bank deposit
can be made for payment of, the fine; or

(3)

Apply to the people’s court for enforcement.

Article 52

At the request of the party assuredly in economic difficulty, payment of fine may be postponed or made in installments, subject to
the approval by the administrative organ.

Article 53

Illegal property which has been confiscated with the exception of those to be destroyed according to law, must be auctioned publicly
or otherwise disposed of according to relevant stipulations of the state.

Fines, confiscated illegal earnings or proceeds of the illegal property by auction must be handed over in its entirety to the state
treasury, and shall not be withheld or shared privately and secretly in any manner by any administrative organs or individuals. Financial
departments shall not return in any forms to administrative organs making decisions on administrative punishments, the fines, confiscated
illegal earnings or proceeds by auction of the confiscated illegal property.

Article 54

Administrative organs shall establish and complete the system of supervision over administrative punishments. And people’s governments
at county level and above shall strengthen the supervision and inspection over administrative punishments.

Citizens, legal persons and other organizations have the right to lodge their complaints or make report on the punishments imposed
by the administrative organs. Administrative organs shall make conscientious examinations and take initiative in correction if anything
is found wrong with the administrative punishments.

Chapter VII Legal Responsibility

Article 55

Where administrative organs implement administrative punishments in one of the following instances, superior administrative organs
or other related departments shall order said administrative organs to make correction and may give disciplinary sanctions according
to law to personnels in charge, and other personnels, bearing direct responsibility:

(1)

No legal basis for imposing administrative punishments;

(2)

Alterations made on one’s own authority in classification and extent of administrative punishments;

(3)

Violations of the legal procedure for administrative punishments; or

(4)

Violations of Article 18 of this Law on entrustment of implementing punishments.

Article 56

If administrative organs implementing punishments on parties do not use documents and receipts specially designed for, or use those
documents and receipts which are not printed and issued by lawfully appointed departments for, fines and confiscated property, the
parties have the right to reject the punishments and make report thereon. Superior administrative organs or other related departments
shall collect the illegal documents and receipts for destruction, and impose disciplinary sanctions on the personnels in charge,
and other personnels, bearing direct responsibility.

Article 57

Where administrative organs collect fines on their own authority in violation of Article 46 of this Law or financial departments
return to administrative organs fines or proceeds of auction in violation of Article 53 of this Law, superior administrative organs
or related departments shall order said administrative organs or financial departments to make corrections and impose disciplinary
sanctions on the personnels in charge, and other personnels, bearing direct responsibility.

Article 58

Fines, confiscated illegal earnings or property which have been withheld or shared privately or secretly in any manner by the administrative
organs, shall be recovered by financial departments or other related departments and disciplinary sanctions shall be imposed on the
personnels in charge, and other personnels, bearing direct responsibility, or if the case is so serious as to constitute a crime,
criminal responsibility shall be investigated.

Law administering personnels abusing their authority to demand or accept and take into their possession other’s property or collected
fines, shall be charged with criminal responsibility if the such acts constituted an offense; and disciplinary sanctions shall be
imposed on them if the acts are minor ones not sufficient for a crime.

Article 59

Administrative organs using or damaging the property held in custody, thereby causing loss or damage to the party, shall make compensation
according to law, and disciplinary sanctions shall be imposed on the personnels in charge, and other personnels, bearing direct responsibility.

Article 60

Administrative organs implementing inspective or executive measures in violation of law, thereby causing personal or property damage
to citizens, or causing loss to legal persons or other organizations, shall make compensation according to law, and disciplinary
sanctions shall be imposed on the personnels in charge, and other personnels, bearing direct responsibility; criminal responsibility
shall be investigated according to law if the case is so serious as to constitute a crime.

Article 61

Where administrative organs seek private interest for the units themselves by withholding cases which should be transferred to judicial
organs according to law for determination of criminal responsibility and substitute administrative punishments for criminal punishments,
superior administrative organs or other related departments shall order said administrative organs to make corrections, or otherwise
impose disciplinary sanctions on the personnels in charge bearing direct responsibility, if they refuse to correct themselves. Those
who play favoritism and protect illegal acts shall be charged with criminal responsibility by applying mutatis mutandis the provisions
of Article 188 of the Criminal Law.

