PROCEDURES FOR CHECKING OF LISTED COMPANIES

Procedures for Checking of Listed Companies

(Effective Date:1996.12.31–Ineffective Date:)

Article 1 In order to strengthen the supervision and control on listed companies, standardize their operation, and safeguard the interests
of the investors, these procedures have been formulated according to the State laws, rules and regulations.

Article 2 These procedures are applicable to the limited stock companies listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange.

Article 3 The China Securities Regulatory Commission (hereinafter referred as the CSRC) is responsible for the implementation of these procedures.

Article 4 Checks on the listed companies mainly cover:

(1) Whether the release of the companies’ information meets the requests of the laws, rules and regulations as wall as the regulations
and standardized documents promulgated by the CSRC; whether the reports, announcements, information and documents released by the
companies are true, complete and accurate; and whether the information is released in time.

(2) Whether the funds raised are used for the purposes as stated in the original prospectus for rallying or rationing shares; whether
changes of the uses of funds raised have been approved by meetings of share holders; and whether the changes of fund used after approved
by meetings of share holders have been fully acknowledged to the share holders in time.

(3) Whether the articles of association are conformed with laws, rules and regulations as well as the regulations and standardized
documents promulgated by the CSRC, and how the articles of association have been implemented.

(4) Whether the meetings of share holders have been convened in accordance with the provisions of the laws, rules, regulations and
the articles of association, how are discussions and resolutions are made in the meetings; and whether the interests of the minority
share holders have been protected.

(5) How meetings of the companies’ board of directors are held; how the legal functions and powers of boards of directors and chairmen
and members of the boards of directors are exercised; how the companies’ boards of directors are formed; how the candidates of the
members of the boards of directors are nominated; what are rules for the discussions at meetings of boards of directors; how the
resolutions of boards of directors are implemented; and records of the discussions and decisions of boards of directors on important
investment matters of the companies.

(6) How the legal functions and powers of the companies’ supervision commissions are exercised; the composition of the supervision
commissions; the rules and voting procedures of the supervisions commissions; and how the duties of the supervision commissions are
fulfilled.

(7) How the duties and powers of the general managers (managers) and other senior managerial persons are carried out; scopes of the
power vested to the general managers (managers) and other senior managerial persons, the companies’ boards of directors; how the
general managers (managers) and other senior managerial persons execute the resolutions adopted by boards of directors and manage
the operational departments, branches and subsidiaries of the companies.

(8) The institution of the posts of secretaries for the companies’ boards of directors; scopes of the secretaries’ duties and power;
and how the secretaries organize and coordinate the releases of the companies’ information.

(9) Other affairs which the CSRC thinks necessary to be checked.

Article 5 The checks shall be organized by the CSRC.

The CSRC shall draw and unite, according to needs, personnel concerned from local securities administrative departments, accountant
(auditing) offices and lawyers offices of a high professional level, good reputation and qualified to do business related to securities
to form groups for the checks and concrete works of the checks shall be led and organized by the personnel of the CSRC.

Article 6 A listed company being checked shall help but not refuse the checking and persons being checked shall report the situation accurately
but not refuse the checking or hide the facts.

Article 7 When checking a listed company, the checking personnel concerned may take notes, make audio or video records, take pictures and make
copies.

Article 8 For a check, the checking personnel concerned shall show their I.D. cards and the certificates issued by the CSRC.

Article 9 The companies being checked and related accountant offices shall mainly provide the inspection personnel with the following documents:

(1) The companies’ accounting statements, related account books and certificates as well as other data being involved in the accounting
statements;

(2) Records and resolutions of the meetings of share holders, records and resolutions of the meetings of boards of directors, records
and resolutions of meetings of supervision commissions, documents of the working meetings of managers, and other documents related
to the management system of the companies;

(3) The data and documents concerning the important investment;

(4) Original copies of the auditing on financial statements of the companies formulated by the accountant offices;

(5) Other documents necessary to be checked.

Article 10 Checking personnel shall conscientiously carry out the work of checking in line with laws and rules as well as regulations concerned.

Before results of the checks are announced, both the checking personnel and the companies checked must not release any information
related to the results.

Article 11 Companies to be checked shall be decided by the CSRC on a sampling basis.

Article 12 Time to make the checks shall be decided and acknowledged to the companies to be checked by the CSRC.

Article 13 Should violation of laws, rules and related regulations by listed companies and responsible persons concerned be found through the
checks, the CSRC shall, within its authority empowered by the laws and rules and regulations concerned, enforce punishment. Cases
beyond the authority of handling of the CSRC shall be sent to be handled by institutions concerned. Criminal cases shall be sent
to judicial organs for affixing responsibilities of crimes.

Article 14 If a document issued by an accountant office or lawyer office violates rules and regulations concerned, the CSRC shall, within its
authority, enforce punishment according to the law.

Article 15 The CSRC shall be responsible for interpreting these procedures.

Article 16 These procedures shall become effective as of the day when they are promulgated.

OFFICIAL REPLY OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING ISSUES OF FOREIGN-CAPITAL ENTERPRISE MORTGAGING ITS PROPERTY OR RIGHTS AND INTERESTS TO OTHERS

The Ministry of Foreign Trade and Economic Cooperation

Official Reply of the Ministry of Foreign Trade and Economic Cooperation Concerning Issues of Foreign-capital Enterprise Mortgaging
its Property or Rights and Interests to Others

WaiJingMaoFaHanZi [1996] No.66

October 31, 1996

The Foreign Economic and Trade Commission of Tianjin:

Your document, JinJingMaoZiGuanZi [1996]No.172, has been received. The relevant issues hereby is replied as follows:

According to Article 24 of the Rules for the Implementation of the Law of the People’s Republic of China on Foreign-capital Enterprises,
“where foreign-capital enterprises mortgage or transfer their property or rights and interests to overseas person, they shall be
approved by the authorities for examination and approval and recorded in the authorities for industry and commerce administration”.
“The mortgage to overseas person” in the article means the foreign-capital enterprise mortgages its property or rights and interests
to overseas financial institutions (including the branches established in domestic), corporation or enterprises and other economic
institutions.

Foreign-capital enterprises which mortgage or transfer their property or rights and interests to overseas person shall subject to
relevant laws, regulations of China and satisfy the following terms:

Investors have paid their subscribed capital in accordance with the article of the enterprise;

After the enterprise completed of the mortgage loan, the proportion of its registered capital to the total amount of investment shall
be in accordance with provisions in the Interim Provisions of Proportion of Registered Capital to the Total Amount of Investment
of Chinese-foreign Equity Joint Ventures;

The time period of mortgage shall not exceed the operating period of the enterprises.

Where implementing the forgoing provisions, the authorities of examination and approval shall require the enterprises applying for
mortgage to provide the following documents:

the application of the enterprise to mortgage its property or rights and interests to overseas person. The application shall set out
the reasons of mortgage, property to be mortgaged and the name or post_title of the mortgagee, and shall undertake the following: before
filing the application, no real rights of security has be set upon the property to be mortgaged, or where the property has been set
real rights of security upon, the enterprises has informed the mortgagee referred in the contract for mortgage relevant facts;

the approval certificate of the enterprise;

the articles of the enterprise;

the balance sheet of the enterprise;

the capital verification report and property certificate of the property to be mortgaged issued by Chinese CPA;

the decision of the board of directors and the supreme authority of the enterprise on the approval of mortgaging the property;

A copy of the contract for mortgage.

Where the examination and approval authority has checked the correction of the forgoing documents, it may approve the enterprise and
report a copy to the administrative authority for industry and commerce and administrative authority of foreign exchange.

The foregoing shall be abided by, where any problems occur, ask for an instruction in time please.

