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2003

INTERIM MEASURES FOR THE ADMINISTRATION OF THE LEVYING OF CONSTRUCTION FEE FOR CULTURAL UNDERTAKINGS

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-07-07 Effective Date  1997-07-07  


Interim Measures for the Administration of the Levying of Construction Fee for Cultural Undertakings



(Approved by the State Council on June 17, 1997, Promulgated by the

Ministry of Finance and the State Taxation Administration on July 7, 1997)

    Article 1  These Measures are formulated for the purpose of standardizing
the administration of the levying of construction fee for cultural
undertakings and promoting the healthy development of socialist cultural
undertakings.

    Article 2  Units and individuals paying entertainment industry and
advertising industry sales tax in accordance with the provisions of the

within the boundaries of the People’s Republic of China who shall be
obligatory payers of the construction fee for cultural undertakings
(hereinafter referred to as payers) should pay the construction fee for
cultural undertakings pursuant to the provisions of these Measures.

    Article 3  The rate of the construction fee for cultural undertakings
is 3%.

    Adjustment of the rate of the construction fee for cultural undertakings
shall be determined by the State Council.

    Article 4  The amount to be paid for the construction fee for cultural
undertaking shall be calculated in accordance with the sales volume the
payer has to pay entertainemtn industry and advertising industry sales tax
and the prescribed rate. The calculation formula is:

    amount payable = sales volume of which the entertainment industry and
advertising industry sales tax is payable X 3%

    Article 5  The construction fee for cultural undertakings shall be
levied and collected simultaneously at the time of levying and collection
of the entertainment industry and advertising industry sales tax by local
tax bureaus.

    Article 6  The obligation of payment for the construction fee for
cultural undertakings occurs on the day when the payer has completed the
amount of sales revenue or obtained the vouchers for the amount of sales
revenue to be collected.

    Article 7  The time period of payment for the construction fee for
cultural undertakings shall be the same as that of payment for sales tax
by the payer, or determinded by competent tax organs in the light of the
amount payable by the payer.

    Article 8  The payer should declare and pay the construction fee for
cultural undertakings at the competent tax organ at the place of occurence
where the entertainment industry and advertising industry services are
provided.

    Article 9  The construction fee for cultural undertakings levied on and
collected from units directly under the central departments and their
subsidiary enterprises and institutions shall be handed over to the
central treasury in full; the construction fee for cultural undertakings
levied on and collected from local units and individuals shall be paid to
treasuries at the provincial level in full.

    Article 10  The construction fee for cultural undertakings shall be
integrated into fiscal budget management and special-purpose funds set
up for the construction of cultural undertakings. Specific measures for
its control and use shall be worked out separately.

    Article 11  Administration of the levying and collection of the
construction fee for cultural undertakings shall be effected pursuant to
the provisions of the State relating to the administration of the levying
and collection of sales tax and the relevant provisions of these Measures.
Specific measures shall be formulated by the State Taxation Administration.

    Article 12  The regions which have already levied and collected the
construction fee for cultural undertakings on and from the entertainment
industry and advertising industry before these Measures take effect shall
implement the provisions of these Measures as of the date of coming into
force of these Measures; a small number of areas where the rates of levying
and collection is higher than the rate of levying and collection laid down in
these Measures which need to be maintained in the light of local conditions
shall be determined by the People’s Governments of the provinces, autonomous
regions and municipalities directly under the Central Government can continue
to be implemented upon submission to and approval of the State Council and
the payment shall be made to treasuries pursuant to the provisions of Article
9 of these Measures.

    Article 13  The construction fee for cultural undertakings shall be
calculated, levied and collected in pursuance of the provisions of these
Measures as of the 1997 tax year.

    Article 14  These Measures come into force as of the date of promulgation.





DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON ADDING TO AND DELETING FROM THE LIST OF THE NATIONAL LAWS IN ANNEX III TO THE BASIC LAW OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

Decision of the Standing Committee of the National People’s Congress on Adding to and Deleting from the List of the National Laws
in Annex III to the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China

(Adopted at the 26th Meeting of the Standing Committee of the Eighth National People’s Congress on July 1, 1997) 

1. The following national laws shall be added to Annex III to the Basic Law of the Hong Kong Special Administrative Region of the
People’s Republic of China: 

(1) Law of the People’s Republic of China on the National Flag 

(2) Regulations of the People’s Republic of China Concerning Consular Privileges and Immunities 

(3) Law of the People’s Republic of China on the National Emblem 

(4) Law of the People’s Republic of China on the Territorial Sea and the Contiguous Zone 

(5) Law of the People’s Republic of China on Garrisoning the Hong Kong Special Administrative Region 

The national laws mentioned above shall be promulgated or implemented through legislation by the Hong Kong Special Administrative
Region as of July 1, 1997. 

2. The following national law shall be deleted from Annex III to the Basic Law of the Hong Kong Special Administrative Region of
the People’s Republic of China: 

Order on the National Emblem of the People’s Republic of China Proclaimed by the Central People’s Government 

Attached: Design of the national emblem, notes of explanation and instructions for use. 

 

Appendix: 

Proposal of the Preparatory Committee for the Hong Kong Special Administrative Region Under the National People’s Congress on 

Adding to and Deleting from the List of the National Laws in Annex III to the Basic Law of the Hong Kong Special Administrative Region
of the People’s Republic of China 

(Adopted at the Ninth Plenary Meeting of the Preparatory Committee for the Hong Kong Special Administrative Region Under the National
People’s Congress on May 23, 1997) 

The Standing Committee of the National People’s Congress: 

As is stipulated by the provisions of Article 18 of the Basic Law of the Hong Kong Special Administrative Region, “National laws
shall not be applied in the Hong Kong Special Administrative Region except for those listed in Annex III to this Law. The laws listed
therein shall be applied locally by way of promulgation or legislation by the Region. The Standing Committee of the National People’s
Congress may add to or delete from the list of laws in Annex III after consulting its Committee for the Basic Law of the Hong Kong
Special Administrative Region and the government of the Region. Laws listed in Annex III to this Law shall be confined to those relating
to defence and foreign affairs as well as other matters outside the limits of the autonomy of the Region as specified by this Law.”
Since after the promulgation of the Basic Law, the Standing Committee of the National People’s Congress has formulated a number of
new laws, some of which the Preparatory Committee believes are laws relating to defence and foreign affairs as well as other matters
outside the limits of the autonomy of the Hong Kong Special Administrative Region. The Committee therefore proposes that the Standing
Committee of the National People’s Congress, in accordance with the procedure provided for in Article 18 of the Basic Law, make a
decision to add to and delete from the list of the national laws in Annex III to the Basic Law at the time when it is implemented.
Specifically, the Proposal is as follows: 

I  The following national laws shall be added to Annex III to the Basic Law: 

1. Law of the People’s Republic of China on the National Flag; 

2. Regulations of the People’s Republic of China Concerning Consular Privileges and Immunities; 

3. Law of the People’s Republic of China on the National Emblem; 

4. Law of the People’s Republic of China on the Territorial Sea and the  Contiguous Zone; and    

5. Law of the People’s Republic of China on Garrisoning the Hong Kong  Special Administrative Region. 

II The following national law shall be deleted from Annex III to the Basic Law: 

Order on the National Emblem of the People’s Republic of China Proclaimed by the Central People’s Government  

Attached: Design of the national emblem, notes of explanation and instructions for use.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






CIRCULAR OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF SUGGESTIONS ON STRENGTHENING THE WORK OF TAX COLLECTION ADMINISTRATION OF SELF-EMPLOYED PRIVATE ECONOMY AND INTENSIFYING TAX COLLECTION ON AUDIT OF ACCOUNTS BY THE STATE TAXATION ADMINISTRATION

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-02-18 Effective Date  1997-02-18  


Circular of the State Council Concerning the Approval and Transmission of Suggestions on Strengthening the Work of Tax Collection
Administration of Self-employed Private Economy and Intensifying Tax Collection on Audit of Accounts by the State Taxation Administration


Appendix: SUGGESTIONS ON STRENGTHENING THE WORK OF TAX COLLECTION

(February 18, 1997)

    The State Council has approved the “Suggestions on Strengthening the work
of Tax Collection Administration of Self-employed Private Economy and
Intensifying Tax Collection on Audit of Accounts” by the State Taxation
Administration which is transmitted to you for compliance.

    Strengthening of tax collection administration of self-employed private
economy and intensification of tax collection on audit of accounts are
important measures in the standardization of administration of self-employed
private economy and promotion of the healthy development of self-employed
private economy. People’s governments at all levels should attach great
importance to it, earnestly strengthen leadership and coordinate the work of
departments of taxation, industry and commerce administration, public security
and finance in actively and steadfastly doing this work well and help the
tax departments solve the difficulties and problems emerging in the work.
The State Taxation Administration shall, in combination with deepening the
reform of tax collection administration, earnestly conduct the organization,
guidance, supervision and inspection of this work. All departments concerned
should support and cooperate closely with one another to ensure the smooth
implementation of this work.

    Specific measures for the implementation of this Circular shall be worked
out by the State Taxation Administration in conjunction with the departments
concerned. People’s governments of all provinces, autonomous regions and
municipalities directly under the Central Government and municipalities
under direct planning by the state shall report to the State Council on
the status of implementation of this Circular by the end of July with
copies dispatched to the State Taxation Administration.

Appendix: SUGGESTIONS ON STRENGTHENING THE WORK OF TAX COLLECTION
ADMINISTRATION OF SELF-EMPLOYED PRIVATE ECONOMY AND INTENSIFYING TAX
COLLECTION ON AUDIT OF ACCOUNTS (The State Taxation Administration  
January 10, 1997)

    The rapid development of the self-employed private economy in our
country since the implementation of the policy of reform and opening up
has played a positive role in the development of the social productive
forces, bringing prosperity to the socialist market economy, adding to
the revenue of the state finance, alleviating the pressure on urban and
rural employment and making people’s life more convenient. However, there
also exist a number of problems in the process of the development of the
self-employed private economy, especially the phenomena of no account to
audit and incomplete accounting books in business operations and disorder
in financial management are quite common, and the question of state tax
evasion is outstanding which have aroused the concern of the whole society.
This state of affairs, if not changed, will not be conducive to the healthy
development of the self-employed private economy and fair competition, nor
will it be instrumental to the implementation of the Tax Law. Therefore,
earnest and effective measures have to be taken to further strengthen the
work in the financial management and taxation administration of the
self-employed private economy. To this end, the following suggestions are put
forth:

    1.Comprehensive and Accurate Implementation of the Party’s and the
State’s Policies on the Development of the Self-employed Private Economy.
Joint development of multiple economic elements with the economy of public
ownership as the main body is a policy long adhered to by the Party and State.
Continuous encouragement and support shall be given to the development of the
self-employed private economy as an important supplement to the economy of
public ownership; integral employment of economic, legal, administrative,
ideological and educational means shall be followed to step up guidance,
supervision and administration of the self-employed private economy; the
just business operations and legitimate income of households of the
self-employed private economy shall be protected; in the meantime, tax
collection administration of the self-employed private economy shall be
strengthened and tax collection on audit of accounts shall be intensified so
as to create an environment of fair competition and promote the healthy
development of the self-employed private economy.

    2.Improvement in the Mode of Tax Collection Administration of the
Self-employed Private Economy and Intensification of Tax Collection on Audit
of Accounts. Tax offices at all levels should take effective measures to
earnestly strengthen tax collection administration of the self-employed
private economy and gradually and comprehensively enforce tax collection
on audit of accounts among households of the self-employed private economy
with fixed sites for business operations to realize the legalization and
standardization in tax collection administration.

    As of April 1, 1997, self-employed industrial and commercial households
with a certain scale of operations and privately-operated enterprises taxed
at regular intervals in fixed amount, enterprises leased and contracted by
individuals for operations shall establish comprehensive accounting books
pursuant to the uniform state accounting rules, and tax offices shall enforce
tax collection on audit of accounts with respect to them. Business households
can establish accounting books on their own. They can also employ intermediate
agencies of society to establish accounting books as agents. In specialized
markets with the requisite conditions, fixed business households engaging in
commercial wholesale or retail should use tax-controlled tills as prescribed
while establishing accounting books, their purchase expenses can be listed
in expenditure in pre-income tax instalments.

    To prevent tax money loss and ensure tax revenue, in the initial stage of
establishing accounting books, the mode of tax collection on audit
of accounts in combination with tax collection at regular intervals in fixed
amount can be adopted as a transitional measure.

    For all categories of business households taxed at present at regular
intervals in fixed amount, the fixed amount shall be adjusted in the light of
their operations, and administration in fixed amount shall be strengthened
with respect to the few business households that need to be taxed at regular
intervals in fixed amount. Both business households of taxation on audit of
accounts and business households of taxation at regular intervals in fixed
amount should declare and pay tax truthfully according to law,
non-declaration, untruthful declaration or failure to declare the adjusted
fixed amount exceeding a certain range of the fixed amount, once investigated
and verified, shall be handled as tax evasion.