Article 62

Where law administering personnels who have neglected their duties resulting in failure to check or punish illegal acts which should
be checked or punished, have caused damage to lawful rights of citizens, legal persons or other organizations, to public interest
and social order, the personnels in charge, and other personnels, bearing direct responsibility shall be imposed on disciplinary
sanctions according to law, and if the cases are so serious as to constitute crimes, criminal responsibility shall be investigated
according to law.

Chapter VIII Supplementary Provisions

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF THE THE PREVENTION AND CONTROL OF WATER POLLUTION

Category	ENVIRONMENTAL PROTECTION	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-05-15	Effective Date	1996-05-15

Decision of the Standing Committee of the National People’s Congress Regarding the Revision of the Law of the People’s Republic of China on the Prevention and Control of Water Pollution

Appendix: LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND
Contents
Chapter I  General Provisions
Chapter II  Establishment of Water Environment Quality Standards and
Chapter III  Supervision and Management of the Prevention and Control of
Chapter IV  Prevention of Surface Water Pollution
Chapter V  Prevention of Groundwater Pollution
Chapter VI  Legal Liability
Chapter VII  Supplementary Provisions

(adopted at the 19th Meeting of the Standing Committee of the Eighth

National People’s Congress on May 15, 1996, and promulgated by Order No.66 of
the President of the People’s Republic of China on the same date)

The 19th Meeting of the Standing Committee of the Eighth National People’s
Congress has decided to revise the Law of the People’s Republic of China on
the Prevention and Control of Water Pollution as follows:

1. The second paragraph of Article 7 is amended as: “The people’s
governments of provinces, autonomous regions and municipalities directly under
the Central Government may establish its local standards for the discharge of
water pollutants for items not specified in the national standards; with
regard to items already specified in the national standards, it may set local
standards which are more stringent than the national standards. The local
standards for the discharge of water pollutants must be reported to the
environmental protection department of the State Council for the record.”

2. Add a new article as Article 10: “The prevention and control of water
pollution shall be planned in a unified way on the basis of river basins or
regions. Water pollution prevention and control plans for major river basins
designated by the state shall be drawn up by the environmental protection
department of the State Council in consultation with the competent planning
department, the water conservancy administration department and other
competent departments under the State Council, and the people’s governments of
involved provinces, autonomous regions and municipalities under the Central
Government, and shall be reported to the State Council for approval.

“Water pollution prevention and control plans for other river basins
involving two or more provinces or counties shall, in accordance with the
plans for major river basins designated by the state and with the local
practical situations, be drawn up by the environmental protection department
in consultation with the water conservancy administration department and other
competent departments of the people’s government at or above the provincial
level, and the local people’s governments involved, and shall be reported to
the State Council or the people’s government at the provincial level for
approval. Plans for other river basins involving two or more counties but not
involving different provinces shall be reported by the people’s government of
the province to the State Council for the record.

“The approved plans shall serve as the bases for the prevention and
control of water pollution. Any amendment to an approved plan must be approved
by the original approving department.

“Local people’s governments at or above the county level shall, in
accordance with the water pollution prevention and control plans for river
basins already approved according to law, organize to formulate plans for the
prevention and control of water pollution within their respective
administrative areas, and shall incorporate such plans into the medium- and
long-term plans and annual plans for the national economy and social
development of their respective administrative areas.”

3. The third paragraph of Article 13 is amended as: “Facilities for the
prevention and control of water pollution at a construction project must be
designed, built and commissioned together with the principal part of the
project. Such facilities must be inspected by the environmental protection
department; if they do not conform to the specified requirements, the said
project shall not be permitted to be put into operation or to use.”

Add a new paragraph as the fourth paragraph: “The environmental impact
statement shall include views of units and residents where the construction
project is to be located.”

4. The second paragraph of Article 14 is amended as: “The pollutant
discharging units mentioned in the preceding paragraph shall report in time if
any substantial change occurs in the categories, quantities or concentrations
of the water pollutants discharged. Their water pollutant treatment facilities
must be kept in normal use. When such facilities are to be dismantled or left
idle, prior approval must be obtained from the environmental protection
department of the local people’s government at or above the county level.”

5. Delete the reading “and shall assume responsibility to eliminate and
control the pollution” in Article 15. Add two new paragraphs thereto as the
second and the third paragraphs respectively, which read: “The income derived
from the discharge fee and the fee for excess discharge must be used for the
prevention and control of pollution and shall not be appropriated for other
purposes.