Attachment: The reply of approval XX Company to mortgage its property (or rights and interests), (for reference only) (omitted)

The Ministry of Foreign Trade and Economic Cooperation
1996-10-31

CIRCULAR OF THE STATE COUNCIL REGARDING THE IMPLEMENTATION OF ADMINISTRATIVE PUNISHMENTS

Category	GENERAL	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-04-15	Effective Date	1995-04-15

Circular of the State Council Regarding the Implementation of Law of the People’s Republic of China on Administrative Punishments

(April 15, 1996)

The Law of the People’s Republic of China on Administrative Punishments
(hereinafter referred to as the Law on Administrative Punishments) shall go
into effect on October 1, 1996. This is a great event in China’s socialist
democracy and legal system construction, and of great importance in
standardizing administrative organs’ acts, promoting the legality of
administrative acts, improving the government administration, strengthening
the construction of an honest and clean government, maintaining the social
order, safeguarding the public interests and protecting the legitimate rights
and interests of citizens, legal persons and other organizations. It is an
important duty for all administrative organs to ensure a complete and correct
implementation of the Law on Administrative Punishments and so as to impel
the governments at various levels and all government departments to conduct
administration in strict accordance with the law, which is also a major task
in the government legal system construction. Local people’s governments at
various levels and all departments of the State Council shall attach great
importance to the implementation of the Law on Administrative Punishments and
be sure to make the preparations well. This Circular are hereby issued for
that purpose.

1. Seriously Study the Law on Administration Punishments and Fully
Realize the Effects Brought to the Administrative Organs by the Law on
Administrative Punishments.

The Law on Administrative Punishments is an important law for
standardizing the government administration and has an important bearing on
administrative organs. With the establishment of the systems about the
power of setting administrative punishments, qualifications for implementing
administrative punishments, relative concentration of the authority of
administrative punishments, hearing, separation of the decision and
collection of a fine and the government’s supervision over administrative
punishments, the Law on Administrative Punishments shall bring about a
significant reform in the existing administrative punishment system and have
a profound significance in the reform of government organs, transformation of
government functions and the strengthening of the government legal system
construction. Personnel, especially the leaders, of administrative organs at
various levels shall conscientiously and seriously study the Law on
Administrative Punishments, fully realize the importance of the
implementation of the Law on Administrative Punishments. All localities and
departments shall, in line with the principle of combining study with
practice, pay close attention to the training of administrative law-enforcing
personnel, making the personnel have a good grasp of the Law on
Administrative Punishments. The government’s office of legislative affairs
shall, under the unified leadership of the government at the same level or
the central government’s office of legislative affairs, organize the training
within their own locality and department. Various localities and departments
shall, through the media and means of publicity and in vivid and effective
forms, publicize the Law on Administrative Punishments among the masses of
the people, so as to form an opinion and environment in favor of people’s
learning, knowing and observing laws and safeguarding their own legitimate
rights and interests according to law.

2. Pay Close Attention to the Revision of Regulations.

According to the provisions of the Law on Administrative Punishments,
administrative punishments may only be set by laws, regulations and rules,
no other regulatory documents may set administrative punishments; rules may
only set warnings and fines of certain amount; provisions imposing
administrative punishments on illegal acts must be published, otherwise, they
may not be taken as legal basis for administrative punishments. Accordingly,
a lot of rules currently in effect shall be amended or annulled in accordance
with the Law on Administrative Punishments, and many administrative
punishments set by regulatory documents shall become invalid. Various
localities and departments shall, in view of guarding the unity and sanctity
of the country’s legal system, hasten to check up the rules and, if there is
a need to formulate administrative regulations or local regulations, sum up
experience and raise them up to administrative regulations or local
regulations; specific articles concerning administrative punishments in rules
which go beyond the bounds of the Law on Administrative Punishments but are
necessary for the administration shall be submitted to the State Council or
the standing committee of the people’s congress of the province, autonomous
region or municipality directly under the central government for approval.
Administrative punishments set by other regulatory documents shall all become
invalid starting the effective date of the Law on Administrative Punishments.

The work of revision of rules shall be completed before December 31,
1997. Administrative punishments provided for in existing rules shall remain
in force until that day. However, administrative punishments newly set by
rules formulated after the implementation of the Law on Administrative
punishments must be in conformity with the provisions of the Law on
Administrative Punishments. Fines set by rules of departments of the State
Council for illegal acts in non-profit-seeking activities may not exceed
1,000 yuan; with regard to illegal acts in profit-seeking activities, the
fine may not exceed three times the illegal earnings, if any, with a maximum
of 30,000 yuan, or may not exceed 10,000 yuan, if there is no illegal
earning; those going beyond the aforesaid limits shall be submitted to the
State Council for approval. The limits for fines set by rules of local
governments shall be determined by the standing committee of the people’s
congress of the province, autonomous region or municipality directly under
the central government with no subjection to the above-mentioned limits.

3. Check up Administrative Law-Enforcing Institutions According to Law
and Attach Great Importance to the Building of Administrative Law-Enforcing
Contingent.

According to the provisions of the Law on Administrative Punishments,
administrative punishments may only be implemented by administrative organs
in principle. Enterprises and institutions as non-administrative
organizations may not exercise the power of administrative punishments except
authorized by laws or regulations; without explicit provisions by laws,
regulations or rules, no administrative organs may authorize institutional
organizations to implement administrative punishments. All localities and
departments shall attach great importance to those provisions, pay close
attention to the work of checking up the existing administrative law-
enforcing institutions of various types, and as early as possible rectify
the cases where administrative organs set up inner establishments to
implement administrative punishments on their own behalf, regulatory
documents other than laws and regulations authorize any organization to
implement administrative punishments, or, without legal basis provided by
laws, regulations or rules, administrative organs entrust organizations by
themselves to implement administrative punishments. From now on, law-
enforcing institutions newly established by various localities and
departments must be lawfully qualified, or if any locality or department has
disqualified organs or organizations implement administrative punishments,
the leaders of the locality or department shall be investigated for
responsibility.

Some persons in the administrative law-enforcing contingent are low in
quality at present. Some of them abuse power for personal gains, refusing to
provide service without personal gains or misusing power just for personal
gains. Some of them even pervert justice for bribes and break the criminal
law. Some localities and departments employ contract or temporary workers to
carry out the work of law-enforcement without necessary funds and other
necessary conditions, resulting in a decline in the general quality of the
law-enforcing personnel and a damage to the image of the government. All
localities and departments must pay close attention to that problem, regard
the building of an efficient and honest and clean law-enforcing contingent as
the key point of the work of implementing the Law on Administrative
Punishments and raising the level of administration, and make the work
effectively accomplished. Strengthen the education of law-enforcing personnel
in the Party spirit and legality, making them enhance their sense of
responsibility and consciousness of acting according to law. Strengthen the
control over the qualifications, certifications and clothing of law-enforcing
personnel, and stop the situation that contract and temporary workers
implement the administrative punishments.

4. Strengthen the Supervision over Administrative Punishments.

The Law on Administrative Punishments clearly stipulates that
administrative organs shall establish and improve the system of supervision
over administrative punishments, and the people’s governments at and above
county level shall strengthen the supervision over and inspection on
administrative punishments. All localities and departments shall, in
accordance with the actual situation of their own locality or department,
implement those stipulations, establish and improve the filing system for
regulatory documents and major cases of administrative punishments, the
system for citizens, legal persons and other organizations to make appeals
and accusation with regard to administrative punishments, the system for
deciding administrative punishments and statistical system for administrative
punishments, etc.. At the same time, the rules filing system and the
Regulations on Administrative Consideration must be strictly implemented and
the acts of illegally setting and implementing administrative punishments
shall be rectified without delay.