    State tax bureaus and local tax bureaus in all localities should jointly
supervise and urge business households of self-employed private economy to
establish accounting books. State tax bureaus shall be responsible for
the supervision of establishment of accounting books by business households
that pay value-added taxes and consumption taxes; local tax bureaus shall be
responsible for the supervision of establishment of accounting books by
business households that pay sales taxes.

    3.Business Households of Self-employed Private Economy Should Have a
Correct Understanding and View of the Significance of Establishment of
Accounting Books and Taxation on Audit of Accounts. Establishment of
accounting books is the necessity of the operators in strengthening
self-management and expansion of operations and it is also the basis of tax
declaration and payment in accordance with law. Therefore, business households
of self-employed private economy should enthusiastically, actively and
seriously establish accounting books and use tax-controlled tills in
accordance with the requirements, accept the supervision of tax organs, and
truthfully declare operational status at tax organs in support of the work of
taxation on audit of accounts carried out by tax organs. Associations of
self-employed labourers and associations of privately-operated enterprises
should actively cooperate with people’s governments and tax organs at all
levels in stepping up publicity and education and assist business households
of self-employed private economy in the establishment of accounting books.

    4.All Departments Concerned Should Support and Closely Cooperate with
One Another. Strengthening of taxation administration of self-employed private
economy and intensification of taxation on audit of accounts involve many
sides and have an integral nature, it is therefore a difficult job. The
State Taxation Administration must, in combination with the deepening of
reform in taxation administration, earnestly do this job well in organization,
guidance, supervision and inspection. All departments concerned should support
and closely cooperate with one another to ensure the smooth progress of this
work.

    Organs of industry and commerce administration and tax organs should
jointly organize forces to conduct a sorting out with respect to the nature
of industry and commerce registration of the enterprises in accordance with
the capital composition and operational status of the enterprises. In the
meantime, a joint sorting out and inspection shall be conducted on the status
of the issuance of business licences to business households of self-employed
private economy and taxation registration. Those business households that
fail to establish accounting books as prescribed or establish falsified
accounting books shall be directed to suspend operations for consolidation
and make corrections within the specified time period; those that fail to
make corrections on expiry of the time period shall be revoked of their
business licences and their qualifications for operations nullified; those
that evade taxes with establishment of falsified accounting books
constituting a crime shall be transferred to judicial organs for handling.

    Financial departments should strengthen cash management and handle
cash acceptance and payment in accordance with state provisions on cash
management; they should clear up and prohibit multiple opening of accounts.
With respect to the business households that commit acts of tax evasion,
all financial units should, pursuant to the provisions of the state laws,
actively assist tax organs in the inspection of their deposit accounts,
provide relevant information and take timely measures to secure the taxation
and enforce measures of forcible execution according to law.

    Public security organs at all levels should seriously investigate and
deal with tax-related cases and cases of encircling and attacking or forcibly
entering into tax organs or beating and slandering tax officials. Those who
turn down or obstruct tax officials in execution of their official duties and
deliberately disrupt public order in taxation shall be dealt with according
to law.

    5.Achieving Consensus of Views and Strengthening Leadership. People’s
governments at all levels should earnestly strengthen leadership in the work
of taxation administration of self-employed private economy and
intensification of taxation on audit of accounts, support and assist tax
departments in the resolution of difficulties and problems coming up in the
work. In the meantime, they should proceed from the overall situation,
resolutely implement various rules of the State Council concerning curbing
arbitrary collections of fees, unjustified financial levies and indiscriminate
fines, conduct a sorting out and consolidation in collection of fees and
earnestly alleviate the nontax payments of business households of
self-employed private economy so as to ensure the smooth implementation of the
work of taxation on audit of accounts.





INTERIM PROVISIONS ON THE QUALIFICATIONS OF MIDDLE-RANKING AND SENIOR MANAGERIAL PERSONNEL WORKING IN FINANCIAL INSTITUTIONS WITH FOREIGN CAPITALS

The People’s Bank of China

Notice of the People’s Bank of China on Printing and Issuing Interim Provisions on the Qualifications of Middle-ranking and Senior
Managerial Personnel Working in Financial Institutions with Foreign Capitals

Yin Fa [1997] No. 197

The sub-banks of the People’s Bank of China in Beijing, Shanghai, Tianjin, Chongqing, Zhejiang, Heilongjiang, Sichuan, Guangdong,
Liaoning, Anhui, Fujian, Guangxi, Hainan, Hubei, Jiangsu, Yunnan, Shenzhen, Ningbo, Xiamen, Qingdao, Zhuhai, Dalian, Shantou, Suzhou,
Nantong, Quanzhou, etc:

Interim Provisions on the Qualifications of Middle-ranking and Senior Managerial Personnel Working in Financial Institutions with
Foreign Capitals are hereby printing and issuing and please carry out. If having any question in the process of implement, please
report to the General Bank in time.

The People’s Bank of China

May 15, 1997

Interim Provisions on the Qualifications of Middle-ranking and Senior Managerial Personnel Working in Financial Institutions with
Foreign Capitals

Article 1

These Provisions are formulated in accordance with the Regulations of the People’s Republic of China for the Administration of Financial
Enterprises with Foreign Capitals, and with reference to the Interim Provisions for the Administration of the Qualifications for
Senior Managerial Personnel Working in Financial Institutions, for the purpose of strengthening the administration of the middle-ranking
and senior managerial personnel working in financial institutions with foreign capitals

Article 2

The financial institutions with foreign capitals refer, for the purpose of these Provisions, to the foreign-capital and Chinese-foreign
equity joint financial institutions of different categories operating within the territory of the People’s Republic of China, the
establishment of which was approved by the People’s Bank of China in accordance with the procedures prescribed by the relevant laws
of the land.

Article 3

The People’s Bank of China is responsible for the examination and administration of the qualifications of the middle-ranking and senior
managerial personnel working in the financial institutions with foreign capitals.

Article 4

The middle-ranking and senior managerial personnel refer, within the purview of these Provisions, to:

1.

presidents, Vice-presidents, general managers, deputy general managers, governors and deputy governors of wholly foreign-capital financial
institutions or Chinese-foreign equity joint financial institutions;

2.

general managers, deputy general managers, governors, deputy governors or governors of the subsidiary banks of foreign financial institutions
operating in China;

3.

the chief management personnel such as chief accounting officers, chief actuaries, etc. who are involved in the day-to-day management
of their financial institutions;

4.

the general representatives, chief representatives, and residents of the representative offices of foreign financial institutions.

Article 5

The middle-ranking and senior managerial personnel must abide by the laws and regulations of the People’s Republic of China, are equipped
with an educational background in economics and finance and other related subjects at or above the junior college level, conversant
with the rules and regulations of China for financial administration, capable of business management and of sound personal character
and with clean personal records.

Article 6

In addition to the requirements laid down in Article 5 , the position of a middle-ranking or senior manager in a financial institution
with foreign capitals also requires the candidate to meet the following conditions:

1.

To qualify for the position of chairman, vice-chairman, general manager, governor of foreign-capital or Chinese-foreign equity joint
financial institutions with corporate person status or general manager, governor of the subsidiaries in China of foreign financial
institutions, the candidate must have a work experience of over 10 years in the financial field or over 15 years of work experience
in the related economic fields, and concurrently have the experience of over 5 years, working as a departmental manager of a bank
subsidiary or a post equivalent to that or above;

2.

To qualify for the position of a deputy general manager, deputy governor, governor of a bank subsidiary, chief accounting officer
and chief actuarial of financial institutions with foreign capitals, the candidate must have a work experience of over 5 years in
the financial field and over 3 years working as departmental manager of a bank subsidiary or a position equivalent to or above that
post, additionally a candidate for the position of a chief accounting officer or chief actuarial must have acquired the relevant
credentials.

3.

To qualify for the position of a general representative of the representative office in China of a foreign financial institution,
the candidate must have work experience in the financial sector for more than 10 years and has been in charge of operations in China
for more than 2 out of the recent 5 years;

4.

To qualify for the position of chief representative of the representative office in China of a foreign financial institution, the
candidate must have the work experience in the financial sector or related fields for more than 5 years.;

5.

To qualify for the position of representative of the representative office in China of a foreign financial institution, the candidate
must have the work experience in the financial sector or related fields for more than 3 years;

6.

To qualify for the position of a senior manager of a financial institution with foreign capitals, the candidate must be between the
ages of 30 and 65;

7.

The tenure for a senior manager of a financial institution with foreign capitals shall be no shorter than 2 years.

Article 7

Changes in the middle-ranking and senior managerial personnel of a financial institution with foreign capitals in China shall be subject
to the examination and approval by the People’s Bank of China.

Article 8

The People’s Bank of China adopts the system of tiered examination and appraisal of the qualifications of middle-ranking and senior
managerial personnel working in financial institutions with foreign capitals in China.

1.

The head office of the People’s Bank of China is responsible for the examination and identification of the qualifications of the following
personnel:

1)

Chairmen, vice-chairmen, general managers and governors of wholly foreign-capital financial institutions and Chinese-foreign equity
joint financial institutions;

2)

Governors, general managers of the subsidiaries in China of foreign financial institutions;

3)

General representatives and chief representatives of the representative offices in China of financial institutions with foreign capitals;

The qualification documents and information shall be first examined and confirmed as appropriately prepared by the local branch of
the People’s Bank of China before it are forward to the head office of the People’s Bank of China for examination and approval.

2.

The local branches of the People’s Bank of China are responsible for the examination and endorsement of the qualifications of the
following personnel:

1)

Deputy general managers, deputy governors and governors of branches of financial institutions with foreign capitals;

2)

The important managerial personnel such as chief accounting officers and chief actuaries that participate in the day-to-day management
of financial institutions with foreign capitals;

3)

The representatives of the representative offices of foreign financial institutions;

The local branches of the People’s Bank of China shall, upon the examination and approval, submit the relevant documentation and information
to the head office of the People’s Bank of China for the record.

Article 9

The following information shall, in addition to the documentation and information that shall be provided in accordance with the pertinent
rules and regulations, be provided in writing for the middle-ranking and senior managerial personnel designate of financial institutions
with foreign capitals:

1.

Certificates of education, identity cards or photocopies of the passports;

2.

Photocopies of certificates of qualifications for accountants and actuaries.

All the required documentation listed above shall be authentic and reliable. The People’s Bank of China shall mete out penalties according
to the pertinent rules and regulations to those institutions or individuals that have provided false information according to the
pertinent rules and regulations.

Article 10

The repudiation of qualifications for such posts shall be governed with reference to the Interim Provisions for the Administration
of the Credentials for Senior Managerial Positions in Financial Institutions.

Article 11

These Provisions shall prevail where the provisions of other Rules come into conflict with these Provisions concerning the qualifications
for positions of middle- ranking and senior managerial personnel working in financial institutions with foreign capitals.

Article 12

These Provisions shall be interpreted by the People’s Bank of China.

Article 13

These Provisions shall enter into force as of the date of promulgation.



 
The People’s Bank of China
1997-05-15

 






REGULATIONS ON PUBLICATION ADMINISTRATION

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-01-02 Effective Date  1997-02-01  


Regulations on Publication Administration

Chapter I  General Provisions
Chapter II  Establishment and Management of Publication Units
Chapter III  Publication of Publications
Chapter IV  Printing or Duplication and Distribution of Publications
Chapter V  Safeguards and Rewards
Chapter VI  Legal Responsibility
Chapter VII  Supplementary Provisions

(Promulgated by Decree No.210 of the State Council of the People’s

Republic of China on January 2, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in accordance with the
Constitution with a view to strengthening the administration of activities
of publication, developing the socialist publication industry with Chinese
characteristics and making it prosperous, safeguarding the rights of citizens
to exercise freedom of the press in accordance with law and promoting the
building of socialist spiritual civilization and material civilization.

    Article 2  These Regulations shall be applicable to activities of
publication within the territory of the People’s Republic of China.

    The activities of publication referred to in these Regulations include
the publication and printing of publications or the duplication and
distribution thereof.

     The publications referred to in these Regulations mean newspapers,
periodicals, books, audio-visual products and electronic publications, etc.

    Article 3  The publication industry must persevere in the orientation of
serving the people and socialism, persevere in taking Marxism-Leninism,
Mao Zedong Thought and the theory of building socialism with Chinese
characteristics as guidance, disseminate and accumulate any science,
technology, culture and knowledge instrumental to the improvement of the
quality of the nation, economic development and all-round progress of the
society, develop and make the best possible use of fine national culture,
promote international cultural exchanges and enrich and improve people’s
spiritual life.

    Article 4  Whoever engaging in activities of publication should put
social benefit first and realize optimal integration of social benefit and
economic benefit.

    Article 5  People’s governments at all levels shall protect the rights of
citizens to exercise freedom of the press in accordance with law.

     While exercising rights of freedom of the press, citizens must abide by
the Constitution and law, must not oppose the basic principles prescribed by
the Constitution and must not harm national, societal and collective
interests or the lawful freedom and rights of other citizens.

    Article 6  The department of publication administration under the State
Council shall practise supervision over and administration of activities of
publication throughout the country. Other departments of administration
concerned under the State Council shall, in accordance with the division of
responsibilities determined by the State Council, supervise and administer
related activities of publication.