“Enterprises and institutions discharging pollutants in excess of the
prescribed standards must work out a programme to eliminate and control the
pollution, and report such programme to the environmental protection
department of the local people’s government at or above the county level for
the record.”

6. Add a new article as Article 16: “Where the water pollutant discharge
standards have been reached but cannot ensure the attainment of the water
environment quality standards for water bodies, the people’s governments at or
above the provincial level may establish a system for controlling the total
quantity of major pollutants discharged, and practise a system for determining
the quantity of such major pollutants discharged among enterprises which are
responsible for reducing the quantity of pollutants discharged. The State
Council shall formulate specified measures therefor.”

7. Add a new article as Article 17: “The environmental protection
department of the State Council may, in consultation with the water
conservancy administration department under the State Council and the relevant
people’s government at the provincial level, and in accordance with uses and
functions of water bodies of major river basins designated by the state and
with local economic and technological conditions, set the water environmental
quality standards applicable to provincial boundary water bodies of such major
river basins, and report to the State Council and implement them after
approval.”

8. Add a new article as Article 18: “The working organs for water resource
protection of major river basins designated by the state shall be responsible
for monitoring the state of environmental quality of provincial boundary water
bodies within their respective river basin areas, and report the monitoring
results in time to the environmental protection department and the water
conservancy administration department of the State Council; if a leading organ
for water resource protection of the river basin has been established with the
approval of the State Council, the monitoring results shall in time be
reported thereto.”

9. Article 10 is changed into Article 19 and amended as: “Urban sewage
shall be disposed of in a centralized way.

“Competent departments under the State Council and local people’s
governments at various levels must incorporate into their plans of municipal
construction the protection of urban water sources and the prevention and
control of urban water pollution, construct and perfect municipal drainage
systems, and construct urban sewage treatment facilities in a planned way, in
order to strengthen the comprehensive improvement of urban water environment.

“Urban sewage treatment facilities shall, according to the state
provisions, be used to provide paid service of sewage treatment for pollutant
dischargers, and the fee for sewage treatment shall be collected to ensure the
normal operation of sewage treatment facilities. Where sewage is discharged
into urban sewage treatment facilities and the fee for sewage treatment has
been paid therefor, the discharge fee shall not be levied. The income derived
from the fee for sewage treatment so collected must be used for the
construction and operation of urban sewage treatment facilities and may not be
appropriated for other purposes.

“The State Council shall formulate specific measures for the collection of
the sewage treatment fee, and for the management and utilization of urban
sewage treatment facilities.”

10. Add a new article as Article 20: “People’s governments at or above the
provincial level may delineate protected zones for surface sources of domestic
and drinking water according to law. Such protected zones include the first
and other classes protected zones. Specific water and land areas in the
vicinity of intakes at a surface source for domestic and drinking water may be
delineated as a first class protected zone, and those water and land areas
outside the first class protected zone be delineated as other class protected
zone. Various classes protected zones shall have their definite geographical
boundaries.

“The discharge of waste water into water bodies at the first class
protected zones for surface sources of domestic and drinking water shall be
prohibited.

“Tours, swims and other activities which might cause pollution to domestic
and drinking water bodies within the first class protected zones shall be
prohibited.

“Any new construction project or expansion unrelated to water supply
facilities and to the protection of water sources within the first class
protected zones for surface sources of domestic and drinking water shall be
prohibited.

“People’s governments at or above the county level shall, according to
their limits of authorities specified by the State Council, order to dismantle
or improve within a prescribed time period those sewage outfalls already set
up within the first class protected zones for surface sources of domestic and
drinking water.

“The protection of domestic and drinking groundwater sources shall be
strengthened.

“The State Council shall formulate specific measures for the protection of
domestic and drinking water sources.”

Delete the phrase “domestic and drinking water sources” in Article 12.

11. Add a new article as Article 22: “Enterprises shall adopt clean
production techniques which are efficient in the use of raw materials and
discharge small quantity of pollutants, and shall strengthen the management to
reduce the water pollutants generated.

“The state establishes a system for eliminating those backward production
techniques and equipment, which cause severe pollution to water environment.