The supervision and inspection by people’s governments at and above
county level on administrative punishments is an important way by which
people’s governments at higher levels exercise supervision over people’s
governments at lower levels and government exercise supervision over its
departments, and is also an important duty of the government. Local people’s
governments at and above county level shall take the supervision and
inspection on administrative punishments as an important content of the
government’s work, pay close attention to it and be sure to obtain actual
effect. The inspection shall lay emphasis on inspecting the situation of the
implementation of systems as regarding the power of setting administrative
punishments, qualifications for implementing administrative punishments,
on-the-spot punishments and separation of decision and collection of fines,
etc.. Problems discovered in the inspection shall be resolutely corrected by
adopting energetic measures. The office of legislative affairs under either
local people’s governments at various levels or their various departments
shall, in accordance with the unified plan of the government at the same
level or their own department, organize and undertake the supervision and
inspection of administrative punishments.

5. Take Vigorous Action to Seek and Establish an Administrative Law-
Enforcement System Which Can Help Improve the Authority and Efficiency of
Administrative Law-Enforcement.

People’s governments of various provinces, autonomous regions and
municipalities directly under the central government shall conduct
experiments in relatively centralizing the power to make administrative
punishments and, in accordance with the local conditions, put forward a
proposal on adjusting the power to make administrative punishments and
implement it after submitted to and approved by the State Council. Various
departments of the State Council shall research an administrative punishment
system that is compatible with the socialist market economy, and give support
to people’s governments of provinces, autonomous regions and municipalities
directly under the central government in the work of relatively centralizing
the power to make administrative punishments. All localities and departments
shall seriously implement the system of hearing, separation of investigation
for evidence and decision of punishment, and separation of decision and
collection of fines. They shall, in accordance with the provisions of the Law
on Administrative Punishments, define the scope of hearing, determine persons
taking charge of the hearing, formulate hearing rules, choose a relative
detached institution in the administrative organ for conducting preliminary
examination on the investigation results, reform the system for managing the
funds of administrative law-enforcing organs and check the way of making the
administrative punishments directly contacted with the interests of the
administrative law-enforcing organs and personnel.

6. Grasp the Moment when the Law on Administrative Punishments Is to Be
Implemented and Raise the Legal Work of the Government to a New Level.

The Ninth Five-Year Plan and the Long-Term Target Program for the Year
2010 of the National Economy and Social Development approved by the Fourth
Session of the Eighth National People’s Congress calls for managing state
affairs according to law and building China into a country of socialist legal
system. That is an important guarantee for the country’s lasting political
stability and it also ask more of the legal work of the government.
Governments at all levels and all their departments shall fully realize the
importance of effectively carrying out the government legal work in the new
period, strengthen the leadership over the government legal work, put the
construction of the government legal system to an important place in the work
of the government and place it on the agenda as an important item. What is
important at present is to lift the work concerning the government
legislative affairs, law-enforcement and supervision over the law-enforcement
up to a new step and raise the level of administration through the
implementation of the Law on Administrative Punishments.

For strengthening the government legal work and implementing the Law on
Administrative Punishments, there must be a special contingent with
relatively high political and professional qualities. People’s governments at
and above county level and all their departments shall take effective actions
to reinforce the institutions for government legislative affairs, make the
establishments and the personnel meet the demands of the tasks of government
legislative affairs of their own locality or department, create necessary
conditions for them to develop the work and give full play to their role as
an advisor and assistant in the government operation.

All localities and departments shall, in accordance with the actual
situation of their own locality and department, seriously study and
implement this Circular after receiving it. Important events and problems
shall be reported to the Bureau of Legislative Affairs of the State Council
without delay.

PREVENTION AND CONTROL OF WATER POLLUTION

Law of the People’s Republic of China on Prevention and Control of Water Pollution

Beijing,October 24(chinacourt.org) CHAPTER I GENERAL PROVISIONS

Article 1 This Law is enacted for the purposes of preventing and controlling water pollution, protecting and improving the environment, safeguarding
human health, ensuring effective utilization of water resources and promoting progress of the socialist modernization drive.

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

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

Article 3 Relevant departments under the State Council and local people’s governments at various levels must incorporate 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 various levels shall be the organs exercising unified supervision
and management of prevention and control of water pollution.

Navigation administration offices of the communications departments at various levels shall be the organs exercising supervision and
management of pollution caused by ships.

Water conservancy administration departments, public health administration departments, geological and mining departments, municipal
administration departments, and water sources protection agencies for major rivers of the people’s governments at various levels
shall, through performing their respective functions and in conjunction with environmental protection departments, exercise supervision
over and management of 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 and inform against any
pollution or damage to the water environment.

Any unit or individual that has suffered damage directly from a water pollution hazard shall have the right to demand elimination
of the hazard and compensation for the damage by the polluter.

CHAPTER II ESTABLISHMENT OF STANDARDS FOR WATER ENVIRONMENT QUALITY AND FOR DISCHARGE OF WATER POLLUTANTS

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

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

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

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may establish their
own local standards for the items that are not specified in the national standards for discharge of water pollutants. With regard
to the items that are already specified in the national standards for discharge of water pollutants, they may establish more stringent
local standards than the national standards. All local standards must be reported to the environmental protection department under
the State Council for the record.

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

Article 8 The environmental protection department under the State Council and the people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall, in line with the requirements of prevention and control of water pollution
and the country’s economic and technological conditions, amend in due time their standards for water environment quality and for
discharge of water pollutants.

CHAPTER III SUPERVISION AND MANAGEMENT OF PREVENTION AND CONTROL OF WATER POLLUTION

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

Article 10 To prevent and control water pollution, it is necessary to make unified plans on the basis of river basins or regions. Plans for
preventing and controlling water pollution of basins of major rivers, designated as such by the State, shall be formulated by the
environmental protection department under the State Council, together with the competent department of planning, water conservancy
administration department and other departments concerned as well as the people’s governments of relevant provinces, autonomous regions
and municipalities directly under the Central Government, and shall be submitted to the State Council for approval.

Plans for preventing and controlling water pollution of basins of other rivers that run across provinces or counties shall be formulated,
in line with the plans for preventing and controlling water pollution of basins of major rivers, designated as such by the State,
and in light of actual local conditions, by the environmental protection departments of the people’s governments at or above the
provincial level, together with the water conservancy administration departments and other departments concerned as well as the relevant
local people’s governments, and shall be submitted to the State Council or the people’s governments at the provincial level for approval.
Plans for preventing and controlling water pollution of basins of other rivers that run across counties but not provinces shall be
submitted by the people’s government of the province concerned to the State Council for the record.

Plans for preventing and controlling water pollution, once approved, shall serve as the essential basis for prevention and control
of water pollution, and any modification of such plans shall be subject to approval of the original departments that approved the
plans.

Local people’s governments at or above the county level shall, in accordance with the approved plans for preventing and controlling
water pollution of river basins, organize people to work out plans for preventing and controlling water pollution for their own administrative
regions and incorporate such plans in the long-term, medium-term and annual plans of their administrative regions for national economic
and social development.

Article 11 Relevant departments under the State Council and local people’s governments at various levels shall make rational plans for the geographical
distribution of industries, subject those enterprises that cause water pollution to rectification and technological updating, adopt
comprehensive prevention and control measures, increase the rate of water recycling, utilize resources rationally and reduce discharge
of waste water and pollutants.

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

Article 13 New construction projects and expansion or reconstruction projects and other installations on water that directly or indirectly discharge
pollutants to water bodies shall be subject to relevant State regulations governing environmental protection for such projects.

In the environmental impact statement of a construction project an assessment shall be made regarding the water pollution hazards
the project is likely to produce and its impact on the ecosystem, and measures for their prevention and control shall be prescribed.
The statement shall be submitted, according to the specified procedure, to the relevant environmental protection department for examination
and approval. The building of sewage outlets within any water conservancy projects such as canals, irrigation channels and reservoirs
shall be subject to consent of the relevant department in charge of water conservancy projects.

The facilities for prevention and control of water pollution must be designed, constructed and put to use or into operation simultaneously
with the main part of a construction 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.