     The division of responsibilities and powers of the departments of
administration concerned of the local people’s governments at the county
level and above in the supervision over and administration of the activities
of publication in their respective administrative areas shall be determined
by the people’s governments of provinces, autonomous regions and
municipalities directly under the Central Governement.

    Article 7  National societies of the publication industry shall practise
self-disciplined management in accordance with their respective constitutions
under the guidance of the department of publication administration under the
State Council.
Chapter II  Establishment and Management of Publication Units

    Article 8  Newspapers, periodicals, books, audio-visual products and
electronic publications etc. shall be published by publication units.

     The publication units referred to in these Regulations include newspaper
offices, periodical offices, book publishing houses, audio-visual publishing
houses and electronic publications publishing houses etc.

     For legal persons publishing newspapers or periodicals without
establishing newspaper offices or periodical offices, the newspaper editorial
departments or periodical editorial departments set up by them shall be
construed as the publication units.

    Article 9  The department of publication administration under the State
Council shall formulate plans for the total amount, structure and
distribution of publication units throughout the country, guide and
coordinate the development of the publication indusry.

    Article 10  Establishment of a publication unit should have the following
qualifications:

     (1) having a name and constitution for the publication unit;

     (2) having a host unit and its necessary higher competent organ in
compliance with the acknowledgement of the department of publication
administration under the State Council;

     (3) having defined business scope;

     (4) having a registered capital of over RMB 300,000 Yuan;

     (5) having a fixed workplace;

     (6) having an organization which meets the requirements of its business
scope and professional personnel in editing and publication in compliance
with the prescribed qualifications of the State.

     In addition to the qualifications listed in the afore-said paragraph,
examination of and approval for the establishment of a publication unit
should likewise comply with the plans for the total amount, structure and
distribution of publication units.

    Article 11  For the establishment of a publication unit, the host unit
shall apply to the department of publication administration of the people’s
government of the province, or autonomous region or municipality directly
under the Central Government of the locality wherein it is located with a
letter of application which shall be submitted to the department of
publication administration under the State Council for examination and
approval upon the examination, verification and agreement of the department
of publication administration of the people’s government of the province, or
autonomous region or municipality directly under the Central Government.

    Article 12  The letter of application for the establishment of a
publication unit shall contain the following particulars:

    (1) Name and address of the publication unit;

    (2) Names and addresses of the host unit of the publication unit and its
necessary higher competent organ;

    (3) Name and address of the main person-in-charge or the legal
representative of the publication unit and certificates of qualifications;

    (4) The source and amount of fund of the publication unit.

    Whoever establishing a newspaper office or periodical office, and
newspaper editorial department or periodical editorial department, his or her
letter of application shall likewise carry the name, duration of publication,
format of page or of magazine and location of printing of the newspaper or
periodical.

    The letter of application should be appended with the constitution of the
publication unit and relevant certification materials of the host unit for
the establishment of the publication unit and its necessary higher competent
organ.

    Article 13  The department of publication administration under the State
Council shall, within 180 days starting from the date of the receipt of the
letter of application for the establishment of a publication unit, make a
decision on the approval or non-approval of the same and the department of
publication administration of the people’s government of the province, or
autonomous region or municipality directly under the Central Government shall
inform the host unit in writing; reasons shall be given for non-approval.

    Article 14  The host unit for the establishment of a publication unit
shall, within 60 days starting from the date of the receipt of the
notification of the decision on the approval of the department of publication
administration under the State Council, enter into registration at the
department of publication administration of the people’s government of the
province, or autonomous  region or municipality directly under the Central
Government in which it is located and obtain a publication permit. Particulars
relating to registration shall be worked out by the department of publication
administration under the State Council.

    Upon registration, the publication unit shall, on the strength of the
publication permit, obtain a business licence from the department of industry
and commerce administration in accordance with law.

    Article 15  A newspaper office, periodical office, book publishing house,
audio-visual publishing house or electronic publication publishing house
should have the qualification of a legal person, obtain the status of a legal
person upon approval and registration and undertake independent civil
responsibility with its total corporate property.

     In accordance with the provisions of Paragraph 3 of Article 8 of these
Regulations, newspaper editorial departments or periodical editorial
departments construed as publication units do not have the qualification of a
legal person and their civil responsibility shall be borne by the host units.

    Article 16  New procedures for examination and approval shall be gone
through in accordance with the provisions of Articles 11 and 12 of these
Regulations for changes in name, the host unit or its necessary higher
competent organ and business scope, amalgamation or separation, publication
of new newspapers or periodicals or changes in the name of the newspaper or
periodical and duration.

     For other changes in addition to those listed in the preceding paragraph,
the publication unit shall, upon the examination and approval of the host
unit and its necessary higher competent organ, apply to the department of
publication administration of the people’s government of the province, or
autonomous region or municipality directly under the Central Government in
which it is located for registration of changes which shall be submitted by
the latter to the department of publication administration under the State
Council for the record.

    Article 17  Upon termination of activities of publication by a
publication unit, its registration shall be revoked by the department of
publication administration of the people’s government of the province, or
autonomous region or municipality directly under the Central Government in
which it is located and the same shall be submitted to the department of
publication administration under the State Council for the record.

    Article 18  Failure of a book publishing house, audio-visual publishing
house or electronic publication publishing house to engage in activities of
publication on expiration of 180 days starting from the date of registration
and failure of a newspaper office or periodical office to produce the
newspaper or periodical on expiration of 90 days starting from the date of
registration, the registration organ shall revoke the said registration and
report the same to the department of publication administration under the
State Council for the record.

    For occurence of circumstances listed in the preceding paragraph due to
force majeure and other justifiable reasons, the publication unit may apply
to the registration organ for extension.

    Article 19  The annual publication plans and major subject(topic)
selections involving national security and societal stability of book
publishing houses, audio-visual publishing houses and electronic publication
publishing houses shall be reported by the departments of publication
administration of the people’s governments of provinces, autonomous regions
and municipalities directly under the Central Government in which they are
located to the department of publication administration under the State
Council for the record. Specific measures shall be worked out by the
department of publication administration under the State Council.

    Article 20  The competent departments of administration of local people’s
governments at the county level and above prescribed by the department of
publication administration under the State Council and the people’s
governments of provinces, autonomous regions and municipalities directly
under the Central Government shall strengthen routine supervision and
administration over the activities of publication by the publication units.
The publication units should submit reports in writing on their activities of
publication to the departments of publication administration in compliance
wit the provisions of the department of publication administration under the
State Council.

    Article 21  The publication units are not permitted to sell or transfer
in other forms to any unit or individual the names of their respective units,
book serial numbers, publication numbers or copyright numbers, nor are they
permitted to lease the names and publication numbers of their respective
units.

    Article 22  Before the circulation of its publication, a publication unit
should, in compliance with the relevant provisions of the State, send sample
copies free of charge to Beijing Library, China Copy Library and the
department of publication administration under the State Council.
Chapter III  Publication of Publications

    Article 23  Any citizen may, in compliance with the provisions of these
Regulations, express freely his or her views and wishes on affairs of the
State, economic and cultural causes and social affairs in a publication, and
freely publish his or her results in scientific research, literary and
artistic creations and other cultural activities.

    Article 24  The publication units shall practise the editor
responsibility system and ensure that the contents carried in the
publications are in compliance with the provisions of these Regulations.

    Legitimate publications are protected by law. Any organization or
individual must not illegally interfere, obstruct or disrupt the publication
of publications.

    Article 25  No publication shall contain the following contents:

    (1) anything that goes against the basic principles determined by the
Constitution;

    (2) anything that endangers the unification, sovereignty and territorial
integrity of the country;

    (3) anything that endangers state security, reputation and interests;

    (4) anything that instigates national separatism, infringes on the
customs and habits of minority nationalities and disrupt solidarity of
nationalities;

    (5) anything that discloses state secrets;

    (6) anything that publicizes pornography and superstition or plays up
violence, endangers social ethics and the fine traditions of national culture;

    (7) anything that insults or slanders others; and

    (8) any other contents prohibited by the provisions of laws and
regulations.

    Article 26  Publications with juveniles as targets must not contain
contents which induce juveniles to imitate acts against social ethics and
illegal criminal acts and must not contain contents of terror and cruelty
which impair the physical and mental health of juveniles.

    Article 27  For untruth and injustice in the contents of a publication
resulting in the infringement on the lawful rights and interests of a citizen,
a legal person or another organizaation, its publication unit should openly
make corrections, remove the adverse effects and bear civil responsibility in
accordance with law.

    For untruth and injustice in the contents of the works published in a
newspaper or periodical resulting in the infringement on the lawful rights
and interests of a citizen, a legal person or another organization, the
concerned party has the right to demand a correction or an answer to the
questioning, and the publication unit concerned should publish it in its
coming issue of the newspaper or periodical;in case of refusal to publish the
same, the concerned party may bring a suit to a people’s court.

    Article 28  Publications must, in accordance with relevant provisions of
the State, carry the names and addresses of the authors, publishers, printers
or duplicators and distributers, book numbers, publication numbers or
copyright numbers, date of publication, duration and other relevant
particulars.

    The specification, size, format, binding and decoration and proof-reading
of a publication must comply with the requirements of the State standards and
specifications to ensure the quality of the publication.

    Article 29  No unit or individual shall publish a publication by forging
or imitating the name of a publication unit or the name of a newspaper or
periodical.

    Article 30  Textbooks for middle schools and primary schools shall be
examined and finalized by or examined and finalized in an organized way by
the department of education administration under the State Council and the
publication, printing and distribution thereof shall be undertaken by the
publishing, printing and distribution units designated by the department of
publication administration under the State Council or the departments of
publication administration of the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government.
Chapter IV  Printing or Duplication and Distribution of Publications

    Article 31  Units engaging in the business of publication printing or
duplication should, in accordance with relevant provisions of the  State,
apply to the departments of publication administration of the people’s
governments of provinces, autonomous regions and municipalities directly
under the Central Government in which they are located, and upon being
granted permission after examination and verification, enter into
registration at the public security organ and the department of industry and
commerce administration in accordance with law before they can engage in the
printing or duplication of publications.

    No printing of newspapers, periodicals and books and no duplication of
audio-visual products and electronic publications shall be undertaken without
being granted permission and entering into registration in compliance with
law.

    Article 32  Publication units entrusting printing or duplicating units in
printing or duplicating publications must produce relevant certification in
compliance with the provisions of the State for the printing or duplication
of publications. No printing or duplicating units shall accept the trust of
non-publication units or individuals for the printing of newspapers,
periodicals and books or the duplication of audio-visual products and
electronic publications. No printing or duplicating units shall engage in the
printing and circulation of newpapers, periodicals and books, or the
duplication and distribution of audio-visual products and electronic
publications without authorization.

    Article 33  Printing or duplicating units may, upon approval of the
departments of publication administration of the people’s governments of
provinces, autonomous regions and municipalities directly under the Central
Government, accept printing and duplicating businesses for external
publications;however, all products should be shipped out of the country and
no domestic circulation shall be permitted.

    The contents of publications to be printed or duplicated for external
trust shall go through the examination and verification of the departments of
publication administration of the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government.
Trustors should possess authorization of the copyright owner and register at
the department of copyright administration for the record.

    Article 34  The printing or duplicating unit shall, within one year
starting from the date of completion of the printing or duplication of the
publication, keep one sample copy of the printed or duplicated publication
for reference.

    Article 35  Distribution units engaging in general distribution business
of newspapers, periodicals and books shall, with the permission granted upon
examination and verification by the department of publication administration
under the State Council, obtain business licenses in accordance with law from
the department of industry and commerce administration before they can
operate the general distribution business of newspapers, periodicals and
books.

    Distribution units engaging in wholesale business of newspapers,
periodicals and books shall, with the permission granted upon examination and
verification by the departments of administration concerned prescribed by the
people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government, obtain  business licenses in
accordance with law from the department of industry and commerce
administration before they can operate the wholesale business of newspapers,
periodicals and books.

    Distribution of newspapers and periodicals by postal enterprises shall be
processed in accordance with the provisions of the Postal Law.

    Article 36  Units and individuals engaging in retail business of
newspapers, periodicals and books shall, with the approval of the departments
of administration concerned of the people’s governments at the county level
prescribed by the people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government, obtain business
licenses in accordance with law from the department of industry and commerce
administration before they can run the retail business of publications.

    Article 37  A publication unit may distribute its own publications, but
shall not distribute the publications published by other publication units.

    Article 38  Printing or duplicating units and distribution units shall
not print or duplicate and distribute publications having any of the
following circumstances:

    (1) those containing the contents banned under Articles 25 and 26 of
these Regulations;

    (2) those which have been illegally imported;

    (3) those with forged or imitated names of publication units or with
forged or imitated names of newspapers and periodicals;

    (4) those bearing no names of publication units;

    (5) middle school and primary school textbooks without examination and
finalization in accordance with law; and

    (6) those which infringe on others’ copyrights.
Chapter V  Safeguards and Rewards

    Article 39  The State formulates relevant policies to safeguard and
promote the development and prosperity of the publication industry.