“The competent comprehensive administrative department of economy under
the State Council shall, in consultation with departments concerned under the
State Council, announce a catalogue of techniques which cause severe pollution
to water environment and of which the adoption is to be prohibited upon the
expiration of a prescribed time period, as well as a catalogue of equipment
which causes severe pollution to water environment and of which the
production, sale, importation and use are to be prohibited upon the expiration
of a prescribed time period.

“Producers, marketers, importers or users must, within the time limit
specified by the competent comprehensive administrative department of economy
in consultation with departments concerned under the State Council, stop
respectively the production, sale, importation or use of equipment listed in
the catalogue mentioned in the preceding paragraph. Adopters of production
techniques must, within the time limit specified by the competent
comprehensive administrative department of economy in consultation with
departments concerned under the State Council, stop the adoption of techniques
listed in the catalogue mentioned in the preceding paragraph.

“Equipment already eliminated according to the provisions in two preceding
paragraphs may not be transferred to others for use.”

12. Add a new article as Article 23: “The state prohibits the
establishment of any new small-size enterprise engaging in chemical paper pulp
making, printing and dyeing, dyestuff, hide processing, electroplating, oil
refining or agricultural chemical without measures for the prevention and
control of water pollution, and other enterprises which may cause severe
pollution to water environment.”

13. Add a new article as Article 26: “Water pollution disputes involving
different administrative areas shall be settled through negotiation between or
among local people’s governments involved therein, or through co-ordination by
their common higher people’s government.”

14. Article 20 is changed into Article 28 and a new paragraph added as the
second paragraph: “In the case of any pollution accident caused to fisheries,
the fisheries administrative and superintendency agencies shall be responsible
for its investigation and disposal.”

15. Add a new article as Article 39: “The agricultural administration
department and other relevant departments of a local people’s government at or
above the county level shall take measures to instruct agricultural producers
to apply chemical fertilizers and pesticides in a scientific and rational
manner, and control the excessive use of chemical fertilizers and pesticides,
so as to prevent water pollution therefrom.”

16. Add a new article as Article 47: “If, in violation of the provisions
of the third paragraph of Article 13 in this Law, a construction project is
put into operation or to use when its facilities for the prevention and
control of water pollution have not completed or fail to meet the state
specified requirements, the environmental protection department that approved
the environmental impact statement of the said project shall order the
violator to stop the operation or use of the project and may concurrently
impose a fine.”

Delete Item (2) in Article 37.

17. Add a new article as Article 48: “If a pollutant discharging unit, in
violation of the provisions of the second paragraph of Article 14 in this Law,
intentionally does not keep its water pollutant treatment facilities in normal
use, or dismantles or leaves idle such facilities without approval of the
environmental protection department, thereby discharging pollutants in excess
of prescribed standards, the environmental protection department of a local
people’s government at or above the county level shall order it to restore
such facilities to the normal use, or set a time limit for it to reinstall and
reuse such facilities, and concurrently impose a fine.”

18. Add a new article as Article 49: “If anyone, in violation of the
provisions of the fourth paragraph of Article 20 in this Law, establishes
within the first class protected zones for surface source of domestic and
drinking water any new construction or expansion project unrelated to water
supply facilities and to the protection of water sources, the people’s
government at or above the county level shall, according to its limit of
authorities specified by the State Council, order the violator to suspend
operations or close down.”

19. Add a new article as Article 50: “If anyone, in violation of the
provisions of Article 22 in this Law, produces, sells, imports or uses
equipment, or adopts techniques, which have already been prohibited, the
competent comprehensive administrative department of economy of the people’s
government at or above the county level shall order the violator to make
correction; if the circumstances are serious, the said department shall
propose and report to the people’s government at the corresponding level for
an order of suspension of operations or shutdown issued within its limit of
authorities specified by the State Council.”

20. Add a new article as Article 51: “If anyone, in violation of the
provisions of Article 23 in this Law, establishes any small-size enterprise
without measures for the prevention and control of water pollution, thereby
causing severe pollution to water environment, the local people’s government
at the city or county level or the higher people’s government shall order to
shut down such enterprise.”

21. Article 39 is changed into Article 53 and amended as: “A pollutant
discharging unit which violates this Law, thereby causing a water pollution
accident, shall be fined according to the consequent damage and loss by the
competent environmental protection department of the local people’s government
at or above the county level in the place where the accident takes place.

“In the case of a pollution accident caused to fisheries or caused by
vessels, the competent fisheries administration and superintendency agency or
the navigation office of the competent transportation department in the place
where the accident takes place shall impose a fine respectively according to
the consequent damage and loss.