An environmental impact statement shall contain comments and suggestions of the units and residents in the place where the construction
project is located.

Article 14 Enterprises and institutions that discharge pollutants directly or indirectly into a water body shall, pursuant to the regulations
of the environmental protection department under the State Council, report to and register with the local environmental protection
department their existing facilities for discharging and treating pollutants, and the categories, quantities and concentrations of
pollutants discharged under their normal operating conditions, and also provide to the same department technical information concerning
prevention and control of water pollution.

The enterprises and institutions mentioned in the preceding paragraph shall report without delay any substantial change in the categories,
quantities or concentrations of the pollutants discharged. Their facilities for treating water pollutants must be kept in normal
operation; when such facilities are to be dismantled or left idle, the matter must be reported in advance to the environmental protection
department of the local people’s government at or above the county level for approval.

Article 15 Enterprises and institutions that discharge pollutants into a water body shall pay a pollutant discharge fee in accordance with State
regulations; if the discharge exceeds the limits set by the national or local standards, they shall pay a fee for excess discharge
according to State regulations.

The fees paid for pollutant discharge and for excess discharge must be used for prevention and control of water pollution and may
not be used for any other purposes.

Enterprises and institutions that discharge pollutants in excess of the standards must work out plans to make the discharge conform
to the standards, and shall submit, for the record, such plans to the environmental protection department of the local people’s government
at or above the county level in the place where they are located.

Article 16 With regard to water bodies where the standards for water environment quality established by the State still cannot be attained although
the discharge of water pollutants has conformed to the discharge standards, the people’s governments at or above the provincial level
may institute a system for control of the total discharge of major pollutants, and a system for making an estimate before deciding
on the quantity of major pollutants to be discharged by an enterprise that is charged with the task of reducing its discharge. Specific
measures shall be formulated by the State Council.

Article 17 The environmental protection department under the State Council may, together with the water conservancy administration department
under the State Council and the provincial people’s government concerned and in light of the utilization functions determined by
the State for water bodies of major river basins as well as the economic and technological conditions of the related regions, establish
water environment quality standards applicable to water bodies of such major river basins within the provincial boundaries, and such
standards shall be put into practice after being reported to and approved by the State Council.

Article 18 Water resources protection agencies for major river basins determined as such by the State shall be responsible for monitoring the
water environment quality conditions of such river basins within the boundaries of the provinces where they are located and shall,
without delay, report the monitoring findings to the environmental protection department under the State Council and the water conservancy
administration department under the State Council; where there are leading bodies for protection of water resources of the river
basins that are set up with the approval of the State Council, such findings shall, without delay, be reported to those leading bodies.

Article 19 Urban sewage shall be centrally treated.

Relevant departments under the State Council and the local people’s governments at various levels must incorporate protection of urban
water sources and prevention and control of urban water pollution in their respective plans for urban construction, construct and
improve networks of urban drainage pipelines, construct facilities for central treatment of urban sewage according to plans, and
improve all-round treatment and control of urban water environment.

Facilities for central treatment of urban sewage shall be, according to State regulations, provided for use with compensation, that
is, a sewage treatment fee shall be collected so as to ensure normal operation of the facilities. Those who discharge sewage to the
central treatment facilities and pay the fees for sewage treatment shall be exempted from the pollutant discharge fee. Sewage treatment
fees collected shall be used for the construction and operation of the facilities for central treatment of urban sewage and may not
be used for other purposes.

Specific measures for collection, control and use of the fees for facilities for central treatment of urban sewage shall be formulated
by the State Council.

Article 20 The people’s governments at or above the provincial level may delineate surface sources protection zones for domestic and drinking
water according to law. Such protection zones shall be divided into first-grade protection zones and protection zones of other grades.
Certain water areas and land-based areas near the intakes of domestic and drinking surface water sources may be delineated as the
first-grade protection zones. Certain water areas and land-based areas beyond the first-grade protection zones may be delineated
as protection zones of other grades. Protection zones of all grades shall be indicated by clear geographic demarcations.

It is forbidden to discharge sewage into water bodies within the firstgrade surface sources protection zones for domestic and drinking
water.

It is forbidden to travel, swim or carry out other activities within the first-grade surface sources protection zones for domestic
and drinking water that may possibly cause pollution to the water body.

It is forbidden to construct or expand within the first-grade surface sources protection zones for domestic and drinking water, any
projects that have noting to do with water supply facilities and protection of water sources.

With regard to sewage outlets already built in the first-grade surface sources protection zones for domestic and drinking water, the
people’s governments at or above the county level shall, pursuant to the limits of power authorized by the State Council, order that
they be dismantled or treated within a time limit.

The protection of ground sources for domestic and drinking water shallbe strengthened.

Specific measures for protection of domestic and drinking water sources shall be formulated by the State Council.

Article 21 In case of emergency, such as severe pollution of a domestic and drinking water source which threatens the safe supply of water,
the environmental protection department shall, with the approval of the people’s government at the same level, take compulsory emergency
measures, including ordering the enterprises or institutions concerned to reduce or stop the discharge of pollutants.

Article 22 Enterprises shall employ clean production techniques that facilitate high utilization efficiency of raw and semi-finished materials
and reduced discharge of pollutants and improve management to decrease water pollutants.

The State shall institute a system for eliminating outdated production techniques and equipment which seriously pollute the water
environment.

The competent department for comprehensive economic and trade affairs under the State Council shall, together with the relevant departments
under the State Council, publish the catalogue for techniques which seriously pollute the water environment and for stopping the
use of which a time limit is fixed, as well as the catalogue of equipment which seriously pollute the water environment and for stopping
the manufacture, sale, import and use of which a time limit is fixed.

Manufacturers, sellers, importers and users must, within the time limit fixed by the competent department for comprehensive economic
and trade affairs under the State Council together with the relevant departments under the State Council, stop manufacturing, selling,
importing or using the equipment listed in the catalogue mentioned in the preceding paragraph. Users of the production techniques
listed in the catalogue mentioned in the preceding paragraph must stop using such production techniques within the time limit fixed
by the competent department for comprehensive economic and trade affairs under the State Council together with relevant departments
under the State Council.

No equipment that has been eliminated according to the provisions of the preceding two paragraphs may be transferred to others for
use.

Article 23 The State shall forbid construction of any small enterprises, devoid of measures for prevention and control of water pollution, that
seriously pollute the water environment, such as chemical pulp mills, printing and dyeing mills, dyestuff mills, tanneries, electroplating
factories, oil refineries and pesticides manufacturers.

Article 24 Any pollutant discharging unit that causes serious pollution to a water body shall be ordered to treat the pollution within a time
limit.

For enterprises and institutions directly under the jurisdiction of the Central Government or the people’s government of a province,
autonomous region or municipality directly under the Central Government, a proposal on the time limit shall be made by the environmental
protection department of the people’s government of the province, autonomous region or municipality directly under the Central Government
and submitted to the people’s government at the same level for decision. For enterprises and institutions under the jurisdiction
of the people’s government at or below the county or city level, a proposal on the time limit shall be made by the environmental
protection department of the people’s government of the city or county and submitted to the people’s government at the same level
for decision. The pollutant discharging units shall accomplish treatment of the pollution as scheduled.

Article 25 Environmental protection departments and relevant supervision and management departments of the people’s governments at various levels
shall have the power to carry out on-site inspections of pollutant discharging units under their jurisdiction, and the units under
inspection must report the situation truthfully and provide the necessary information. The inspecting authorities shall have the
obligation to keep the technological and business secrets of the units inspected.

Article 26 Disputes over water pollution involving two or more administrative regions shall be settled through consultation by the local people’s
governments concerned, or through mediation by their people’s government at a higher level.