    Article 40  The State supports and encourages the publication of the
following major excellent publications:

    (1) those having a major role in dwelling on and disseminating the
fundamental principles determined by the Constitution;

    (2) those which are of significance in conducting education on
patriotism, collectivism and socialism and in developing and making the best
possible use of social ethics, professional ethics and family ethics;

    (3) those making great contibutions in developing and making the best
possible use of fine national culture and in timely reflecting latest
achievements in science, technology and culture at home and abroad; and

    (4) those having important ideological values, scientific values or
cultural and artistic values.

    Article 41  The State safeguards the publication and distribution of
textbooks.

    The State supports the publication and distribution of publications in
the languages of minority nationalities and publications in braille.

    The State implements preferential policies in the distribution of
publications in minority nationality regions, frontier regions, economically
under-developed regions and rural areas.

    Article 42  For newspapers and periodicals handed over to postal
enterprises for distribution, the postal enterprises should ensure their
timely, precise and correct distribution.

    Transport enterprises undertaking the shipment of publications should
facilitate the transport of publications.

    Article 43  The State gives rewards to units and individuals having made
important contributions in promoting the development and prosperity of the
publication industry.

    Article 44  All people’s governments at the county level and above and
their relevant departments should take timely measures to stop the illegal
acts of interference, obstruction and disruption in the publication, printing
or duplication of publications.
Chapter VI  Legal Responsibility

    Article 45  Establishment of publication units without approval and
authorization or running the business of publication, printing or duplication
and distribution of publications without authorization shall be banned, their
publications, major special tools and equipment for the illegal activities
and illegal income shall be confiscated, and a fine of more than two times
and less than ten times of the illegal income shall be imposed;where an
offence constitutes a crime, criminal responsibility shall be investigated
according to law.

    Article 46  Those engaging in business operations of publishing, printing
or duplicating and distribution commit any of the following acts, the
publications and illegal income shall be confiscated and a fine of more than
three times and less than ten times of the illegal income shall be imposed;
where the circumstances are serious, a directive for suspension of business
operations and consolidation shall be issued or license revoked;where an
offence constitutes a crime, criminal responsibility shall be investigated
according to law:

    (1)publication of publications containing the contents banned under
Articles 25 and 26 of these Regulations;

    (2)sale and lease or transfer in other forms of the name of the
publication unit, book number(s), publication number(s) and copy numbers to
another person while being clearly aware of the fact that he or she is
involved in publishing publications containing contents banned under
Articles 25 and 26 of these Regulations;

    (3)forgery and imitation of names of newspapers and periodicals in the
publication of publications containing contents banned under Articles 25
and 26 of these Regulations;

    (4)printing or duplicating and distributing publications while  being
clearly aware of the fact that they contain contents banned under Articles 25
and 26 of these Regulations; and

    (5)printing or duplicating and distributing external publications while
being clearly aware of the fact that they contain contents banned under
Articles 25 and 26 of these Regulations.

    Article 47  Those who pirate print and pirate duplicate publications, the
publications and

INTERIM PROVISIONS ON THE ADMINISTRATION OF DOMESTIC FOREIGN EXCHANGE TRANSFER

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Printing and Distributing the Interim Provisions on the Administration
of Domestic Foreign Exchange Transfer

HuiGuanHanZi [1997] No.250

September 25, 1997

(Notice is omitted)

Interim Provisions on the Administration of Domestic Foreign Exchange Transfer

Article 1

These Provisions is promulgated according to the Article 7 of the Provisions of Foreign exchange Administration of People’s Republic
of China in an attempt to regulate activities of domestic foreign exchange transfer.

Article 2

Foreign exchange transfer referred to in these Provisions is activities that domestic entities conduct remittance and transfer in
foreign exchange through financial institutions in foreign exchange operation.

Article 3

The State Administration of Foreign exchange and its branches (hereinafter as “SAFE” in brief) exercise supervision on domestic foreign
exchange transfer.

Article 4

Foreign exchange transfer between domestic entities shall apply to these Provisions. Foreign exchange transfers such as inter-bank
borrowing and funds settlement etc between financial institutions shall apply to other provisions promulgated by SAFE.

Article 5

Any entity and individual shall not quote in foreign exchange for settlement in China, and financial institutions shall not conduct
foreign exchange transfer for customers except under the circumstances specified in Article 6 , 7 and 8 of these Provisions. In case
SAFE has other provisions, transfer shall be conducted accordingly.

Article 6

Under circumstances listed below, domestic entities shall apply to financial institutions and present specified valid documents and
commercial bills. Financial institutions shall process foreign exchange transfer after verifying valid documents and commercial bills.

(1)

If entrusting party under agent exports is an enterprise with foreign investment or a domestic entity that is permitted to hold foreign
exchange proceeds, the agency shall apply to a financial institution for transfer and present a reserved copy of agent contract,
an export contract, valid documents and commercial bills, entrusting party’s Foreign exchange Registration Certificate of Enterprises
with Foreign Investment (a xerox copy) or a Utilization Certificate of Foreign Exchange Account (a xerox copy). Financial institutions
shall process foreign exchange transfer after verifying valid documents and commercial bills, and mark “Trade, Export foreign exchange
proceeds collection, transfer in original currency”, date of receiving foreign exchange and amount in remittance postscript;

(2)

If entrusting party under agent imports is an enterprise with foreign investment or a domestic entity that is permitted to hold foreign
exchange proceeds, entrusting party shall present a reserved copy of agent agreement, a Foreign Exchange Registration Certificate
of Enterprises with Foreign Investment and a Utilization Certificate of Foreign exchange Account and apply to a financial institute
for transfer;

(3)

With respect to winning an international bid under international loan, if both the bid issuer and the bid winner are domestic entities,
the bid issuer shall transfer project funds to the bid winner upon presentation of bid contract and bid-winning proof documents;

(4)

Domestic entities in export & import businesses shall pay foreign insurance and transportation fees to domestic insurance and transportation
institutions from its own foreign exchange account upon presentation of an export-import contract, a reserved copy of receipts of
insurance and transportation fee;

(5)

Domestic insurance institutions shall pay indemnity to domestic entities upon presentation of an export-import contract, and a reserved
copy of insurance document;

(6)

Repayments of principal and payment of interest of foreign exchange loans extended by domestic Chinese-funded financial institutions
shall be effected upon presentation of a lending contract, a notice of principal repayment and interest payment, a Foreign Exchange
(Indirect) Loan Registration Certificate;

(7)

Domestic entities shall pay principal and interest of indirect external debt to domestic Chinese-funded financial institutions upon
presentation of an External Debt Registration Certificate or a Foreign Exchange (Indirect) Loan Registration Certificate, an indirect
lending contract, a notice of principal repayment and interest payment and a verification note of principal repayment and interest
payment issued by SAFE;

(8)

Domestic entities shall pay foreign exchange rental to domestic financial leasing company upon presentation of a leasing contract
and a Foreign Exchange (indirect) Loan Registration Certificate;

(9)

Enterprises with foreign investment shall make foreign exchange transfer between its own current accounts within the ceiling amount
and between foreign exchange capital accounts upon presentation of a Foreign Exchange Registration Certificate of Enterprises with
Foreign Investment and a Verification Note of Ceiling Amount for Foreign Exchange Current Account issued by SAFE; In case of external
payments, valid documents and commercial bills for external payments shall also be presented;

(10)

Foreign exchange remitted or taken by foreign investors as investment shall be transferred from a transient account to a foreign exchange
capital account of an enterprise with foreign investment upon presentation of a Foreign Exchange Registration Certificate of Enterprises
with Foreign Investment, proof documents of economic and trade administration and a business license of industrial and commercial
administration.

Article 7

Under circumstances listed below, domestic entities shall apply to SAFE with specified materials; financial institutions shall conduct
foreign exchange transfer upon presentation of verification note of SAFE:

(1)

Investment enterprises with foreign investment, when investing in China, shall present a report on verification of capital of a CPA
office, approval documents of a newly invested enterprise, an approved contract and constitution, a Foreign Exchange Registration
Certificate of Enterprises with Foreign Investment and other documents required by SAFE;

(2)

An enterprises invested by an investment enterprise with foreign investment shall present a Foreign Exchange Registration Certificate
of Enterprises with Foreign Investment, a profit distribution resolution of board of directors and a proof document of duty clearing
when remitting its foreign exchange profits to the investment enterprise with foreign investment;

(3)

With respect to investing foreign exchange profits in other domestic enterprises, foreign investors of an enterprise with foreign
investment shall present a report on verification of capital of a CPA office, an annual finance audit report, a profit distribution
resolution of board of directors and a proof documents of duty clearing, a confirmation of earning reinvestment of foreign investors,
approval documents from administrative department which approved the original project, a Foreign Exchange Registration Certificate
of Enterprises with Foreign Investment and other documents required by SAFE;

(4)

Foreign investors of an enterprises with foreign investment, when increasing capital in another enterprise by using foreign exchange
profits, shall present a profit distribution resolution of board of directors, a proof document of duty clearing, a confirmation
of earning reinvestment, approval documents from administrative department which approved the original project, a Foreign Exchange
Registration Certificate of Enterprises with Foreign Investment and other documents required by SAFE;

(5)

Chinese and Foreign investors of an enterprise with foreign investment, when investing foreign exchange profits to increase capital
in the enterprise, shall present a profit distribution resolution of board of directors, a proof document of duty clearing, a confirmation
of earning reinvestment, approval documents from administrative department which approved the original project, a Foreign Exchange
Registration Certificate of Enterprises with Foreign Investment and other documents required by SAFE;

(6)

When registered capital of an enterprise with foreign investment is transferred to other domestic entities, a report on verification
of capital of a CPA office, a resolution of board of directors and a proof document of duty clearing, approval documents from administrative
department which approved the original project, a transfer agreement, a Foreign Exchange Registration Certificate of Enterprises
with Foreign Investment and other documents required by SAFE shall be presented;

(7)

In case Chinese investors of an enterprise with foreign investment pay registered capital in foreign exchange with approval, approval
documents of the authority and the contract and constitution of the enterprise shall be presented.

Article 8

Under circumstances listed below, domestic entities shall apply to financial institutions with a Foreign Exchange Account Utilization
Certificate and relevant material, and financial institutions shall make foreign exchange transfer according to the scope of receipts
and payments of the foreign exchange account verified by SAFE:

(1)

Duty-free shops approved by the Customs transfer payments for goods to its parent company;

(2)

Domestic trans-remittance of Post Office for international postal remittances;

(3)

Trans-remittance or funds of disbursement transferred from shipping agency to its sub-agencies in domestic ports; rebates of residual
funds of disbursement transferred from sub-agencies to general agency;

(4)

Funds of disbursement for shipping operation transferred by sea shipping company in international sea shipping operation to its subsidiaries
and transportation fees submitted by its subsidiaries.

Article 9

In case domestic entities violate these Provisions to make a foreign exchange transfer within the territory of China, SAFE shall give
punishment according to the Article 45 of the Provisions of Foreign Exchange Administration of People’s Republic of China. In case
of criminal offense, a criminal suite shall proceed.

Article 10

In case a financial institution makes foreign exchange transfer without verifying valid documents and commercial bills according to
these Provisions, SAFE shall give a heavier punishment according to Article 45 of the Provisions of Foreign Exchange Administration
of People’s Republic of China.

Article 11

The interpretation of these Provisions shall rest with SAFE.

Article 12

These Provisions shall enter into force as of October 15, 1997.



 
The State Administration of Foreign Exchange
1997-09-25

 






CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING STRENGTHENING THE ADMINISTRATION OF HOLDING OF FOREIGN ECONOMIC AND TECHNOLOGICAL EXHIBITIONS WITHIN THE TERRITORY OF CHINA

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-07-31 Effective Date  1997-07-31  


Circular of the General Office of the State Council Concerning Strengthening the Administration of Holding of Foreign Economic and
Technological Exhibitions Within the Territory of China



(July 31, 1997)

    People’s governments of all provinces, autonomous regions and
municipalities directly under the Central Government, all ministries
and commissions under the State Council and all agencies directly under
the State Council:

    Recent years have witnessed rapid growth in the holding of foreign
economic and technological exhibitions (including international exhibitions,
foreign economic and trade talks, export commodities trade fairs and
foreign civilian economic and technological exhibitions in China, etc.)
within the territory of China, which has played a positive role in the
realization of sharing of information resources, reduction of costs in
transactions, promotion of exchanges and cooperation with foreign countries,
introduction of advanced technologies and equipment and promotion of expansion
of foreign trade. However, problems such as examination and approval by
many departments and repetitive holding of exhibitions have emerged. For
the purpose of strengthening the administration of holding of foreign
economic and technological exhibitions within the territory of China,
the related questions are hereby notified as follows:

    I.Holding of foreign economic and technological exhibitions should be
instrumental to the promotion of the development of the cause of foreign
economic cooperation and trade of our country, to the promotion of economic
and technological exchanges and cooperation with foreign countries, to the
introduction of advanced technologies and equipment, to pushing advancement
in production, techniques and technologies in the country and to the
acceleration of upgrading and generational renewal of export products.
Contents to be put on display should be in conformity with the state
industrial policies, of technologies, equipment and finished products
of world advanced levels.