“If the circumstances are serious in a water pollution accident, the
persons responsible shall be subject to disciplinary sanction by the unit to
which they belong or by a higher competent authority.”

22. Add a new article as Article 58: “Personnel conducting supervision and
management of environmental protection or other relevant state personnel who
abuses his power, neglects his duty or engages in malpractices for personal
gains shall be given disciplinary sanction by the unit to which he belongs or
the competent higher authorities: if his act constitutes a crime, he shall be
investigated for criminal responsibility according to law.”

23. Add a new article as Article 59: “With regard to individual businesses
that discharge pollutants into water bodies and cause severe pollution,
standing committees of the people’s congresses of the provinces, autonomous
regions and municipalities directly under the Central Government shall
formulate measures therefor in accordance with the principles in the
provisions of this Law.”

This Decision comes into force on the date of the promulgation.

The Law of the People’s Republic of China on the Prevention and Control of
Water Pollution shall be republished after being correspondingly revised
according to this Decision.
Appendix: LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND
CONTROL OF WATER POLLUTION
(Adopted at the fifth meeting of the Standing Committee of the Sixth National
People’s Congress on May 11, 1984, and revised according to the Decision
Regarding the Revision of the Law of the People’s Republic of China on the
Prevention and Control of Water Pollution adopted at the 19th meeting of the
Standing Committee of the Eighth National People’s Congress on May 15, 1996)
Contents

Chapter I General Provisions

Chapter II Establishment of Water Environment Quality Standards and

Pollutant Discharge Standards

Chapter III Supervision and Management of the Prevention and Control of

Water Pollution

Chapter IV Prevention of Surface Water Pollution

Chapter V Prevention of Groundwater Pollution

Chapter VI Legal Liability

Chapter VII Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated for the purpose of preventing and
controlling water pollution, protecting and improving the environment,
safeguarding human health, ensuring the effective use of water resources and
facilitating the development of socialist modernization.

Article 2 This Law shall apply to the prevention and control of pollution
of rivers, lakes, canals, irrigation channels, reservoirs and other surface
water bodies and of groundwater within the territory of the People’s Republic
of China.

This Law is not applicable to the prevention and control of marine
pollution, which is provided for by a separate law.

Article 3 Competent departments under the State Council and local
people’s governments at various levels shall incorporate the protection of the
water environment into their plans and adopt ways and measures to prevent and
control water pollution.

Article 4 The environmental protection departments of the people’s
governments at all levels shall be the organs exercising unified supervision
and management of the prevention and control of water pollution.

Navigation administrative offices of transportation departments at various
levels shall be the organs exercising supervision and management of pollution
from ships.

Water conservancy administration departments, public health administration
departments, geological and mining departments, municipal administration
departments and water sources protection agencies on major rivers of people’s
governments at various levels shall, through performing their respective
functions and in conjunction with environmental protection departments,
implement supervision and management of the prevention and control of water
pollution.

Article 5 All units and individuals shall have the duty to protect the
water environment and the right to supervise any act that pollutes or damages
the water environment and to inform against the polluter.

Any unit or individual that has suffered losses directly from a water
pollution hazard shall have the right to claim damages from and demand the
elimination of the hazard by the polluter.
Chapter II Establishment of Water Environment Quality Standards and
Pollutant Discharge Standards

Article 6 The environmental protection department of the State Council
shall establish national water environment quality standards.

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

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

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

Those who discharge pollutants into any water body where local pollutant
discharge standards have been established shall observe such local standards.

Article 8 The environmental protection department of the State Council
and the people’s governments of provinces, autonomous regions, and
municipalities directly under the Central Government shall amend in due time
their respective water environment quality standards and pollutant discharge
standards in accordance with the requirements of water pollution prevention
and control and with the country’s economic and technological conditions.
Chapter III Supervision and Management of the Prevention and Control of
Water Pollution

Article 9 Competent departments under the State Council and local
people’s governments at various levels shall, in the process of developing,
utilizing, regulating and allocating water resources, make integrated plans
for maintaining proper river flows, proper water levels of lakes and
reservoirs and proper groundwater tables, in order to sustain the natural
purification capacity of water bodies.