CHAPTER IV PREVENTION OF SURFACE WATER POLLUTION

Article 27 No sewage outlet may be built in the protection zones for domestic and drinking water sources, for water bodies at scenic or historic
sites, for important fishery water bodies and for other water bodies of special economic and cultural value. If a sewage outlet is
to be built in the vicinity of such protection zones, the water bodies within those zones must be protected against pollution.

Sewage outlets that have already been built prior to promulgation of this Law, but that discharge pollutants in excess of the limits
set by the national or local standards shall be tackled and brought under control. Any outlet that endangers drinking water sources
shall be relocated.

Article 28 If a pollutant discharging unit, as a result of an accident or other exigency, discharges pollutants in excess of normal quantities
and thus causes or may possibly cause a water pollution accident, it shall immediately take emergency measures, inform such units
as are likely to be endangered or damaged by the water pollution and report the matter to the local environmental protection department.
Where a ship has caused a pollution accident, it shall report the matter to the nearest navigation administration office for investigation
and disposal.

Where a pollution accident occurs to fishery, the matter shall be investigated and handled by the fishery supervision and administration
department.

Article 29 It is forbidden to discharge any oil, acid or alkaline solutions or deadly toxic liquid waste into any water body.

Article 30 It is forbidden to wash and clean in any water body any vehicles or containers which have been used for storing oil or toxic pollutant.

Article 31 It is forbidden to discharge or dump into any water body or directly bury deadly toxic soluble slag, tailings, etc. containing such
substances as mercury, cadmium, arsenic, chromium, lead, cyanide and yellow phosphorus.

Sites for depositing deadly toxic soluble slag, tailings, etc. shall be made waterproof and protected against seepage and leaking.

Article 32 It is forbidden to discharge or dump industry waste residues, urban refuse or other wastes into any water body.

Article 33 It is forbidden to pile or deposit solid wastes and other pollutants on beaches and bank slopes below the highest water level of
rivers, lakes, canals, irrigation channels and reservoirs.

Article 34 It is forbidden to discharge or dump radioactive solid wastes or waste water containing any high-or medium-level radioactive substances
into any water body.

Any discharge of waste water containing low-level radioactive substances into any water body must comply with the regulations and
standards of the State for radioactive protection.

Article 35 Where heated waste water is discharged into any water body, measures shall be taken to ensure that the temperature of the water body
conforms to the standards for water environment quality, so as to prevent any heat pollution hazard.

Article 36 Pathogen-contaminated sewage may be discharged only after it is disinfected to meet the relevant standards of the State.

Article 37 Where industrial waste water or urban sewage is discharged into farmland irrigation channels, attention shall be paid to ensuring
that the water quality at the nearest irrigation intake downstream conforms to the standards for the farmland irrigation water quality.

When industrial waste water or urban sewage is used for irrigation, attention shall be paid to guarding against pollution of the soil,
ground water and agricultural products.

Article 38 The application of pesticides shall comply with the regulations and standards of the State for their safe use.

Transportation and storage of pesticides and disposal of expired or ineffective pesticides shall be strictly controlled to prevent
water pollution.

Article 39 The administrative departments for agriculture and other departments concerned of the local people’s governments at or above the
county level shall take measures to provide guidance to agricultural producers as to how to apply fertilizers and pesticides scientifically
and rationally, so as to prevent their excessive use and water pollution.

Article 40 The discharge of oil-bearing waste water or domestic ewage from ships shall comply with the standards for pollutant discharge by
ships. Ocean-going ships, on entering inland rivers or harbors, shall observe the standards for pollutant discharge by inland river
ships.

Residual oil or waste oil of ships must be recovered, and its discharge into any water body shall be forbidden.

It is forbidden to dump ship refuse into any water body.

Where ships are being loaded with or transporting oils or toxic cargoes, measures must be taken against any spillage or leakage of
the oils and against such cargoes from falling into water, in order to prevent water pollution.

CHAPTER V PREVENTION OF GROUND WATER POLLUTION

Article 41 Enterprises and institutions shall be forbidden to discharge or dump waste water containing toxic pollutants or pathogens or other
wastes into seepage wells or pits, crevices or karat caves.

Article 42 At places where no satisfactory impervious strata exist, enterprises and institutions shall be forbidden to use ditches, pits or
ponds devoid of safeguards against seepage for conveyance or storage of waste water containing toxic pollutants or pathogens, or
of other wastes.

Article 43 In exploiting ground water from multiple aquifers, layered exploitation shall be resorted to if the water quality differs greatly
from one aquifer to another. No combined exploitation of paretic water and artesian water already polluted may be permitted.

Article 44 While constructing underground engineering facilities or carrying out underground prospecting, mining and other underground activities,
protective measures shall be taken to prevent ground water pollution.

Article 45 Artificial recharge for ground water may not deteriorate the quality of ground water.

CHAPTER VI LEGAL LIABILITY

Article 46 Any one who, in violation of the provisions of this Law, commits any of the following acts, shall, in light of the seriousness of
the case, be warned or fined by the environmental protection department or by the navigation administration office of the communications
department:

(1) refusing to report or submitting a false report on items for which registration is required by the environmental protection department
under the State Council for discharge of pollutants;

(2) refusing an on-site inspection by the environmental protection department or the supervision and management department concerned,
or resorting to deception;

(3) storing, piling, abandoning, dumping or discharging any pollutant or waste in violation of the relevant provisions of Chapters
IV and V of this Law; or

(4) failing to pay, as provided for by the State, the fee for pollutant discharge or for excess discharge.

The amount of fine and the procedure for its imposition shall be stipulated in the rules for implementation of this Law.

Article 47 If any unit, in violation of the provisions of the third paragraph of Article 13 of this Law, puts into production or to use a construction
project for which the construction of facilities for prevention and control of water pollution has not been completed or whose facilities
for prevention and control of water pollution fail to meet the requirements laid down by the State, the environmental protection
department that approved the environmental impact statement of the said project shall order the unit to suspend production or use,
and may also impose a fine on it.

Article 48 If any pollutant discharging unit, in violation of the provisions of the second paragraph of Article 14 of this Law, intentionally
does not use the water pollutant treatment facilities in a normal manner, or dismantles or lays idle such facilities without approval
of the environmental protection department and thus discharges pollutants in excess of the standards, the environmental protection
department of the local people’s government at or above the county level shall order the unit to restore the normal use or to re-install
and use the facilities within a time limit, and may also impose a fine on it.

Article 49 If any unit, in violation of the provisions of the fourth paragraph of Article 20 of this Law, constructs or expands, within a first-grade
surface sources protection zone for domestic and drinking water, the people’s government at or above the county level shall, pursuant
to the limits of power authorized by the State Council, order the unit to suspend operation or to close down.

Article 50 If any unit, in violation of the provisions of Article 22 of this Law, manufactures, sells, imports or uses equipment that is prohibited
from being manufactured, sold, imported or used or employs production techniques that are prohibited from being employed, the competent
department for comprehensive economic and trade affairs of the people’s government at or above the county level shall order to set
it right; if the violation is serious, the competent department for comprehensive economic and trade affairs of the people’s government
at or above the county level shall submit a proposal to the people’s government at the same level that it, within the limits of its
power authorized by the State Council, order the unit to suspend operation or to close down.

Article 51 If, in violation of the provisions of Article 23 of this Law, a small enterprise devoid of water pollution prevention and control
measures is constructed and thus it causes severe pollution to the water environment, the people’s government of the city or county
where it is located or the people’s government at a higher level shall order it to close down.

Article 52 An enterprise or institution which has caused severe pollution to a water body but has failed to eliminate such pollution on expiration
of the time limit shall, according to regulations of the State, pay twice or more the fee for excess discharge, and may, in the light
of consequent damage and loss, also be fined or ordered to suspend operation or close down.