    II.The hosting unit and the sponsoring unit of a foreign economic and
technological exhibition must have the qualifications for hosting and
sponsoring approved by the competent department of foreign economic
cooperation and trade; holding of an economic and technological exhibition
by an external agency in China must proceed with a unit having qualifications
for hosting such an exhibition within the territory of China jointly or with
entrustment to the latter.

    1. Hosting units within the country:

    (1) Exhibition companies or foreign economic and trade companies, agencies
for economic and trade promotion or trade (speciality) associations and
chambers of commerce at the provincial level with the organizational
capability of inviting businessmen and exhibitors and the capability of
bearing civil liabilities in the holding of exhibitions, having specialized
departments or agencies thereunder for the holding of exhibitions and
corresponding specialized personnel for exhibitions (including planning,
design, organization, management and foreign languages), having complete
rules for the holding of exhibitions, and having participated in assisting in
hosting or sponsoring more than five large-scale international exhibitions
may acquire the qualifications for hosting.

    The Ministry of Foreign Trade and Economic Cooperation shall, in
conjunction with the departments concerned, carry out a sorting out and
reverification of the hosting units in the near future, grant the
qualifications for hosting to those units which meet the requirements and
publish the list at intervals. Organs of industry and commerce administration
shall, on the strength of the approval documents of the Ministry of Foreign
Trade and Economic Cooperation, reverify the business scope of the units
concerned.

    (2) Municipal people’s governments at the provincial or deputy provincial
level, or the competent departments of foreign trade and economic cooperation
at the provincial level may host foreign economic and trade talks and export
commodities trade fairs.

    (3) Departments under the State Council may, in the name of the respective
departments, host international exhibitions relevant to the business under
their charge.

    2. Overseas host units for the holding of exhibitions in China should be
exhibition agencies, large transnational corporations, economic groups or
organizations (including economic and trade promotion agencies, chambers of
commerce and trade associations, etc.) with appropriate scale, strength for
the holding of exhibitions and good international influence.

    3. Host units shall mainly be responsible for the formulation and
implementation of the exhibition schemes and plans and the organization
for inviting businesses and exhibitors.

    4. Sponsoring units shall mainly be responsible for the arrangement of
the exhibition, security and guard duties and matters relating to the
exhibition. Units qualified for hosting exhibitions have corresponding
qualifications for sponsorship as well; companies concerned may, with the
entrustment of the host unit, undertake single-item business of the
exhibition (including design, arrangement of the exhibition, construction
of the exhibition and advertising).

    5. State-to-state bilateral, multilateral and friendly inter-provincial
and inter-city exhibitions domestic or foreign (including exhibitions on
exchange basis) shall be hosted and sponsored by corresponding units
according to the principle of reciprocity and actual requirements.

    III.Examination, approval and administration at different levels shall be
practised with respect to foreign economic and technological exhibitions the
display floor area of which are more than 1,000 square meters.

    1. International exhibitions and fairs, etc. which really necessitate
hosting in the name of a department under the State Council or in the name
of a people’s government at the provincial level must be submitted to the
State Council for approval.

    2. Foreign economic and technological exhibitions hosted by a unit under
the State Council or an overseas agency shall be submitted to the Ministry
of Foreign Trade and Economic Cooperation for examination and approval.
For exhibitions to be held in areas outside Beijing, the host unit must
gain in advance the consent of the department of foreign trade and economic
cooperation of the locality wherein the exhibition is to be held.

    3. Foreign economic and trade talks and export commodities trade fairs
hosted by competent departments of foreign trade and economic cooperation at
the provincial level or hosted jointly by a number of provinces (autonomous
regions or municipalities directly under the Central Government) shall be
subject to the examination and approval of the Ministry of Foreign Trade
and Economic Cooperation. Foreign economic and technological exhibitions
hosted by other units of the localities shall be subject to the examination
and approval of the competent department of foreign trade and economic
cooperation of the province, autonomous region or municipality directly under
the Central Government wherein it is to be held, and concurrently submitted
to the Ministry of Foreign Trade and Economic Cooperation for the record.

    4. The State Commission of Science and Technology shall be responsible
for the examination and approval of the exhibitions with scientific research,
technological exchange and seminars as their contents.

    5. Foreign economic and technological exhibitions to be held under the
chain of the China Council for the Promotion of International Trade shall be
subject to the China Council for the Promotion of International Trade for
examination and approval and concurrently submitted to the Ministry of
Foreign Trade and Economic Cooperation for the record. With respect to
those exhibitions to be held in areas outside Beijing, the host units
should gain in advance the consent of the competent department of foreign
trade and economic cooperation of the locality wherein it is to be held.

    6. Foreign economic and technological exhibition involving participation
of manufacturers or agencies from the Taiwan region shall be subject to
examination and approval of the Ministry of Foreign Trade and Economic
Cooperation and submitted to the Office of Taiwan Affairs under the State
Council for the record. Economic and technological exhibitions of both sides
of the Straits shall be subject to the examination and approval of the
Ministry of Foreign Trade and Economic Cooperation in conjunction with
the Office of Taiwan Affairs under the State Council.

    7. Units with qualifications for hosting foreign economic and
technological exhibitions may hold foreign economic and technological
exhibitions the floor area of which are under 1,000 square meters on their
own which, however, shall be submitted to the competent unit for the record.

    IV.Strengthening coordination and administration, adopting strict
measures for examination and approval, avoiding holding of repetitious
exhibitions and standardizing acts of exhibition.

    1. The number of exhibitions shall be strictly controlled to avoid
repetition and waste, joint exhibitions shall be encouraged and promoted and
holding of specialized exhibitions shall be encouraged. With respect to
exhibitions of same type in the same province, autonomous region and
municipality directly under the Central Government as well as the municipality
of deputy provincial level, not more than two of which may be held each year
in principle.

    2. With respect to a foreign economic and technological exhibition with
the post_title of an international exhibition, participation by foreign
manufacturers in the exhibition must amount to more than 20%.

    3. Organization for inviting businesses and exhibitors must follow
the principle of voluntary participation by enterprises and no administrative
interference shall be permitted to attract exhibitors; the relevant
advertisements and publicity materials must be truthful and reliable.

    4. The host unit shall, within one month on the completion of the
exhibition, submit a summary report on the exhibition to the unit of
examination and approval in accordance with the contents and requirements
prescribed by the Ministry of Foreign Trade and Economic Cooperation.

    5. Departments of examination and approval must strengthen administration
of the exhibition activities of the host units and sponsoring units, and
maintain normal order in the holding of exhibitions. Exhibitions hosted by
subsidiary units of the departments under the State Council (including the
China Council for the Promotion of International Trade) in localities outside
Beijing shall be administered by the competent departments of foreign trade
and economic cooperation of the localities.

    V.Entry into the country and retention for sale of foreign exhibits in
exhibitions the floor area of which are more than 1,000 square meters
shall be handled by the Customs in accordance with provisions on the strength
of the formal approval documents issued by the units of examination and
approval prescribed in this Circular; those exhibitions the floor area of
which are under 1,000 square meters shall be handled by the Customs in
accordance with provisions on the strength of the applications of the host
units.

    VI.For the holding of a foreign economic and technological exhibition
in violation of the provisions of this Circular as well as indiscriminate
apportionment in the process of holding exhibitions and infringement on the
legitimate rights and interests of the participating units and other acts
in violation of laws and regulations, the Ministry of Foreign Trade and
Economic Cooperation shall nullify the qualifications of the host unit,
and the departments concerned shall seriously conduct investigations and
handle the case in accordance with laws and regulations. With respect to
units without qualifications for hosting or sponsoring foreign economic and
technological exhibitions holding exhibitions without authorization, or
usurping the name of another unit in the holding of exhibitions, the
competent departments of foreign trade and economic cooperation and
organs of industry and commerce administration at all levels shall
investigate and handle the cases according to law.

    VII.The Ministry of Foreign Trade and Economic Cooperation shall be
responsible for the coordination and administration of the holding of
foreign economic and technological exhibitions. All departments concerned
should give full play to their functional roles, strengthen cooperation and
carry out successful joint administration over foreign economic and
technological exhibitions. Information on the examination and approval and
holding of foreign economic and technological exhibitions shall be
circulated at regular intervals and information on exhibitions made public
in the form of joint sessions headed by the Ministry of Foreign Trade and
Economic Cooperation in conjunction with the State Commission of Science
and Technology, the China Council for the Promotion of International Trade
and other units; studies should be made of the situation and problems
emerging in the process of the growth of the foreign exhibition industry,
and timely and effective measures taken to strengthen coordination and
administration; the legitimate rights and interests of units holding
exhibitions and units participating in exhibitions shall be safeguarded
and the healthy development of the foreign exhibition industry ensured; and
the holding of influential foreign economic and technological exhibitions with
characteristics and scale shall be promoted and supported.





MAPS OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-07-01 Effective Date  1997-07-01  


THE Maps of the Hong Kong Special Administrative Region of the People’s      Republic of China


Appendix:DESCRIPTION IN WRITING OF BOUNDARY LINES OF THE HONG KONG

(Adopted at the 56th Standing Session of the State Council on May 7,

1997  Promulgated by Decree No. 221 of the State Council of the People’s
Republic of China on July 1, 1997)

    The Map of the Hong Kong Special Administrative Region of the People’s
Republic of China(1:750 000)(omitted)

    The Map of the Hong kong Special Administrative Region of the People’s
Republic of China(1:500 000)(omitted)
Appendix:DESCRIPTION IN WRITING OF BOUNDARY LINES OF THE HONG KONG
SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

    Regional boundary lines are composed of the land component and the marine
component.

    I.The Land Component

    The land component is composed of the following three sectors:

    (1)The Shatoujiao Sector

    1.Beginning from Dong Jiao(Cape East) of the bottom of the Shatoujiao
Wharf(Point No. 1, 22 degrees 32 minutes 37.21 seconds north latitude, 114
degrees 13 minutes 34.85 seconds east longitude) to the drainage trench to
the sea parallel to the east side of Xinluo Street, going on along the
central line of the drainage trench to the crossing point(Point No. 2,
22 degrees 32 minutes 45.42 seconds north latitude, 114 degrees 13 minutes
32.40 seconds east longitude) of that line with the central line of Zhong Yin Street;

    2.Beginning from Point No. 2 along the central line of Zhong Yin
Street to the crossing point of Bu Bu Street and the central line of Zhong Yin Street(Point No. 3, 22 degrees 32 minutes 52.26 seconds
north
latitude, 114 degrees 13 minutes 36.91 seconds east latitude);

    3.Beginning from Point No. 3 in straight line connecting with the
west end of the bottom of the bridge pier in the center of the river
on the west side of the Shatoujiao River Bridge(Point No. 4, 22 degrees
32 minutes 52.83 seconds north latitude, 114 degrees 13 minutes 36.86
seconds east longitude).

    (2)The Shatoujiao-Bogongao Sector

    Beginning from Point No. 4 along the central line of the Shaotoujiao
River going upstream crossing the bottom of the valley at the east side of Bogongao to the center of the saddle of Bogongao(Point
No. 5, 22 degrees
33 minutes 23.49 seconds north latitude, 114 degrees 12 minutes 24.25 seconds
east longitude).

    (3)The Bogongao-Shenchen River to the sea Sector

    Beginning from the saddle of Bogongao along the bottom of the main
valley at the west side of Bogongao to the source of the Shenchen River
at Bogongao, going on along the central line of the Shenchen River till
reaching the mouth of the Shenchen Bay(also referred to as Houhai Bay).

    The central line of the New River shall be the regional boundary upon
treatment of the Shenchen River.

    II.The Marine Component

    The marine component is composed of the following three sectors:

    (I)The Shenchen Bay Maritime Sector

    Beginning from the mouth of the Shenchen River to the sea along the
center of the south navigation channel to No. 84 light buoy(referred to
as light buoy No. “B”)(Point No. 6, 22 degrees 30 minutes 36.23 seconds
north latitude, 113 degrees 59 minutes 42.20 seconds east longitude), then
connecting with the following two points in straight line:

    1.No. 83 light buoy in the Shenchen Bay(also referred to as light buoy
No. “A”)(Point No. 7, 22 degrees 28 minutes 20.49 seconds north latitude,
113 degrees 56 minutes 52.10 seconds east longitude);

    2.The aforesaid Point No. 7 and the crossing point of the connecting
line of Dongjiaozui at the southern tip of the Neilinding Island and the
longitudinal line at 113 degrees 52 minutes 08.8 seconds east longitude
(Point No. 8, 22 degrees 25 minutes 43.7 seconds north latitude, 113 degrees
52 minutes 08.8 seconds east longitude).