Article 10 The prevention and control of water pollution shall be planned
in a unified way on the basis of river basins or regions. Water pollution
prevention and control plans for major river basins designated by the state
shall be drawn up by the environmental protection department of the State
Council in consultation with the competent planning department, the water
conservancy administration department and other competent departments under
the State Council, and the people’s governments of involved provinces,
autonomous regions and municipalities under the Central Government, and shall
be reported to the State Council for approval.

Water pollution prevention and control plans for other river basins
involving two or more provinces or counties shall, in accordance with the
plans for major river basins designated by the state and with the local
practical situations, be drawn up by the environmental protection department
in consultation with the water conservancy administration department and other
competent departments of the people’s government at or above the provincial
level, and the local people’s governments involved, and shall be reported to
the State Council or the people’s government at the provincial level for
approval. Plans for other river basins involving two or more counties but not
involving different provinces shall be reported by the people’s government of
the province to the State Council for the record.

The approved plans shall serve as the bases for the prevention and control
of water pollution. Any amendment to an approved plan must be approved by the
original approving department.

Local people’s governments at or above the county level shall, in
accordance with the water pollution prevention and control plans for river
basins already approved according to law, organize to formulate plans for the
prevention and control of water pollution within their respective
administrative areas, and shall incorporate such plans into the medium- and
long-term plans and annual plans for the national economy and social
development of their respective administrative areas.

Article 11 Competent departments under the State Council and local
people’s governments at various levels shall make rational plans for the
placement of industry, and see to it that enterprises causing water pollution
are modified and technically renovated, adopting comprehensive prevention and
control measures, raising the frequency of water reuse, utilizing resources
rationally and reducing the quantity of waste water and pollutants discharged.

Article 12 For water bodies at scenic or historic sites, important
fishery water bodies and other water bodies of special economic or cultural
value, people’s governments at or above the county level may delineate
protected zones and take measures to ensure that the water quality in those
protected zones complies with the standards for their designated uses.

Article 13 New construction projects, extensions, or reconstruction
projects which discharge pollutants into water bodies directly or indirectly
and installations on water shall be subject to the state provisions concerning
environmental protection for such projects.

&nb

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2002

PROVISIONAL REGULATIONS ON THE ADMINISTRATION OF QUALIFICATIONS OF DOMESTIC AND OVERSEAS SECURITIES INSTITUTIONS DEALING IN SHARES FOR THE PURCHASE...

REGULATIONS OF BEIJING MUNICIPAL GOVERNMENT ON ADMINISTRATION OF EMPLOYMENT OF CHINESE CITIZENS BY RESIDENT REPRESENTATIVE OFFICES OF FOREIGN ENTERPRISES

CIRCULAR OF THE STATE COUNCIL CONCERNING APPROVING AND TRANSMITTING THE JOINT PROPOSALS OF THE SECURITIES COMMISSION OF THE STATE COUNCIL AND THE CHINA SECURITIES SUPERVISORY AND REGULATORY COMMISSION ON FURTHER STRENGTHENING SUPERVISION AND MANAGEMENT OF THE OPTION MARKET

RULES FOR THE IMPLEMENTATION OF THE BUSINESSES OF SETTLEMENT AND SALE OF AND PAYMENT IN FOREIGN EXCHANGE OF FOREIGN-CAPITAL BANKS

MEASURES FOR ADMINISTRATION OF GUARANTEES OVERSEAS BY INSTITUTIONS WITHIN THE CHINESE TERRITORY

CRIMINAL PROCEDURE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

CRIMINAL PROCEDURE LAW

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SOME ISSUES CONCERNING FOREIGN EXCHANGE MARKET AFTER ENTERPRISES WITH FOREIGN INVESTMENT IMPLEMENTED BANKING FOREIGN EXCHANGE SETTLEMENT AND SALE

DECISION OF THE NATIONAL PEOPLE’S CONGRESS ON VESTING THE PEOPLE’S CONGRESSES AND THEIR STANDING COMMITTEES AND THE PEOPLE’S GOVERNMENTS OF SHANTOU CITY AND ZHUHAI CITY THE POWER TO MAKE REGULATIONS AND RULES RESPECTIVELY FOR IMPLEMENTATION WITHIN THEIR SPECIAL ECONOMIC ZONES

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON ADMINISTRATIVE PUNISHMENTS

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF THE THE PREVENTION AND CONTROL OF WATER POLLUTION

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7