The fine shall be decided by the environmental protection department. The order for suspension of operation

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON DISTRIBUTING THE ADMINISTRATION MEASURES FOR THE BARTER TRADE BETWEEN BORDER RESIDENTS

Circular of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation on Distributing the Administration
Measures for the Barter Trade between Border Residents

Shu Jian [1996]No. 242

(Promulgated by the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation on March 29, 1996)

The customs houses of Haerbin, Changchun, Dalian, Urumchi, Lhasa, Manchuria, Hohhot, Kunming and Nanning, and the commissions (departments)
of foreign trade and economic cooperation of Heilongjiang, Jilin, Liaoning, Tibet, Inner Mongolia, Xinjiang, Guangxi and Yunnan:

We hereby issue the Measures for the Administration of the Barter Trade between Border Residents to you, please promulgate it by Order
No. 65 of the General Administration of Customs and seriously implement them, and the related issues are notified as follows:

It is very difficult to incorporate various conditions into one document of administrative provisions by virtue of the fact that the
land border of our country is very long and the conditions of each border area are greatly different. Therefore, the present Provisions
only prescribe the necessary conditions, varieties as well as the monetary limits for the barter trade between border residents,
and all the customs houses at the border areas shall formulate the specific implementation rules according to their respective actual
situations.

The establishment of areas (sites) for the barter trade between border residents shall be approved by the people’s government of the
border province or autonomous region, and any area (site) for the barter trade between border residents may not be established at
random on any region. The government of the province or autonomous region may, as regards the administration of the barter trade
between border residents with a fairly small scale and without closing conditions, formulate specific administrative measures together
with the customs house directly under the General Administration of Taxation in accordance with the present Measures, and report
them to the General Administration of Taxation for archival filing.

Where the visitors, upon approval of the border inspection organ and the local public security organ, come in and out of an area (site)
for the barter trade between border residents, the customs house may handle it in light of the limits on the articles that can be
carried by the residents in border areas.

With regard to those border areas with bad weather, poor natural conditions and extremely special circumstances, the area (site) for
the barter trade between border residents may be established in the border port or a place nearby. And the specific location shall
be determined by the government of the province or autonomous region in conjunction with the customs house directly under the General
Administration of Taxation, and shall be reported to the General Administration of Taxation and the Ministry of Foreign Trade and
Economic Cooperation for archival filing.

Appendix: Measures for the Administration of the Barter Trade between Border Residents (Omitted)

The General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation
1996-03-29

CIRCULAR OF THE MINISTRY OF LABOUR, THE MINISTRY OF PUBLIC SECURITY, THE MINISTRY OF FOREIGN AFFAIRS, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUING THE PROVISIONS ON ADMINISTRATION OF EMPLOYMENT OF FOREIGNERS IN CHINA

The Ministry of Labour, the Ministry of Public Security, the Ministry of Foreign Affairs, the Ministry of Foreign Trade and Economic
Cooperation

Circular of the Ministry of Labour, the Ministry of Public Security, the Ministry of Foreign Affairs, the Ministry of Foreign Trade
and Economic Cooperation on Issuing the Provisions on Administration of Employment of Foreigners in China

LaoBuFa [1996] No.29

January 22,1996

Labor (labor personnel) departments (bureaus), departments (bureaus) of public security, offices of foreign affairs and departments
(bureaus) of foreign trade and economic cooperation of the various provinces, autonomous regions, municipalities directly under the
Central Government, All ministries, commissions, bureaus and related departments of the State Council, all embassies, consulates
and offices assigned to the various localities:

In order to enhance management of employment of foreigners in China,standardizerelated acts of employment and engagement and protect
the legitimate rights and interests of foreigners employed in China and units employing foreigners according to the law,through related
departments’ approval, Ministry of Labour, Ministry of Public Security,Ministry of Foreign Affairs, Ministry of Foreign Trade and
Economics Cooperation draw together the Provisions on Administration of Employment of Foreigners in China and issue it for implementation.

During the implementation of the provisions, all departments of Labour, Public Security, Foreign Affairs and Foreign Trade and Economics
Cooperation are requested to cooperate mutually and clasp and report to Ministry of Labour,Ministry of Public Security, Ministry
of Foreign Affairs, Ministry of Foreign Trade and Economics Cooperation in timely fashion.

All labor departments of the various provinces, autonomous regions, municipalities directly under the Central Government and Ocean
Petroleum Company of China are requested to report the implementation to Ministry of Labor at the end of every year.

Chineses having been employed in China, not belonging to the personnel described in the article 9 of the provisions and obtaining
employment permits,are requested that employment units transact the procedures of applying for employment permits for them during
two months since the date of the implementation of the provisions. The departments of labor are requested to transact the employment
permits for persons meeting the conditions and stop the employment of persons not meeting the conditions. They are regarded as illegal
employment if not applying for it over the time limit.

Certificates of the People’s Republic of China Permitting the Employment of Foreigners and Employment Certificates for Foreigners
are drew by Ministry of Labor and given by other notifications.

Attachment:Provisions on Administration of Employment of Foreigners in ChinaContentsChapter I General Provisions

Chapter II Employment Permission

Chapter III Application and Examination and Approval

Chapter IV Labour Management

Chapter V Penalty Provisions

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

These Provisions are hereby formulated in accordance with stipulation in relevant laws and regulations to enhance management of employment
of foreigners in China.

Article 2

The foreigners as referred to in these Provisions refer to persons who do not have Chinese nationality as stipulated in the Nationality
Law of the People’s Republic of China. The term of “employment of foreigners in China” as used in these Provisions refers to the
behaviour of engaging in social labour and receiving remunerations in accordance with law by foreigners who have not obtained permits
to reside in China.

Article 3

These Provisions are applicable to foreigners working inside China and units employing foreigners. These Provisions are not applicable
to persons enjoying diplomatic prerogatives and immunity, such as those working in foreign embassies and consulates in China, UN
representative offices in China, and other international organizations stationed in China.

Article 4

The labour administrations under the people’s governments at the provincial, autonomous regional and municipal level and those at
the prefectural level shall take charge of management of the employment of foreigners in China.

Chapter II Employment Permission

Article 5

Units that employ foreigners shall apply for employment permission for these foreigners and shall employ foreigners only after obtaining
Certificates of the People’s Republic of China Permitting the Employment of Foreigners (hereinafter referred to as certificates of
permission).

Article 6

The posts which employing units decide to fill with foreigners shall be those in special need and which can not be taken up by domestic
candidates for the time being. Moreover, no relevant state provisions shall be violated in the while.

No units shall employ foreigners to engage in cultural performances with a business character, except for those conforming with stipulations
in Paragraph 3 of Article 9 of these Provisions.

Article 7

Foreigners seeking employment in China should meet the following qualifications:

(1)

having reached the age of 18 and being healthy;

(2)

possessing the professional skills needed for and corresponding work experiences in the work to be taken up;

(3)

free from criminal records;

(4)

having specific employer units;

(5)

possessing valid passports or other international travel documents that can replace passports (hereinafter referred to as passport
substitutes).

Article 8

Foreigners seeking employment in China shall enter China on the strength of occupation visas (or in line with agreements on mutual
exemption of visas if such agreements have been reached) and can get employed only after obtaining Employment Certificates for Foreigners
(hereinafter referred to employment certificates) and residential documents for foreigners.

Foreigners who have not obtained residential documents (namely, those holding, F, L, C, and G visas), foreigners studying or doing
field work in China, and the dependents of foreigners holding occupation visas shall not be employed in China. In special cases,
employing units shall apply for certificates of permission according to the examination and approval procedures stipulated in these
Provisions, and the foreigners to be employed shall change their status at public security departments on the strength of these certificates
of permission, and obtain employment certificates and residential documents before they become employed.

The employment of the spouses of the persons in foreign embassies and consulates, in UN organizations, and in the representative offices
of other international organizations in China shall be handled according to the Provisions of the Ministry of Foreign Affairs of
the People’s Republic of China on the Employment of the Spouses of the Persons Working in Foreign Embassies, Foreign Consulates,
and UN Organizations in China, with relevant proceedings to be completed in line with the examination and approval procedures stipulated
in Paragraph 2 of this article.