    (II)The Southern Maritime Sector

    Connected with the following 13 points beginning from Point No. 8:

    1.Going from Point No. 8 along the longitudinal line at 113 degrees
52 minutes 08.8 seconds east longitude extending southward to 22 degrees
20 minutes north latitude(Point No. 9, 22 degrees 20 minutes north latitude,
113 degrees 52 minutes 08.8 seconds east longitude);

    2.Going from the most prominent part on the coastal line north of Da Ao
to the point one nautical mile northwestward(Point No. 10, 22 degrees 16
minutes 23.2 seconds north latitude, 113 degrees 50 minutes 50.06 seconds
east longitude;

    3.Going from the most prominent part on the coastal line west of Da Ao
to the point one nautical mile northwestward(Point No. 11, 22 degrees 16
minutes 03.8 seconds north latitude, 113 degrees 50 minutes 20.4 seconds
east longitude);

    4.Going from the most prominent part on the coastal line southwest of the Jigong Mountain to the point one
nautical mile northwestward(Point No. 12,
22 degrees 14 minutes 21.4 seconds north latitude, 113 degrees 49 minutes
35.0 seconds east longitude);

    5.Going from the most prominent part on the coastal line west of the
Jiyejiao(Cape Jiye) of the Dayu Mountain to the point one nautical mile
westward(Point No. 13, 22 degrees 13 minutes 01.4 seconds north latitude,
113 degrees 49 minutes 01.6 seconds east longitude);

    6.Going from the most prominent part on the coastal line southwest of Fan Lau Jiao(Cape Fan Lau) of the Dayu
Mountain to the point one nautical
mile southwestward(Point No. 14, 22 degrees 11 minutes 01.9 seconds north
latitude, 113 degrees 49 minutes 56.6 seconds east longitude);

    7.The Center point between the most prominent part on the coastal line
south of Tai A Chau of the Soko Islands  and the most prominent part on the
coastal line north of Yinjiao Zui of Tai Zu Chau(Point No. 15, 22 degrees
08 minutes 33.1 seconds north latitude, 113 degrees 53 minutes 47.6 seconds
east longitude);

    8.Going from the most prominent part on the coastal line south of the
Toulu Chau of the Soko Islands to the point one nautical mile southward
(Point No. 16, 22 degrees 08 minutes 12.2 seconds north latitude, 113 degrees
55 minutes 20.6 seconds east longitude);

    9.The crossing point of the one-nautical-mile radius of the center of the most prominent part on the coastal
line south of Tou Lu Chau of the
Soko Islands and the east of the latitudinal line of 22 degrees 08 minutes
54.5 seconds north latitude(Point No. 17, 22 degrees 08 minutes 54.5 seconds
north latitude, 113 degrees 56 minutes 22.4 seconds east longitude);

    10.The crossing point of the one-nautical-mile radius of the center of the most prominent part on the coastal
line southwest of Mou Chau of the
Po Toi Islands and the west of the latitudinal line of 22 degrees 08 minutes
54.5 seconds north latitude(Point No. 18, 22 degrees 08 minutes 54.5 seconds
north latitude, 114 degrees 14 minutes 09.6 seconds east longitude);

    11.The point one nautical mile due south of Nan Jiao Zui of the Po Toi
Islands(Point No. 19, 22 degrees 08 minutes 18.8 seconds north latitude,
114 degrees 15 minutes 18.6 seconds east longitude);

    12.The crossing point of the one-nautical-mile radius of the center of the most prominent part on the coastal
line southwest of Da Jiao Tou of the
Po Toi Islands and the east of the latitudinal line of 22 degrees 08 minutes
54.5 seconds north latitude(Point No. 20, 22 degrees 08 minutes 54.5 seconds
north latitude, 114 degrees 17 minutes 02.4 seconds east longitude);

    13.22 degrees 08 minutes 54.5 seconds north latitude, 114 degrees 30
minutes 08.8 seconds east longitude(Point No. 21).

    (III)The Dapeng Wan(Mirs Bay) Marine Sector

    Connected in straight line between Point No. 21, the following 10 points
and Point No. 1:

    1.22 degrees 21 minutes 54.5 seconds north latitude, 114 degrees 30
minutes 08.8 seconds east longitude(Point No. 22);

    2.The center point of the most prominent part on the coastal line north
of the Da Lu Wan and the navigation light on Shi Niu Chau(Point No. 23,
22 degrees 28 minutes 07.4 seconds north latitude, 114 degrees 27 minutes
17.6 seconds east longitude);

    3.The center point of the most prominent part on the coastal line
southwest of Mu Tou Sha and Geng Lou Shi on the Ping Chau Island(Point No. 24,
22 degrees 32 minutes 41.9 seconds north latitude, 114 degrees 27 minutes
18.5 seconds east longitude);

    4.The center point between Cheng Tou Jiao and Chau Wei Jiao on the
Ping Chau Island(Point No. 25, 22 degrees 33 minutes 43.2 seconds north
latitude, 114 degrees 26 minutes 02.3 seconds east longitude);

    5.The center point between the most prominent part on the coastal line
of Bei Chai Jiao and the most prominent part on the coastal line north of Bai Sha Chau(Point No. 26, 22 degrees 34 minutes 06.0 seconds
north latitude,
114 degrees 19 minutes 58.7 seconds east longitude);

    6.The center point between the most prominent part on the coastal line
of Zhen Jiao Zui and the most prominent part on the coastal line east of Ji Ao(Crooked Island) Ji Gong Tou(Point No. 27, 22 degrees
34 minutes 00.0
seconds north latitude, 114 degrees 18 minutes 32.7 seconds east longitude);

    7.The center point between the most prominent part on the coastal line
of Tang Yuan Yong and the most prominent part on the coastal line north of Ji Ao(Crooked Island)(Point No. 28, 22 degrees 33 minutes
55.8 seconds north
latitude, 114 degrees 16 minutes 33.7 seconds east longitude);

    8.The center point between the mouth of the Nan Xiao River to the sea
at En Shang and Pai Tou Jian(Point No. 29, 22 degrees 33 minutes 20.6 seconds
north latitude, 114 degrees 14 minutes 55.2 seconds east longitude);

    9.The center point between the mouth of the Xia Xiao River to the sea
at Guan Lu and San Jiao Zui(Point No. 30, 22 degrees 33 minutes 02.6 seconds
north latitude, 114 degrees 14 minutes 13.4 seconds east longitude);

    10.The center point between due east of Point No. 1 and the opposite
coast(Point No. 31, 22 degrees 32 minutes 37.2 seconds north latitude, 114
degrees 14 minutes 01.1 seconds east longitude).

    Footnote:the above-mentioned coordinate value follows the WGS84 coordinate
system.





CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING PRINTING AND DISTRIBUTING PROVISIONS FOR THE ALTERATION OF INVESTORS’ EQUITIES IN ENTERPRISES WITH FOREIGN INVESTMENT

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

Circular of the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry and Commerce Concerning
Printing and Distributing Provisions for the Alteration of Investors’ Equities in Enterprises with Foreign Investment

WaiJingMaoFaFa [1997] No.267

May 28, 1997

In order to standardize the alteration procedures of investors’ equities in enterprises with foreign investment and protect the legitimate
rights and interests of investors, The Provisions for the Alteration of Investors’Equities in Enterprises with Foreign Investment
are hereby printed and distributed to you for implementation.If problems arise during implementation, it is requested that they be
reported to the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry and Commerce in timely
fashion. Attachment:Provisions for the Alteration of Investors’ Equities in Enterprises with Foreign Investment

Article 1

These provisions are formulated hereby pursuant to the Company Law of the People’s Republic of China, the Law of the People’s Republic
of China on Chinese-Foreign Equity Joint Ventures, the Law of the People’s Republic of China on Chinese-Foreign Contractual Joint
Ventures, the Law of the People’s Republic on Foreign-capital Enterprises and other pertinent laws and regulations to promote the
healthy development of enterprises with foreign investment, protect the legitimate rights and interests of investors, and maintain
social and economic order.

Article 2

“Alteration of investors” equities in enterprises with foreign investment as used in these Provisions refers to alteration of investors
of Sino-foreign equity joint ventures, Chinese-foreign contractual joint ventures, enterprises with foreign investment set up on
the territory of the People’s Republic of China (hereinafter referred to as the enterprise) or their shares (hereinafter referred
to as equities) of investment in the enterprise (including terms of cooperation they provide). It will include, but will not limit
to, the following major factors leading to alteration of investors’s equities in enterprises with foreign investment:

1.

Agreed transfer of equities between investors in the enterprise.

2.

Transfer of equities to other related enterprises or other transferees by an investor in the enterprise with agreement from other
investors.

3.

Alteration of equities of each investing party due to readjustment of registered capital of the enterprise agreed to by investors
in the enterprise.

4.

Ownership of equities of investors by pledgees or beneficiaries in accordance with legal terms or contracts that have been pledged
by investors in the enterprise to creditors with agreement from other investors.

5.

Ownership of equities by inheritors, creditors or other beneficiaries in accordance with law due to bankruptcy, dismission, cancellation,
revocation, or death of an investor in the enterprise.

6.

Inheritance of equities of the initial investor by a successor due to merge or split of investors in the enterprise.

7.

Alteration of investors or equities due to failure on the part of an investor in the enterprise to perform investment duties as stipulated
in enterprise contracts or in articles of association, with approval from departments in charge of examination and approval.

Article 3

Alteration of equities by an investor in the enterprise shall abide by pertinent Chinese laws and regulations, and be approved by
examination and approval departments and submitted for alteration registration with registration departments in line with stipulations
in these Provisions. Alteration of equities without approval from examination and approval departments shall be invalid.

Article 4

Alteration of equities by an investor in the enterprise shall conform with stipulations in Chinese laws and regulations concerning
the qualifications of investors and with requirements of China’s industrial policies.

In line with the Catalogue for the Guidance of Foreign Investment Industries, alteration of equities shall not lead to ownership of
all the equities of an enterprise by an overseas investor in any of the sectors where exclusive overseas investment in the enterprise
is not allowed. Should alteration of equities turn a Chinese enterprise into an enterprises with foreign investment, the requirements
for setting up enterprises with foreign investment prescribed in the Rules for the Implemention of the Law of the People’s Republic
of China on Enterprises with Foreign Investment (hereinafter referred to as Rules on Enterprises with Foreign Investment) shall also
be met.

In industries where State-owned assets take the holding or leading position, alteration of equities shall not lead to the taking of
such a position by any foreign investors or other enterprises than State-owned ones.

Article 5

Unless a foreign investor transfer all of its equities to the Chinese investor, alteration of equities by an investor in the enterprise
shall not result in the sharing of investment by this foreign investor of less than 25 per cent of the registered capital of this
enterprise.

Article 6

With consent from other investors in the enterprise, the investor who has paid up its share of investment can pledge the equities
that have been created with its share of investment to a pledgee by signing a pledging contract in line with pertinent stipulations
in the Guarantee Law of the People’s Republic of China (hereinafter referred to as the Guarantee Law) and with approval from examination
and approval departments. The investor shall not pledge the equities to be created with the part of investment it has not yet paid
up. Neither shall the investor pledge its equities to the same enterprise it has invested in.

During the period of pledge, the status of the pledgor as an investor in the enterprise shall not change. Without consent from the
pledgor and other investors in the enterprise, the pledgee shall not transfer the pledged equities. Without consent from the pledgee,
the pledgor shall not transfer or re-pledge the pledged equities.

The rights and obligations of the pledgor and the pledgee and the content of the pledging contract shall be governed by pertinent
stipulations in relevant laws, regulations and these Provisions.

Article 7

The department to examine and approve the alteration of the equities by an investor in the enterprise shall be the examination and
approval department that has approved the establishment of this enterprise. Should alteration of the equities of a Chinese investor
in a Sino-foreign equity or contractual joint venture turn this venture into an enterprises with foreign investment and this enterprise
specializes in the sector where enterprises with foreign investment are restricted as stipulated in Article 5 of the Rules on Enterprises
with Foreign Investment, the alteration of the equities of the Chinese investor in this venture shall be approved by the Ministry
of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as the MOFTEC).

Should changes take place in the equities of an investor in the enterprise due to multiplication of the enterprise’s registered capital
and the total investment of this enterprise surpass the limit of amount authorized to handle by the original examination and approval
department as a result, alteration of the equities of the investors in the enterprise shall be reported for examination and approval
to a senior examination and approval department in line with the limit of power of this department and pertinent regulations.

The department in charge of registration of alteration of equities of investors in the enterprise shall be the original registration
department. Registration of alteration of equities approved by the MOFTEC shall be handled by the State Administration for Industry
and Commerce or the original registration department with authorization from the Administration.

Article 8

In case of alteration of the equities of a Chinese investor that has invested with State-owned assets, relevant departments in charge
of valuation of State-owned assets shall evaluate the equities to be altered. Such evaluation shall also be verified by departments
in charge of management of State-owned assets. The verified results of valuation shall be used as the basis for pricing the equities
to be altered.

Article 9

If equities must be altered due to reasons specified in the first and second subparagraphs in Article 2 of these Provisions, the
enterprise shall submit the following documents to examination and approval departments:

1.

Application for alteration of equities of investors in the enterprise

2.

The original contracts and articles of association of the enterprise and agreements on their revision.