Certificates of permission and employment certificates shall be prepared by the Ministry of Labour in a unified way.

Article 9

Foreigners meeting one of the following qualifications can be exempted from certificates of permission and employment certificates:

(1)

Foreign experts and management personnel engaged with funds directly from the Central Government or with funds from State organs
or institutional units, foreign experts and management personnel with senior professional post_titles or certificates of special skills
acknowledged by authoritative technical management departments or trade associations of their home countries or international organizations,
and foreigners carrying Certificates of Foreign Experts issued by the Administration of Foreign Experts.

(2)

Foreign labourers with Permits for Foreigners to Engage in Offshore Oil Operations in the People’s Republic of China who are engaged
in offshore oil operations and do not have the need to land, and who have special skills.

(3)

Foreigners putting on art performances of a business character on the strength of Permits for Temporary Performances of a Business
Character as approved by the Ministry of Culture.

Article 10

Foreigners meeting any of the following qualifications can be exempted from obtaining certificates of permission and can directly
apply, upon entry into China, for employment permits on the strength of occupation visas and other relevant certificates:

(1)

Foreigners who are employed to work in China according to agreements and protocols signed between China and foreign governments or
international organizations, or who are employed to implement Sino- foreign cooperative projects or projects of exchanges.

(2)

Chief representatives and representatives of the residential offices of foreign enterprises in China.

Chapter III Application and Examination and Approval

Article 11

Units employing foreigners shall fill Application form for Employing Foreigners (hereinafter referred to as the Application), file
applications to departments in charge of their respective trades at the same level of departments in charge of their labour management
(hereinafter referred to as departments in charge of respective trades), and present the following documents in validity:

(1)

Resume of the foreigners to be employed.

(2)

Letter of employment intent.

(3)

Explanation of reasons for the employment.

(4)

Certificates qualifying the foreigners for the work.

(5)

Health certificates of the foreigners to be employed.

(6)

Other documents required by laws and regulations.

Departments in charge of respective trades shall carry out examination and give approval in line with stipulations in Article 6 and
Article 7 of these Provisions and other relevant laws and regulations.

Article 12

After approval by departments in charge of respective trades, employer units shall go through verification procedures with labour
administrations at the provincial, autonomous regional and municipal level or with authorized labour administrations at the prefectural
level at their locations, carrying with them the application forms. Labour administrations at the provincial, autonomous regional
and municipal level or authorized labour administrations at the prefectural level shall appoint special organs (hereinafter referred
to as certificate issuing departments) to take specific charge of the work of the signing and issuance of certificates. Certificate
issuers shall carry out verification according to the opinions put forward by departments in charge of respective trades and the
supply and demand situation at the labour market, and issue certificates of permission to employer units after verification.

Article 13

Employer units at the central level and those without being affiliated to any departments in charge of respective trades may, if they
want to employ foreigners, directly file applications and go through employment permission procedures with the certificate issuing
departments of labour administrations.

Enterprises with foreign investment hoping to employ foreigners do not need to ask for examination and approval from departments in
charge of respective trades. They may apply for and obtain certificates of permission directly from the certificate issuing departments
of labour administrations on the strength of their contracts, articles of association, certificates of approval, business licenses,
and the documents specified in Article 11 of these Provisions.

Article 14

The employer units that have obtained the approval to employ foreigners shall not directly issue certificates of permission to the
foreigners to be employed. The authorized units shall issue visa notices and certificates of permission to the foreigners to be employed
in stead.

Article 15

The foreigners who have obtained approval to work in China shall apply for occupation visas at Chinese embassies or consulates on
the strength of the certificates of permission issued by the Chinese Ministry of Labour, the notices and certificates of permission
issued by authorized units, valid passports issued by their own countries, or documents that can substitute passports.

Those conforming with conditions specified in Paragraph 1 of Article 9 of these Provisions shall apply for occupation visas on the
strength of the notices sent by authorized units, those conforming with conditions specified in Paragraph 2 of Article 9 of these
Provisions shall apply for occupations visas on the strength of the notices given by the China Offshore Oil Corporation, and those
conforming with conditions specified in Paragraph 3 of Article 9 of these Provisions shall apply for occupation visas on the strength
of the notices given by the foreign affairs offices of the people’s governments of relevant provinces, autonomous regions or municipalities
and the documents of approval issued by the Ministry of Culture (both will be given directly to Chinese embassies or consulates in
the countries concerned).

Those conforming with conditions in Paragraph 1 of Article 10 of these Provisions shall apply for occupation visas on the strength
of the notices given by authorized units and letters of projects of cooperation and exchange. Those conforming with conditions specified
in Paragraph 2 of Article 10 of these Provisions shall apply for occupation visas on the strength of the notices given by authorized
units and certificates of registration issued by administrations for industry and commerce.

Article 16

Employer units shall, within 15 days of the entry of the foreigners they employ, apply to the original certificate issuing departments
for certificates of employment for these foreigners and fill the Form of Registration of Employment of Foreigners) on the strength
of the certificates of permission, the labour contracts they have signed with these foreigners, the valid passports of these foreigners,
or documents that can substitute the passports.

The certificates of employment are valid only in areas designed by certificate issuing departments.

Article 17

Foreigners who have received certificates of employment shall, within 30 days after entry, apply for and obtain residence cards from
public security departments on the strength of their certificates of employment. The term of validity of residence cards can be determined
according to the term of validity of the certificates of employment.

Chapter IV Labour Management

Article 18

Employer units and the foreigners employed shall sign labour contracts in accordance with law. The term of labour contracts shall
not be more than five years at the longest. Labour contracts shall terminate upon the expiration of their terms, although their can
be renewed after completing procedures of examination and approval as stipulated in Article 19 of these Provisions.

Article 19

The certificates of employment of foreigners shall become invalid upon expiration of the labour contracts they sign with employer
units. If both parties hope to prolong the contracts, the employer unit shall apply, within 30 days of the termination of the original
labour contracts, to labour administrations for prolonging the employment and go through, if approved, procedures for extending the
term of the certificates of employment.

Article 20

The foreigners who have prolonged their term of employment in China or changed their locations of employment or employers shall go
through alteration procedures with local public security departments within 10 days of such changes.

Article 21

After termination of the labour contracts between the employed foreigners and the employer units, the employer units shall make timely
reports to labour and public security departments, return the certificates of employment and residence cards of the foreigners, and
go through exit procedures with public security departments.

Article 22

Employer units shall not pay the foreigners they employ wages lower than local minimum wage standards.

Article 23

The working hours, rest, holidays, labour safety and sanitation, and social insurance for foreigners employed in China shall be handled
in line with relevant State provisions.

Article 24

The employer units with which the foreigners work in China shall be same and one as specified in the certificates of employment.

The foreigners who change their employers within the location designed by the certificate issuing departments but still engage in
the same occupation shall ask for approval from the original certificate issuing departments and go through employment alteration
procedures.

The foreigners who get jobs beyond the area designated by the certificates issuing departments or change their employer within the
area designated by the certificate issuing departments but engage in different occupations shall go through procedures for employment
permission anew.

Article 25

Employer units must terminate their labour contracts with the foreigners who have been deprived by Chinese public security departments
of the right to reside in China due to violation of Chinese laws, and labour departments shall revoke the certificates of employment
of these foreigners.

Article 26

Should any labour disputes arise between employer units and employed foreigners, these disputes shall be handled in line with the
Labour Law of the People’s Republic of China and the Regulations of the People’s Republic of China on the Settlement of Labour Disputes
in Enterprises.

Article 27

Labour administrations shall carry out annual checks of certificates of employment. Within 30 days of the conclusion of each full
year of employment of foreigners, the employer units shall go through procedures with the certificate issuing departments of labour
administrations for the annual check of certificates of employment on behalf of the foreigners they employ. Certificates of employment
shall become invalid automatically should employer units fail to go through these procedures within the prescribed time.

Foreigners who lose or damage their certificates of employment while working in China shall report their cases to the original certificate
issuing departments and go through procedures for new certificates.

Chapter V Penalty Provisions

Article 28

Foreigners who get employed without obtaining certificates of employment and employer units that employ foreigners without obtaining
certificates of permission shall be handled by public security departments in line with Article 44 of the Rules for the Implementation
of the Law of the People’s Republic of China on Administration of the Entry and Exit of Foreigners.

Article 29

Labour administrations shall revoke the certificates of employment of foreigners who refuse checks of their certificates of employment
by labour administrations, change their employers or jobs without permission, or prolong their terms of employment without authorization,
and ask public security departments to deprive these foreigners of their qualification for residing in China. If these foreigners
are to be repatriated, the repatriation costs shall be shouldered by the employer units or the foreigners themselves.

Article 30

Foreigners and employer units that forge, alter, transfer, trade or use other’s certificates of employment or certificates of permission
shall be subject to confiscation of these certificates of employment or certificates of permission by labour administrations and
be fined at between over 10,000 yuan and below 100,000 yuan. Those who commit cases so serious as to become criminal shall be handed
over to judicial departments to affix criminal responsibilities.

Article 31

The staff members of certificate issuing departments and other relevant departments who usurp their power, ask for illegal charges,
or do wrong to serve their friends or relatives and as a result commit crimes shall be affixed with criminal responsibilities or
be administratively disciplined if their cases are not so serious as to be criminal.

Chapter VI Supplementary Provisions

Article 32

Residents from China’s Taiwan, Hong Kong and Macao regions who seek jobs on the Chinese mainland shall be treated in line with the
Provisions on Administration of Employment of Taiwan, Hong Kong and Macao Residents on the Chinese Mainland.

Article 33

These Provisions are not applicable those foreigners who are employed in China’s Taiwan, Hong Kong, or Macao regions.

Article 34

Privately-owed economic organizations and individuals are forbidden to employ foreigners.

Article 35

Labour administrations at the provincial, autonomous regional and municipal level may formulate, together with public security departments
and other departments, local implementing rules of these Provisions and report these rules to the Ministry of Labour, the Ministry
of Public Security, the Ministry of Foreign Affairs, and the Ministry of Foreign Trade and Economic Cooperation for the record.

Article 36

The Ministry of Labour is responsible for the interpretation of these Provisions.

Article 37

These Provisions shall enter into force as of May 1, 1996. The Provisions on the Employment of Foreigners Who have Not Obtained Residence
Cards and Foreigners Who Come to China for the Purpose of Study promulgated by the former Ministry of Labour and Personnel and the
Ministry of Public Security on October 5, 1987 shall be repealed simultaneously.

The Ministry of Labour, the Ministry of Public Security, the Ministry of Foreign Affairs, the Ministry of Foreign Trade
and Economic Cooperation
1996-01-22

CIRCULAR OF THE STATE COUNCIL CONCERNING THE FIRST NATIONWIDE GENERAL SURVEY OF BASIC UNITS

Category	STATISTICS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-01-29	Effective Date	1996-01-29

Circular of the State Council Concerning the First Nationwide General Survey of Basic Units

(January 29, 1996)

Gradual efforts directed at reforming China’s economy have brought about
substantial changes in the economic nature, method of operation and
organizational structure of various units. Objects of statistical
investigation are increasing and becoming more complicated. Due to the great
changes in the statistical entirety and the limitations of the statistical
scope, the existing overall statistical investigation system is statistically
incomplete and unclear. With the intent to accurately reflect the changes of
these various basic units in China, capture the overall distribution of basic
units as they relate to trade, economic nature, scale, structure and location,
provide a basis for the state’s formulation of industrial policies, for the
adjustment of the distribution of production, and for the planning of urban
construction, and to lay the foundation for reforming the statistical
investigation system so that it operates with greater accuracy and efficiency,
the State Council has decided to initiate in 1996, the first nationwide
general survey of basic units. The following circular hereby establishes an
outline of this survey:

1. Purpose of the General Survey: In the interest of assessing the
country’s condition, this general survey shall determine the base number of
units for all trades in the entire country and provide basic statistical data
to be used in observing and analyzing the distribution and development of
China’s basic units as they relate to location, trade and economic nature.

2. Objects and Contents of the General Survey: The objects of the general
survey shall include all units deemed as legal persons as well as their
subsidiary bodies engaging in industrial activities. Legal persons shall
include enterprises, institutions, state organs, social organizations and
other units, while those industrial bodies attached to legal persons shall
include those engaging in agriculture, industry, transportation, wholesale or
retail trade, catering and other trade services, administrative offices and
social organizations. For each legal person and its subsidiary body, the
general survey shall require data on not limited to its basic attributes and
information on its economic nature, trade, employees, scale and operational
status.

3. Scheduling of the General Survey: The standard point of time for the
general survey is set on December 31, 1996. Its preparatory stage will occur
sometime before December, 1996. The collection, verification and processing of
data compiled from this nationwide general survey of basic units shall be
finished by June, 1997. By the close of 1997, the national, provincial and
prefectural (or municipal) levels shall establish databases listing the basic
enterprises and institutions and the data collected from this survey shall be
analyzed, researched, developed and applied.

4. Expenses for the General Survey: Expenses for this nationwide general
survey of basic units shall be paid by the treasures of the central and local
authorities respectively and shall be included in their financial budgets for
the corresponding years.

5. Organization and Execution of the General Survey: In view that this
will be the first general survey of basic units, relevant governments at
various levels and departments shall attach great importance and support to
this survey. The State Statistical Bureau shall supervise the detailed affairs
of the survey’s organization and execution. People’s governments at various
levels shall strengthen their leadership role over the survey’s organization
and coordination and relevant departments shall coordinate their actions and
closely cooperate among themselves in completing the survey. Units of various
kinds shall accurately and truthfully report relevant data as is required and
shall not, in the interest of maintaining the survey’s integrity, submit false
reports or conceal information.

CONSTITUTION ACT, 1982 – page 22

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

2002

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

PROCEDURES FOR CHECKING OF LISTED COMPANIES

OFFICIAL REPLY OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING ISSUES OF FOREIGN-CAPITAL ENTERPRISE MORTGAGING ITS PROPERTY OR RIGHTS AND INTERESTS TO OTHERS

CIRCULAR OF THE STATE COUNCIL REGARDING THE IMPLEMENTATION OF ADMINISTRATIVE PUNISHMENTS

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AMENDING THE ARCHIVES LAW

PREVENTION AND CONTROL OF WATER POLLUTION

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON DISTRIBUTING THE ADMINISTRATION MEASURES FOR THE BARTER TRADE BETWEEN BORDER RESIDENTS

CIRCULAR OF THE MINISTRY OF LABOUR, THE MINISTRY OF PUBLIC SECURITY, THE MINISTRY OF FOREIGN AFFAIRS, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUING THE PROVISIONS ON ADMINISTRATION OF EMPLOYMENT OF FOREIGNERS IN CHINA

PREVENTION AND CONTROL OF ENVIRONMENTAL NOISE POLLUTION

CIRCULAR OF THE STATE COUNCIL CONCERNING THE FIRST NATIONWIDE GENERAL SURVEY OF BASIC UNITS

REGULATIONS FOR THE IMPLEMENTATION OF THE SAFETY IN MINES

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

Category	CULTURE	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-07-05	Effective Date	1996-07-05

Category	ENVIRONMENTAL PROTECTION	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-10-29	Effective Date	1997-03-01

Category	LABOUR ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-10-30	Effective Date	1996-10-30