3.

Duplicates of certificates of approval for the establishment of the enterprise and business licenses.

4.

Resolutions of the board of directors of the enterprise on the alteration of equities of investors.

5.

List of members on the board of directors after alteration of equities of investors in the enterprise.

6.

Agreement on equity transfer reached between the transferor and the transferee and signed or confirmed in other written form by other
investors.

7.

Other documents required by examination and approval departments.

Article 10

Agreements on the transfer of equities shall include the following major contents:

1.

Names and residential addresses of transferors and transferees and the names, posts and nationalities of legal representatives.

2.

Quantity and price of the equities to be transferred.

3.

Limit of time and method for the delivery of transferred equities.

4.

Rights to be enjoyed and responsibilities to be shouldered by the transferee according to enterprise contracts and articles of association

5.

Responsibilities over breaches.

6.

Laws to be applied and settlement of disputes.

7.

Effectuation and termination of agreements.

8.

The time when and the venue where the agreements are reached.

Article 11

In case of alteration of equities due to reasons specified in the first and second subparagraphs of Article 2 of these Provisions,
the special stipulations promulgated by the MOFTEC and the State Administration for Industry and Commerce shall be observed. Apart
from submitting documents specified in the first, second, third, fourth and fifth subparagraphs of Article 9 of these Provisions,
the enterprise shall also submit agreements on alteration of equities reached between its investors to examination and approval departments.

Article 12

After siging equity pledging contracts with pledgees, the investors of the enterprise shall submit the following documents for examination
to examination and approval departments that have approved the establishment of the enterprise:

1.

Resolution of the board of directors and other investors of the enterprise agreeing to the pledging of equities by the pledgor.

2.

Pledging contracts signed between the pledgor and the pledgee.

3.

Certificates of investment by the pledgor.

4.

Report on asset verification presented by Chinese certified public accountants and the accounting firms where they work.

Examination and approval departments shall give approval or disapproval within 30 days after receiving all of the documents specified
in the preceding clause.

The enterprise shall, 30 days after winning approval from examination and approval departments to its pledging of equities, go through
recording procedures with the original registration departments on the strength of relevant documents of approval.

Pledging behaviours carried out without examination and approval and recording as stipulated in the preceding clause shall be invalid.

Article 13

In line with stipulations in the Guarantee Law, the enterprise shall submit, apart from documents specified in the first, second,
third and fifth subparagraphs of Article 9 of these Provisions, valid documents certifying ownership of the equities of the original
investors by pledgees or other beneficiaries if the equities transferred are owned by pledgees or other beneficiaries. Examination
and approval departments shall carry out examination and give approval according to the documents specified above, documents specified
in Article 12 of these Provisions, and stipulations in pertinent laws and regulations.

Article 14

In case of alteration of equities due to reasons specified in the fifth and sixth subparagraphs of Article 2 of these Provisions,
the enterprise shall submit, apart from documents specified in the first, second, third and fifth subparagraphs of Article 9 of
these Provisions, valid documents certifying the ownership by pledgees of the equities of the original investors to examination and
approval departments.

In case of alteration of investors in the enterprise in line with stipulations in the fifth and sixth subparagraphs of Article 2
of these Provisions, the other investors in the enterprise can apply to the examination and approval departments that have originally
approved the establishment of the enterprise to terminate the original contracts and articles of association of the enterprise if
they do not agree to continuation of business operation. After termination of these contracts and articles of association, the owners
of equities shall have the right to take part in liquidation committees and share the properties of the enterprise left over from
liquidation. If the owners of equities do not agree to continuation of business operation, they can transfer, with unanimous consent
from other investors in the enterprise, their equities to other investors in the enterprise or a third party in line with stipulations
in these Provisions.

Article 15

In case of need for alteration of investors or equities due to reasons specified in the seventh subparagraph of Article 2 of these
Provisions, the observing party shall have the right to unilaterally apply to examination and approval departments for alteration.
The observing investor shall submit, apart from those specified in the first, second, third and fifth subparagraphs of Article 9
of these Provisions, the following documents to examination and approval departments:

1.

Report on asset verification presented by Chinese certified public accountants and the accounting firms where they work.

2.

Documents certifying the observant party’s request for the breaching party to pay or complete payment of investment.

In case of purchase of shares by new investors, certificates of legal inauguration of business and certificates of creditability of
these new investors shall also be submitted to examination and approval departments. If the breaching party has paid part of the
investment in line with the original contract and articles of association of the enterprise, relevant documents concerning liquidation
of this part of investment shall also be submitted.

Article 16

If a Chinese investor that has invested with State-owned assets intends to alter its equities, the enterprise shall submit the following
documents to examination and approval departments:

1.

Opinion of the department in charge of this Chinese investor about the alteration of the equities of this investor.

2.

Report on asset evaluation presented by departments in charge of evaluation of State-owned assets.

3.

Letter of verification of the above-mentioned report from departments in charge of management of State-owned assets.

Article 17

Examination and approval departments shall give approval or disapproval within 30 days after receiving all of the documents to be
submitted according to stipulations.

The enterprise shall go through alteration procedures with examination and approval departments for the certificate of approval of
the establishment of enterprises with foreign investment within 30 days after obtaining approval for alteration of equities from
examination and approval departments.

If a Chinese investor receives all the equities of the enterprise, it shall hand in the certificate of approval of the establishment
of enterprises with foreign investment within 30 days after approval from examination and approval departments for the alteration
of the equities of the investor in the enterprise. The examination and approval departments shall notify, within 15 days after revoking
the certificate of approval of the establishment of enterprises with foreign investment, the original enterprise registration departments
of the revocation.

Article 18

The enterprise shall, within 30 days after equity alteration or revocation of the certificate of approval for the establishment of
enterprises with foreign investment, apply to registration departments for alteration registration in accordance with relevant stipulations
in the Regulations of the People’s Republic of China on Administration of Registration of Enterprise Legal Persons and the Regulations
of the People’s Republic of China on Administration of Registration of Companies. Those that fail to go through alteration registration
with registration departments shall be punished by registration departments in accordance with relevant regulations.

Article 19

When applying for registration of alteration of equities, the enterprise shall present to registration departments relevant departments
it has submitted to examination and approval departments, documents of approval from examination and approval departments, and other
documents required by registration departments.

In case of alteration of investors or equities due to reasons specified in the seventh subparagraph of Article 2 of these Provisions,
documents about the engagement and identification of the members of the enterprise’s new board of directors and the resolution of
the new board of directors shall be submitted to registration departments, in addition to documents stipulated in Article 15 of
these Provisions.

In case of acquirement of all of the equities of the enterprise by a Chinese investor due to alteration of the equities of an investor
in the enterprise, the enterprise shall, during its application for alteration registration, submit relevant documents to registration
departments according to requirements for the establishment and registration of the kind of enterprises it intends to set up. After
examination and approval from registration departments, the Business License of the People’s Republic of China for Enterprise Legal
Persons shall be revoked and the Business License for Enterprise Legal Persons shall be issued.

Article 20

Agreements on the alteration of equities and agreements on the revision of original enterprise contracts and articles of association
shall take effect on the date of issuance of altered certificate of approval for the establishment of enterprises with foreign investment.
After effectuation of these agreements, investors in the enterprise shall enjoy rights and shoulder corresponding responsibilities
in line with stipulations in these revised enterprise contracts and articles of association.

Article 21

Unless otherwise stipulated in laws and regulations, the transfer of the unlisted shares of limited-liability companies with foreign
investment shall be handled with reference to these Provisions.

Article 22

Alteration of equities of investors in enterprises set up in China by companies, enterprises, other types of economic organizations,
or individuals from Hong Kong, Macao and Taiwan shall be handled with reference to these Provisions.

Article 23

These Provisions shall enter into force as of the date of promulgation.



 
The Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce
1997-05-28

 






CIRCULAR OF THE CENTRAL COMMITTEE OF THE COMMUNIST PARTY OF CHINA AND THE STATE COUNCIL CONCERNING FURTHER ENHANCING LAND ADMINISTRATION AND ERNESTLY PROTECTING THE CULTIVATED LAND

Category  LAND ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-04-15 Effective Date  1997-04-15  


Circular of the Central Committee of the Communist Party of China and the State Council Concerning Further Enhancing Land Administration
and Ernestly Protecting the Cultivated Land



(April 15, 1997)

    Land is an extremely valuable resource and asset. The per capita quantity
of cultivated land in this country is little, its overall quality is low and
the reserve resources are inadequate. Protection of the cultivated land
itself means the protection of our lifeline. However, in recent years, there
has, as yet, been no fundamental resolution of the question of indiscriminate
occupancy of cultivated land, approval of land requisition in violation of law and waste of land in a number of localities leading
to a sharp decrease
in the acreage of cultivated land and losses of land assets which not only
seriously affected food production and the development of agriculture, but
also affected the development of the entire national economy and social
stability. The Central Committee of the Communist Party of China and the
State Council attache great importance to the major problem of land
administration especially the protection of cultivated land which concerns
the overall interests of the whole country and the posterities of the
Chinese nation and have come to the conculsion after repeated studies that
proceeding from the state of the nation, there must be extremely strict
measures in land administration and in particular in the protection of cultivated land in this country and the basic state policy
of “extremely
holding dear and rationally making use of every single inch of land and
ernestly protecting cultivated land” must be conscientiously carried out,
and policies to treat the rootcause must be adopted to turn the trend
of imbalances between the continued growth of population and sharp decrease
in cultivated land. To this end, it is hereby notified as follows:

    I.Enhancing Macro-administration of Land

    All provinces, autonomous regions and municipalities directly under the
Central Government must, in strict accordance with the requirement of achieving dynamic balance in cultivated land aggregate, achieve
the target
that there shall be only increase but not decrease in cultivated land
aggregate in their respective areas and strive to improve the quality of cultivated land. People’s Governments at all levels must,
in accordance
with the principle of raising the ratio of land utilization and coupling of cultivated land occupancy and development and reclamation,
seriously do a
good job in the compilation, revision and implementation of overall plans
for land utilization with emphasis on the protection of cultivated land,
strict control over cultivated land occupancy and overall arrangements of the requirements of land use by various industries. All
overall plans for
land utilization which fail to comply with the above principle and
requirements have to be revised. Compilation and revision of overall plans
for land utilization must be done after scientific authentication and
strict and thorough measurement and calculation and must be fully feasible;
the overall plans for land utilization shall, upon approval, be legally
binding and integrated into the five-year plans and annual plans for
national socio-economic development and be strictly implemented. Pending
the approval of the revised overall plans for land utilization, there shall,
in principle, be no approval of new occupancy of cultivated land.

    The policy of coupling of occupancy of cultivated land with development
and reclamation shall be carried out. Occupation of land and in particular
occupation of cultivated land and forest land for all types of construction
should be put under strict control. Fertile land should be occupied less
and full use should be made of the land already occupied for construction
and of abandoned land. Uncultivated land should be fully developed and
exploited in the adjustment of the internal structure of agriculture. Except
for requirements for improvement in ecological environment, no occupation of
cultivated land for the development of forest industry and fruit industray
and digging of ponds for fish breeding shall take place. For non-agricultural
construction which really warrants occupation of cultivated land, the area
to be developed and reclaimed must not be less than that occupied and it
must comply with the quality standards for cultivated land. Funds required
for the development of cultivated land shall be included in the total
investment of the construction projects as land cost for construction, and
funds required for reclamation of cultivated land shall be included in the
production cost or total investment of the construction projects. Surface
soil of the cultivated layer of the cultivated land occupied shall be used
for the rebuilding of new land to be undertaken by the construction units
step by step in accordance with the requirements of local governemnts for
occupation of cultivated land for non-agricultural construction. Encouragement
shall be given to cooperation between regions with inadequate reserve
resources of cultivated land and regions with rich reserve resources of cultivated land in reclamation of wasteland and comprehensive
development
of agriculture. All localities should make efforts to sum up and extend
experiences in economy in land use and tapping the potentials of land.

    Management of land use plans shall be enhanced. People’s Governments
at all levels should, in accordance with the requirements of plans for
national socio-economic development, the state industrial policy and the
overall plan for land use, and in accordance with the procedures for the
compilation and submission of plans for national socio-economic development,
work out annual land use plans including targets for protection of cultivated
land, land expropriation for all types of construction, transfer of land use
rights and development and reclamation of cultivated land and enhance control
over land use aggregate. Land use for all constructions must conform with
the overall plans for land use and the overall plans for cities and be
included in annual land use plans. Annual land use plans shall exercise
mandatory planned management which must be strictly implemented with no
breakthrough once they are transmitted.

     must be strictly
implemented. People’s Governments of all localities must, taking the actual
cultivated land area in land use status survey as the base and in accordance
with the delimited protected areas of basic farmland provided for
in the , formulate
strict rules for the protection of basic farmland, with blocks of land
and responsibilities clearly defined and strict control enforced. Rules
should be formulated for the preservation of the fertility of cultivated
land in protected areas of basic farmland and environmental protection so
as to effectively protect the basic farmland.

    Land arrangement should be actively promoted and land building well
managed. All localities should sum up and extend experiences in land
arrangement in a big way, manage well land building, improve the quality of cultivated land, increase area of effective cultivated
land and improve
conditions for agricultural production and the environment through comprehen-
sive arrangement and treatment of farmland, irrigation, roads, forests and
villages in accordance with the overall plans for land use.

    II.Further Toughening Control over Examination and Approval of Land
for Construction

    Strict control over the use of farmland and non-farmland shall be
enforced. As of the date of the issuance of this Circular, occupation of cultivated land for non-agricultural construction projects
shall be frozen
for the period of one year; those which are in actual need of occupation of cultivated land must be submitted to the State Council
for examination and
approval. Original procedures prescribed for submission and approval shall
be followed for land to be used for the resolution of the difficulties of
middle- and low-income households in cities and towns in housing and
comfortable housing projects as well as major construction projects
approved by the State.

    Land to be used for all constructions must be subjected to submission
and approval in strict accordance with legal authorization and procedures.
Departments of land administration should carry out preliminary examination
of the land to used for the projects during the phase of evaluation and
examination of feasibility studies of construction projects. For construction
projects which fail to conform to overall plans for land use, urban
construction projects which fail to conform to municipal overall plans,
those which are not integrated in annual land use plans as well as those
construction projects which fail to comply with regulations for land
administration and relevant provisions for land use for construction,
no land use shall be approved, neither shall construction of the projects
be launched.  

    III.Strict Control of Scale of Land Use for Urban Construction

    Urban planning, construction and administration must strictly adhere to
such relevant laws and regulations as the and Stepping up the Work of Urban Planning>(Guo Fa [1996] No. 18), strictly
control the scale of land use in major cities and especially land use in
medium-size cities and small cities. Urban construction plans overblown
in scale must firmly be scaled down to the controlled standards. The
examination and approval of changing counties to municipalities shall be
frozen as of the date of issuance of this Circular.

    Existing potential should be fully tapped in land use for urban
construction and the best possible use be made of non-cultivated land
and land use rate should be raised. Urban construction and development
must proceed from the actual conditions, act according to one’s capabilities
and carry out in steps in strict accordance with the approved overall urban
plans. Overall plans for urban construction must be coupled with overall
plans for land use and the scale of land use must not break through the
overall plans for land use.

    Partial adjustments or major changes in overall urban plans must be
made with the confirmation of the examination and approval organs and the
same should be submitted for the record or approval in accordance with the
requirements prescribed in the Stepping up the Work of Urban Planning>. Urban planning shall exercise
prescribed standards control over land use for construction in all types
of cities, proceeding from the state of the nation, making overall
arrangement and determining standards for per capita land occupancy which
should be put into effect in each and every township and there shall be
no breakthrough. Land use for urban construction and size of population
of major cities must be controlled within the acope of the near-term plans
of the approved overall plans and must not be further expanded. Centralized
and unified administration of land use should be enhanced and there shall be
no devolution of power in planning control and examination and approval of land use.

    IV.Enhancing Control over Rural Collective Land

    Village and township construction plans should be successfully worked
out in combination with the delimitation of the protected zones of basic
farmland. Village and township construction must be concentrated, closely-
knit and rational in layout, best possible use is made of waste land, slope
land and abandoned land and no fertile land is occupied. Where there are
the required conditions, land suitable for cultivation should be adjusted
for reclamation and re-cultivation through transformation of villages and
townships.

    Building of residential quarters for rural inhabitants must conform to
the village and township construction plans. Where there are the required
conditions, encouragement should be given to relatively concentrated building
of multi-storey apartment houses. Rural inhabitants must acquire house sites
in accordance with law and strictly abide by the prescribed standards of the
provinces, autonomous regions and municipalities directly under the Central
Government wherein they reside in building residences. Each household of rural inhabitants is only enpost_titled to one house site not
exceeding the
standards, and the surplus portion of house sites shall be taken back
for collective ownership according to law.

    Cultivated land lying in waste is strictly prohibited. Contracting rights
shall be withdrawn in accordance with provisions for land no longer used for
agricultural production or land the cultivation of which is abandoned for
failure in implementing the land contracts. Intensive operations in various
forms should be encouraged.

    Funeral and interment reform should be actively promoted by changing
prevailing habits and customs and cremation should be encouraged. No
cultivated land shall be occupied for burial in the ground. Cemeteries can
be delimited in concentrated areas in mountainous villages. Encouragement
should be given to the building of halls for concentrated storage of ashes
of the dead in villages in the plains. For grave sites formed by occupying
cultivated land or forest land, they should be handled in a satisfactory
manner by shifting or deep burial so as not to affect cultivation or
reclamation or return to forestation, under the prerequisite of doing
deep-going and careful ideological work and getting the support and
cooperation of the parties concerned.

    There shall be no occupation of cultivated land or occupation of less
cultivated land and economy in land use to the extent possible in the
development of rural and township enterprises. Land use by rural and
township enterprises should, in line with the requirements of the approved
rural and township construction plans, be rational in layout, properly
concentrated and go through formalities of examination and approval of land use according to law. Promote in a big way new materials
for walls,
restrict production of clay bricks and strictly prohibit occupation of
cultivated land for construction of kilns for bricks and tiles. The
cultivated land already occupied for construction of kilns for bricks and
tiles should be adjusted and returned to cultivation with a specified time
period.

    With the exception of state requisition, there shall be no transfer of collective land use right, no use
for operation-purpose real estate
development, nor transfer or lease for non-agricultural construction.
Strict examination and approval according to law should be adhered to
and attention should be paid to the protection of peasants’ interests
in collective land to be used for non-agricultural construction and
occurences of land use right transactions in the establishment of enterprises in the form of shares with land with units and individuals
outside one’s own collective, or transfer, lease and mortgage of the
appendixes thereon with units and individuals outside one’s own collective.

    All kinds of wasteland collectively owned must not be used for non-
agricultural construction in the form of auction or leased use right.

    V.Strengthening Administration of the State-owned Land Assets

    Transfer of land use right for requisitioned cultivated land should be
strictly controlled. Transfer of land use right for requisitioned cultivated
land, forest land and wasteland suitable for farming for such high-grade
real estate development and construction of golf courses, imitated ancient
townships, amusement parks and top-class villas as well as building of shrines, temples and churches is prohibited.

    Compensatory transfer of state-owned land use right shall mainly be
in the form of auction through open bidding to encourage fair competition.
The system of announcing baseline land price and nominal land price
evaluation shall be established. The bottom-line price of state-owned land
use right auction shall be determined in accordance with the state industrial
policy on the basis of scientific evaluation. The transaction value should
be made public in society.

    Transfer of state-owned land use right involving national defense
security, military restricted areas and key national protected areas and
projects of land development in stretches with foreign investment shall
all be submitted to the State Council for examination and approval. Transfer
of land use right of a whole island to a foreign country is prohibited.

    The State shall, step by step, practise measures of compensatory use
within a limited period for state-owned land use right acquired originally
in the form of allocation and appropriation for non-agricultural operations
with the exception of the cases which may continue to follow allocation and
appropriation under law. The previously allocated and appropriated land use
right involved in the change of system from state-owned enterprises to
limited liability companies or companies limited by shares must practise
compensatory use according to law after land price evaluation. The previously
allocated and appropriated land use right involved in the reorganization of state-owned enterprises shall be handled in accordance
with relevant state
provisions. The previously allocated and appropriated land use right
involved in the transformation of old city districts can be withdrawn by
the government in accordance with law and compensatory use within a limited
period shall be practised according to law except for the scope of allocation
and appropriation provided for under law.

    Land use right transfer markets shall be standardized and illegal
transactions in scalping purchases and sales of land shall be strictly
prohibited. Failure of development and utilization of state-owned land
use right obtained in the form of assignment in accordance with the time
period and terms prescribed by law, the said land use right must not be
transferred. Whoever engages in illegal transfer, he or she shall be
penalized according to law, his or her illegal income confisticated and
his or her land use right terminated. State-owned land use right transfer
must go through registration of change in ownership of the right of the
land, and failure of registration falls within illegal transfer which
shall be investigated and dealt with according to law.

     Henceforward, land benefits from original land for construction
shall be kept for the localities in full as special-purpose funds for
the building of urban infrastructure, land development and transformation
of moderate- and low-yield plots of farmland; land benefits from farmland-
turned-into-land-for-nonagricultural construction shall be handed over to
the Central Treasury in full which shall, in principle, be used for the
development of cultivated land. Specific measures shall be worked out
separately by the State Council. Related land benefits from assignment
of state-owned land use right etc. shall be integrated into financial
budget management in full. People’s Governments at all levels and their
departments of finance and auditing should step up supervision and control
over land benefits to guard against losses of assets.

    VI.Enhancing Law-enforcement Supervision and Inspection in Land
Administration

    Rules for law-enforcement supervision in land administration should be
established and perfected and law enforcement in land administration
enhanced on the basis of summarization of experiences in experiments in
land law-enforcement supervision in a number of localities.

    People’s Governments of all provinces, autonomous regions and
municipalities directly under the Central Government should organize
workforce in carrying out comprehensive sorting out and inspection of conditions pertaining to land use for all categories of construction
(including building of all types of development zones) as well as land
for rural house sites since 1991 in areas under their respective jurisdiction
and deal with the questions discovered in accordance with law. The work of sorting out and inspection should be completed by the
end of October 1997
and reports on the sorting out and inspection as well as investigations and
handling should be submitted to the Central Committee of the Communist
Party of China and the State Council.

    The main contents of sorting out and inspection include:(1)all types of development zones without the approval
of the State Council or provincial
People’s Governments must be revoked and all non-agricultural construction
activities terminated at once and the land reclaimed and cultivated within
a specified time period; failure in land development according to plan in
all types of development zones approved by the State Council or provincial
People’s Governments shall be dealt with according to law. (2)comprehensive
sorting out and consolidation of land use for operating real estate
development projects(including golf courses, etc.). The cases of land use
without going through the formalities of examination and approval in
accordance with the power of examination and approval according to law
shall be sorted out and inspected one by one according to law. Land not
developed within the prescribed time period laid down in contracts shall
also be sorted out and inspected according to law and the land which falls
within farmland must resume agricultural uses within a specified time
period. (3)comprehensive sorting out and inspection of such acts of trans-
action as transfer, leasing and mortgage of land use right in accordance
with law. Acts of scalping in illegal purchases and sales of land seeking
exorbitant profits should be severely penalized in accordance with law.
(4)comprehensive sorting out and consolidation of land occupied by rural
and township enterprises, village and township construction and village
house sites and in particular comprehensive sorting out and consolidation
of cultivated land occupied.

    The State Council directs that the State Land Administration, the
Ministry of Construction and the Ministry of Supervision organize joint
law-enforcement inspection teams in conjunction with the departments concerned
to conduct law-enforcement supervision over the work of sorting out and
inspection of land of all localities and put forth corresponding proposals
in supervision. Land law-enforcement supervision system should take shape
and questions discovered investigated and severely dealt with. Whoever
violates overall land use plans or destroys cultivated land and state
functionaries who approve land use in contravention of law in abuse of
power and serious neglect of duty shall be investigated of criminal
liabilities in accordance with law.

    The departments of land administration should seize the moment in
establishing the national dynamic information system of land administration
by adopting modern technical means to enhance dynamic monitoring of the
status of land use nationwide.

    VII.Strengthening the Organization and Leadership of the Work of Land Administration

    The question of land which involves the fundamental interests of the
whole nation must be subordinated to unified state administration. The
functions of the state in land administration can only be strengthened,
instead of being weakened. The land management system should be further
reformed and perfected and legislation for land administration stepped up.

    Party committees and People’s Governments at all levels should attache
great importance to the work of land administration and in particular to that
of protection of cultivated land and support the departments of land
administration in administering according to law. The departments of land
administration at all levels must earnestly fulfil their responsibilities,
strictly enforce the law and manage the land well according to law.
Performance in the work of enhancing land administration, earnestly
protecting cultivated land and rational utilization of land resources
should be important contents in the evaluation of the performance of local Party committees and People’s Governments at all levels
as well
as their responsible personages, supervision and control shall be
exercised and societal supervision accepted.

    Publicity and education in the state of the nation and the state policy
on land among the whole people should be promoted. Emphasis should be put on
the education of numerous cadres especially the leading cadres to enhance
the sense of worries about land and consciousness in the protection of cultivated land. Contents on the state of the nation and state
policy on
land should be added in the education of cadres. Protection of cultivated
land is the prerequisite for the development of economy. We should hold
extremely dear and rationally make use of every single inch of land in
going in for all undertakings.

    Party committees and People’s Governments of all provinces, autonomous
regions and municipalities directly under the Central Government should
conscientiously study and convey the spirit of this Circular and study
specific measures for its implementation and make reports to the Central
Committee of the Communist Party of China and the State Council by the end
of June this year. The State Council directs the State Land Administration
to conduct supervision and inspection over the implementation of this
Circular in conjunction with the Ministry of Supervision and other departments
concerned.





1...12131415Page 13 of 15

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...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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